Timeline:
120 days
Redemption:
only if Judicial Foreclosure
Deficiency
Judgments: only if Non-Judicial Foreclosure
Judicial
Foreclosure: Yes
Non-Judicial
Foreclosure: Yes
Security
Instruments: Deed of Trust, Mortgage
| |
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.
- When the property
is sold, the purchaser has ten (10) days to find funding
and pay for the property.
- 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.
- If the lender
wishes to pursue a deficiency judgment, the suit must be
filed within twelve (12) months of the sale.
Arkansas Foreclosure Law