What is non-judicial foreclosure?

Non-judicial foreclosure is a method of foreclosure in Oklahoma that does not involve going to court. Typically, in a non-judicial foreclosure, a lender has obtained a mortgage or deed of trust where the mortgagor (borrower) has granted the lender a lien on the property as security for loan repayment. The loan agreement will often include a power of sale clause which gives the lender the right to sell the property to pay off the loan and other charges in the event of loan default. The power of sale clause is typically found in the deed of trust or mortgage. In a non-judicial foreclosure proceeding, the mortgage or deed of trust is foreclosed upon by sending out a Notice of Default to the borrower. The Notice of Default will specify that the mortgage is in default and give the borrower a certain amount of time to cure the default. If the borrower fails to cure the default within the time period, the lender can proceed with the sale of the property. The Notice of Sale is then sent to the borrower. This Notice of Sale will specify the time, place, and terms of the sale. At the sale, the highest bidder will be awarded the property. After the sale, the lender will need to obtain a Certificate of Sale to complete the non-judicial foreclosure process. Non-judicial foreclosure is typically used when the borrower does not contest the foreclosure. The process is much quicker than a judicial foreclosure and is generally less costly. Because the proceeding is not overseen by the court, borrowers do not have the same protections that are available during a judicial foreclosure.

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What is non-judicial foreclosure?

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