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Arkansas · Weigh your options

Can the lender come after you for the rest? Deficiency judgments in Arkansas

Arkansas allows a deficiency judgment after a statutory (out of court) foreclosure, with two limits. The lender must sue within 12 months after the sale, and the judgment cannot be more than the smaller of two amounts: the debt minus the home's fair market value, or the debt minus the sale price. In a court foreclosure, the judge can enter a personal judgment for what the sale does not cover.

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Reviewed against Arkansas law and official sources on October 11, 2026. General information, not legal advice.

Deficiency rules in Arkansas, point by point

  • 12-month deadline after a statutory sale

    Within 12 months after the sale

    A money judgment for the balance may be sought at any time within 12 months after a sale under the Statutory Foreclosure Act.

    Ark. Code § 18-50-112

  • The lender has to prove three numbers

    In the deficiency lawsuit

    The lender must state and prove the full debt the mortgage or deed of trust secured, the price the home sold for, and the home's fair market value on the sale date. The burden of proof is on the lender, not you.

    Ark. Code § 18-50-112

  • The lesser-of cap

    When the judgment is set

    The judgment cannot be more than the lesser of the debt (with interest, costs and trustee's and attorney's fees) minus the fair market value, or the same debt minus the sale price. If the home sold for less than it was worth, the fair market value number protects you.

    Ark. Code § 18-50-112

  • Court (judicial) foreclosure

    In the foreclosure lawsuit

    A lender can also foreclose through a court case, where the judge can enter a judgment against you personally. The fair market value cap above is written for statutory sales; ask a lawyer whether any value limit applies in a court case.

  • Short sale or deed in lieu

    Before you sign

    We found no Arkansas statute that cancels the balance after a short sale or deed in lieu, so the written agreement controls. Ask the lender to state in writing that it waives any deficiency.

  • If you get a deficiency letter or lawsuit

    Check the sale date and the 12 months

    Compare the filing date with the sale date, and ask for the lender's proof of fair market value. Legal Aid of Arkansas or a lawyer found through the Arkansas Bar Association can review your case.

    Ark. Code § 18-50-112

The short answer in Arkansas

Can the lender come after me for the rest?

Limited

Yes, with limits after a statutory (nonjudicial) sale. The lender must sue within 12 months after the sale. The judgment cannot be more than the lesser of two amounts: what you owed minus the home's fair market value on the sale date, or what you owed minus the sale price. The lender has the burden of proving the fair market value. In a court (judicial) foreclosure, the judge can enter a judgment against you personally, and if the sale does not cover the debt the lender can collect the shortfall like any other judgment. The judicial foreclosure sections we read do not contain the fair market value limit.

Ark. Code §§ 18-50-112, 18-49-103, 18-49-105

Common questions in Arkansas

Who has to prove the home's value in an Arkansas deficiency case?

The lender does. Under the Statutory Foreclosure Act the lender must plead and prove the debt, the sale price and the fair market value on the sale date. You can also bring your own evidence of value, such as an appraisal.

Does the Arkansas deficiency cap include the lender's attorney's fees?

The statute measures the debt with interest from the sale date, costs, and trustee's and attorney's fees, then subtracts the fair market value or sale price, whichever leaves the smaller amount. So those fees can be part of the debt, but the cap still limits the total.

What if my Arkansas lender sues for a deficiency more than 12 months after a statutory sale?

The statute allows a money judgment to be sought within 12 months after the sale. A suit filed later may be open to challenge on that ground. Talk to a lawyer quickly so that defense is raised in your answer.

Step by step

More on foreclosure in Arkansas

Understand the process

What is happening and how much time there is.

Weigh your options

What can stop it, and what happens if it goes ahead.

Get help now

Who to call, and what to do when a sale is scheduled.

Also in Arkansas

Property tax foreclosure Claim surplus funds Deficiency judgments (this page)Letters you may get

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Sources for this page

  1. Act 53 of 1987, The Statutory Foreclosure Act of 1987 (Arkansas General Assembly)
  2. Ark. Code § 18-50-103 (FindLaw copy, current as of March 28, 2024)
  3. Ark. Code § 18-50-104 (FindLaw copy)
  4. Ark. Code § 18-50-105 (FindLaw copy)
  5. Ark. Code § 18-50-107 (FindLaw copy)
  6. Ark. Code § 18-50-108 (FindLaw copy)
  7. Ark. Code § 18-50-109 (FindLaw copy)
  8. Ark. Code § 18-50-112 (FindLaw copy)
  9. Ark. Code § 18-50-114 (FindLaw copy)
  10. Ark. Code § 18-50-116 (FindLaw copy)
  11. Ark. Code § 18-50-117 (FindLaw copy)
  12. Ark. Code § 18-49-103 (FindLaw copy)
  13. Ark. Code § 18-49-105 (FindLaw copy)
  14. Ark. Code § 18-49-106 (FindLaw copy)
  15. Arkansas General Assembly: Act 306 of 2025 (HB1238), adding Ark. Code § 18-50-118
  16. Arkansas General Assembly: Code Sections Amended, Title 18, 2025 Regular Session
  17. Arkansas Law Help (Legal Aid of Arkansas): Foreclosure, last updated September 28, 2026
  18. Arkansas Attorney General: Foreclosure
  19. Arkansas Attorney General: Foreclosure Rescue and Loan Modification Scams
  20. Arkansas Homeowner Assistance Fund (program site, administered by ADFA)
  21. U.S. Department of the Treasury: Homeowner Assistance Fund
  22. Arkansas Securities Department: Mortgage Loans