Can the lender come after you for the rest? Deficiency judgments in Oklahoma

Deficiency rules in Oklahoma, point by point

• Court foreclosure: the lender must file a motion

  With the motion to confirm the sale, or within 90 days after the sale

  A deficiency is not automatic. The lender must file a motion for leave to enter a post-judgment deficiency order and give you notice of it.

  12 O.S. § 686

• Fair market value hearing

  When the court hears the motion

  The court decides the fair and reasonable market value of the home on the sale date, by affidavit or other proof, even if you do not show up. The deficiency is the debt plus costs and prior liens, minus the market value or the sale price, whichever is higher. You can bring your own appraisal or other proof of value.

  12 O.S. § 686

• Missed deadline means the debt is paid

  After 90 days with no motion

  If the lender does not file the motion in time, the sale proceeds, whatever the amount, count as full payment of the mortgage debt, and no deficiency can be recovered in any action.

  12 O.S. § 686

• Power of sale on your homestead: the anti-deficiency election

  At least 10 days before the sale

  Send the lender a certified letter saying the property is your homestead and you elect against a deficiency judgment. If you prove it is your homestead when challenged, the lender cannot sue you personally for a deficiency. The lender has 90 days after its deed is recorded to go to court to contest the homestead claim or seek a deficiency.

  46 O.S. § 43(A)(2)(c)

• Power of sale on a non-homestead property

  Lawsuit within 90 days after the sale

  Unless the mortgage says otherwise, you are liable for the shortfall plus sale costs and fees. The lender must sue within 90 days after the sale, and if you show the home was worth more than the sale price, the deficiency is reduced by the difference.

  46 O.S. § 43(A)(2)(d)

• Deed in lieu and short sale

  Before you sign

  Oklahoma law says you and the lender may agree to a deed in lieu of foreclosure, but it sets no deficiency rule for it or for a short sale. The written agreement controls, so ask for language that the deal fully satisfies the debt.

  46 O.S. § 43(B)

• How long a deficiency judgment lasts

  Five years, unless renewed

  A judgment becomes unenforceable if no execution, renewal notice, garnishment summons or income assignment happens within five years. Oklahoma allows post-judgment garnishment, including continuing wage garnishment, under the rules in Title 12.

  12 O.S. §§ 735, 1171, 1173.4

The short answer in Oklahoma

Common questions in Oklahoma