A homeowner in Tulsa, Oklahoma defaults on a mortgage with an outstanding balance of $180,000. The lender files a judicial foreclosure action and the property is sold at a court-ordered sheriff's sale for $150,000. The court determines the fair market value of the property at the time of sale was $160,000. Court costs and attorney fees total $6,000. Under 12 O.S. § 686, what is the maximum deficiency judgment the lender may obtain against the borrower?
Correct Answer
C) $26,000
Under 12 O.S. § 686, the deficiency is the total debt (including allowable costs) minus the GREATER of the sale price or the fair market value. Total debt $186,000 − FMV $160,000 = $26,000 maximum deficiency.
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