Arkansas Foreclosure Process

Link to Arkansas Foreclosure Laws

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.

Arkansas Foreclosure Process Overview

Arkansas foreclosure may be handled either in court and out of court. Out-of-court foreclosure can last a little less than three months. Both kinds of foreclosures are used equally in Arkansas.

Pre-foreclosure Period

Whether a foreclosure is in court or out of court, the lender must have an appraisal of the property taken prior to the scheduled foreclosure date.

In a court-handled foreclosure in Arkansas, the court determines the amount in default and gives the borrower a short time to pay the debt to the lender. typically 30 to 60 days.  If the borrower fails to pay the full amount owed within that timeframe, 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 the county clerks office. The borrower may stop the foreclosure process by paying off the amount owed any time before the foreclosure sale.

 

Notice of Sale & Auction

For power-of-sale foreclosures handled out of the court system, the notice of default filed by the lender also serves as the notice of sale, as it contains all the information pertinent to the sale (time, location, property description, etc.).

Within 30 days of this notice of default being recorded, a copy of the notice and the lender’s intention to sell must be mailed to the borrower. The lender is also required to post a notice of sale in the office of the county recorder. The notice is published in a local newspaper for four consecutive weeks, with the final notice being published at least 10 days prior to the sale.

At the Arkansas foreclosure sale, which is run by an auctioneer, anyone can bid on the property, with the exception of the trustee, who may only bid on behalf of the lender. The highest bidder is awarded ownership of the property and must pay the full bid price within 10 days of the sale. For out-of-court foreclosures, the borrower has no right to redeem the property after the sale.

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