Arkansas Foreclosure Laws

In the state of Arkansas, foreclosure properties can be both judicial and non-judicial in nature. In a typical Arkansas foreclosure case, the non-judicial proceedings take not more than 3 months.

Pre-foreclosure Period

In the state of Arkansas, the foreclosures have to be handled inside the court or outside the court (non-judicial) but the lender needs to get the appraisal of the property in question before the scheduled date of foreclosure.

In a judicial Arkansas foreclosure, the court will determine the total amount that is in default and it will provide a short time period to the borrower to pay the amount mentioned in debt to the lender. If the borrower is unable to pay the amount of debt owed by him/her within the timeframe provided then his/her property will be put up for sale, 30 days from the time when the court looks into the matter.

Lenders usually provide mortgages with a power-of-sale clause, which basically means that the lenders will be allowed to foreclose a property judicially. This property belongs to a borrower who has defaulted on the loan. In an Arkansas foreclosure process held out of court, the lender can apply for the foreclosure only after filing a notice with county records for default of loan. The borrower/homeowner can stop the process of foreclosure only if he/she is able to pay off the loan amount owed by him/her at that particular point of time or a day before the foreclosure has to start.

Notice of Sale/Auction

In a power-of-sale Arkansas foreclosures handled non-judicially, the lender has to file a notice of default, which is also known as the notice of sale. This notice of sale should contain vital information like description of the property in foreclosure, the time, date and place of the sale. A copy of the notice of sale has to be mailed or sent to the borrower within 30 days of filing of the notice. The lender will also have to post a copy of the notice of sale at the county recorders office. The notice needs to be published in the local newspaper once every week for 4 consecutive weeks and the final notice will be published at least 10 days before the date of sale.

The public auction or sale in the state of Arkansas is conducted by the auctioneer. Anyone can come and bid on the property except for the trustee, who can only bid on the lender’s behalf. The person who bids the highest, whether a new homeowner or investor will be awarded the ownership of the property in question. He/she will then have to pay the full bid price within a time frame of 10 days from the sale date. In non-judicial Arkansas foreclosures, the borrower can’t redeem the property after the sale takes place.

If the foreclosure takes place through the court then the borrower has a time of at least one year from the sale date to redeem his/her property but for that he/she will have to pay the purchase price as stated in the auction plus the interest.

If you need more information about Arkansas foreclosure laws, you should contact a foreclosure lawyer, or contact us so we can recommend one for you.

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