Arkansas foreclosure

In an Arkansas foreclosure, the judicial process is usually used unless there is a power of sale clause in the mortgage. The power of sale clause is a clause in the mortgage that spells out the terms of what will happen you default on your loan.

Regardless of which foreclosure process is used, an appraisal will be required. The first time it's up for sale, the property cannot sell for less than 2/3rds it's appraised value. If it has to be put up for sale again, it can sell to the highest bidder.

If there is no power of sale clause in the mortgage, the judicial foreclosure process requires that a judge look at the case. The judge will give you a short period of time to make up the payments. If you don't pay, then the county will advertise the property for sale.

If there is a power of sale clause and it specifies the time, place and terms of the sale, then that process is followed.

If the power of sale clause in the mortgage is missing any of these items, then it must be handled using the non-judicial process as follows:

1. The lender or trustee must record a notice of sale at the recorder's office of the county of your property.


2. A certified copy of this notice must be sent within 5 days to anyone mentioned in the mortgage or deed of trust.
3. Within 30 days, they must send certified copy to you, the borrower.


4. The notice of default and intent to sell must appear in a newspaper in the same county as your property. It must appear once a week for at least 4 weeks before the sale. The last ad must appear at least 10 days before the sale is to take place.