Summary of Arkansas' Foreclosure Laws

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If you are facing foreclosure in Arkansas, it’s important to understand some of the basics, including:

  • the most common type of foreclosure procedure (judicial v. nonjudicial) used in Arkansas
  • how much time you have to respond
  • your rights and protections in the process, and
  • what happens afterwards (for example, whether you’ll be liable for a deficiency judgment).

 Below we have outlined some of the most important features of Arkansas foreclosure law. Keep in mind that this is just a summary; we’ve included statute citations so you can get more details from the laws themselves. And be sure to check out Nolo’s extensive Foreclosure section, where you can find information about all aspects of foreclosure, definitions of foreclosure terms (like redemption and reinstatement), and options to avoid foreclosure.

Topic

State Rule

Most common type of foreclosure process

Nonjudicial under power of sale in a mortgage

Notice of the foreclosure

Foreclosing party must mail a notice to the borrower that includes information about loan modification assistance, among other things, at least ten days before starting a foreclosure. Foreclosing party must record a notice of default and intent to sell, and then mail a copy by certified and first-class mail to the borrower within 30 days after recording the notice. Notice must also be published in a newspaper consecutively for four weeks prior to sale, posted at the courthouse, and published on the internet.

Reinstatement of loan before sale

Allowed prior to the sale

Redemption after sale

Not available after a nonjudicial foreclosure

Special protections for foreclosures involving high-cost mortgages

An intentional violation of the Arkansas Home Loan Protection Act renders the loan agreement void. The lender then has no right to collect, receive, or retain any principal, interest, or other charges at all with respect to the loan, and the borrower may recover any payments made under the agreement. Ark. Code Ann. § 23-53-106.

Special state protections for service members

Lender may not foreclose on a military service member for nonpayment or any breach occurring during military service without a court order if certain conditions are met. Applies to National Guard members called into active military service by the governor for more than 180 days. Ark. Code Ann. § 12-62-716

Deficiency judgments

Allowed for difference between: the indebtedness minus the fair market value of the property or the indebtedness minus the foreclosure sales price (whichever is less). Lawsuit must be filed within 12 months of sale.

Cash exempted in bankruptcy

About $12,725 for one person, $25,450 for a married couple under federal bankruptcy exemptions. $200 if single; $500 if married or head of household under state bankruptcy exemptions.

Notice to leave after house is sold

The new owner can initiate an eviction action following the sale.

Foreclosure statutes

Ark. Code Ann. §§ 18-50-101 to 18-50-116

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