Oklahoma Foreclosure Process and Laws


Quick Facts About the Oklahoma Foreclosure Process

Judicial Foreclosure Available: Yes

Non-Judicial Foreclosure Available: Yes

Primary Security Instruments: Deed of Trust, Mortgage

Timeline: Typically 90 days

Right of Redemption: None

Deficiency Judgments Allowed: Varies

Lenders in Oklahoma may foreclose on mortgages in default through a judicial and non-judicial process.

Judicial Foreclosure
When no power of sale is present in a mortgage, the judicial foreclosure process is used. This involves filing a suit to obtain a court order to foreclose so that the property can be sold at an auction to the highest bidder.

Unless the borrower waives the right to appraisal in the mortgage, the property will have to be appraised before it can be sold, and it cannot be sold for less than 2/3 of the appraised value.

The lender may sue for a deficiency judgement within 90 days of the sale, and the borrower loses his rights of redemption after the foreclosure sale has been confirmed.

Non-Judicial Foreclosure
When a power of sale clause is present in a mortgage deal, the borrower has pre-authorized the sale of his property in case of his default. This means that the lender or his representative has the power to sell the property according to the “Power of Sale Foreclosure Guidelines.”

Power of Sale Foreclosure Guidelines
If the power of sale clause does not specify the time, date and terms of sale, the non-judicial process of foreclosure must take place as follows:

A notice of intention to foreclose must be sent to the borrower through certified mail and it must contain the borrower’s defaults, and giving him 35 days to cure the problem. If there has already been three defaults, the lender need not send another notice of intent to foreclose, and if there has been 4 defaults within the last 24 months, no further notice is required.

  1. A notice to foreclose must be recorded in the county where the property is located within 10 days after the 35 day notice period has passed.
  2. The notice of sale must be published in the county newspaper once a week for four consecutive weeks, with the first ad not less than 30 days before the sale.
  3. The notice must contain the names of the borrower and lender, a description of the property, and the time and place of sale.
  4. The property will be sold to the highest bidder at an auction. If the highest bidder is not the borrower, they must post cash amounting to 10% of the bid. If they are unable to do this, the lender may sell the property to the next highest bidder.

Foreclosure Avoidance Counseling

HUD-approved housing counseling agencies are available to provide you with the information and assistance you need to avoid foreclosure. As part of President Obama’s comprehensive Homeowner Affordability and Stability Plan (HASP), you may be eligible for a special Making Home Affordable loan modification or refinance, to reduce your monthly payments and help you keep your home.

If you need help understanding the Making Home Affordable programs, you can use this search tool to find a counseling agency in your area that will provide you with free foreclosure prevention services. If you are eligible for the loan modification or refinance program, the counselor will work with you to compile an intake package for your servicer.

Foreclosure prevention counseling services are provided free of charge by nonprofit housing counseling agencies working in partnership with the Federal Government. These agencies are funded, in part, by HUD and NeighborWorks® America. There is no need to pay a private company for these services.

Oklahoma City Field Office

Department of Housing and Urban Development

301 NW 6th Street, Suite 200
Oklahoma City, OK 73102

Phone: (405) 609-8509

Fax: (405) 609-8982

Jerry Hyden

Field Office Director
Office Hours: 8:00 a.m. to 4:30 p.m.
Monday through Friday

Tulsa Field Office

Department of Housing and Urban Development
Williams Center Tower II

2 West Second Street, Suite 400
Tulsa, OK 74103
Phone: (918) 292-8900

Fax: (918) 292-8993

Jerry Hyden

Acting Field Office Director

Office Hours: 8:00 a.m. to 4:30 p.m.
Monday through Friday