Oklahoma foreclosure allows for both the judicial (in court) and non-judicial (out-of-court) foreclosure processes, although most foreclosures are non-judicial in the state. Generally, the foreclosure process takes about 6-7 months.
The lender may proceed with foreclosure out of court as long as the mortgage or deed of trust gives them the authority to do so via a “Power of Sale” clause. That said, restrictions under Oklahoma foreclosure law make it difficult to initiate a foreclosure out of court, so this type of foreclosure is rare.
As such, the majority of foreclosures in Oklahoma are processed through the court system. After sending any required warning letters, also called a “Breach Letter” to the borrower, the lender must file in court against the borrower for default on the loan. A notice of this court action is also served in person on the borrower and mailed to the borrower as well. In most cases, the borrower has 20 days to respond to the court. If the court decides to rule against the borrower, the property is then scheduled for public auction.
In an Oklahoma foreclosure, the borrower typically gets the right to:
- Pre-foreclosure notices
- apply for loss mitigation
- receive certain foreclosure notices
- get current on the loan and stop the foreclosure sale
- receive special protections if the borrower or spouse is in the military
- pay off the loan to prevent a sale
- redeem the property after the sale
- file for bankruptcy, and
- get any excess money after a foreclosure sale.
Notice of Sale & Auction
A Notice of Sale, (NOS), must be recorded in the county where the property is located. It is also required that the NOS be published in a local newspaper in the county where the property is located every day for four consecutive weeks. The first publishing date must be a minimum of 30 days prior to the date of sale.
The property is sold at a public auction and the auction is overseen by the county sheriff. The opening bid must be no less than two thirds of the property’s appraised value according to Oklahoma foreclosure law. However, the law is unclear because in the case where no appraisal was made, there is no minimum bid required. The highest bidder must provide cash or certified funds equal to 10 percent of their bid amount by the end of the auction. If for any reason the sheriff’s sale is cancelled, the entire foreclosure process starts over.
After the sale, it takes around 15 days for the sale to be confirmed by the court. The borrower has the right to redeem the property by paying off the full amount owed up until the sale is confirmed. The borrower has no redemption rights once the sale has been confirmed by the county court.