Our attorneys’ experience in representing financial institutions and other creditors for over two decades, as well as our relentless approach, makes our firm the best choice to maximize your debt recovery. W. Lance Owens is a leader in the field and is chairman of the financial institutions section of the Arkansas Bar Association. His practice is devoted to creditor’s rights. Contact him now for your creditor or collection matter.
Judicial foreclosures are preferred by many foreclosing creditors because of the resulting judgment against the debtor and the finality of the court’s order is thought to make title issues more certain. If a creditor believes the debtor has other assets that might satisfy a judgment, this foreclosure is preferable because a creditor can garnish or execute on non-exempt property owed by the debtor following entry of the judgment. The primary disadvantage of judicial foreclosures is that debtors may file an answer to the complaint and delay judgment.
Non-judicial or “statutory” foreclosure is an expedited method which affords few remedies to the mortgagor debtor. Absent a bankruptcy filing or note requirements that demand more notice than what is typically mandated under Arkansas law, the foreclosure can almost always be completed more quickly than a judicial foreclosure. Since there is no provision for a debtor to delay the proceedings by filing an answer, a creditor can proceed quickly to the sale and possession of the real estate. Subsequently, by a separate action, a creditor may still pursue a judgment against the debtor for the deficiency if the creditor believes there are other assets from which to collect the judgment. Since the law requires the creditor to bid two-thirds of the indebtedness at the foreclosure regarding the value of the property, the creditor will not be able to pursue a judgment for more than one-third of the indebtedness. An additional advantage of non-judicial foreclosures is that personal service is not required. Notice is by publication. A negative aspect of non-judicial foreclosures is that there are added advertising costs and trustee fees required by statute.