Arkansas Foreclosure Law

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Below you will find information specific to Arkansas foreclosure law. A brief breakdown of foreclosure facts are listed in the table and are defined more thoroughly just below the table:

Judicial Foreclosures	YES
Non-Judicial Foreclosures	YES
Primary Security Instruments	Deed of Trust, Mortgage
How long does it take?	70 days
Right of Redemption	12 months (judicial foreclosures only)
Deficiency Judments Allowed?	Varies
Sale Publication Period	30 days
Sale/NTS	Trustee

 

Overview

As with many other states, Arkansas foreclosure law allows for both judicial and non-judicial methods of foreclosure. The method that will be used is dependent on the language provided in the promissory note, or mortgage, which serves as the document that secures the title. In Arkansas, a lender usually holds on to the title until the entire loan is paid in full.

 

Non-Judicial Foreclosures

Non-judicial foreclosures are quite common in the state of Arkansas. Non-judicial foreclosures occur when the promissory note includes the power of sale language allowing a lender sell a property in default, without a court ruling, after executing a few strict requirements.

Arkansas foreclosure law requires first, before initiating the foreclosure process, that a lender must record a notice of default and intent to sell in the county where the property is located. At this point, a period of 60 days must pass before any other actions take place. In addition, the notice of default must be sent by certified mail to the borrower within 30 days of the date the notice was recorded. The lender then publishes, once a week for four weeks, the date and location the sale is expected to take place if no action is taken by the borrower. If no action is taken by the borrower, the sale will take place between the hours of 10:00am and 4:00pm at the courthouse or property itself. The property would then go to the highest bidder as long as the amount is 2/3 the amount the borrower is in debt to the lender.

 

Judicial Foreclosures

In the rare case that the power of sale clause is not included in the mortgage, a judicial foreclosure will take place. First, a lis pendens is recorded with the court that gives public notice the property is undergoing foreclosure. A lender is also required to get a final judgement of foreclosure from the court. If successful, the property will then be sold as part of a publicly noticed sale.

Right of Redemption

Arkansas foreclosure law does not allow a borrower to redeem their property after that property has been sold with non-judicial foreclosures. However, with judicial foreclosures, a one year right of redemption period does exists, which would allow a borrower to redeem their property after foreclosures as long as the total amount in default and applicable fees are paid in full.

 

Deficiency Judgement

Deficiency judgements are often sought and allowed in Arkansas foreclosure law. In Arkansas, a lender must file, with the court and within 12 months, their intent to seek a deficiency judgement. The amount cannot be more than the difference still owed after the sale of the property subtracted from the original purchase price or the fair market price; whichever amount is the lesser of the two.

 

Related Links:

Arkansas Foreclosure Attorneys: Here you'll find a list of foreclosure attorneys specific to your area. Speak with an attorney that can help you make the best decision possible.
Deficiency Judgment: Allows lenders to get a judgement against you in the amount of the deficiency after a sale at auction. Read more about it here.
Notice of Default: A document that begins the foreclosure process. We define it more clearly here.
Right of Redemption: Even if you've lost your property to auction, you may be able to get it back. Here is more information about what right of redemption actually is.
Lis Pendens: When a lender files suit against a borrow. Find out more details about what is included with a lis pendens that is filed to a court.