Arkansas Foreclosure Laws...

Arkansas Foreclosure Laws...

Having moved from Florida where all of the foreclosures are judicial...or through the courts I had to learn the 'law of the land' in Arkansas.  Arkansas has both judicial and non-judicial foreclosures which have very different rules.  I have included some of the basics below. 

Summary of foreclosures in Arkansas:

In both judicial and non-judicial foreclosure, the property must be appraised prior to the sale and may not sell for less than two thirds of the appraised value. If it fails to sell at that value or more, it may be offered for sale again within 12 months to the highest bidder without reference to the appraisal.

In judicial foreclosure the court decrees the amount to be paid, gives the borrower a brief period to cure the default. If the borrower fails to do so, the clerk of the court advertises the property for sale.

The property may be purchased at the sale on credit for at least three months but not more than six months. A lien to secure payment will be retained and the purchaser must also post a surety bond in the amount of the sale price.

If the property fails to sell for the amount of the loan balance, the lender may seize other property of the borrower as in an ordinary judgment. The borrower has one year in which to redeem the property.

Non-judicial foreclosure requires that a power of sale clause authorizing the lender to sell the property in the event of default be included in the loan document. If the power of sale clause specifies the time, place, and terms of sale then that procedure must be followed. If not, the process is as follows:

1. A notice of default and intent to sell must be recorded in the county in which the property is located, and published in a newspaper of general circulation in the county weekly for four consecutive weeks, with the final publication no less than ten days prior to the sale date. The trustee must, within five days of recordation of the notice, send a copy by certified mail   to all parties to the deed of trust.
   
   

2. At the sale, the successful bidder has 10 days in which to fund his purchase.
   

3. The sale may be postponed for up to 7 days by public proclamation at the time and place of sale. If postponed longer, the notice procedure must be repeated.
   

4. The lender may sue for a deficiency judgment within 12 months of the sale date.

The process goes rather quickly with the non-judicial so be prepared.  Also the right of redemption, or the time the owner has to redeem the property is very different...check with your local county for details.

This is not intended to be a legal consultation...simply basic information and I am not liable for errors or omissions in this writing.

I simply enjoy working with knowledgable people and look forward to assisting you in the future.  Be sure to check out my website at http://www.ISellNWA.com for more information and FREE FORECLOSURE LISTINGS AND REPORTS.