Facing Foreclosure in Arkansas?

Arkansas uses non-judicial foreclosure. No law sets one length for the whole process. The lender or trustee sets the sale date, so the total depends on its schedule and any postponements. When 12 C.F.R. § 1024.41 applies to a principal-residence mortgage, the rule generally bars a servicer in an ordinary delinquency-based foreclosure from making the first notice or filing until the loan is more than 120 days delinquent. Limited exceptions apply to due-on-sale violations and joining a superior or subordinate lienholder's foreclosure. Some state notices that are only mailed to you can come during that wait. Arkansas law sets these steps, each with its own minimum: Notice of default to sale: at least 60 days after the notice of default is recorded (A.C.A. § 18-50-104).

Often there are still ways to try, though none is guaranteed: (1) Reinstatement — paying what you're behind, plus fees, to bring the loan current, where state law or your mortgage allows it (Arkansas's rule is under "When is it too late?" above). (2) Loan modification — if 12 C.F.R. § 1024.41 applies to a mortgage secured by your principal residence and no § 1024.30 exemption applies, including exemptions for small servicers, reverse-mortgage transactions, and qualified lenders, a complete application received more than 37 days before a scheduled sale generally requires evaluation for available options and a written decision; the rule does not require a particular modification. (3) Forbearance — a temporary pause on payments, if your servicer agrees. (4) Bankruptcy — filing generally creates an automatic stay that can stop a foreclosure sale while it lasts, though the stay has exceptions and can last only a short time in some cases. (5) Short sale — selling the home for less than you owe, if your lender approves.

Arkansas limits deficiency judgments: whether the lender can collect the rest depends on the loan, the kind of sale and the rules below. For non-judicial (statutory) foreclosures, the lender must file a separate court action to obtain a deficiency judgment within 12 months of the trustee's sale. For judicial foreclosures, deficiency proceedings follow civil judgment rules. Arkansas provides an FMV credit on deficiency judgments after a statutory (non-judicial) sale: the deficiency cannot exceed the lesser of the amount by which the debt due at the date of sale (with interest, costs, and trustee's and attorney's fees) exceeds the property's fair market value at the date of sale, or the amount by which it exceeds the price the property sold for. Arkansas provides an FMV credit on deficiency judgments after a statutory (non-judicial) sale: the deficiency cannot exceed the lesser of the amount by which the debt due at the date of sale (with interest, costs, and trustee's and attorney's fees) exceeds the property's fair market value at the date of sale, or the amount by which it exceeds the price the property sold for.

Yes. HUD-approved housing counseling agencies give foreclosure-prevention counseling for free, and a counselor can help you talk to your servicer. HUD lists 13 approved counseling agencies in Arkansas; its referral line is 1-800-569-4287.

As Arkansas law sets it: Unlimited in value for the core homestead of a resident who is married or the head of a family: up to 80 acres outside a city or town, or a quarter acre inside one, is protected regardless of value. A larger homestead (up to 160 acres outside a city or town, or one acre inside one) is protected only up to $2,500 in value. The homestead exemption protects against most unsecured creditors and general judgment liens but does NOT bar a mortgage lender or trust deed beneficiary from foreclosing its lien on the homestead property. Arkansas's homestead exemption has no dollar cap on the core homestead (80 acres outside a city or town, or a quarter acre inside one) for unsecured debt collection purposes. However, it provides no protection against mortgage or trust deed foreclosure. After a foreclosure where a deficiency judgment is permitted, the deficiency judgment becomes a general lien collectable against the borrower's non-exempt assets. Under a 2025 amendment (Act 679), a member of a limited liability company that owns the homestead can claim the exemption if the company's two members are a married couple, or if its only member is a natural person who is married or the head of a family.

Government-backed loans have their own rules on top of Arkansas law. FHA requires a meeting or reasonable efforts to arrange one in covered defaults. Current rules allow approved remote methods; exceptions and timing requirements apply. VA and USDA set their own help options for the loans they back; the forbearance guide and loan modification guide explain each program's options, with the rule behind each one.

Federal PTFA provides 90-day notice to bona fide tenants after foreclosure sale, and a bona fide tenant with a lease can generally stay until the lease ends; if the unit is sold to a buyer who will live there, the lease can be ended on 90 days' notice. Because Arkansas has no post-sale redemption period, once the trustee's sale occurs, the new owner can move to obtain possession — but PTFA requires 90-day notice to bona fide tenants.

Possibly. If a foreclosure sale brings in more than is owed, the extra is called surplus. The costs of the sale, the debt being foreclosed and other liens on the home, such as a second mortgage, are generally paid first, and in some states a court decides who gets what is left. In Arkansas: Surplus proceeds from the foreclosure sale (above the debt and costs) belong to the former owner or junior lienholders. The court, county clerk or trustee who handled the sale can tell you whether any surplus is being held.

Generally, no. HAF programs, including the Arkansas Homeowner Assistance Fund (AHAF), can't commit new money after September 30, 2026 (Treasury). If the program approved you before then, ask it about payments still being processed.

Possibly, with your lender's approval. In Arkansas, a deficiency waiver (a release of the remaining balance) can be negotiated as part of a short sale approval. Short sales require servicer approval. Negotiate deficiency waiver in writing. Whether the lender can still collect the rest depends on the terms it agrees to.