|
|
Immediate Foreclosure Solutions |
|
HOME |
|
Oklahoma Judicial Foreclosure Available: Yes Non-judicial Foreclosure Available: Yes In Oklahoma both judicial and non-judicial
foreclosures are available. The judicial sales are governed by the age-old
principles of common-law equity, and some statutes. The 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. Moreover, a borrower may force the lender into
judicial foreclosure if the property involved is a homestead by recording and
then mailing a written notice to the lender 10 days before the foreclosure
sale claiming the property as homestead. At that point, only judicial
foreclosure may be used. This right is not available on other types of
property. Judicial Foreclosure Mortgages on real estate can be foreclosed by
filing a lawsuit under principles of equity in the District Court of the
county where the land is located. If there has been a default by the borrower
in meeting the requirements of the loan, such as not paying the payments,
then the court will order a foreclosure sale. The price may be determined
through a special appraisal procedure. Unless the borrower waives the right
to an appraisal in the mortgage, the property must be appraised before it can
be sold at foreclosure. At the foreclosure sale, the property may not be sold
for less than two-thirds of the appraised value. Judicial Execution Sale Advertising The impending foreclosure sale must be advertised
at least 30 days in advance of the sale. Non-judicial Foreclosure Mortgages that can be foreclosed out of court must
include the following statement, in bold and underlined type: A power of sale has been granted in this mortgage. A power of sale may allow the mortgagee (lender)
to take the mortgaged property and sell it without going to court in a
foreclosure action upon default by the mortgagor under this mortgage. 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. If the borrower comes up with the missed
payments during the 35 days, then the foreclosure can be stopped. It cannot
be accelerated. However, if there have been three defaults, then the lender
need not send another notice of intent to foreclose, and if the borrower has
been in default four times in the past 24 months, and has been notified as
above, then no further notice will be required to accelerate. Preliminary Notices Contents The notice must describe in detail the nature of
the borrower's default on the loan. Time 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. Advertising 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. Recording The notice, plus an affidavit confirming the
validity of the trustee's procedures, must be recorded within ten days after
the borrower has gone through the 35-day notice period. Service The borrower must be served with the papers
advising the buyer of the default. They should be served in the same manner
as for court. These papers should not only be served, but the wise lender
will preserve proof of receipt, return of service or an affidavit in lieu of
personal service, along with proof of publication. All of these affidavits
and a copy of the notice must be recorded. Sale Procedures Time and Place The time and place of the sale must be specified
in the notice of foreclosure. Manner The property will be sold at public auction to the
highest bidder. If a purchaser at a foreclosure sale other than the borrower
fails to post cash or certified funds equal to 10 percent of the bid amount,
then the lender may proceed with the sale and accept the next highest bid. 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. 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. In such event the lender shall establish that the fair market value
of the property on the date of the foreclosure sale exceeded the foreclosure
sale price. If it did, then the higher figure must be credited against the
balance due on the loan. If the house is the borrower's homestead, and the
borrower elects judicial foreclosure, the borrower may be hit with a
deficiency suit. On the other hand, if the borrower does nothing, then the
lender cannot sue for a deficiency. |
HOME HELP CONTACT US FAQs
©Immediate Foreclosure Solutions®