What are the foreclosure laws in Oklahoma?
The laws for foreclosure in Oklahoma can be confusing.
Summary:
| Judicial Foreclosure | Yes |
| Non-Judicial Foreclosure | Yes |
| Security Instruments | Deed of Trust, Mortgage |
| Right of Redemption | None, upon confirmation of sale |
| Deficiency Judgments | Yes, with time limitation of filing |
| Time Frame | Usually 90 days |
Judicial foreclosure is used in the absence of a power of sale clause in the security instrument. The lender sues to obtain a court order to foreclose. The property, unless the borrowers waive their right to an appraisal, the property must be appraised prior to sale, and may be sold for no less than two thirds of the appraised value. The lender may sue for a deficiency judgment, but must do so within 90 days of the sale date.
Non-judicial foreclosure is used when the security instrument contains a power of sale clause authorizing the lender to sell the property to recover the loan balance in the event of the borrower’s default. If the power of sale clause includes the time, place and terms of sale, that procedure must be followed. If not, the non-judicial foreclosure process is as follows:
- A notice of intent to foreclose containing borrower and lender information, Defaulted amount, description of the property, street address, and time and place of sale must be sent to the borrowers at their last known address by registered or certified mail. The notice also gives the borrower thirty five days to cure the default.
- If the borrower does not cure the default, the notice must be recorded with the county clerk within 10 days of expiration of the 35 day grace period, and published daily in a newspaper of general circulation for four consecutive weeks, beginning not less than 30 days prior to the sale date.
- If the borrower does cure the default and again goes into default three times or four times in 24 months, no further notice is required.
- The sale must be at public auction at the time, place and date in the notice. The successful bidder must post cash or certified funds equal to 10% of the bid amount. If they are unable to do so, the next highest bid may be accepted.
