Summary: Both Judicial and Non-Judicial foreclosures are allowed in the State of Arkansas, although the sale price of the property must be initially at least 2/3 of the market value. An appraisal must be performed for the fair market value at the beginning of the process and the borrower has the right of redemption, although the terms of this right vary depending on the type of foreclosure. The lender also has the right to seek deficiency judgment against the borrower with the terms, again, varying depending upon whether or not the foreclosure is a judicial or non-judicial foreclosure. A typical foreclosure in Arkansas takes about 5 months.

In the State of Arkansas, those facing foreclosure may find themselves going through a judicial or non judicial foreclosure process. Both types of foreclosure are allowed in Arkansas. Prior to any type of foreclosure proceeding commencing, however, the property must be appraised by a certified real estate appraiser. The type of foreclosure is up to the lender with judicial foreclosures taking longer but allowing for the lender to recoup more losses with deficiency judgments.

When the lender decides to go with a judicial foreclosure in the State of Arkansas, they file a complaint in the county where the property is located and seek an order of foreclosure. Upon proof that the borrower is delinquent in their loan and in violation of their agreement, the court will then give the borrower a few days to pay the delinquent charges including costs and any penalties. If the borrower fails to do this, the clerk then puts the property up for public sale.

A lien is place on the property by the county and the property is then auctioned off to the highest bidder. The amount must be paid in full within 6 months of the auction by the new buyer. If the amount of the sale is less than the amount due the lender, the lender can, at this time, seek a deficiency judgment against the borrower and seize any other assets that they may have to make up for the loss.

IWhen there is a Power of Sale clause in the mortgage or deed of trust securing the property, the lender may pursue a non-judicial foreclosure. In this case, the lender must still get an appraisal of the property and follow strict guidelines as mandated by Arkansas law. This includes notifying the borrower that they are in danger of losing their home with exact wording and telling them the time, place and date of the sale. The notice must be sent by certified mail to the borrower, recorded with the county clerk and published in the county newspaper for four weeks. The notice must be sent to the borrower within 5 days after it has been recorded by the county clerk and the notices in the newspaper must run for four weeks before the sale. The borrower can pay the delinquency with costs and reclaim their property during this time. The sale proceeds will then go towards the loan and any other lien holders on the property. The borrower is then entitled to receive any remaining funds.

During the first sale, the property must sell for at least 2/3 of the fair market value of the property. If the sale does not meet this price, it is then held for one year and then auctioned off again, this time with no price restrictions.

A deficiency judgment can be levied against a borrower right away in the case of a judicial foreclosure or, in the case of a postponed sale, the lender has one year to sue the borrower for the difference between the amount of the loan less the sale price or fair market value, whichever is less.

ITo stop foreclosure in Arkansas, you should seek foreclosure help from loss mitigation firms. Loss mitigation agencies can often come up with options that you might not know exist. These include short sales of properties that allow for the property to be sold prior to the foreclosure at an amount that is agreeable to the lender and will enable the borrower to stop foreclosure and get off the hook, so to speak for the mortgage and any forthcoming judgments. loss mitigation companies can help a borrower facing the foreclosure process in Arkansas get a new start.

Loss mitigation consultants can give you a free foreclosure evaluation that can tell you how you can stop foreclosure. They can present you with options such as loan modification, which may be able to save your home from foreclosure. If you are already embroiled in the foreclosure process, they may be able to prevent foreclosure or, at least, help you lessen the impact that this can have on you. A Loss mitigation consultants will be abreast of the laws and can help you find a way to come out of foreclosure with the minimum amount of damage to you.

It is important for anyone who is facing foreclosure or the potential of foreclosure in Arkansas to take action right away, rather than wait for the foreclosure to happen. By seeking a free foreclosure consultation, you can discover your rights and act in a way that will be of most benefit to you and your family. You do not have to feel as though there are no options and that you have to go through this process alone. Loss mitigation specialists can often help you stop foreclosure and avoid bankruptcy, which often accompanies those in the foreclosure process where a deficiency judgment is levied against them.

Other ways that a loss mitigation firm can help you avoid foreclosure is to tell you about bad credit loans, government aid and other options that may or may not be the right choice for you. The worst thing that you can do when facing an Arkansas foreclosure is to remain idle and not do anything. Know your rights and what you can do to protect yourself. By using the services of loss mitigation firms, you may be able to save your home from foreclosure. You have nothing to lose and everything to gain when you contact them. Visit www.1stforeclosureprevention.com to find the foreclosure help that you need.