What happens to the balance of my loan after a foreclosure?

In Oklahoma, when your home is foreclosed, the full balance of your loan is due immediately. If the proceeds from the sale of the foreclosed asset do not cover the entire balance of the loan, the difference is known as a "deficiency balance." The lender can attempt to collect the deficiency balance from you in several different ways. They may sue you for the deficiency balance, either in the civil court system or through a foreclosure action. The lender may also turn the deficiency balance over to a debt collector. If you have additional assets, such as a checking or savings account, the lender may place a lien on those assets in order to collect the deficiency balance. Additionally, the lender may report the deficiency balance to the credit bureaus. This can significantly affect your credit score. The lender may also pursue a deficiency judgment, which is a legal document that orders you to pay off the remaining balance of the loan. If you do not pay off the deficiency balance, the lender may be able to garnish your wages or put a lien on your property until the balance has been satisfied. It is important to understand that, even after a foreclosure, you may still be responsible for the full balance of the loan. If you are facing foreclosure in Oklahoma, it is important to speak to an experienced attorney who can provide legal advice and help you protect your financial interests.

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What happens to the balance of my loan after a foreclosure?

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