- Who sends it
- The lender (beneficiary or mortgagee) itself, by standard mail. It cannot hand this job to its trustee or attorney.
- What it starts
- A wait of at least 10 days before the lender can start a statutory foreclosure
- Do this first
- Call the loan modification or forbearance number in the packet and ask for an application in writing
What this document is in Arkansas
Arkansas lets most lenders foreclose without a court under the Statutory Foreclosure Act. Act 885 of 2011 added a step before that process can start. Under Ark. Code § 18-50-103(2), the lender must mail you, at least 10 days before it starts the foreclosure, a packet with your loan papers and information about help programs. The law does not give the packet a title, so it may arrive with a cover letter that calls it something else. The Arkansas Attorney General describes Act 885 as directing mortgage servicers to give you the names and contact information for loss mitigation or loan modification services.
The packet must include:
- A true and correct copy of the note with all required endorsements, and the mortgage or deed of trust.
- The name of the holder of the note and where the original note is kept.
- A copy of each assignment or allonge of the mortgage or deed of trust that the lender has.
- The phone number and web address for each loan modification or forbearance program the lender offers, or each government program it takes part in.
- If you fell behind on payments, a payment history showing the date of default.
If a document is lost, the lender may send a statement saying so and describing its good faith efforts to find it (Ark. Code § 18-50-103(2)(B)).
What it does and does not mean
- It is a warning that a statutory foreclosure may start soon. It is not a sale date.
- The next step is a recorded Notice of Default and Intention to Sell, which sets the time, date and place of the sale.
- The lender must have personal knowledge of the records it sends you, and this duty cannot be delegated to its trustee or attorney (Ark. Code § 18-50-103(2)(A)(i), (C)).
- If the lender sues you in circuit court instead, the summons and complaint follow different rules. The statutory process cannot be used while a court case to collect the debt is pending (Ark. Code § 18-50-103).
The deadline it starts and how to count it
The packet must be mailed at least 10 days before the lender starts the foreclosure. The statute counts from mailing and does not say business days, so plan on calendar days. Federal rules also generally bar the first foreclosure notice or filing until you are more than 120 days behind (12 C.F.R. § 1024.41(f)).
Once the notice of default and intention to sell is recorded, the sale cannot happen for at least 60 days (Ark. Code § 18-50-104(a)(2)). Those are the minimums. See how long foreclosure takes in Arkansas.
What to do this week
- Write the date on the envelope's postmark on your calendar and keep the envelope.
- Check the payment history. Mark any payment that is missing or any fee you do not recognize.
- Call every loan modification and forbearance number listed. Ask for an application, and send it back complete. Keep copies and proof of delivery.
- If you apply, the lender must later certify that you were told in writing whether you qualify before it can sell (Ark. Code § 18-50-104(a)(3)). See the loan modification denial notice.
- Call a HUD-approved housing counselor. Counseling is free.
- Apply to Legal Aid of Arkansas at 1-800-952-9243 or online if you think the default or the papers are wrong. Read how to stop foreclosure in Arkansas.
State help and scam warnings
Arkansas has no state foreclosure mediation program that the state files found. Free help comes from housing counselors, Legal Aid of Arkansas and the Arkansas Law Help foreclosure guide. The Arkansas foreclosure help page lists more.
- The Attorney General warns: "Beware of third-party scammers offering relief if you pay a fee upfront," and says mortgage relief "should always be performed at no charge to you."
- Federal rules ban most mortgage relief companies from taking a fee before you sign a written deal with your lender (12 C.F.R. § 1015.5).
- Never sign over your deed to anyone who says they will save your home.
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
Does my Arkansas lender have to send me my loan papers before foreclosing?
Yes, before a statutory (no-court) foreclosure. Ark. Code § 18-50-103(2) requires the lender to mail copies of the note, mortgage or deed of trust, assignments, a payment history and help program contacts at least 10 days before it starts.
What if the lender says my original note is lost?
The law lets the lender send a statement that the document is lost or unavailable and describe its good faith efforts to find it, instead of a copy (Ark. Code § 18-50-103(2)(B)). If that worries you, ask a lawyer to review it before the sale.
I never got this packet and now I have a notice of default. What should I do?
Talk to a lawyer right away. Most claims about how a statutory foreclosure was done must be raised in court before the sale, or they can be lost (Ark. Code § 18-50-116(d), as described in the Arkansas state file).
Other Arkansas letters
- 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.
- Notice that you do not meet the criteria for loan modification or forbearance assistanceIf you applied for a loan modification or forbearance, Arkansas law says the home cannot be sold in a statutory foreclosure until the lender has told you in writing that you do not qualify. That notice must reach your address by certified and first-class mail at least 10 business days before the sale.
- 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.