Oklahoma City Oklahoma Foreclosure Help, Defense, Laws and Process


With the recent economic crunch, owning property is becoming more and more difficult. In as much as mortgage help is available for those considering buying a house, you might find yourself in a fix if you’re unable to repay your mortgage. However, consult your financial institution for a loan modification to assist you offset any pending payments. Foreclosure has become common in the U.S and many find themselves on the receiving end of lending institutions. Factors contributing to foreclosure include sudden loss of a job, terms of the loan, bankruptcy and death. Laws affecting foreclosure vary from state to state. Below is a guide on what the law states about foreclosure in Oklahoma as well as its avoidance.

Stop Foreclosure in Oklahoma city, Oklahoma

The foreclosure procedure in Oklahoma takes approximately 6-7 months. Foreclosures can be settled in or out of court depending on the stipulated terms on the deed of trust. The lender can go ahead with foreclosure out of court as long as the mortgage terms say so. Out of court settlements are rare in Oklahoma because of restrictive laws.

The lender sends a warning letter to the borrower before filing a case in court against the borrower. The defaulter receives a copy of the court action. He is given 20 days to respond. If the court rules in favor of the lender, the property is sold through auction. Seeking government assistance in good time will enable you to know the next course of action.

Notice of sale is recorded in the local newspaper as well as the county that the sale will take place. The property is sold through a public auction where the sheriff oversees the sale. The opening bid should be more than two thirds of the property’s total value.

Once it is sold to the highest bidder, payment should be done in cash or its equivalent which should be 10% of the total bid. Once the sale has been made, it takes the court at least 15 days for the sale to be confirmed. At this point, it is wise to seek government help from government agencies. Note that should the sheriff’s sale be cancelled, the foreclosure process starts afresh.

Oklahoma City, Oklahoma Foreclosure Process

It is best to seek help from an attorney before the foreclosure process begins. The process in Oklahoma is both judicial and non-judicial. The judicial foreclosure process comes into effect when the power of sale section is absent in the security instrument. The lender sues the debtor to get a court order to foreclose. Property appraisal is done before the sale. This means that the asset must be sold no less than two thirds of the appraised value.

Non judicial foreclosure process is used when the cost of the property is present in the deed of trust. With this clause present, the lender can sell the asset to recover his money. The procedure followed is as below:

  • The borrower is issued with a notice of intent to foreclose. The notice also gives the defaulter 35 days to offset the debt.
  • If paying the debt is impossible, a notice must be recorded with the county clerk. This must be published in a newspaper of daily circulation.
  • Should the defaulter pay the debt but defaults again in a span of 24 months, no other notice is issued.
  • The sale must be a public auction where the highest bidder pays in cash or its equivalent. If this is not possible, the next highest bidder is considered.

It is advisable to repair credit in ample time to allow you to qualify for the next loan. For further help, seek the services of an advice agency.