If you are a struggling homeowner facing a foreclosure in Arkansas, you should learn about your state’s laws regarding how much notice you’ll get before the foreclosure sale takes place, the deadline to catch up on the past-due payments (reinstate) before the sale, when you have to leave your home after the sale, and more.
Below you’ll find a summary of some of the key aspects of Arkansas foreclosure law along with citations to the statutes so you can read the law yourself.
The citations to Arkansas’ foreclosure statutes are:
You can find the Arkansas Code on the Arkansas legislature’s website at www.arkleg.state.ar.us/assembly/2013/2014S2/Pages/Home.aspx. If you need help locating the statutes, see Finding Your State’s Foreclosure Laws.
We’ve summarized important parts of Arkansas’ foreclosure laws below. You can find more detailed articles on various aspects of Arkansas foreclosure law in Nolo’s Arkansas Foreclosure Law Center.
In Arkansas, most foreclosures are nonjudicial, which means they happen outside of court. Judicial foreclosures, which go through the court system, are also possible. (Learn more about nonjudicial and judicial foreclosures.) Since most foreclosures in Arkansas are nonjudicial, this article focuses on that process.
In a nonjudicial foreclosure, the lender must mail a notice to the borrower that includes information about the availability of loan modification assistance, among other things, at least ten days before starting a foreclosure. Ark. Code Ann. § 18-50-103.
To officially start the foreclosure, the lender must record a notice of default and intention to sell with the county recorder at least 60 days before the sale. The lender must then mail a copy of the notice to the borrower (and various other parties) by both certified and first-class mail within 30 days after recording the notice. Ark. Code Ann. § 18-50-104.
In addition, the lender must:
Arkansas law provides special protections to military service members and to borrowers who take out a certain type of loan called a “high-cost home loan.”
Protection against foreclosure for military service members. Arkansas law generally follows the federal Servicemembers Civil Relief Act, which provides certain foreclosure protections to military service members. (Learn about federal protections under the Servicemembers Civil Relief Act.) A lender may not foreclose on a military service member for nonpayment or any breach occurring during military service without a court order if:
Applies to National Guard members called into active military service by the governor for more than 180 days. Ark. Code Ann. § 12-62-704.
Protections regarding high-cost home loans. The Arkansas Home Loan Protection Act prohibits various practices related to high-cost home loans. (A high-cost home loan is a particular type of mortgage loan where the annual percentage rate or points and fees exceed certain amounts.)
Under the Arkansas Home Loan Protection Act, creditors may not (among other things):
An intentional violation of the Arkansas Home Loan Protection Act renders the loan agreement void. The lender then has no right to collect, receive, or retain any principal, interest, or other charges at all with respect to the loan, and the borrower may recover any payments made under the agreement. Ark. Code Ann. § 23-53-106.
“Reinstating” is when you catch up on the defaulted mortgage's missed payments (plus fees and costs) in order to stop a foreclosure. (Learn more about reinstatement to avoid foreclosure.)
Under Arkansas law, you can reinstate the mortgage at any time after the lender records the notice of default and before the sale. Ark. Code Ann. § 18-50-114.
In some states, you can redeem (repurchase) your home within a certain period of time after the foreclosure. In Arkansas, foreclosed homeowners do not get the right to redeem the home after a nonjudicial foreclosure. Ark. Code Ann. § 18-50-108. (To get details on redemption after a foreclosure in Arkansas, see Nolo’s article If I lose my home to foreclosure in Arkansas, can I get it back?)
When the total mortgage debt exceeds the foreclosure sale price, the difference is called a “deficiency.” Some states allow the lender to seek a personal judgment (called a “deficiency judgment”) against the borrower for this amount, while other states prohibit deficiency judgments with what are called anti-deficiency laws.
In Arkansas, the lender can sue you for a deficiency judgment following a nonjudicial foreclosure if it does so within 12 months after the foreclosure sale. Ark. Code Ann. § 18-50-112. (For a summary of the deficiency law in Arkansas, see Arkansas Laws on Post-Foreclosure Deficiency.)
After an Arkansas foreclosure sale, the purchaser can start an eviction action.