Oklahoma Foreclosure Law Summary
Stop Oklahoma Foreclosure
Quick Facts
- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: Yes
- Primary Security Instruments: Deed of Trust, Mortgage
- Timeline: Typically 90 days
- Right of Redemption: None
- Deficiency Judgments Allowed: Varies
In Oklahoma, lenders may foreclose on deeds of trusts or mortgages
in default using either a judicial or non-judicial foreclosure
process.
Judicial Foreclosure
The judicial process of foreclosure, which involves filing a lawsuit
to obtain a court order to foreclose, is used when no power of sale is present in
the mortgage or deed of trust. Generally, after the court declares a foreclosure,
your home will be auctioned off to the highest bidder.
However, unless the borrower waives the right to an appraisal
in the mortgage, the property must be appraised before it can be sold at foreclosure.
At the foreclosure sale, the property may not be sold for less than two-thirds of
the appraised value.
A lender may sue to obtain a deficiency judgment, but the action
must be taken within ninety (90) days after the date of sale. There can be no redemption
once the court confirms the foreclosure sale.
Non-Judicial Foreclosure
The non-judicial process of foreclosure is used when a power of
sale clause exists in a mortgage or deed of trust. A "power of sale" clause is the
clause in a deed of trust or mortgage, in which the borrower pre-authorizes the
sale of property to pay off the balance on a loan in the event of the their default.
In deeds of trust or mortgages where a power of sale exists, the power given to
the lender to sell the property may be executed by the lender or their representative,
typically referred to as the trustee. Regulations for this type of foreclosure process
are outlined below in the "Power of Sale Foreclosure Guidelines".
Power of Sale Foreclosure Guidelines
If the deed of trust or mortgage contains a power of sale clause
and specifies the time, place and terms of sale, then the specified procedure must
be followed. Otherwise, the non-judicial power of sale foreclosure is carried out
as follows:
A written notice of intention to foreclose by power of sale must
be sent by certified mail to the borrower at the borrower's last known address.
The notice must describe the defaults of the borrower under the loan, and give the
borrower thirty five (35) days from the date the notice is sent to cure the problem.
If the borrower cures the default within the thirty five (35) days, then the foreclosure
can be stopped. However, if there have been three (3) defaults, then the lender
need not send another notice of intent to foreclose, and if the borrower has been
in default four (4) times in the past twenty four (24) months, and has been notified
as above, then no further notice will be required.
- The notice must be recorded in the county where the property
is located within ten (10) days after the borrower has gone through the thirty
five (35) day notice period.
- The notice must appear in a newspaper in the county where
the property is located once a day for four (4) consecutive weeks, with the
first publishing being not less than thirty (30) days before the sale.
- Said notice must state the names of the borrower and lender,
describe the property (including the street address) and state the time and
place of sale.
- The property must be sold at public auction to the highest
bidder at the time and on the date specified in the notice. If the highest bidder
at the sale is anyone other than the borrower, they must post cash or certified
funds equal to ten (10) percent of the bid amount. If the highest bidder is
unable to do so, then the lender may proceed with the sale and accept the next
highest bid.
More information
on Oklahoma foreclosure laws.
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