Oklahoma Foreclosure Law and Procedure
The state of Oklahoma offers two methods of foreclosure, the judicial, governed by the age-old principles of common-law equity, and some statutes and non-judicial sales are governed by the Oklahoma Power of Sale Mortgage Foreclosure Act, which was passed in 1986.However, the lender who chooses the non-judicial route will effectively give up the right to sue for a deficiency if the foreclosure involves homestead property.
Oklahoma Judicial Foreclosures
The Oklahoma foreclosure process begins by filing a lawsuit. This allows for the court to order the foreclosure. There is a filing of lis pendens. The court issues judgment and affidavit of judgment is filed with county clerk. After court declares foreclosure, there is a special order of sale. The property must be appraised before it goes to auction.
Oklahoma Foreclosure Notice of Sale
The notice of sale must be published in a newspaper in the county where the property is located once a week for at least (3) consecutive weeks, with the first publishing being not less than thirty (25) days before the sale. Mailings will be sent out to current owners of the property notifying them of the sale.
Oklahoma Sheriffs Sale
The property must be sold at public auction to the highest bidder at the time and on the date specified in the notice. The highest bidder at the must post cash or certified funds equal to ten (10) percent of the bid amount. If the highest bidder is unable to do so, then the lender may proceed with the sale and accept the next highest bid. The property may not be sold for less than two-thirds of the appraised value. The lender may issue a deficiency judgment, as long as it is with in 90 days of the foreclosure sale.
Oklahoma Non-judicial Foreclosure
A written notice of intention to foreclose by power of sale must be sent by certified mail to the borrower at the borrower's last known address. The notice shall describe the defaults of the borrower under the loan, and give the borrower 35 days from the date the notice is sent to cure the problem.
Notices
The notice must describe in detail the nature of the borrower's default on the loan. The lender's notice informs the borrower that if the house is the borrower's homestead, then the borrower has ten days to elect judicial foreclosure or else face out-of-court foreclosure under a power of sale clause.
The notice must be published once a day for four consecutive weeks, but the first date must be not less than 30 days before sale. The property will be sold at public auction to the highest bidder.
Redemption
Once the court confirms a foreclosure sale there can be no redemption. There is no right of redemption on power of sale foreclosures either, although the borrower has the right to redeem until the foreclosure sale.
Oklahoma Foreclosure Deficiency
A lender may sue judicially to obtain a deficiency judgment. Also, under the Oklahoma Power of Sale Mortgage Foreclosure Act, any action for a deficiency must be commenced within 90 days after the date of sale.
|
