Guide to  Foreclosure  In Arkansas

Guide by: Brandon M. Haubert

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Steps in the  Foreclosure Process in Arkansas

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The Demand Letter 

The Fair  Debt Letter

The Arkansas Foreclosure Packet 

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Notice of  Default  

The Foreclosure Sale 

The Demand  Letter

The first notification the borrower receives in the mail is a demand letter, also known as a breach letter, which informs them of the default and offers them a set period of time to mend it. If not cured within that time frame, the letter warns that the debt will be accelerated and all funds immediately due.

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The Fair Debt Letter

The first notice the borrower typically receives after acceleration is a Fair Debt Collection Letter, according to the Fair Debt Collection Practices Act (15 US Code 1692g). The firm conducting the foreclosure for the mortgage servicer usually sends this letter. The notice informs you of the reason for the default, how much you still owe, and when your loan was last paid in full.

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Arkasnas  Foreclosure  Packet

Arkansas’s Foreclosure Act also requires the bank to send you a packet of information at least 10 days prior to initiation of the foreclosure action (Ark. Code Ann. § 18-50-103). The packet must include:  (1) the bank and location of the original note;  (2) information regarding loan modification or forbearance assistance offered;  (3) a copy of the  note;  (4) a copy of the mortgage or deed of trust;  (5) and if the default is for nonpayment, a copy of the payment history showing the date of default.

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NOTICE OF DEFAULT

The Arkansas Foreclosure Act also requires a Notice of Default and Intention to Sale be filed (Ark. Code Ann. §18-50-104). The Notice of Default must be recorded in the property records, and must be mailed to you and anyone who has a lein on the property. It must include a bold warning as follows: YOU MAY LOSE YOUR PROPERTY IF YOU DO NOT TAKE IMMEDIATE ACTION.

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The  Foreclosure  Sale

Yes, then comes the Foreclosure Sale.  The part no person want to deal with. 

NEXT:  How to Stop  The Foreclosure  Sale

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Redeeming the Property  This is the full amount owed, not just the amount you are behind. 

How to Stop The  Foreclosure  Sale

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Filing for Bankruptcy  When you file bankruptcy you can stop the sale without paying the amount owed upfront. You can also get 5 years to make up the amount you are behind on your loan.

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What if it  Sells for  Less than I  Owed?

Deficiency Judgment In a foreclosure, your total debt might be more than the foreclosure sale price. The difference between the total debt and the sale price is called a “deficiency.” For example, say the total debt owed is $250,000, but the home sells for $200,000 at the foreclosure sale. The deficiency is $50,000. In Arkansas, the lender can seek a personal judgment against the debtor to recover the deficiency.

Why File Bankruptcy  in Arkansas

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The Automatic  Stay

Stop The  Foreclosure 

Get Caught Up On Your Home Loan

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Stop the Deficiency Judgment

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Once your petition for bankruptcy is filed an “automatic stay” is activated. The stay stops ALL creditors from moving forward. 

Automatic Stay

Take Care of  All Your Bills  at Once 

The Bankruptcy will stop the foreclosure, repossession, wage garnishments.  The Bankruptcy will stop the foreclosure, repossession, wage garnishments.