Understanding the foreclosure process in OK is an important part of navigating your own home foreclosure.
Before we dive in…
Understanding the Foreclosure Process in OK
What is foreclosure anyway?
Foreclosure is the legal process by which lenders reclaim property used to secure a loan, usually after the borrower stops making payments.
Foreclosure is not a pleasant experience. But don’t worry, it’s not the end of the world.
When you understand how foreclosure works in [market state], you will be better able to manage it and come out on the other side as well.
The Basic Stages of A Foreclosure
There are a few stages that are important to any 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) 407-7981 or through our contact page to have us walk you through the specific foreclosure process here locally in Tulsa.
In either scenario, foreclosure typically doesn’t go to court until 3-6 months of missed payments have elapsed. Usually (but not always), a lender will send out many notices that you are in arrears – overdue or behind in your payment.
Under Judicial Foreclosure:
- Your mortgage lender must file suit in the court system.
- You’ll get a letter from the court demanding payment.
- If the loan is legal, you will have 30 days to submit payment to court in order to avoid foreclosure (and sometimes that can be extended).If you don’t pay during the payment period, a judgment will be entered and the lender can request the sale of your property – usually through an auction.
- Once the property is sold, the sheriff serves an eviction notice and forces you to immediately vacate the property.
Under Power of Sale (or Non-Judicial Foreclosure):
- The mortgage lender serves you with documents seeking payment, and you are not required to appear in court – though 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 to 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 holding liens on a foreclosed property have the right to collect from the auction proceedings.
What Happens After A Foreclosure Auction?
After a foreclosure is complete, the loan amount is paid off with the sale proceeds.
A deficiency judgment occurs when the bank obtains a judgment against you, the borrower, for the remaining cash 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 judgment laws, since every state is different.
Generally, it’s best to avoid a foreclosure auction. Instead, call up the bank, or work with a reputable real estate firm like us at YT Properties to help you negotiate discounts off the amount owed to avoid having to carry out a foreclosure.
Experienced investors can help you by negotiating directly with banks to lower the amount you owe in a sale – or even eliminate it, even if your home is worth less than you owe.
If you need to sell a property near Tulsa, we can help you. Sell your house fast in Tulsa, OK!
We buy houses in Tulsa OK like yours from people who need to sell fast.
Give us a call anytime (918) 407-7981 or
fill out the form on this website today! >>
Another Foreclosure Resource For Tulsa OK HomeOwners: