Foreclosure & Alternatives Law
How Can a Lender Foreclose on a Property in Arkansas?
Both judicial and non judicial foreclosures are permitted in Arkansas. A non judicial foreclosure allows a lender to begin the foreclosure process without court involvement because the loan documents provide that power to the lender. If the loan documents do not expressly provide the lender with the power of sale then the lender must sue the borrower in state court in order to obtain permission to foreclose on the property.
Whether the lender pursues a judicial or a non judicial foreclosure, the lender must obtain an appraisal of the property prior to the beginning of the foreclosure process and the lender may not sell the property for less than two thirds of the appraised value.