In Oklahoma, lenders
may foreclose on deeds of trusts or mortgages in
default using either a judicial or non-judicial
foreclosure process.
Oklahoma Foreclosure
Laws: 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.
Oklahoma
Foreclosure Laws:
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".
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Oklahoma Foreclosure Laws:
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.
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