If I Lose My Home to Foreclosure in Oklahoma, Can I Get It Back?

Question

My Oklahoma house is being foreclosed, and the sale is happening two weeks from today. If I can get the funds by that time, can I pay off the mortgage and keep it? I would very much appreciate any advice about what I can do to save my home.

Answer

Yes, if you can come up with enough money to pay off the entire amount due on the mortgage loan before the sale takes place, you may keep the house. This process is called "redeeming" the home.

You'll also get a little bit of time after the foreclosure sale in a judicial foreclosure before the court finalizes the process, during which you can redeem the home (see below).

When You Can Redeem Your Home in an Oklahoma Foreclosure

Foreclosures in the state of Oklahoma are almost always judicial, which means the lender files a lawsuit in court to foreclose your home. While Oklahoma also permits nonjudicial foreclosures, lenders rarely use this process because the homeowner can elect a judicial process or choose to avoid a deficiency judgment if the foreclosure remains nonjudicial.

In a judicial foreclosure, the court will enter a judgment and order that the property be sold to satisfy the debt. As part of the foreclosure process, the court must confirm (approve) the sale after it takes place. You may redeem the home up until the court confirms the sale, but not after that time. (Okla. Stat. tit. 42, §§ 18 to 20.) Once confirmation occurs, you won't get another chance to get your house back by redeeming it.

In a nonjudicial foreclosure, the borrower has the right to redeem the property up to the completion of the sale. (Okla. Stat. tit. 46, §§ 43(B), 45, 47).

How Much You'll Have to Pay to Keep Your Home

To redeem, you must pay the full amount of the mortgage debt, plus all expenses, including foreclosure costs and fees.

To find out the exact amount you'll need to pay to redeem your home, call the foreclosing lender's attorney. Because you're running short on time, if you're able to find financing to pay off the loan, consider consulting with an Oklahoma attorney who can help facilitate the redemption.

Other Options to Save Your Home If You Act Before the Foreclosure Sale

Even though time is short, you might be able to work something out with your lender if you act before the sale. For example, your lender could agree to let you get current on the mortgage (reinstate the loan) by paying the past-due amounts, including missed payments, interest, costs, and fees.

Alternatively, the lender might permit you to enter into a mortgage modification, forbearance agreement, or repayment plan, though it usually takes more time than you have available for the lender to review and approve a request for one of these options. Still, it doesn't hurt to ask your lender if one of these options might be available to you.

Look Out for Legal Changes

This article provides details on redemption laws in Oklahoma, with citations to statutes so you can learn more. Statutes change, so checking them is always a good idea.

How courts and agencies interpret and apply the law can also change. And some rules can even vary within a state. These are just some of the reasons to consider consulting an attorney if you're facing a foreclosure.