For homeowners facing foreclosure in Oklahoma, the following is a summary of the state’s foreclosure laws:
Foreclosures in Oklahoma can be judicial, meaning the bank must file a lawsuit in court in order to foreclose.
Foreclosures in North Dakota can also be nonjudicial if the mortgage contract includes a power of sale clause.
However, a homeowner can force the bank to foreclose they take the following steps at least ten days before the foreclosure sale:
- Notify the bank by certified mail that the property to be sold is your primary residence and elect judicial foreclosure
- Record a copy of the notice in the county clerk’s office
- If the mortgage contract does not contain a power of sale clause, or if the homeowner takes the steps above, the bank has to file a lawsuit to foreclose.
Oklahoma law requires four foreclosure notices:
- In a judicial foreclosure, the bank the foreclosure process by filing a foreclosure lawsuit in court. The bank then notifies the homeowner by serving them with a complaint and summons, which gives a timeline for the homeowner to respond to, contest or dispute the lawsuit.
- If the homeowner fails to respond to the foreclosure lawsuit or has no defense against the foreclosure, the court will grant judgment in favor of the bank. After the judge issues a judgment of foreclosure, the property will be sold to pay the mortgage debt.
- The bank must send a notice of sale to the homeowner at least ten days before the foreclosure sale date. It must also publish the notice of sale for two consecutive weeks in a local newspaper.
- In a nonjudicial foreclosure, the bank must deliver two notices to the homeowner: a notice of intention to foreclose and a notice of sale.
- Before it can start a nonjudicial foreclosure process, the bank must send a notice of intention to foreclose to the homeowner that gives 35 days from the date of the notice to cure the default and reinstate the mortgage.
- If the homeowner does not cure the default, the bank must personally serve a notice of sale to the homeowner at least 30 days before the foreclosure sale date. The notice must also be published in a local newspaper at least once a week for four consecutive weeks and recorded in the county clerk’s office.
Oklahoma Foreclosure Protections
Oklahoma law provides protections in accordance with the federal Service Members Civil Relief Act.
Oklahoma law also provides protections to Oklahoma National Guard ordered into state active duty or full-time national guard duty.
Reinstatement and Redemption
In a nonjudicial foreclosure, the homeowner has the right to cure any default and reinstate the mortgage for 35 days from the date of the notice of intention to foreclose. Also, most mortgage contracts allow the homeowner to reinstate temporarily. If the homeowner doesn’t have a stated right to reinstate, the bank may allow them to do so anyway
As part of the foreclosure process, the court must approve the foreclosure sale. The homeowner can redeem the home up until the court confirms the sale.
In a nonjudicial foreclosure, the homeowner can redeem the property up to completion of the sale. To redeem, the homeowner must pay the entire debt owed on the mortgage before the bank prepares, signs, and delivers the deed to the buyer of the property at the foreclosure sale.
In Oklahoma, the bank can request a deficiency judgment when it requests a motion of confirmation of the foreclosure sale or within 90 days after the foreclosure sale in a judicial foreclosure.
In a nonjudicial foreclosure, the bank can request a deficiency judgment by filing a lawsuit for the deficiency within 90 days of the foreclosure sale, but not if the homeowner submits a written notice to the bank by certified mail at least ten days before the foreclosure sale. The notice must state the following:
- The property is the homeowner’s primary residence
- The homeowner elects against a deficiency judgment
With both judicial and nonjudicial foreclosures, the court can limit the amount of the deficiency judgment to:
- The difference between the total debt and the fair market value of the property
- The difference between the total debt and the foreclosure sale price, whichever is less.
If the foreclosed homeowners don’t leave the home, the court can order the clerk of the court to issue of a writ of assistance to the sheriff to give the buyer possession of the home. For information regarding how to avoid foreclosure in Oklahoma, visit HUD.gov.