Arkansas Foreclosure & the Eviction Process
The Arkansas foreclosure process is a legal process used by the mortgage loan holder, such as a bank, in the event that the homeowner defaults on his mortgage obligations. The mortgage holder has the option of seeking a foreclosure in or out of court. An in-court foreclosure is called a judicial foreclosure, while an out of court foreclosure is called nonjudicial. After the foreclosure is granted, the mortgage holder may need to seek a court-ordered eviction if the homeowner refuses to leave.
Other People Are Reading
-
Judicial Foreclosure
-
Judicial foreclosure occurs when the mortgage holder needs to get court authorization to proceed with a foreclosure. The current homeowner will be given a chance to stop the court proceedings by paying the entire debt owed to the mortgage holder. If the homeowner cannot pay off the mortgage loan or make any other arrangements with the holder, the property is put up for sale by the clerk of court. If the homeowner wants to redeem the house later, he has to pay the foreclosure sale price of the home, along with any interest accrued, within one year of foreclosure.
Nonjudicial Foreclosure
-
The mortgage holder can include a clause that authorizes the power of sale in the event of a default. The mortgage holder does not need to go to the court in this case, since this clause automatically allows the foreclosure sale to go through.
-
Self-Help Eviction
-
Once the home is sold through the foreclosure process, the new lender or homeowner must evict the original homeowners, if they have not left the property. The new homeowner cannot attempt to force the original homeowners to leave the property by denying them the use of the home or harassment. This practice is called self-help eviction.
Legal Eviction
-
Arkansas's legal eviction process requires that the mortgage holder terminates the home owner's tenancy. The mortgage holder needs to send a two-week notice for the homeowner to leave the property or eviction action will be taken. If the homeowner stays in the home, the mortgage holder needs to file for an eviction action through the courts.
-
