Arkansas Counties
State Auction Process of Arkansas
Arkansas is a Tax Deed State, meaning that when property owners fail to pay their real property taxes, the Commissioner is responsible for selling homes that have been forfeited to the state.
Tax Deed Process
1. Title Transfer and Certification: Once the Commissioner receives the certification of non-payment of real property taxes, the state automatically obtains the title to the home. This forfeiture allows the Commissioner to proceed with the sale of the property to a new owner.
2. Penalties and Advertising Fee: Property owners who have not paid their property taxes are subject to penalties. In Arkansas, a penalty of 10% is typically charged on delinquent property taxes. However, if the 10% penalty amount is less than $1.00, the penalty is set at a minimum of $1.00. Additionally, property owners may be required to pay an advertising fee.
3. Notice and Payment of Tax Debt: Before the county collector transfers the home to the state by certification, the collector must publish a notice in a newspaper. This notice must be published not less than 30 days, but not more than 40 days, before the certification date. Property owners have the opportunity to pay off the tax debt and halt the tax deed process at any time before the certification date.
4. Tax Sale Auction: The tax sale consists of a public auction where the home is sold to the highest bidder. To win the bid, the highest bidder must offer at least the amount of delinquent taxes, penalties, interest, and the costs of the sale.
5. On-Site and Absentee Bidding: Registration for on-site bidding is typically required, and there is no fee for registration. Bidders have the option to participate in the auction either on-site or through absentee bidding.
6. Unsold Properties:Any properties that remain unsold at the auction can be purchased directly from the Commissioner of State Lands (COSL).
7. Redemption and Litigation Periods: After the tax sale, property owners have a 10-day redemption period during which they can pay the delinquent taxes and costs to reclaim their property. Additionally, there is a 90-day litigation period during which any party with a legal interest in the property can challenge the tax deed sale in court.
2. Penalties and Advertising Fee: Property owners who have not paid their property taxes are subject to penalties. In Arkansas, a penalty of 10% is typically charged on delinquent property taxes. However, if the 10% penalty amount is less than $1.00, the penalty is set at a minimum of $1.00. Additionally, property owners may be required to pay an advertising fee.
3. Notice and Payment of Tax Debt: Before the county collector transfers the home to the state by certification, the collector must publish a notice in a newspaper. This notice must be published not less than 30 days, but not more than 40 days, before the certification date. Property owners have the opportunity to pay off the tax debt and halt the tax deed process at any time before the certification date.
4. Tax Sale Auction: The tax sale consists of a public auction where the home is sold to the highest bidder. To win the bid, the highest bidder must offer at least the amount of delinquent taxes, penalties, interest, and the costs of the sale.
5. On-Site and Absentee Bidding: Registration for on-site bidding is typically required, and there is no fee for registration. Bidders have the option to participate in the auction either on-site or through absentee bidding.
6. Unsold Properties:Any properties that remain unsold at the auction can be purchased directly from the Commissioner of State Lands (COSL).
7. Redemption and Litigation Periods: After the tax sale, property owners have a 10-day redemption period during which they can pay the delinquent taxes and costs to reclaim their property. Additionally, there is a 90-day litigation period during which any party with a legal interest in the property can challenge the tax deed sale in court.
Foreclosures in Arkansas
In Arkansas, lenders have the option to foreclose on deeds of trusts or mortgages in default using either a judicial or non-judicial foreclosure process. The process followed depends on whether a power of sale clause exists in the mortgage or deed of trust.
1. Judicial Foreclosure:
In a judicial foreclosure, the lender files a lawsuit to obtain a court order for foreclosure. The court decrees the borrower’s debt and allows a short time for payment. If the borrower fails to pay within that time, the clerk of the court advertises the property for sale. The property must sell for not less than two-thirds of the appraised value, and if it doesn’t, it can be offered for sale again within twelve (12) months without reference to the previous appraisal. The sale occurs on credit for a minimum of three (3) months and a maximum of six (6) months, and a lien is retained on the property for the purchase price. The borrower has one (1) year from the sale date to redeem the property by paying the amount for which the property was sold, plus interest.
