Arkansas Foreclosure Law

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Arkansas Foreclosure Laws

Typical Arkansas Foreclosure Time Frame – The average length of foreclosure in Arkansas is around 120 days.

Judicial Foreclosure – Yes

Non-Judicial Foreclosure – Yes

Types of Security Instruments – Mortgage and Deed of Trust

Right of Redemption Period – Yes, however only in judicial foreclosures only and the limit is 365 days or 12 months.

Arkansas foreclosure law provides for both judicial and non-judicial foreclosures.  Prior to either type of foreclosure the property must be appraised.  According to Arkansas foreclosure law, the property may not sell for less than 2/3rds or 66.66% of the appraised value of the home.  If the home does not sell for the minimum value of 2/3rds, the trustee may at their option offer the home to the highest bidder from the sale within 12 months of the sale without making any reference to the appraisal amount.

Judicial foreclosure proceedings in Arkansas involve the court deciding the amount that is to be paid, and also stipulates a certain amount of time in which the borrower may correct the default that has occurred.  However, if the default is not corrected in the time set forth by the courts the clerk of the court is responsible for advertising the property as being for sale. 

In the sale, it is possible for the property to be purchased on the high bidders’ credit for no less than three months, and no more than six months.  A lien for the property will be secured; the high bidder must also post a surety bond for the total amount of the sale.

It is very important to note that if the property fails to sell for the entire amount that is due on the loan, the lender is allowed to seize property that the borrower owns in an attempt to satisfy the debt.  The borrower is allowed one year to redeem any property that is seized.

Non-judicial foreclosures in Arkansas require a Power of Sale stipulation or clause in the mortgage contract or deed of trust; it must also be included in the loan document.  If the Power of Sale specified the exact time, place and terms of the sale then all details set forth in the clause must be followed.  In the absence of the terms set forth, then the following terms must be followed:

A notice of default must be filed with an intent to sell and recorded with the county in which the property is located.  In addition, a copy must be published in the newspaper for the public circulation at least once a week for a minimum of four consecutive weeks.  The final publication must be no less than 10 days prior to the sale.  In addition, the trustee must send a recordation of the notice that was filed by certified mail to any and all parties who are listed on the deed of trust.

During the sale, the high bidder has 10 days in which to organize the funds to cover the purchase of the property.  However, if necessary the sale of the property may be postponed for up to 7 days if a public declaration is made at the time and date of the original sale in the location where the initial sale was scheduled to take place.  If the sale is postponed further than 7 days, the notice procedure must be followed again.  If the amount of the sale is not enough to satisfy the judgment then the lender is allowed to sue for a deficiency judgment within 12 months of the date of sale of the property.

For more information on Arkansas foreclosure laws click here.


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The information found on this site is not intended to be legal advice. The foreclosure process is highly case specific and laws vary throughout the United States. Please seek professional legal counsel before entering into any contract regarding any real property or stopping the foreclosure on any real property. By using this site you consent to the terms posted here.