Arkansas Foreclosure Laws

Expected Timeline: Four to five months
Security Instrument: Mortgage or Deed of Trust
Type of Process: Judicial or nonjudicial
Protections for Servicemembers: Ark. Code Ann. § 12-62-718
Time to Respond: Foreclosing party must provide thirty days notice of default and intent to sell. Notice of sale must also be published for four weeks before sale date. Notice must be posted at the courthouse and any website where local legal notices are routinely posted.
Reinstatement Period: Allowed up to date of foreclosure auction.
Protections for High-Cost Mortgages: Ark. Code Ann. § 23-53-01 to 106
Redemption Period: None allowed in nonjudicial foreclosure. One year from date of sale in judicial foreclosure.
Eviction Process: No specific timeline for eviction.
Deficiency Judgments: Allowed for up to the market value of the property less the foreclosure auction proceeds. Lawsuit must be filed within one year of auction date.
Limits on Deficiency Judgments: Lawsuit for deficiency must be brought within one year from the date of the public sale. Deficiency limited to amount of indebtedness less fair market value; or deficiency limited to amount of indebtedness less sales price of home.
Cash Exempted in Bankruptcy: $11,000 for single person; $22,000 for married couple.
State Statutes: Ark. Code Ann. § 18-49-101 to 18-49-106, 18-50-101 to 18-50-116

The property must be appraised prior to sale in both the Judicial and Non-Judicial foreclosure process. It can not sell for less than two-thirds of the amount of the appraisal. If it does sell for less than that amount, the property may be sold again to the highest bidder within twelve (12) months.

If the Judicial Foreclosure process is followed, the court determines the amount the borrower must pay to cure the default, and gives them a period of time to cure the default. The clerk of the court will advertise the property for sale if the borrower does not cure the default within the specified time.

When the property is sold, the high bidder may purchase the property on credit for at least three (3) months, but no longer than six (6) months. A lien is retained in order to secure payment of the bid amount. The purchaser must also post a surety bond for the amount of the sale price.

The lender may seize other property of the borrower or receive a deficiency judgment is the property does not sell for the amount of the balance of the loan. The borrower has a one year right of redemption.

The Non-Judicial Foreclosure process may only be followed if the original loan documents contain a power of sale clause. If the documents specify the time, place, and terms of the sale, then those procedures must be followed. If they do not specify the time, place, and terms of the sale, then there is a series of steps the lender must take.

The notice of default and intent to sell is recorded in the county that the property is located in. The notice is published in a newspaper in the county weekly for four (4) consecutive weeks. The last publication must be no less than ten (10) days before the scheduled sale date. The trustee for the lender must send a copy of the notice by certified mail within five (5) days of it being recorded. It must be sent to all parties to the deed of trust.

1. When the property is sold, the purchaser has ten (10) days to find funding and pay for the property.
2. The sale can be postponed for seven (7) days by stating its postponement at the original sale date. If the sale is postponed for longer than seven (7) days, the procedure for giving notice must be repeated.
3. If the lender wishes to pursue a deficiency judgment, the suit must be filed within twelve (12) months of the sale.

State Website: www.arkleg.state.ar.us