How foreclosure works in Arkansas

The notices you will receive in Arkansas, in order

1. Pre-foreclosure packet

   Mailed by the lender itself by standard mail at least 10 days before it starts the foreclosure

   It must include a copy of the note and the mortgage or deed of trust, the name of the note holder, a payment history showing the date of default, and the phone number and web address of each loan modification or forbearance program. Call that number and apply right away.

   Ark. Code § 18-50-103(2)

2. Notice of default and intention to sell

   Recorded in the county records, then mailed to you by certified and first-class mail within 30 days of recording

   This is the paper that starts the statutory foreclosure. It states the default and the time, date and place of the sale, and carries the warning YOU MAY LOSE YOUR PROPERTY IF YOU DO NOT TAKE IMMEDIATE ACTION. The sale cannot be sooner than 60 days after recording.

   Ark. Code § 18-50-104

3. Published and posted sale notice

   Published once a week for four weeks in a row before the sale, with the last publication no more than 10 days before it

   The same notice runs in a newspaper, is posted at the county courthouse and is posted with an Internet foreclosure sale notice service. Nothing new is mailed to you at this stage.

   Ark. Code § 18-50-105

4. Loan modification denial notice

   Sent by certified and first-class mail at least 10 business days before the sale, if you applied for help

   If you applied for a loan modification or forbearance, the home cannot be sold unless the lender has certified that you were told you do not qualify. If you applied and never received an answer, tell a lawyer before the sale.

   Ark. Code § 18-50-104(a)(3)

5. Summons and complaint (court foreclosure only)

   Served on you if the lender files a lawsuit in circuit court instead

   This is a judicial foreclosure. Arkansas Law Help says you have only 30 days to file an answer with the circuit court clerk, or a default judgment may be entered and the home sold.

   Ark. Code § 18-49-103

6. Trustee's or mortgagee's deed

   Delivered to the buyer within 10 days after the sale

   The deed passes title to the buyer and relates back to the sale date. You do not get a redemption period after a statutory sale.

   Ark. Code §§ 18-50-107(e), 18-50-111

7. Notice of intention to issue writ of possession

   Served on you with a summons and complaint if the buyer files an eviction case

   You have five days, not counting Sundays and legal holidays, to file a written objection with the clerk. If you do not, a writ of possession can issue telling the sheriff to remove you.

   Ark. Code § 18-60-307

The legal steps in Arkansas

1. Missed payments

   Federal rules generally stop a servicer from starting foreclosure until you are more than 120 days behind. Use this time to contact your servicer and ask in writing about a loan modification, repayment plan or forbearance. Do not ignore letters from your lender or servicer.

   12 C.F.R. § 1024.41(f)

2. Pre-foreclosure packet

   At least 10 days before starting a statutory foreclosure, the lender must mail you a copy of the note and the mortgage or deed of trust, the name of the note holder, a payment history showing the date of default, and the phone number and web address for each loan modification or forbearance program it offers or takes part in. Use that contact information right away.

   Ark. Code § 18-50-103

3. Notice of default and intention to sell

   The lender records this notice in the county where the home is located and must mail it to you by certified mail and first-class mail within 30 days of recording. It lists the default and the time, date and place of the sale, with the warning that you may lose your property if you do not take immediate action. The sale cannot be held until at least 60 days after the notice is recorded.

   Ark. Code § 18-50-104

4. Publication, and your time to act

   The sale notice is published in a newspaper once a week for four weeks in a row, posted at the county courthouse and posted online. Before the sale you can cure the default by paying the past-due amount plus allowed costs and fees. If you believe the foreclosure is wrong, talk to a lawyer now: most claims and defenses must be raised in court before the sale or they are lost.

   Ark. Code §§ 18-50-105, 18-50-114, 18-50-116

5. The sale

   A licensed third-party auctioneer holds the sale on a weekday between 9:00 a.m. and 4:00 p.m., at the property or at the front door of the county courthouse. No bid can be accepted for less than two-thirds of the entire debt. The sale ends all rights to redeem the home.

   Ark. Code §§ 18-50-107, 18-50-108

6. After the sale

   The deed is delivered to the buyer within 10 days, and the buyer is entitled to immediate possession. To remove you, the buyer goes to circuit court for a writ of assistance or files an eviction case. A claim that the lender failed to strictly follow the foreclosure law must be raised within 30 days after the sale. The lender has 12 months after the sale to sue for any remaining balance.

   Ark. Code §§ 18-50-107, 18-50-112, 18-50-116

Common questions in Arkansas