Foreclosure is the legal process effected through the court system in which a mortgagee (lender—often a bank) terminates a mortgagor’s (borrower’s) interest in the real property in which the mortgagor gave the mortgagee a security interest (a lien) as collateral for the loan used to purchase the property.

Foreclosure generally occurs when a homeowner defaults and fails to make mortgage payments as required by the loan agreement (promissory note).

Foreclosure allows the lender to seize the property, remove the homeowner, and sell the home—all of which are legal remedies the mortgagor and mortgagee agreed to in the mortgage contract.

In Oklahoma, foreclosure is a legal process that allows a lender to terminate a borrower's interest in a property due to the borrower's failure to make the required mortgage payments as stipulated in the loan agreement. Oklahoma primarily uses the judicial foreclosure process, which means the lender must file a lawsuit in court to initiate foreclosure. Once the court declares a foreclosure, the property can be sold at an auction. The proceeds from the sale are used to pay off the mortgage debt, and any remaining amount is paid to the borrower. If the sale does not cover the mortgage debt, the lender may obtain a deficiency judgment against the borrower for the remaining amount. Borrowers in Oklahoma have the right to be notified of the foreclosure proceedings and may have the opportunity to pay the debt and stop the foreclosure up to the day of the auction. Additionally, Oklahoma law provides a redemption period, typically lasting one year, during which the borrower can reclaim the property by paying the full sale price plus interest and other allowable costs.