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Home Mortgage Rates in Oklahoma

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Oklahoma lenders provide a full line of home loan products to home buyers. These loan products are protected by foreclosure procedures that generally favor the lender. As a result, Oklahoma's foreclosure procedures deserve to be closely studied.

Furthermore, it is also a good idea to know something about Oklahoma’s home values, population trends and mortgage industry. Here is some background information that will give readers some idea about Oklahoma's home values, population trends and mortgage industry.

Oklahoma Real Estate Prices

Oklahoma's median home value prices tend to lag significantly behind the 4th quarter national median home price of $179,900.

To illustrate this point, here are the February, 2010 median home values for three of Oklahoma's most populated cities from lowest to highest:

  • Tulsa ($128,000),
  • Oklahoma City ($133,950),
  • Norman ($149,900).

Oklahoma's median home value prices tend to lag significantly behind the national median price because for two reasons.

First, there are more houses available on the market than what is demanded.

According to Yahoo!'s Oklahoma real estate page, Oklahoma cities have an average of 3,127 units for sale locally. This extra supply of houses on the market has kept statewide median home value prices well below the national median price.

Furthermore, Oklahoma's current low median home values are also seen as a response to a lower cost of living.

Oklahoma has consistently enjoyed a cost of living that indexes well below the national average. This can be explained in large part to its very low housing costs. This is especially true in Oklahoma City. According to www.bestplaces.net, Oklahoma City's housing costs were just 45% of the national average.

As a result, Oklahoma's home values also tend to be a better value for most homebuyers.

Oklahoma's population trends

Here is a list of Oklahoma’s three largest cities that is based on 2008 US Census estimates:

  1. Oklahoma City (551,789)
  2. Tulsa (385,635)
  3. Norman (106,957)

Here is some background information about these cities:

Oklahoma's largest cities tend to be cities that are the state's economic leaders. For example, Oklahoma City is the state's leading producer of oil, natural gas and other natural resources. It also features one of the world's largest livestock markets. Furthermore, Oklahoma's largest cities also tend be major players in high-tech industries Tulsa and Norman are home to some of the largest high-tech industries in the world. This has created a number of stable, high paying jobs that have kept their economies strong and stable.

Tulsa.

Oklahoma's fastest growing cities

Here is a list of the three fastest growing cities in Oklahoma that is based on 2008 US census estimates:

  1. Bixby (13,336)
  2. Edmond (32,742)
  3. Norman (106,957)

Here are some reasons why these cities are growing faster than other cities in Oklahoma:

Bixby has enjoyed lower than average crime rates. For the past three years, Bixby has seen 2/3rds fewer crimes than other states in Oklahoma. This is one reason why Money.com named Bixby the 67th best place to live in America.

Edmond's growth has been fueled by Oklahoma City residents who want a calmer lifestyle. This is the case because Edmond’s open spaces and easygoing lifestyle have great appeal with urban residents who want a quieter, relaxed lifestyle.

Norman's growth has been fueled by growth in the high-tech sector. Many high-tech firms have moved into the area to take advantage of a lower cost of doing business. As a result, many people from surrounding communities have moved into the area to work for these firms.

Oklahoma Mortgage Loan Types

Oklahoma's lenders offer the usual types of home loan products. These products include:

  • ARM's that mature within 1-5 years
  • Jumbo loans
  • Fixed rate mortgages that vary in maturity from 10-40 years
  • Reverse mortgages
  • Refinance mortgages
  • Second mortgages
  • Home equity loans
  • FHA and VA loans
  • And state funded guaranteed loans that help low-income residents purchase a home.

These home loans are recognized in Oklahoma as either mortgages or deeds of trust. However, most lenders prefer to use mortgage-type instruments because a power of sale clause can be inserted into the loan's provisions more efficiently.

Furthermore, Oklahoma also recognizes mortgages as liens on tangible property. This recognition makes it easier for lenders to foreclose on properties in Oklahoma. It also makes the foreclosure process more favorable for lenders.

Furthermore, Oklahoma lenders also have nearly full recourse privileges on home loans. This is the case because lenders can sue for a deficiency judgment within 90 days of the sale of a foreclosed home. The only instance when this is impossible is when the foreclosed property is a homestead.

Oklahoma's foreclosure process

Oklahoma recognizes judicial foreclosures and non-judicial foreclosures. However, most foreclosures executed in Oklahoma are non-judicial foreclosures. This is the case because most loan provisions include a power of sale clause that makes it simpler to use a non-judicial foreclosure procedure.

Furthermore, there are slightly different foreclosure procedures for homesteads. People whose homesteads are being foreclosed upon have extra rights. As a result, a foreclosure involving a homestead can take longer.

Here is how the non-judicial foreclosure process works in Oklahoma:

  1. The court must first determine if a power of sale clause exists in the loan's provisions. If there is such a clause, the lender may continue with the foreclosure.
  2. If there is language in the power of sale clause that explains how the home should be sold, that language will dictate the sale of the home. .
  3. If there is no such language, then lenders must follow these steps to conduct a non-judicial foreclosure.
    • The lender must send the borrower a written notice of the lender's intent to foreclose on the property. This notice must be sent personally to the borrower at least 30 days before the proposed sale.
    • This notice must clearly describe the name of the borrower, how much the borrower owes and it must also explain that the borrower has 35 days from the date the notice is sent to redeem the property.
    • This 35 day redemption period is the only time the borrower has to redeem the property during a non-judicial closure procedure in Oklahoma.
    • The notice of intent to foreclose does not need to be sent to the borrower if the borrower has defaulted if the borrower has been in default four in the past 24 months on the same mortgage and has already been notified.
    • After the 35 day redemption period has passed, the foreclosure must be recorded in the county where the home resides within ten days of the intended sale date.
    • Once this is done, a copy of the notice must be published in a newspaper where the home resides once a day for four consecutive weeks. It must clearly describe where the property is located, the time of the sale, the place of the sale and who is selling the home.
    • The first advertisement of the notice must be made at least 30 days prior to the sale.
    • Once the house goes on sale at auction, there is no minimum bid.
    • Furthermore, the property is sold to the highest bidder.
    • The property goes to the highest bidder after 90 days. This protects the bidder from any complications that could arise from collecting a deficiency judgment.
    • Once the court confirms the sale of the home, the borrower has no redemption rights.
    • If the lender chooses to execute a non-judicial foreclosure procedure, he forfeits the right to a deficiency judgment on homestead properties.

Whenever there is no clearly defined power of sale clause in a loan's provisions, lenders must execute a judicial foreclosure procedure. Here is how the judicial foreclosure procedure works in Oklahoma:

  1. The lender must first file a lawsuit in court to formally ask for permission to foreclose on a property.
  2. If permission to foreclose is granted, the borrower may not attempt to redeem the property.
  3. The court will then ask the lender to appraise the property to determine the property's fair market value.
  4. If the borrower does not object to this, the home is then appraised to determine its fair market value.
  5. Once the court confirms the sale of the house, the home must be advertised for sale in the same manner as described above for a non-judicial procedure.
  6. Once the home is auctioned, the bidding may start at any price.
  7. However, Oklahoma law requires that the property must be sold for at least 2/3rds of its appraised fair market value.
  8. Once the sale is finalized, the lender has 90 days to sue for a deficiency judgment.