FAQ about Oklahoma Foreclosure Laws

Foreclosure can be a confusing, stressful process. Unfortunately, it’s also quite common; in recent years, almost half of the civil cases filed in court have been foreclosure cases. This post will answer common questions that people have about foreclosures.

What is a mortgage?

A mortgage is an agreement where a debtor borrows money from a creditor. The debtor gives the creditor rights in the debtor’s property if the debtor does not pay. In legal terms, the loan is “secured” by the debtor’s property.

Often, the money that the creditor loans the debtor is the money to buy the property. However, this isn’t always the case. Some people take out mortgages on loans for other expenses. For example, a Home Equity Line of Credit (HELOC) is an mortgage agreement where you can borrow money whenever you choose (similar to a credit card), but, unlike a credit card, the creditor can take your property if you don’t pay.

In a mortgage, the debtor is the mortgagor and the creditor is the mortgagee.

What is a foreclosure?

A foreclosure is the legal process where the debtor takes the creditor’s property.

What types of foreclosures are there?

There are two types of foreclosures: a judicial foreclosure, and a non-judicial foreclosure.

In a judicial foreclosure, the creditor must go to court before he can seize your property. In a non-judicial foreclosure, the creditor does not need to go to court. In a non-judicial foreclosure, if you don’t pay, the creditor must send you notice before seizing your property. If, after you receive notice, you still don’t pay, the creditor may seize your property. A creditor may not institute a non-judicial foreclosure unless the mortgage contract specifically provides that non-judicial foreclosure is an option.

For more information on judicial and non-judicial foreclosures, read my earlier blog post here.

What happens when a creditor files a judicial foreclosure?

The creditor must file a petition. The creditor must then serve this petition on the debtor. The debtor then has twenty days to file an answer. If the debtor doesn’t file an answer within twenty days, the creditor can get a judgment by default. If the creditor does file an answer, then a judge must decide whether the debtor has really defaulted on the loan, and whether the creditor is really entitled to the property. If the judge rules that the debtor has not made the requisite payments and the creditor is entitled to the property, the judge will sign a judgment in favor of the creditor.

After the judge signs the judgment (whether it’s a default judgment because the debtor didn’t answer, or whether the debtor did answer and the judge ruled in favor of the creditor) then there will be a sheriff’s sale. This is an auction, conducted by the sheriff. At the sheriff’s sale, the home will be sold to the highest bidder. (Often, the only bidder at the sheriff’s sale is the creditor.)

After the sheriff’s sale, the creditor must file a motion to “confirm” the sale. The judge will schedule a hearing on this motion to confirm. At the hearing, the judge will decide whether the sheriff’s sale was performed properly under Oklahoma law. If the judge rules that the sheriff’s sale was conducted properly, the judge will confirm the sale. After the judge confirms the sale, the sheriff will sign a deed to the new buyer. The buyer does not own the property until the sheriff signs the deed. At any time before the judge confirms the sale, the debtor may redeem the property by paying off the mortgage.

For further information on how the foreclosure process will proceed, and how you can fight a foreclosure is you are a debtor, read my blog post, “How to Fight Your Foreclosure in Court.”

How long does a foreclosure take?

In the first six months of 2024, creditors filed a total of twenty-six foreclosure actions filed in Washington County, Oklahoma. Seventeen of these foreclosure actions were dismissed (either by the judge or voluntarily by the creditor) and the creditor took no property. Nine of these foreclosure actions have not been dismissed. In five of the foreclosure cases that were not dismissed, the court has confirmed the sale. The other four cases are still ongoing as of June 2025 because the court hasn’t confirmed the sale yet. Of the five foreclosure cases in which the court has confirmed the sale, the cases took an average of 277 days from the date of the filing of the petition until the confirmation of the sale. The shortest of these cases took 228 days, and the longest of these cases took 335 days.

Some of my clients, when they have faced a foreclosure action, panic as though they face imminent harm. If a creditor has filed a foreclosure against you, don’t worry. You have ample time.

Can I try to negotiate with the lender during a foreclosure?

Absolutely! It’s often better to see if you can work out a settlement, rather than fight in court. Many creditors will work with you if you will work with them. If you reach an agreement with the creditor, you may be able to keep your property.

Who pays for a foreclosure?

The creditor will have to pay all the costs of their attorneys, and all the expenses of filing the foreclosure. They can then recover this amount from you.

If the creditor seizes the property, and the value of what the creditor received is less than what I owe, can the creditor sue me for the deficiency?

Unfortunately, the answer is yes. For more information about deficiency judgments, read my blog post here.

Can a HELOC (Home Equity Line of Credit) lender sue me for the deficiency?

Yes.

If I’m in the military, do I have a defense in a foreclosure?

Yes. If you haven’t responded to the petition, a judge can’t grant a default judgment against you, unless the judge appoints a lawyer to represent you in your absence. Also, if a creditor forecloses on your house, and the judge finds that your military service affects ability to pay the mortgage, the judge must either stay the case for as long as “as justice and equity require” or the judge may adjust your obligation under the terms of the mortgage. To read the federal statutes on the rights of servicemembers in civil cases generally (this includes their rights in mortgage foreclosures) click here. To read the federal law about the rights of servicemembers in mortgage foreclosure cases specifically, click here.

If I can’t afford a lawyer, will the court appoint one?

No. You only have the right to court-appointed counsel in criminal cases. Because a mortgage foreclosure is a civil, not a criminal case, you do not have the right to a court-appointed attorney in a foreclosure case. This is unfortunate, because many people who can’t afford to pay their mortgages can’t afford to pay a lawyer, either.

The U.S. Department of Housing and Urban Development offers housing counseling; you may be able to seek their assistance. For information on housing counseling, click here. Legal Aid Services of Oklahoma also provides free and low-cost legal assistance to low-income people, you might try contacting them to see if you qualify. Read their page on mortgage foreclosures here.

Do you have a mortgage foreclosure issue? Contact the Persaud Law Office

At the Persaud Law Office, we’ve represented creditors desiring to foreclose on property, and we’ve also represented debtors who have had foreclosure suits filed against them. Whichever side you are on, we are eager to help you if you have a mortgage foreclosure case. Contact us today.