Oklahoma Laws

Although both judicial and non-judicial Oklahoma foreclosures are available, most foreclosures tend to be pursued through judicial means, as state mortgage law makes it very hard for lenders to pursue non-judicial foreclosure.

The lender must first send the homeowner a Notice of Default detailing their intention to foreclose. If payment still is not received, the lender files a suit against the homeowner in court. The homeowner then has 20 days in which to contest the suit. If the court rules against the homeowner and decides the default warrants foreclosure, they will schedule a foreclosure sale of the homeowner's property. The homeowner can stop this sale by paying off the default amount owed at any point before the sale occurs.

In order to advertise, a Notice of Sale must appear in a local newspaper every day for the four consecutive weeks leading up to the date of the sale.

On the date in question, the Sheriff auctions off the property to the highest bidder. If the property has been appraised, the Sheriff can be asked to start the bidding at 2/3 of the appraised value. In any other case, there is no minimum bid. Once a winning bidder is established, that person must provide a ten percent deposit on their bid immediately and arrange to pay off the remaining balance within 30 days.

All sales are subject to a court's confirmation, which takes about 15 days. During this time the original homeowner is entitled to redeem ownership if they can provide the full amount of the loan owed to the lender. Once the sale is confirmed, the redemption rights are revoked. The lender may seek a deficiency judgment if the proceeds of the sale of the property do not meet the amount originally lost on the loan, but the lender must file for deficiency within 90 days of the end of the sale.

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