State Foreclosure Laws

Summary:

In both judicial and non-judicial foreclosure, the property must be appraised prior to the sale and may not sell for less than two thirds of the appraised value. If it fails to sell at that value or more, it may be offered for sale again within 12 months to the highest bidder without reference to the appraisal.

In judicial foreclosure the court decrees the amount to be paid, and gives the borrower a brief period to cure the default. If the borrower fails to do so, the clerk of the court advertises the property for sale.

The property may be purchased at the sale on credit for at least three months but not more than six months. A lien to secure payment will be retained and the purchaser must also post a surety bond in the amount of the sale price.

If the property fails to sell for the amount of the loan balance, the lender may seize other property of the borrower as in an ordinary judgment. The borrower has one year in which to redeem the property.

Non-judicial foreclosure requires that a power of sale clause authorizing the lender to sell the property in the event of default be included in the loan document. If the power of sale clause specifies the time, place, and terms of sale then that procedure must be followed. If not, the process is as follows:

1. A notice of default and intent to sell must be recorded in the county in which the property is located, and published in a newspaper of general circulation in the county weekly for four consecutive weeks, with the final publication no less than ten days prior to the sale date. The trustee must, within five days of recordation of the notice, send a copy by certified mail   to all parties to the deed of trust.
   
   

2. At the sale, the successful bidder has 10 days in which to fund his purchase.
   
   

3. The sale may be postponed for up to 7 days by public proclamation at the time and place of sale. If postponed longer, the notice procedure must be repeated.
   
   

4. The lender may sue for a deficiency judgment within 12 months of the sale date.
   
   

Links:

• 18-50-104. Contents of notice - Persons to receive notice
  Law which regulates the owner to be notified of foreclosure.
  
  
• 18-50-105. Publication of notice
  Law which regulates the process to begin a sale.
  
  
• 18-50-107. Manner of sale
  Law which regulates how a sale will take place.
  
  
• 18-50-112. Deficiency judgment
  Law which regulates the plaintiffs right to seek balance due of the remainder of the sale.
  
  
• 18-50-116. Miscellaneous provisions
  Law which regulates what will happen to each party of the foreclosure, after the sale.
  
  
• Arkansas State Code