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Arkansas Foreclosure Laws...

Real Estate Agent with Coldwell Banker Faucette Real Estate

Arkansas Foreclosure Laws... Devon Cerniga Realtor

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:

Judicial ForeclosureYes
Non-Judicial ForeclosureYes
Security InstrumentsDeed of Trust, Mortgage
Right of RedemptionJudicial foreclosure only
Deficiency JudgmentsNon-judicial foreclosure only
Time FrameUsually 120 days

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.

Devon Cerniga
"The Real Estate Doctor"
(479) 644-5155
Rosemary Brooks
BMC Real Estate - 209-910-3706 - Stockton, CA
The Mother & Daughter Realty Team
Sounds like foreclosure laws are the similar in Arkansas and California.  Non- judical is most common in foreclosures.
Sep 22, 2007 04:34 AM
Brett Noel
Keller Williams - Paso Robles, CA

I have two duplexes in Rogers, Is that far from you?

Will be looking for a good agent that knows the area. I seemed to have found all the incompetent ones already.

My email address is BrettNoel@topproducer.com. Drop me a line

Sep 22, 2007 05:03 AM

Arkansas Foreclosures are in large numbers, visit our website to map them and find the shortest routes FORECLOSEDmaps.com visit our website for much more information


Sep 16, 2010 12:30 AM
Paul Gapski
Berkshire Hathaway / Prudential Ca Realty - El Cajon, CA
619-504-8999,#1 Resource SD Relo

yes they look so nice but Foreclosures are such tough on to stomach.

Dec 09, 2011 02:32 AM