Esquire Asset Recovery, LLC
Arkansas Mortgage Foreclosure Laws
Foreclosure Process Overview
| Judicial | Non Judicial | Comment | Process Period | Publish Sale | Redemption Period | Sale/NTS |
|---|---|---|---|---|---|---|
| Judicial only | 135 days | N/A | None | Court |
Arkansas foreclosures are handled both in court and out of court. A typical out-of-court foreclosure can last a little less than three month. Both kinds of foreclosures are used equally in Arkansas.
Pre-Foreclosure Period
In Arkansas, foreclosures can be handled either in or out of the court system, but the lender must have an appraisal of the property taken prior to the scheduled foreclosure date.
In a court-handled foreclosure, the court determines the amount in default and gives the borrower a short time to pay the debt to the lender. If the borrower fails to pay the full amount owed within that timeframe, then the property goes up for sale, usually about 30 days after the court considers the matter.
Power-of sale clauses in mortgages allow lenders to foreclose on property in default without going through the court system. To begin the foreclosure process out of court, the lender will have a notice of default filed with county records. The borrower can stop the foreclosure process by paying off the amount owed any time before the foreclosure sale.
Notice of Sale / Auction
For both types of foreclosures, the notice of sale must be posted in three public places at least 30 days before the sale, with one of them being the closest U.S. post office. The notice must also be published in a local newspaper once a week for four weeks.
For out-of-court foreclosures, the location of the sale varies. A typically attorney conducts the foreclosure sale. After the sale, the trustee provides the winning bidder with the deed transferring ownership. In most cases, all junior liens against the property are cleared from the title for the purchaser at an out-of-court auction. If the sale is postponed, the person conducting the sale must announce it publicly.
For court foreclosures the person overseeing the auction may postpone the auction by announcement for up to one week. If the sale is postponed more than 30 days, a new notice of sale is issued and advertised. After the sale, the winning bidder receives a certificate of sale and the sale must be confirmed. For court foreclosure sales, borrowers have a right of redemption for 12 months after the sale confirmation. The borrower must pay the amount of the sale price plus 8 percent interest and other applicable costs. If the property is not redeemed, the winning bidder at the sale can obtain full ownership of the property.rights.