Legal Question in Real Estate Law in Oklahoma

Re: Foreclosure - What can be done?

Thank you for your question. You asked what will happen if you do not respond to the summons in the foreclosure action. Assuming that the home is in Oklahoma and if not this response does not apply since Oklahoma is the only state whose laws I have knowledge about; If you do not respond, the court will award a judgment forclosing the property and most likely requiring it to be sold at sheriffs sale and the proceeds applied against the loan, court costs and attorney fees. If the amount of the sale proceeds do not pay off the above, then the mortgage company will likely ask the court for a deficiency judgment against you for the balance. You indicated that you plan to consult with an attorney and that is a good plan. There are many factors which your question did not include and which your attorney will probably need to know in order to properly advise you as to where you go from here. Deed in lieu of foreclosure might be an option on the home. Bankruptcy might be options affecting your credit card and automobile debts as well as the debt on your home. If you had a signigicant equity in the home you might want to try and protect that. I am not sure how many months you are in default on your loan. Normally foreclosure does not occur until at least 90 days into a default status. If your loan was assisted or guranteed through a federally sponsored loan the mortage company was required by law to have attempted to work with you to try to assist you to stay in the home. Sometimes they will do something called a forbearance program which reduces your monthly payment for a period of time and also adds all of the past due onto the end of your mortgage thus bringing it back into good graces. I have assisted one person to do this after the foreclosure had been filed but there is a maximum as to how much is already past due which comes into considereation as to whether they will agree to forbear. Good luck.