Timeline:
90 Days
Redemption:
No
Deficiency
Judgments: Yes
Judicial
Foreclosure: Yes
Non-Judicial
Foreclosure: Yes
Security
Instruments: Deed of Trust, Mortgage
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Oklahoma
foreclosure law allows for both Judicial and Non-Judicial Foreclosure
procedures. If the original loan documents do not contain a
“power of sale” clause, the Judicial Foreclosure process is
used. The lender must sue the borrower and obtain a court order
to foreclose. Unless the borrower waives the right to an appraisal,
the property is appraised prior to the sale. The sale price
can not be less than two-thirds of the amount of the appraised
value. If lender wishes to pursue a deficiency judgment, they
must do so within ninety (90) days of the sale date.
If the
original loan documents contain a “power of sale” clause, the
lender can use the Non-Judicial Foreclosure process. The “power
of sale” clause authorizes the lender to sell the property in
the event of the borrower defaulting on the loan. If the clause
specifies the time, place, and terms of the sale, then that
process is followed. |
sale process begins in Oklahoma with a notice of intent to foreclose.
This notice must contain both the borrower's and lender's information,
as well as the defaulted amount, a description of the property,
the street address of the property, and the time and place of
the sale. A copy of the notice is served to the borrower by
registered mail or certified mail and sent to the last known
address of the borrower. The borrower has thirty-five (35) days
to cure the default.
If the
borrower can not cure the default, the notice must be recorded
with the county clerk no longer than ten (10) days after the
expiration of the borrower's thirty-five (35) day period to
cure the default. The notice must also be published in a newspaper
of general circulation for four (4) consecutive weeks. The first
publication can not be less than thirty (30) days before the
scheduled sale date.
If the
borrower is able to cure the default, but goes back into default
three times or four times within a twenty-four (24) month period,
no further notice is required.
The
sale of the property is conducted at a public auction at the
time, place, and date specified in the notice. The high bidder
at the auction must deposit ten percent (10%) of the sale price
as cash or certified funds. If the bidder is unable to do this,
then the next highest bid may be accepted.
The
borrower in Oklahoma has no right to redeem the property once
the sale has been confirmed.
Oklahoma Foreclosure Law