Foreclosure Help in Arkansas
If you’re facing foreclosure, it can be very stressful, especially if you’re not able to make the payments needed to stop the process from occurring. Often the best way to combat the uncertainty is getting to seek more information about how the foreclosure process works in Arkansas.
The foreclosure process will begin when you receive notice from the lender. In most cases, this will occur after you’ve been delinquent on the mortgage for 120 days. It should be noted that if you haven’t made payment the federal law stipulates that the lender will need to engage in loss mitigation. This means that they will need to work through a range of programs that are designed to prevent foreclosure from happening. Often, the type of action you take can be tailored to your situation.
Once the process is about to start, you’ll receive a notice in the mail. This will need to come at least ten days before the process begins. This package will need to contain several relevant documents. First, it will need to provide a copy of the original mortgage and any endorsements. They will also be obligated to tell you about any programs that you might be able to use to avoid foreclosure. If you could default on the property, they’ll need to tell you the date at which this will occur, based on your payment history.
Have a specific question about Avoiding Foreclosure in Arkansas? Check out our Foreclosure FAQ’s section.
If you take no action, and the default date is set to be reached, you will be sent two notices. The first will be 60 days from the foreclosure date. The second will be 30 days from the foreclosure date. They will also need to post a notice on the internet and in local newspapers for four consecutive weeks before the scheduled sale date. They will also need to post notice of intent to foreclose on the property at the courthouse. You will have the ability to reinstate the mortgage before the sale.
Deficiency Judgements After The Foreclosure
In some cases, the debt from the mortgage will be more than the lender made from selling the property, which is called a deficiency. In this case, the lender may take additional action to recoup their money. There are a few ways that they might determine how much they can sue for. First, they might calculate the total value of the loan, less the fair market value of the property. In other cases, they might calculate the entire debt, less the sale price of the property. Under Arkansas foreclosure law, the lender will need to use whatever the lower value is. If they intend to bring a deficiency lawsuit, they will need to file within 12 months of selling the property.
Seek Legal Help
Hopefully, you now have a better understanding of how the foreclosure will work. However, it can often be a good idea to get information tailored to your specific case. If you want personalized Arkansas foreclosure help, get in touch with us today to find out how we might be able to help.