Oklahoma foreclosure law

Oklahoma allows lenders to foreclose on mortgages and deeds of trust in default, using either the judicial or non-judicial process. This means lenders can foreclose in or out of court, depending on the contract. The average timeline for an Oklahoma foreclosure is 90 days, or approximately three months.

Judicial foreclosure
A judicial foreclosure is followed when the contract does not contain a Power of Sale clause. This clause would otherwise allow the lender to foreclose outside of court on his or her own terms. In a judicial foreclosure, the lender files a lawsuit and obtains a court order to foreclose. If the default is confirmed, the court declares the foreclosure and the home is sold via public auction.

In Oklahoma, however, the home must be appraised at some point before the foreclosure sale, unless the contract shows that the borrower has surrendered the right to appraisal. The home will then be sold for no less than two-thirds of the determined value.

Lenders who foreclose in the judicial method have 90 days after the sale to file a deficiency suit. This is a separate claim against the borrower for any balance not paid for by the foreclosure sale. Borrowers have no rights of redemption, which means they cannot regain possession of the home once the sale is confirmed.

Non-judicial foreclosure This method is followed when the contract includes a Power of Sale. This basically means that the borrower has pre-authorized the lender to sell the home as payment in case he or she defaults. This authority may be practiced by the lender or a representative known as the trustee.

If the clause indicates the place, time, and date of the sale, these terms will usually be followed for the foreclosure. If it doesn’t, the following procedures will be carried out:

First, the lender sends the borrower a notice of intent to foreclose by power of sale. The notice is sent via certified mail and contains an account of the default, a description of the home, the names of the lender and borrower, and the time and place of the foreclosure sale. This notice may not be required if the borrower has defaulted at least three times, or four times in the past two years.

The borrower is then given 35 days, starting from the date the notice is sent, to pay the delinquent amount and cure the default. Ten days after this period ends, if the borrower hasn’t cured the default, the notice will be filed in the county office where the home is located. It will also be published in a newspaper with general circulation in the county, appearing every day for four successive weeks. The first ad must appear at least 30 days before the sale date.

The home is then auctioned off on the time and date stated in the notice. The borrower is allowed to bid on the home. If the winning bidder is not the borrower, they are required to post at least 10% of the bid amount in cash or certified funds. Otherwise, the lender can sell the home to the next highest bidder.

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