Up to 500,000 US Homeowners Faced Foreclosure in 2021…If you’re experiencing a home foreclosure, it’s crucial to comprehend the foreclosure process in Oklahoma, as it can aid you in navigating your current situation effectively.
Before we explain more about the Oklahoma Foreclosure process…
What is foreclosure anyway?
Foreclosure refers to the lawful procedure used by lenders to reclaim the property that guarantees a loan, typically when the borrower falls behind and stops making payments. Despite being a distressing experience, it’s important to keep in mind that many homeowners go through it annually.
By gaining a more comprehensive comprehension of the foreclosure process in Oklahoma, you can equip yourself with the necessary knowledge to effectively navigate it and emerge from the ordeal as well as possible.
The Basic Stages of A Foreclosure in Oklahoma
There’s a few key stages that are important to any Oklahoma foreclosure process.
Foreclosure works differently in different states around the country.
The two ways different states use to foreclose upon a property are: judicial sale or power of sale.
Connect with us by calling (918) 221-5222 or through our contact page to have us walk you through the specific foreclosure process here locally in Tulsa, or throughout Oklahoma.
In either scenario, Foreclosure proceedings generally don’t reach the court until the borrower has missed three to six months of payments. During this period, the financial institution typically sends multiple late notices indicating that the borrower is in “arrears” or behind in payments, although this isn’t always the case.
Under Judicial Foreclosure:
- Your mortgage holder must file suit in the local court system.
- You’ll get a letter from the local court demanding payment.
- Assuming your loan is valid, you’ll have up to 30 days to bring your payment to court to avoid a full foreclosure (and sometimes this can be extended).
- If you do not pay the payments due during the payment period, a judgment will be entered and your mortgage lender can request the sale of your property – usually through an auction sometimes known as a sheriffs sale.
- Once the property is sold, the sheriff serves an eviction notice and forces you to immediately vacate the property. There’s no more extending it at this point, you must move out immediately.
Under Power of Sale (or Non Judicial Foreclosure):
- The mortgage lender serves you with papers demanding payment, and the courts are not required – although the process may be subject to judicial review.
- After the established waiting period has elapsed, a deed of trust is drawn up and control of your property is transferred to a trustee.
- The trustee can then sell your property for the lender at a public auction (notice must be given).
Anyone who has an interest in the property must be notified during either type of foreclosure.
For example, any contractors or banks with liens against a foreclosed property are entitled to collect from the proceedings of an auction.
What Happens After A Foreclosure Auction?
After a foreclosure is complete, the loan amount is paid off with the sale proceeds.
Many times, when the sale of the property at auction isn’t enough to pay off the loan, a deficiency judgment can be issued against the borrower.
A deficiency judgement is where the bank gets a judgement against you, the borrower, for the remaining funds owed to the bank on the loan amount after the foreclosure sale.
Some states limit the amount owed in a deficiency judgment to the fair value of the property at the time of sale, while other states will allow the full loan amount to be assessed against the borrower.
Here’s a great resource that lists the state by state deficiency judgement laws, since every state is different.
It’s generally advisable to steer clear of a foreclosure auction. Instead, you can either contact the bank directly or collaborate with a trustworthy real estate company like ours, Oklahoma Cash Home Buyer, to assist you in negotiating reductions on the outstanding amount and avoid resorting to foreclosure. As an experienced firm, we handle such situations regularly and have extensive knowledge of the process.
At times, seasoned investors like ourselves can aid you in negotiating with banks to reduce or even eliminate the amount you owe in a sale, even if your property is valued lower than your outstanding balance.
If you need to sell a property near Tulsa, we can help you by making you a cash offer today, and close fast before a foreclosure goes to court.
We buy houses in Tulsa and throughout Oklahoma all the time from people just like you who need to sell fast.
Give us a call anytime (918) 221-5222 or
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Other Foreclosure Resources For Tulsa Oklahoma HomeOwners: