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Facing Foreclosure in Arkansas?

You have more time and more options than you think. Arkansas uses non-judicial (trustee's sale under act 53 of 1987) foreclosure with a typical timeline of 75 days. This guide explains what's happening and what to do.

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Arkansas Foreclosure Facts

Foreclosure Type
Non-judicial (trustee's sale under Act 53 of 1987)
Typical Timeline
75 Days
From first notice to sale
Redemption Period
Pre-Sale Only
Cure before sale only
Deficiency Judgment
Limited
FMV credit required
Right to Cure
30 Days
Deadline to pay arrears
Mandatory Mediation
Not Required
Federal protections apply

Arkansas ranks 20th in the nation for financial distress, with a State Distress Index score of 54.4 (Elevated). The state's bankruptcy filing rate is 228 per 100,000 residents. Credit card delinquency stands at 13.84%. If you're struggling, you're not alone.

Source: Arkansas Financial Distress Profile — American Default Research, updated 2026-04-16

Most Distressed Counties

County Score Zone
Crittenden County 85.8 Crisis
Phillips County 85.5 Crisis
Lee County 83.7 Crisis
St. Francis County 83.3 Crisis
Desha County 79.8 Serious

35 counties in Serious or Crisis zones, 31 in Elevated.

See all 75 Arkansas counties →

Arkansas Foreclosure Timeline

Arkansas is one of the faster foreclosure states. Federal law protects you for the first 120 days.

Day 1–36
Missed payment. Your servicer must attempt to contact you by Day 36 to discuss options. Federal law (Regulation X).
Day 37–45
Written notice required. Your servicer must send written notice of loss mitigation options by Day 45. You can still apply for help.
Day 45–120
Protected period. Federal law prohibits your lender from starting foreclosure until Day 120. This is your window to apply for a loan modification or forbearance.
Day 120+
Foreclosure can begin. If you've received a Notice of Default, you're here. In Arkansas, the lender must give you 30 days' written notice and follow state-specific publication requirements. You still have options — see what you can do.
Day 150–135
Foreclosure sale. The property is sold at public auction, typically at the county courthouse. The lender often buys it back.
After sale
No post-sale redemption. Arkansas does not offer a post-sale redemption period. Once the sale is confirmed, the property transfers to the new owner. This makes it even more important to act before the sale date.

For a personalized timeline based on your last payment date, use our Foreclosure Timeline Calculator.

Your Rights Under Arkansas Law

Right to Cure Under the non-judicial track, the borrower has 30 days from the Notice of Default to cure the default and stop the foreclosure. After publication begins, the borrower may still reinstate by paying all arrears and costs up until the trustee's sale. A.C.A. § 18-50-102; 12 CFR 1024.41
Right to Reinstate Before the trustee's sale. The 30-day cure period after Notice of Default, plus the 2-week publication period, provides approximately 45-60 days from the notice to reinstate. A.C.A. § 18-50-102; A.C.A. § 18-50-104
Federal
Dual Tracking Prohibition Federal law (CFPB Regulation X) prohibits servicers from advancing foreclosure while reviewing a loss mitigation application. 12 CFR 1024.41
Federal
Loss Mitigation Review Federal CFPB Regulation X requires servicers to complete a loss mitigation review before foreclosure referral. Arkansas state law does not impose a separate mandatory loss mitigation requirement beyond federal rules. 12 CFR 1024.41
Federal
Pre-Foreclosure Contact Federal CFPB rules require servicer pre-foreclosure outreach. Arkansas does not have a separate state pre-foreclosure counseling or contact mandate. 12 CFR 1024.41

Your Options in Arkansas

Every situation is different, but most Arkansas homeowners have more options than they realize. Here are the paths available to you, from keeping your home to making a clean exit.

Can I keep my home?

Yes, if you act early enough. A loan modification permanently changes your mortgage terms to make payments affordable. Your servicer is required to evaluate you for one if you submit a complete application more than 37 days before a scheduled sale.

Forbearance gives you a temporary payment pause. It doesn't erase what you owe, but it buys time if your hardship is short-term. In Arkansas, forbearance available through servicer and federal programs (Fannie/Freddie/FHA/VA/USDA). Reinstatement means paying everything you owe (missed payments plus fees) to bring the loan current.

Filing for Chapter 13 bankruptcy triggers an automatic stay that halts foreclosure immediately. You can catch up on missed payments over 3-5 years while keeping your home. The bankruptcy filing rate in Arkansas is 228 per 100,000 residents.

What if I can't keep my home?

