Foreclosure & Alternatives Law

Can a Lender Sue a Borrower for a Deficiency Judgment if the Lender is Still Owed Money After a Foreclosure Sale in Arkansas?

Sometimes. A lender may sue a borrower for a deficiency judgment in Arkansas if the foreclosure sale occurred through a non judicial foreclosure procedure pursuant to a power of sale clause. If the property sells at the public foreclosure sale for less than the amount owed the lender then the lender may sue for a deficiency judgment within 12 months of the foreclosure sale.