2. Non-Judicial Foreclosure:
The non-judicial process of foreclosure is used when a power of sale clause is present in the mortgage or deed of trust. The trustee records a notice of sale in the county where the property is located and mails a notice of default and intention to sell to the borrower and other relevant parties. The notice is also published in a newspaper in the county for four (4) consecutive weeks. The notice includes the names of parties to the mortgage or deed of trust, a legal description of the property, the default for foreclosure, and the time, date, and place of sale. Any person, including the lender, may bid at the sale. The high bidder must pay the bid price at the time of sale or within ten (10) days. The lender may bid by canceling out what is owed on the loan, including unpaid taxes, insurance, and costs, but must pay cash for any higher price.
3. Distribution of Proceeds:
After the sale, the proceeds are used to pay for the expenses of the foreclosure sale and the obligations secured by the trust deed. Any remaining funds are returned to the original borrower. The lender has twelve (12) months to sue the borrower for a deficiency, which is the difference between the foreclosure sale price and the balance due on the loan or the balance due on the loan minus the fair market value of the property, whichever is less.
Understanding the foreclosure process in Arkansas is crucial for both borrowers and lenders to navigate this legal procedure and make informed decisions regarding their properties and debts.
1. Judicial Foreclosure:
In a judicial foreclosure, the lender files a lawsuit to obtain a court order for foreclosure. The court decrees the borrower’s debt and allows a short time for payment. If the borrower fails to pay within that time, the clerk of the court advertises the property for sale. The property must sell for not less than two-thirds of the appraised value, and if it doesn’t, it can be offered for sale again within twelve (12) months without reference to the previous appraisal. The sale occurs on credit for a minimum of three (3) months and a maximum of six (6) months, and a lien is retained on the property for the purchase price. The borrower has one (1) year from the sale date to redeem the property by paying the amount for which the property was sold, plus interest.
2. Non-Judicial Foreclosure:
The non-judicial process of foreclosure is used when a power of sale clause is present in the mortgage or deed of trust. The trustee records a notice of sale in the county where the property is located and mails a notice of default and intention to sell to the borrower and other relevant parties. The notice is also published in a newspaper in the county for four (4) consecutive weeks. The notice includes the names of parties to the mortgage or deed of trust, a legal description of the property, the default for foreclosure, and the time, date, and place of sale. Any person, including the lender, may bid at the sale. The high bidder must pay the bid price at the time of sale or within ten (10) days. The lender may bid by canceling out what is owed on the loan, including unpaid taxes, insurance, and costs, but must pay cash for any higher price.
3. Distribution of Proceeds:
After the sale, the proceeds are used to pay for the expenses of the foreclosure sale and the obligations secured by the trust deed. Any remaining funds are returned to the original borrower. The lender has twelve (12) months to sue the borrower for a deficiency, which is the difference between the foreclosure sale price and the balance due on the loan or the balance due on the loan minus the fair market value of the property, whichever is less.
Understanding the foreclosure process in Arkansas is crucial for both borrowers and lenders to navigate this legal procedure and make informed decisions regarding their properties and debts.
Quick Facts
– Judicial Foreclosure Available: Yes
– Non-Judicial Foreclosure Available: Yes
– Primary Security Instruments: Deed of Trust, Mortgage
– Timeline: Typically 120 days
– Right of Redemption: Varies
– Deficiency Judgments Allowed: Varies
– Non-Judicial Foreclosure Available: Yes
– Primary Security Instruments: Deed of Trust, Mortgage
– Timeline: Typically 120 days
– Right of Redemption: Varies
– Deficiency Judgments Allowed: Varies
For the state of Arkansas The Commissioner of State Lands office partners with DataScoutPro.com to provide county property records.
Online Auction Resources
- Bid4Assets
- Auction.com Arkansas Residential Listings
- Xome
- ServiceLink Auction Arkansas
- Hubzu Auctions
- RealtyBid
- HUD Homes USA
- Williams & Williams Real Estate Auctions
- Bank Foreclosures Sale
- Wilson Auctioneers
- RealtyTrac Arkansas Foreclosure Auctions
- Wooley Auctioneers
- LandSearch Arkansas Auctions
- AuctionGuy Arkansas Auctions
- Rector Realty Auctions
- Looper Auction
- Arkansas Commissioner of State Lands Auctions
- Mountain Home Real Estate Auctions
- US Treasury Real Property Auctions