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Understand the Foreclosure Process in Oklahoma

Understand the Foreclosure Process in Oklahoma

Due to the increase in forbearance for mortgages, this new change will likely cause some homeowners to play catchup on their mortgage payment. However, there will be some homeowners who may not be able to play “catchup” on their mortgage payment and therefore get behind on payments. Understanding the foreclosure process in Oklahoma will be something that you would need to understand so you can avoid your credit from being destroyed and your home being taken by the bank. Once you know and understand the foreclosure process you can avoid simply avoid it, while leveraging the solutions that will benefit you. Lastly, you can save your home or sell it without foreclosure and make some extra cash out of the deal.

Here are a few of the top question that we will be able to address in this article:

  1. Can you sell a house in pre-foreclosure in Oklahoma City
  2. How to sell a house before foreclosure
  3. What is pre-foreclosure
  4. What’s the difference between a short sale and foreclosure
  5. How to say in my home after foreclosure in Oklahoma


What is a foreclosure?

Foreclosure is the legal process by which a lender takes control of a property, by evicting the homeowner once a homeowner is unable to make full principal and interest payments on his or her mortgage, as stipulated in the mortgage contract.

Foreclosure is the legal process that a lender and/or bank goes through in order to take back a house that they allowed a homeowner to borrow to purchase the house. This process of foreclosure begins once the borrower(s) stop making payments in the usual cases. Keep in mind you signed an agreement with the bank when they provided you with the money to buy a house. In the clause of the agreement, timely payments were part of the agreement and when payments are missed the agreement is broken. The #1 reason for foreclosures to occur is falling behind on mortgage payments.

The pivotal point to coming out on top and finding the solution is to ensure you understand the foreclosure process with an expert. We’ve been through the process with numerous people, so call us to chat if you have any questions and remember you still have options!

Exit Strategy Investments is always available and all you have to do is give us a call.

The Main Stages of Foreclosure

There are only two different types of foreclosure that are common in the United States to any type of foreclosure process. The state that you live in will determine how your state will process the foreclosure. The two different types of foreclosures are (1) judicial foreclosure sale or (2) non-judicial foreclosure sale. In Oklahoma, most foreclosures are processed through the judicial foreclosure method.

In Oklahoma, you will see that foreclosures typically do not go to court until you have missed 3-6 months of mortgage payments. Usually (this is not guaranteed all the time) the lender/bank institution will mail you several notices to notify you that your payments are delinquent and late. If you are in this type of situation where you are behind on your payments and your bank is about to start foreclosure or has not seized your house, you are in pre-foreclosure. During this phase of the foreclosure process which can last between 2-12 months you have options which are:

  1. Pay the missed payments to catch up
  2. You can refinance your original loan and the bank may provide you with different option terms to possibly lower your mortgage payment.
  3. You can sell the house to pay off the mortgage
  4. You can sell the house for less than you own and eliminate the mortgage via a short sale.


Judicial Foreclosure:

In a judicial foreclosure, the bank must file a lawsuit with the court to begin the foreclosure process. A judicial foreclosure usually takes several months or more, resulting in giving you time to look for another place to live, and during this timeframe also save money. In most cases, according to federal law, the bank must wait until you are more than 120 days delinquent in payments before starting a foreclosure. Here are a few brief steps that you can expect to see:

  • The bank sends you a letter notifying you of their intent to begin foreclosure. This letter can be sent during this 120-day pre-foreclosure period.
  • The bank files a lawsuit. If you don’t make up the payments that were missed, then the bank will proceed to the court to file a lawsuit, which actually is a request for the right to sell the home and apply those proceeds from the sale to the debt of the mortgage. Keep in mind that a deficiency judgement if the selling of the property does not fully pay off the debt.


Non-Judicial Foreclosure:

In a non-judicial foreclosure, the bank/lender does not have to go to court in order to foreclose on your home. This means that the foreclosure process is typically quicker than that of a judicial foreclosure. Once again in most cases according to federal law, the bank must wait until you are more than 120 days delinquent in payments before starting a foreclosure. Here are a few brief steps that you can expect to see:

  • The bank will serve you a notice of default (remember courts are not required to be used). This notice is what will prompt to give you time to make up all the missed back payments by the deadline.
  • Once the grace period has elapsed, the bank will have a deed of trust written up that will then provide control of the property to be transferred to a trustee (usually the bank itself or their attorney).
  • At this point, the designated trustee can sell the property to get their money back on the house.


As you can see now with this knowledge, it’s best to simply just avoid foreclosure and deficient judgement altogether. Instead, just call the bank to try and work out an arrangement with them (short sale or refinance). Another option you have is to work with a real estate company like us to help you either sell the house as is, take over payments (including catching you up on past missed payments), or if you need help to negotiate with the bank to sell at a price for less than what is owed and wipe the debt clean completely (no deficiency judgement).

Experienced investors like us can help you by negotiating directly with the bank to work out a deal where they forgive the debt and you sell the house for less than what you owe.

If you need to sell a property fast in Oklahoma City, we can help you.

We buy houses in Oklahoma City facing foreclosure all the time. We know how it works. Don’t wrestle with understanding the foreclosure process in Oklahoma. Call us today or anytime (405) 698-3948.