Finance
Under Oklahoma law, a lender who forecloses on a property but the sale proceeds are insufficient to pay off the loan may seek a deficiency judgment against the borrower. This means:
AThe borrower owes nothing further after foreclosure
BThe borrower may still owe the remaining balance after the foreclosure sale proceeds are applied to the debt, unless prohibited by anti-deficiency statutes✓ Correct
COnly applies to commercial loans in Oklahoma
DOREC guarantees payment of deficiencies
Explanation
Oklahoma allows deficiency judgments when foreclosure sale proceeds are insufficient to satisfy the debt (the difference between the debt and the sale price). Borrowers should understand this risk.
People Also Study
Related Oklahoma Questions
- Oklahoma's homestead laws protect a primary residence from forced sale for certain types of debt. These protections generally do NOT apply to:Finance
- An Oklahoma borrower who has defaulted on their mortgage may avoid foreclosure through a short sale, which means:Finance
- In Oklahoma, a lender who makes a mortgage loan in a flood zone must require the borrower to obtain:Finance
- Oklahoma's five-year statute of limitations on mortgage foreclosure means a lender must commence foreclosure proceedings:Property Ownership
- An Oklahoma buyer's monthly gross income is $6,200. The lender allows a 36% total DTI. The buyer has $450/month in existing debt. What is the maximum monthly housing payment?Real Estate Math
- An Oklahoma borrower is applying for a conventional loan. The lender requires private mortgage insurance (PMI) when:Finance
- If a lender requires a maximum DTI of 43% and the borrower's gross monthly income is $6,500, what is the maximum total monthly debt payment allowed?Real Estate Math
- In a foreclosure sale in Oklahoma, the sequence of lien satisfaction is:Escrow & Title
Key Terms to Know
Debt-to-Income Ratio (DTI)
A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Math Concepts
Study This Topic
Practice More Oklahoma Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Oklahoma Quiz →