Selling before foreclosure gives you control over the process and protects your credit score. A short sale lets you sell for less than you owe with lender approval. A deed in lieu of foreclosure transfers the property directly to the lender.

If you sell through a short sale in Arkansas, you can negotiate a deficiency waiver as part of the approval. Short sales require servicer approval.

A deed in lieu of foreclosure in Arkansas transfers the property directly to the lender. Deed in lieu available with servicer approval and clear title.

Arkansas limits deficiency judgments — your lender's ability to pursue you for the balance is restricted by state law.

A distressed property specialist can help

An agent who works with distressed sellers in Arkansas can negotiate with your lender, manage the short sale process, and help you walk away with your credit intact. The earlier you start, the more leverage you have.

Talk to one for free

My sale date is within 30 days

You still have options, but you need to move fast.

File for bankruptcy. A Chapter 13 filing triggers an automatic stay that stops the sale immediately. Talk to a bankruptcy attorney today.

Submit a loss mitigation application. If you haven't already, a complete application received more than 37 days before the sale forces your servicer to review it before proceeding.

Call a HUD counselor now. They can contact your servicer on your behalf and may be able to delay the sale. Call 1-800-569-4287.

Financial Assistance in Arkansas

Arkansas Homeowner Assistance Fund (AHAF)

Check Availability
Administered by Arkansas Development Finance Authority (ADFA)
Apply Visit program website

Other Arkansas Programs

Arkansas HUD-Approved Housing Counseling

Free foreclosure prevention counseling through HUD-approved agencies statewide; services include loss mitigation assistance, servicer negotiation support, and legal referrals — critical given Arkansas's fast foreclosure timeline

Visit website

Legal Aid of Arkansas

Free civil legal assistance for low-income Arkansans facing foreclosure; can provide representation to contest deficiency judgments, review servicer CFPB compliance, and challenge improper trustee's sale notices

Visit website

Arkansas Development Finance Authority (ADFA)

State housing finance authority providing homeownership programs, mortgage assistance, and counseling referrals; administers HAF and other homeownership preservation programs

Visit website

After the Sale in Arkansas

Eviction Notice
90 Days (Federal)
Court order required for removal
Surplus Funds
You can claim
Surplus proceeds from the foreclosure sale (above the debt and costs) belong to the former owner or junior lienholders.
Cash for Keys
Commonly offered
Voluntary relocation assistance sometimes offered by purchasers.

After foreclosure sale, the purchaser may need to obtain a court order for eviction. Federal PTFA provides 90-day notice to bona fide tenants. The federal Protecting Tenants at Foreclosure Act (PTFA) requires at least 90 days' notice for bona fide tenants in any state.

Protect yourself from scams

People in financial distress are prime targets for fraud. Know these rules:

⚠
Never pay an upfront fee for help. Advance fees for mortgage or debt assistance are illegal in most states. If anyone asks for money before doing anything, walk away.
⚠
HUD-approved counseling is always free. Call 1-800-569-4287 or visit the CFPB counselor finder. If someone charges for what HUD counselors do for free, it's a scam.
⚠
Never sign over your deed without an attorney. "Equity stripping" and "sale-leaseback" scams trick homeowners into transferring their title. You could lose your home permanently.
⚠
Your servicer must evaluate you for loss mitigation. Under federal rules (Regulation X), servicers cannot start foreclosure until you're 120+ days delinquent, and must review your application before proceeding. If a company claims only they can "save" your home, verify through your actual servicer.

Report fraud: CFPB · FTC · your state attorney general's office.

How It Works

1
Tell us your situation

Answer a few questions about where you are in the process. Takes 60 seconds.

2
We review your options

A local professional reviews your situation based on Arkansas law and your servicer's track record.

3
You get a plan

You receive a personalized action plan with next steps. No upfront fees. No obligation.

Foreclosure Timeline Calculator

See exactly when each step of Arkansas's foreclosure process happens based on your last payment date.

Hardship Letter Generator

Write a loss mitigation request to your mortgage servicer. Pre-formatted with your situation details.

Get a Free, Confidential Review of Your Options in Arkansas

A HUD counselor, attorney, or distressed property specialist in Arkansas can review your specific situation. Many at no cost.

We never charge upfront fees. We never sell your information.

Thank you. A local professional will review your situation and be in touch. In the meantime, visit our free directory to find HUD-approved counselors and legal aid in Arkansas.

We connect you with HUD-approved counselors, legal aid, and distressed property specialists. We do not sell your information.

