- Who sends it
- The lender (beneficiary or mortgagee), by certified mail and first-class mail. It cannot hand this job to its trustee or attorney.
- What it starts
- At least 10 business days before the sale can be held
- Do this first
- Read the reason for the denial and ask the servicer in writing about an appeal or other options
What this document is in Arkansas
Ark. Code § 18-50-104(a)(3), added by Act 885 of 2011, says the trustee or mortgagee may not sell the home unless the lender has certified to its trustee or attorney that each borrower who applied for loan modification or forbearance assistance was notified that he or she does not meet the criteria for help under any program the lender offers, or any government program it takes part in.
The law does not give this letter a set title. It is usually a denial letter from your servicer. Under Arkansas law, what matters is that it tells you that you do not qualify, and that it was sent the right way and in time.
What it does and does not mean
- It means the lender is clearing a legal step it needs before the sale.
- It does not end your options. You may still cure the default before the sale, sell the home, or ask about other workouts.
- If you applied and never got a denial, the law says the sale cannot go forward until the lender certifies that this notice was sent.
- Federal rules may give you separate rights, such as an appeal in some cases. See loss mitigation letters.
The deadline it starts and how to count it
The notice must be sent to the property address or your mailing address, by certified mail and by first-class mail, at least 10 business days before the sale (Ark. Code § 18-50-104(a)(3)(A)(ii)). Count business days back from the sale date in your Notice of Default and Intention to Sell. Business days usually do not include Saturdays, Sundays or legal holidays.
Under federal rules, a complete application received more than 37 days before a sale must be reviewed within 30 days with a written decision (12 C.F.R. § 1024.41(c)(1)). Arkansas's 10-business-day rule is an added state step, not a replacement.
What to do this week
- Write down the date on the letter and the postmark date. Keep both envelopes, since it must come by certified and first-class mail.
- Read the reason for the denial. If the income or numbers are wrong, write to the servicer and say what is wrong.
- Ask in writing whether you can appeal and whether any other option is open, such as a repayment plan, short sale or deed in lieu.
- Ask the party named in your notice of default for a written cure amount.
- If the letter came late, the wrong way, or not at all, call Legal Aid of Arkansas at 1-800-952-9243 or a private lawyer before the sale.
- See how to stop foreclosure in Arkansas.
State help and scam warnings
A denial is when many people get calls from companies promising a better result for a fee. The Arkansas Attorney General warns against paying anyone upfront for mortgage relief. Free help is listed on the Arkansas foreclosure help page.
- A HUD-approved housing counselor can review the denial with you for free.
- You can complain about a mortgage company to the Arkansas Securities Department at (800) 981-4429. A complaint does not stop a sale.
The rest of the Arkansas process
See how foreclosure works in Arkansas, the timeline, ways to stop it and free help in Arkansas, or read the national guide to this letter.
Common questions
Can my Arkansas home be sold while my loan modification is pending?
Not in a statutory foreclosure, if you applied. Ark. Code § 18-50-104(a)(3) requires the lender to certify that you were notified you do not qualify before the sale.
How late can the Arkansas denial letter come?
It must be sent by certified and first-class mail at least 10 business days before the sale (Ark. Code § 18-50-104(a)(3)(A)(ii)).
Can the trustee send the denial instead of the lender?
The statute says the lender's duties under this rule are not delegable to its trustee or attorney-in-fact (Ark. Code § 18-50-104(a)(3)(B)).
Other Arkansas letters
- Pre-foreclosure loan documents and loss mitigation notice (Act 885 notice)Before a lender can start a no-court (statutory) foreclosure in Arkansas, it must mail you copies of your loan papers, a payment history and contact details for its loan modification and forbearance programs. It must do this at least 10 days before it starts. Getting this packet means a statutory foreclosure may be close, so use the contact details right away.
- Notice of Default and Intention to SellThis is the notice that starts an Arkansas statutory foreclosure. It is recorded with the county, mailed to you, and gives the time, date and place of the sale, which cannot be sooner than 60 days after recording. You can still cure the default and stop the sale until the sale happens.
- Summons and Complaint (circuit court foreclosure)Some Arkansas lenders foreclose by suing in circuit court instead of using the no-court process. If you are served with a summons and complaint, you have 30 days, not counting the day you received it, to file a written answer or motion. If you do nothing, the court can enter a default judgment.
- Trustee's Deed or Mortgagee's DeedAfter an Arkansas statutory foreclosure sale, the trustee or mortgagee must deliver a trustee's deed or mortgagee's deed to the buyer within 10 days. There is no right to buy the home back. The buyer can go to circuit court to get possession, and you have short deadlines to challenge the sale or answer an eviction case.