What is a deficiency judgment in a foreclosure?

A deficiency judgment in a foreclosure in Oklahoma is a court order requiring the borrower to pay the difference between the foreclosure sale price and the amount still owed on the mortgage loan. It can only be issued after a non-judicial foreclosure, which is a foreclosure process that does not go through the court system. In a deficiency judgment, the court orders the borrower to pay the full remaining balance of the loan even though they no longer own the property. The court sets a deadline for the borrower to pay the difference between the foreclosure sale and the amount still owed, and if payment is not made, the lender may seek collection from the borrower’s other assets. The lender then has five years to request a deficiency judgment from the court, after the property has been sold in the foreclosure sale. The court’s decision may be appealed by the borrower, but unless the borrower can prove the foreclosure sale price was not a fair market value, the deficiency judgment will stand. This means the borrower will still be responsible for the payment of the remaining balance on the loan. Deficiency judgments are not always issued in foreclosure cases in Oklahoma. It largely depends on market conditions and the amount of outstanding debt on the loan. The lender must prove the sale price of the property was not enough to cover the loan balance in order for the court to issue a deficiency judgment.

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What is a deficiency judgment in a foreclosure?

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