Arkansas Foreclosure Help – Stop Foreclosure in Arkansas

 


Finding Foreclosure Help in Arkansas

Foreclosure prevention counseling services are provided free of charge by nonprofit housing counseling agencies working in partnership with the Federal Government. These agencies are funded, in part, by HUD and NeighborWorks® America. There is no need to pay a private company for these services.

Little Rock Field Office

Dept. of Housing and Urban Development
425 West Capitol, Suite 1000
Little Rock, AR 72201

Phone: (501) 918-5700

Email: AR_Webmanager@hud.gov
Fax: (501) 324-6142

Alice Rufus
Field Office Director

Office Hours: 8:00 a.m. to 4:30 p.m.
Monday through Friday

Arkansas Foreclosure Law Summary

Quick Facts:

  • Judicial foreclosure process is available.
  • Non-judicial foreclosure process is available.
  • The primary security instruments are deeds of trust and mortgages.
  • The timeline can vary by process, which typically takes 120 days.
  • The borrower’s right of redemption period varies by process.
  • The lender may sue for deficiency judgements but vary by process.

The judicial and non-judicial process is allowed in foreclosing mortgages in default in Arkansas. The property must be sold for at least 2/3 of the appraised value or it can be offered for sale again within a period of 12 months.

Judicial Foreclosure
A mortgaged property will be up for sale if the borrower is unable to pay his debts within a given time period by the court. Sales of property will be on credit between 3-6 months, or by instalment of no more than 4 months. To ensure payment, a lien will be retained on the property. If the borrower wishes to regain the property, he must match the price of the property during the sale plus interest.

Non-Judicial Foreclosure
When a power of sale clause is present in a mortgage deal, the lender obtains the power to sell the property in the event of a default. The sale can be carried out by the lender himself or a trustee.

Power of Sale Foreclosure Guidelines
The power of sale clause must be followed if it states the terms of the sale. If there are no terms specified, the non-judicial foreclosure process must be done as follows:

A notice of sale must be recorded in the county where the property is located. The notice of the default and intention to sell must be recorded within 30 days of each other. Within 5 days after the notice has been recorded, a copy must also be mailed to the parties involved warning them of the possibility of losing their property. An ad must also be published once a week for 4 consecutive weeks in the county newspaper announcing the sale. This should contain all the important information regarding the sale. The last ad must be published no less than 10 days before the date of sale.

The property will be sold to the highest bidder at an auction, who must pay within 10 days to obtain the property. The lender may also bid during the auction by cancelling out the debt of the borrower.

A foreclosure sale may be postponed up to 7 days without any changes. A longer time would require the whole procedure to be repeated. The money from the sale will go to the expenses of the sale, to paying the debt of the borrower and to the lien holders. Any remaining money will go to the borrower.

A deficiency suit may be filed within 12 months of the sale. It must be for the difference between the balance owed and the foreclosure sale price.