Oklahoma Foreclosure Law
Most foreclosures in Oklahoma are non-judicial foreclosures, though judicial foreclosures may be used. Properties in Oklahoma can be foreclosed quickly and can be complete in about 90 days. Trustees must follow strict notice provisions in non-judicial foreclosures since the court isn't involved. Oklahoma borrowers do not have a right of redemption after the foreclosure sale. Lenders may pursue deficiency judgments against borrowers if the property does not sell for the fair market value at the foreclosure sale.
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Types
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Non-judicial foreclosures occur when the lender uses a deed of trust. Deeds of trust include a clause known as the power of sale clause, which essentially gives a lender advance permission to sell a property in the event a borrower defaults on the loan. Judicial foreclosures are used when there is no power of sale clause, which is rare in Oklahoma.
Time Frame
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Lenders must send borrowers written notification that they intend to foreclose on a delinquent property. Once this notification has been sent, the borrower has 35 days to make the delinquent payments and bring the loan current. According to foreclosure.com, if the borrower defaults three times (four times if a homestead property) in a 24 month period, the lender is not required to send notice and may proceed with the foreclosure. Once the redemption period has passed, the lender's trustee is required to publish a notice of the foreclosure sale for four consecutive weeks and must personally serve the defaulted borrower at least 30 days prior to the scheduled sale.
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Foreclosure Sale
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On the date of the foreclosure sale, the trustee or representative of the lender auctions the property to the highest bidder. If the winning bidder is not the lender, the bidder must post a deposit equal to 10 percent of the sale price. If the winning bidder is unable to do this, the property is awarded to the next highest bidder. In the event that the original borrower did not receive sufficient written notice of the sale (at least 10 days), the sale may be postponed.
Redemption
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According to Oklahoma law, there is no statutory right of redemption once a foreclosure sale is executed. This means that once a property is sold through a foreclosure auction—either through judicial or non-judicial means—the borrower has no recourse to reclaim the property.
Deficiency Judgment
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Oklahoma law permits lenders to pursue deficiency judgments from borrowers. This can only be done if the property is auctioned for less than the loan amount. The lender can only seek a judgment for the difference between the loan amount and sale amount, plus any legal fees related to seeking the judgment. Lenders have 90 days from the sale date to seek a deficiency judgment.
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References
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