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.
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 is called “redeeming” the home.
You'll also get a little bit of time after the foreclosure sale (before the court finalizes the process) during which you can redeem the home. This is explained in more detail below.
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.) (To learn more about foreclosure laws and procedures in Oklahoma, visit Nolo’s Oklahoma Foreclosure Law Center.)
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; tit. 46, §43(B)). Confirmation typically happens approximately two weeks after the sale. Once this occurs, you won’t get another chance to get your house back by redeeming it. (Learn more general information about the right of redemption.)
In order 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. Since you're running short on time, you might want to consult with an Oklahoma attorney who can help facilitate the redemption if you're able to find financing to pay off the loan.
Even though time is short, you may be able to work something out with your lender if you act before the sale. For example, your lender may agree to let you get current on the mortgage by paying the past-due amounts including missed payments, interest, costs, and fees. This is called reinstating the loan.
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.
To find the statute that discusses your right to redeem the home in Oklahoma, go to Title 42 and Title 46 of the Oklahoma Statutes.