Ep 36 - How to Buy A Foreclosure pt. 2 - a podcast by Brian Cook And Kindra Cox

On Episode 36 of The Brian and Kindra Show, they continued their discussion of foreclosures and the process of buying one. Reminder, a foreclosure is where a person who owns a piece of property with a mortgage from a lender has the property taken away from them due to lack of payment. 

A foreclosure is initiated due to non-payment of your mortgage. You have to be 30 days late on payment before your mortgage company can file a petition saying a foreclosure will happen. From there you have 20 days to respond. The mortgage company can wait up to 90 days to file a motion of summary judgement at the courthouse that says you owe the full amount of the foreclosure. The courthouse then has a 18-30 day waiting period after the filing before getting the judgement to the mortgage company. After, there is a journal of judgement for the court to sign and have filed. (see this link for more information

https://oklaw.org/resource/mortgage-foreclosure-process-in-oklahoma?ref=6R4xC)

The Sheriff will send out a notification of the intent to sell the property. At this point, they have probably notified the owner asking if you want to do a “deed in lieu of foreclosure.” This is often found to be less damaging on your credit than a foreclosure. This is where you turn the keys and sign the deed to the house over before the foreclosure happens.  Your credit could still be damaged, but it is an opportunity to avoid the Sheriff’s Sale and foreclosure. You can also start paying on your home at this point, but some mortgage companies want all the behind payments at one time. After the intent of the property is sent, the court and mortgage company begin the process for the Sheriff’s Sale. The Sheriff will call three appraisers. These 3 appraisals are averaged and that is the price at which the property is listed.

Once the foreclosure is filed at the courthouse, the next 30 days the mortgage company will gather the publication for the Sheriff’s Sale. At a Sheriff’s Sale the bidder has to buy the home for no less than two-thirds value. Once there is a bid, the current owner of the property has 30 days remaining where they are still in control of the house. They still own the home until the date of confirmation of the Sheriff’s Sale, which is where they sell the deed of your property. The Sheriff will be involved in moving the current owner out of the property if they are still occupying house at the date of confirmation. 

A huge concern for buyers at the Sheriff's sale is whether they will be receiving a clear, marketable title.  Any time a purchase is made at a sheriff sale, the buyer should do research on the title prior to attending the sale. Also as someone looking to buy foreclosures, do not pay to get foreclosure information. The information is free through legitimate websites and your professional realtor. 

It’s important to note that during times of hardship and when a foreclosure seems imminent, it is easy to feel defensive. However, there are a lot of things that are in place to help the mortgagor. It’s most important to remain in contact with your mortgage company and maintain open communication.  Brian and Kindra hope these tips have been helpful to you. As always, if you have any questions or need help, please feel free to reach out to your local real estate professional.

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