Oklahoma Foreclosure Law
- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: Yes
- Primary Security Instruments: Deed of Trust, Mortgage
- Timeline: Usually 90 days
- Right of Redemption1: No
- Deficiency Judgments2 Allowed: Varies
Lenders in the state of Oklahoma may foreclose on deeds of trusts or mortgages in default using either a non-judicial or judicial foreclosure process.
Judicial Foreclosure
A judicial process of foreclosure requires that the lender file a lawsuit and attain a court order to foreclose on a particular property. This type of process is generally used when no power of sale is present in the mortgage or deed of trust. A power of sale is a clause found in a deed of trust or mortgage that authorizes the sale or transfer of land as outlined by the terms of that clause.
Judicial Foreclosure Procedure
Under Oklahoma law, if the property is foreclosed by judicial foreclosure process the property must be appraised before it can be sold. The borrower can waive this right. The law also requires that the property must be sold for no less than two-thirds (2/3) of the appraised value at the foreclosure sale.
A lender may sue for deficiency if the foreclosure is conducted judicially. The lender has ninety (90) days after the sale in which to commence a lawsuit for a deficiency judgment.
Non-Judicial Foreclosure
If a power of sale clause exists in the deed of trust or mortgage document, a non-judicial process of foreclosure is used. This allows the lender to sell the property and pay off the balance of the loan in the event the homeowner defaults. The power to sell may be completed by the lender or their representative in situations where a power of sale exists. The procedure for this type of foreclosure process is explained in the "Power of Sale Foreclosure Procedure" listed below.
Power of Sale Foreclosure Procedure
If the deed of trust or mortgage has a power of sale clause and it details the time, place and terms of sale, then the outlined procedure must be followed. However, if the power of sale clause, does not clarify the time, place and terms of sale, then a foreclosure sale will be conducted as follows:
- The borrower must receive a written notice of the lender’s intent to foreclose and also a description of the default by the borrower on the loan.
- The lender must state that the borrower is provided with thirty-five (35) days from the date the notice is sent to cure (stop the foreclosure).
- The notice of intent does not need to be sent if the borrower has defaulted three (3) times previously, and if the borrower has been in default four (4) times in the past twenty four (24) months, and has already been notified.
- After the thirty-five (35) day notice period has passed, the notice is recorded in the county where the property is located within ten (10) days.
- Then, a copy of the notice is published in a newspaper once a day for four (4) successive weeks. The first advertisement is no less than thirty (30) days prior to the sale.
The property is sold at public auction to the highest bidder. There are no rights of redemption provided to the borrower once the court confirms the sale.
If the lender choose the non-judicial route of foreclosure, they forfeit their right to a deficiency judgment if the foreclosure involves homestead property.
1 A borrower’s right to reacquire property lost due to a foreclosure.
2 A personal judgment against the borrower for the remaining balance on the loan after a foreclosure sale.
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