Oklahoma Foreclosure Laws

Expected Timeline: Four to seven months
Security Instrument: Mortgage or Deed of Trust. Most common is mortgage.
Type of Process: Judicial or nonjudicial. Judicial foreclosure most commonly used.
Protections for Servicemembers: Okla. Stat. titl 44, § 208.1
Time to Respond: Homeowners have twenty to thirty days to respond to foreclosure lawsuit. Notice of sale must be served at least ten days before sale if by mail. If served by publication, publishing must start at least thirty days before sale. If nonjudicial foreclosure is used, homeowners must receive a 35 day notice of intent to foreclose and a 30 day notice of sale.
Reinstatement Period: In nonjudicial foreclosure, homeowners may reinstate within 35 days of service of notice of intent to foreclose.
Protections for High-Cost Mortgages: None.
Redemption Period: Redemption period lasts until sheriff sale is confirmed by court.
Eviction Process: Immediate possession may be granted to new owner by judge. Failure to leave property may be considered contempt of court.
Deficiency Judgments: Allowed if requested within 90 days of sheriff sale. The amount of a deficiency is limited by fair market value.
Limits on Deficiency Judgments: Limited by fair market value as of auction date. Objections may be filed to confirmation of sale.
Cash Exempted in Bankruptcy: None.
State Statutes: Okla. Stat. tit. 12, § 686, 764 to 765, 773, Okla. Stat. tit. 46, § 41 to 49

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.

The 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.

State Website: www.lsb.state.ok.us