What Are the Foreclosure Laws in Arkansas?
Once a lender in the State of Arkansas begins the foreclosure process, it can proceed very quickly. Most homeowners, however, are protected by federal laws that require lenders to wait at least 120 days before commencing foreclosure. As a lender, you should seek an experienced Arkansas foreclosure attorney to guide you efficiently through the foreclosure process while remaining in compliance with state and federal laws and regulations.
The Foreclosure Process
A foreclosure action can be finalized very quickly in Arkansas – often in just a few months.
The Two Primary Foreclosure Options in Arkansas
There are two primary foreclosure options in Arkansas, including:
- Non-Judicial foreclosures, which are the most common
- Judicial foreclosures
Let’s take a closer look at each.
Non-Judicial Foreclosures
A non-judicial foreclosure officially begins with notification that foreclosure will commence in as few as ten days, which must include information about the loan modification assistance that’s available. From that point, the following will occur:
- The lender will record a notice of default and intention to sell with the county recorder, which must happen at least 60 days prior to the sale. They’re also required to provide the borrower with a copy within 30 days of the recording.
- The lender must then publish the notice in a newspaper for four consecutive weeks, post it at the county courthouse, and post it online.
- The sale comes next, which is conducted as an auction that is open to all bidders. The lender is likely to bid using what is known as a credit bid, which is a credit for up to the amount of what the borrower owes on the house. Bids for any less than two-thirds of the total amount owed, however, are not permitted.
Judicial Foreclosure
With a judicial foreclosure, the lender begins the process by filing a lawsuit with the court. If the borrower fails to appear in response, the lender can walk away with a default judgment. Otherwise, the case will go through the litigation process, which is generally a lengthier and more costly option, and if the lender wins, they can proceed with selling the property and applying the proceeds to the amount owed by the borrower.
An Experienced Arkansas Foreclosure Attorney Can Help
The trusted foreclosure attorneys at Brown Dunning Walker Fein Drusch PC have the knowledge, legal skill, and experience to help you successfully recover on your collateral through foreclosure. Reach out for our skilled legal guidance by contacting us online or calling 501-588-4460 and scheduling an appointment today.