Free Resources in Arkansas

HUD-Approved Counselors

13 certified agencies in Arkansas provide free foreclosure prevention counseling. They can negotiate with your servicer on your behalf.

Find a counselor near you

Legal Aid

Legal Aid of Arkansas provides free legal help to low-income residents facing foreclosure, eviction, and debt collection.

Find legal aid

Arkansas Bar Association Lawyer Referral

The Arkansas Bar Association Lawyer Referral can connect you with a foreclosure defense attorney. Initial consultations are often free or low-cost.

Find an attorney

Arkansas Foreclosure Law

Detailed guide to Arkansas's foreclosure statutes, homeowner protections, and redemption rights. Every claim cited to its source statute.

Read Arkansas foreclosure law

File a Complaint

File a complaint about your mortgage servicer with the Consumer Financial Protection Bureau.

CFPB complaint portal

Frequently Asked Questions

How long does foreclosure take in Arkansas?

Arkansas uses non-judicial (trustee's sale under act 53 of 1987) foreclosure. The process typically takes 75 days from the first notice to the sale date. Federal law (Regulation X) prohibits lenders from starting foreclosure until Day 120 of delinquency.

Can I stop foreclosure once it starts in Arkansas?

Yes. You have several options: (1) Reinstatement — pay all missed payments plus fees to bring your loan current. (2) Loan modification — your servicer must review a complete application received more than 37 days before a scheduled sale. (3) Forbearance — temporary payment pause. (4) Bankruptcy — triggers an automatic stay that halts the sale immediately. (5) Short sale — sell the property before the lender does.

Does Arkansas allow deficiency judgments?

Arkansas limits deficiency judgments. Your lender's ability to pursue you for the remaining balance is restricted by state law. Requirements may include fair market value credits or time limitations. See our Arkansas foreclosure law guide for specific details.

Is foreclosure counseling free in Arkansas?

Yes. There are 13 HUD-approved counseling agencies in Arkansas. Call 1-800-569-4287 for a free referral. HUD counselors can negotiate with your servicer on your behalf at no cost to you. Find one near you.

What is the homestead exemption in Arkansas?

Arkansas's homestead exemption is unlimited in value (subject to acreage limits). However, this exemption does not protect your home from mortgage foreclosure. It only protects equity from unsecured creditors like credit card companies.

What if I have an FHA, VA, or USDA loan in Arkansas?

Government-backed loans have additional protections beyond Arkansas state law. FHA loans require a face-to-face meeting attempt before foreclosure. VA loans require the servicer to explore all alternatives. USDA loans have their own loss mitigation process. These protections generally extend the timeline beyond the state minimums.

What happens to tenants if my Arkansas home is foreclosed?

Federal law (the Protecting Tenants at Foreclosure Act) gives tenants with valid leases at least 90 days' notice before they must vacate after a foreclosure sale. Federal PTFA provides 90-day notice to bona fide tenants after foreclosure sale. If you rent out the property, notify your tenants as soon as possible and advise them to document their lease.

Can I claim surplus funds after a foreclosure sale in Arkansas?

Yes. If your Arkansas home sells at auction for more than the total owed (including fees and costs), you have the right to claim the difference. Contact the county clerk, court, or trustee who conducted the sale. These funds can be significant — don't assume nothing is left.

Is the Homeowner Assistance Fund still available in Arkansas?

Check with your state housing agency for current availability. Contact a HUD-approved counselor at 1-800-569-4287 for help identifying programs you may qualify for.

Can I do a short sale to avoid foreclosure in Arkansas?

Yes. In Arkansas, you can negotiate a deficiency waiver as part of a short sale approval. Short sales require servicer approval. Get the waiver in writing before closing. A HUD-approved counselor can help negotiate the terms.

More Arkansas Data

Arkansas Distress Profile

State ADI score of 54.4 (Elevated), ranked 20th nationally. Debt, bankruptcy, safety net data.

Arkansas Foreclosure Laws

Complete legal reference with governing statutes, process steps, and homeowner protections.

Arkansas County Profiles

All 75 Arkansas counties scored and ranked by the County Distress Index.

National Foreclosure Guide

Federal rights, step-by-step process, and help resources that apply in every state.
Last updated: 2026-04-16. Data sources: Federal Reserve Bank of New York, CFPB, U.S. Courts, Census Bureau, BLS, Arkansas Code.

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If you're struggling with debt or facing foreclosure, free help is available. Find help near you · Browse the Glossary · The U.S. Department of Housing and Urban Development provides HUD-approved housing counselors at no cost. You can also call 1-800-569-4287.