Avoiding Foreclosure in Oklahoma
Some homeowners in Oklahoma just like with the rest of America often find it hard to keep up with their monthly mortgage payments. When the default in payment continues for about three to six months, they would usually get a warning from the lender. This notice would usually warn homeowners to either pay up their loans or risk losing their property to the bank. This period of warning is what is known as pre-foreclosure. Avoiding foreclosure in Oklahoma is our main goal for you!
Although it is not something you should panic about, pre-foreclosure still deserves to be treated with great concern since it’s normally the first step involved in the foreclosure process. A lot of homeowners would usually lose their properties to foreclosures. For some, their outright ignorance of the pre-foreclosure process is to be blamed while for some, it is negligence and indecision. Foreclosures are known to negatively affect credit scores. Along with costing you anywhere from 200 to 400 points, it could also inhibit your access to loans for several years after, typically 5-7. How then can you avoid falling victim to this process? We will discuss this later on, but before that, let’s take a look at what the whole pre-foreclosure process in Oklahoma looks like and how to avoiding foreclosure in Oklahoma.
Oklahoma Foreclosure Process
We stated earlier what the pre-foreclosure process basically is. It is that period in which you’ll get a ‘’notice of default’’ from the bank or your mortgage lender informing you of your delay in paying for the last 90 to 120 days while also warning you about the impending foreclosure in case you fail to clear these up soon. If after this period the homeowner still cannot come up with the required payments, the bank will end up foreclosing the home. They’d legally take up ownership of the home and eventually evict the homeowner at the end. Fortunately, the situation can still be salvaged before it gets to that point. There are a few alternative options that homeowners may want to try to prevent their properties from foreclosures. While we’ll conclude our discussion with some of these processes, let’s also have a vivid look at how the foreclosure process in Oklahoma usually turns out and how to avoid foreclosure in Oklahoma.
Oklahoma Foreclosures: A Brief Overview of the Foreclosure Process in OK and How Avoiding Foreclosure in Oklahoma will Help You.
The foreclosure process starts after the end of the pre-foreclosure period. The process is initiated with the borrower receiving the breach letter. Although this is not statutorily required by law, the loan documents may require it. The breach letter is then filed in a state district court in the same county where the property in question is located. Summons is then served to the mortgagor by the sheriff or other licensed servers to which the borrower has 20 days to answer. In case the defendant is not located, they will be served by a notice published in a legal publication for 3 consecutive weeks. In this case, the mortgagor has no less than 41 days to answer.
If the defendant fails to show up or respond after the expiration of these times as well as in the absence of a bankruptcy, defense or any other delay, the judgment can be pronounced on the case. The sales process will then be initiated from an order by the court clerk. The sheriff then proceeds with an appraisal of the property on which the acceptable bid can be set. The appraisal will then be followed by a publication setting the sales date for two weeks prior to about 30 days before the sheriff sale. Foreclosed properties are then sold at an auction at about 45 days after the sale has been ordered. The winning bid is expected to be at least two-thirds of the estimated value from the appraisal.
The motion to confirm the sale will then be filed after the auction. This will be heard on the next docket which is at least 10 days after the motion has been publicized. The court may then proceed to confirm the sheriff sale after which a sheriff’s deed is then secured. This point is exactly where the mortgagor’s full redemption rights end. The winning bidder then gets the sheriff’s deed. It should be noted that the sheriff sale may be rescinded or recalled by the foreclosing party at any time prior to the sale. Occupants in foreclosed properties may be presented with a writ to vacate within a week. If they still do not leave after the allotted time, the sheriff may apply force in removing the occupants.
Dealing With Pre-foreclosure in Oklahoma
It’s always good to understand the various option before you when faced with pre-foreclosures or impending foreclosures on your properties in Oklahoma. There are a few things you may want to check out to help you delay the loss of your home or maybe even retain your ownership of the property. Let’s check out some of these possible scenarios.
Refinancing your current loan
This is very much possible if what you owe is considerably less than the value of your home. You can check out with a mortgage broker to discuss the possibility of refinancing your current loan to reduce what you’ll have to pay monthly.
Selling your home in Pre-foreclosure
To avoid the dents of foreclosures on your credit history, you can also try selling the house to real estate investors like Oklahoma Real Estate. There are always real estate investors on the ground ready to buy properties in either the pre-foreclosure or foreclosure process. You may as well find willing investors who may be willing to work with your bank in taking care of those past payments as well as subsequent ones. This is a better alternative to declaring bankruptcy or allowing the property to be finally foreclosed. After all, we are here to help to ensure you are avoiding foreclosure in Oklahoma.
You may try an Oklahoma short sale
A short sale means you’ll be selling your home for far less than its true worth. The bank will also accept any ensuing loss as a tax write-off. In this case, both parties benefit. The bank will be able to get their money back on time without costly legal expenses. The borrower is also able to easily get out of debt.
Declaring Bankruptcy in Oklahoma
Declaring bankruptcy in Oklahoma may help you buy more time so you can pay up your debt. However, it will leave a significant impact on your credit history which can affect your access to loans or even to other things such as renting a home.
If you’ve found yourself in a situation like this, you can easily contact your lender to see how far they’re willing to go with you. Alternatively, you can also contact us to discuss the possible options to help you salvage the situation. Our main goal is for you to avoid foreclosure.