Can a lender pursue a deficiency judgment in a foreclosure?

In Oklahoma, a lender can pursue a deficiency judgment if the sale of a foreclosed property does not cover the full amount of the mortgage debt. After the foreclosure process is complete, the lender can obtain a deficiency judgment if the proceeds from the foreclosure sale are not enough to cover the full amount of the unpaid balance. A deficiency judgment is an amount of money that the lender can attempt to collect from the borrower. It is the difference between the unpaid balance of the mortgage loan and the amount of money that was paid when the property was sold. For example, if the unpaid balance of the loan is $200,000 and the proceeds from the foreclosure sale are $150,000, then the deficiency judgment would be $50,000. In Oklahoma, the lender must file a lawsuit against the borrower within three months of the foreclosure sale in order to pursue a deficiency judgment. The lender must also prove that the borrower is legally responsible for the unpaid balance of the mortgage loan. If a lender is successful in obtaining a deficiency judgment, the borrower may be required to pay the amount in a lump sum or over an extended period in the form of a payment plan. It is important to note that the deficiency judgment does not give the lender any ownership rights to the foreclosed property. A deficiency judgment is only a legal instrument that gives the lender the ability to collect payment from the borrower.

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