If you are a homeowner in Oklahoma who is on the verge of foreclosure, you should know that you’re not alone. Whether you are starting to fall behind on payments or are already being threatened with foreclosure in Oklahoma, it can be terrifying not to know what to do or where to get help.
In this blog post, we will explain the Oklahoma foreclosure process and your options if you find yourself facing foreclosure. Additionally, you will learn how to prevent foreclosure. For more information about the foreclosure process, whether it’s your first time facing foreclosure or just curious about how it works, keep reading.
What is a Foreclosure, and How Does it Work in Oklahoma?
In a foreclosure, a lender attempts to recoup loan balances by forcing a borrower to sell the collateral in order to recover the loan balance.
The state of Oklahoma is mostly a judicial foreclosure state, which means a bank or lender must file a lawsuit in order to foreclose on your home. Though the lender can opt for nonjudicial foreclosure, you can request that it goes through the court instead, which is a good idea if you have a good defense.
Federal law generally prohibits a lender from starting a foreclosure until you are past due on payments for 120 days, with some exceptions. The 120-day period provides most homeowners with ample time to submit a loss mitigation application.
How to Avoid Foreclosure
Even if you are facing financial difficulties, you may still be able to avoid foreclosure in Oklahoma.
Make a Deal With Your Lender
Your first option should always be to talk to your lender. By explaining your financial situation, you may be able to work out a payment plan where you can make smaller payments in a longer period of time.
Request a Loan Modification
A loan modification may be available to you if you are struggling to stay current with your mortgage payments. In a loan modification, the terms, such as interest or repayment period, can be adjusted.
Sell Your Home
If your financial situation is tight and you can’t seem to find a way out, selling your home may be the solution you need. Though this may not be the easiest decision to make, it can save you from foreclosing your home and making a dent in your credit.
How to Stop Foreclosure
If you’re already in the foreclosure process, there are three ways you can halt the process.
Reinstate the Loan
Oklahoma law doesn’t stipulate a buyer’s right to reinstate the loan, but your loan paperwork may permit it. To find out if you are eligible for reinstatement, you should check your mortgage. If not, your lender might accept a reinstatement request.
Redeem the Property
Redeeming the property is another way to stop foreclosure. Redeeming a loan requires full repayment before the foreclosure sale. A judicial foreclosure in Oklahoma requires the court to approve the sale. You can redeem the property up until approval happens.
File for Bankruptcy
In some cases, bankruptcy may not be the best solution, but it can avoid foreclosure as it can delay foreclosure proceedings by several months. Contact a local bankruptcy attorney to learn more about your options.
What to Do if Foreclosure is Unavoidable
Whenever you are dealing with a foreclosure, you should seek legal advice from a qualified professional. Understanding your rights and options is essential to achieving the best possible outcome for you and your family.
The Judicial Foreclosure Process in Oklahoma
A judicial foreclosure commences when the lender files a lawsuit seeking a court order to sell the property. The lender issues a summons and complaint to notify you of the suit, and you have twenty days to respond. In the event that you do not respond to the suit, the lender may ask the court for a default judgment, which will allow the foreclosure sale to proceed.
In contrast, if you defend the foreclosure lawsuit, the case will go through the litigation process. The lender might then request summary judgment from the court. Summary judgment motions ask the court to grant judgment in favor of the lender since the critical aspects of the case are undisputed. Judges will enter judgment if a court grants summary judgment for the lender or if you lose your trial. Within 30 days of receiving a foreclosure judgment, the lender must serve you a notice of sale by mail and publish the notice in a newspaper.
The Consequences of Foreclosure
The ramifications of foreclosure can be detrimental to homeowners and their communities. A foreclosure can cause homeowners to lose their homes and damage their credit scores, making it challenging to apply for a new home or line of credit. Furthermore, foreclosure is a time-consuming and emotionally draining process.
Communities can also be negatively affected by foreclosures. Foreclosures can cause property values to decline, resulting in a loss of tax revenue and an increase in crime.
Assistance for Homeowners Facing Foreclosure in Oklahoma
The U.S. Department of Housing and Urban Development offers homeowners foreclosure prevention assistance and guidance. Neighborhood Housing Services Oklahoma also offers foreclosure prevention counseling.
Avoid Foreclosure in Oklahoma by Selling Your House for Cash
Selling your home may provide you with the solution you’re looking for if you’re facing foreclosure or having trouble making your mortgage payments. At Favor Home Solutions, we understand how challenging this time can be. For this reason, we are committed to helping you get the best price for your home and guiding you through the entire process.
To accomplish this, our team will:
- Evaluate your situation and make you a fair, all-cash offer
- Close on the date of your choice
- Take care of all the paperwork
- Pay all the closing costs
- Handle cleaning and repairs
- And much more!
If you’re interested in learning more about getting a free, no-obligation offer for your home, contact us today!