If you are behind on your mortgage payments, you probably already are aware that you might lose your house because of non-payment of your debt to your lender.
Have no fear. Oklahoma is a judicial foreclosure state. The chances are good that you will have the opportunity to go through the judicial foreclosure process, which allows homeowners to have due process.
In Oklahoma, you cannot foreclose on someone without due process.
Ben Callicoat, a former Tulsa lawyer specializing in bankruptcy and consumer law, told me that homeowner’s rights are protected because Oklahoma is a Judicial Foreclosure State.
Not all states have such laws that protect homeowners.
This is just another great reason why people should choose Oklahoma as a place to buy a home and raise a family.
Perhaps it’s because we are a new enough state that we got it right in setting things up.
A lender cannot foreclose on an Oklahoma homeowner without going through a judicial process of foreclosure.
A lender cannot do any of the following without do process:
- throw you out of your house
- list and sell your house
- lease your home to a tenant
Having said that, there is a possibility that there is a “right of sale” clause in your mortgage.
Oklahoma allows both judicial and non-judicial foreclosure of real property.
Don’t Move Out!
You are better off staying in the house until you are thrown out. Nobody can throw you out without due process.
- If you are a homeowner living in a house that might be foreclosed on, stay there until the sheriff comes and tells you to leave. That would be a few days before the confirmation hearing, which is usually two to three weeks after the sheriff’s sale.
- If you are a tenant living in a house in danger of being foreclosed on, stay there. Laws in Oklahoma will protect you through the foreclosure process. You will pay the homeowner until he loses the house; after the confirmation hearing you will pay the mortgagee or the new owner of the home — whoever purchased the house at the sheriff’s sale (usually the bank or the guarantor).
Not every state is a judicial foreclosure state. Oklahoma is one only a handful of states that are considered foreclosure states.
That means that in Oklahoma, nobody can take your house away without going through a legal process of foreclosure. That’s due process.
File for a Homestead Exemption
If you have a homestead exemption, only the mortgagee can take away your house. The mortgagee is the one who owns the note. Think of Monopoly when you turn over the cards.
- The bank is the mortgagee.
- The homeowner is the mortgagor.
Note to self: file for your homestead exemption at the Tulsa County Tax Assessor’s Office or at the tax assessor’s office in whatever county you happen to live.
Find Out What Legal Options Are Available
- Pick up the rock and look underneath it.
- Face your fear and discover what is there and what your options are.
- Call an Oklahoma lawyer who can advise you with regard to consumer issues, bankruptcy, and foreclosures
- Call your lender (the bank, mortgage company, or lender) or guarantor. Lenders and guarantors encourage homeowners to reach out early to their lender or servicer if they face any hardship affecting their ability to pay their mortgage.
- Go online to government websites
- Call the Help for Homeowners Hotline: 888-995-HOPE
Perhaps you may want to consider selling your home now while there are many buyers out in force taking advantage of record-breaking low mortgage rates.
Call Debbie Durkee today at 918-724-8201 to discuss your options.
This post is a re-blog of content I posted on my own website TulsaShortSaleAgents.com on November 23, 2012 (“Oklahoma is a Judicial Foreclosure State”) and on Active Rain on November 23, 2012(“Oklahoma is a Judicial Foreclosure State“).
Copyright © 2021 Deborah M. Durkee. ALL RIGHTS RESERVED — Oklahoma is a Judicial Foreclosure State