Oklahoma Foreclosure Prevention Efforts

For 2009, Oklahoma ranked 34th among all states in foreclosure rate, an increase of 3.79% from the year before. Nationally, 2009 was the worse year for foreclosures in US history, with 2.8 million property owners receiving a foreclosure notice.

Foreclosures in Oklahoma are either non judicial or judicial. The lender does not have to go to court as long as the mortgage or deed of trust specifically allows a foreclosure to proceed outside of court through a power of sale clause. Here, the lender must send the borrower a written notice of the intent to foreclose by drawing on the power of sale. The borrower is given  35 days to cure the default.

A copy of the notice of sale must be published daily in a local paper for at least 4 weeks in a row with the first published not less than 30 days before the proposed sale. The notice of sale must be personally served not less than  3o days prior to the date of the sale and must be recorded within ten days of the 35 default cure period.

In a judicial foreclosure, after a default warning letter sent to the borrower, the lender files against the homeowner for default on the loan. Notification of the court action has to be delivered both in person and via mail. The borrower has 20 days to respond. If the court rules against the borrower, the property is scheduled for sale.

Notice of the auction is recorded in the county of the property and published in a local newspaper once a day for four weeks in a row, beginning at least 30 days prior to the sale date.

The property is sold at a public auction overseen by the county sheriff with an opening bid no less than two thirds of the property’s appraised value. In the case where no appraisal was made, there is no floor to the first bid.  At the auction the buyer must have 10% of his bid to put down in cash or certified funds. The sale must be confirmed by the court, a process that takes about 15 days. The borrower can redeem the property by paying off the full amount owed only until the sale is confirmed. After that the borrower has no right of redemption. Oklahoma does allow deficiency judgments against a foreclosed borrower only under specifically defined circumstances.

Oklahoma is not rich in foreclosure prevention resources so be particularly wary of foreclosure rescue scams.

Here are some legitimate sources for help:

• For information about homebuyer education and foreclosure mitigation services, please contact: Susie Brian,  Housing Counselor, Metropolitan Tulsa Urban League, (918)-584-0001
• The Oklahoma Legal Aid Website can put you in touch with a low cost attorney to help
• Another option is to turn to these US Department of Housing and Urban Development Approved Counseling Agencies.