Marcus obtained a home loan in Little Rock secured by a deed of trust. He later defaulted on his payments. Which of the following best describes how the lender can foreclose on the property under Arkansas law?
Correct Answer
B) The trustee can conduct a non-judicial foreclosure sale after providing the required statutory notice, without court involvement
Under Ark. Code Ann. § 18-50-101 et seq., Arkansas uses deeds of trust as the primary security instrument, which enables non-judicial (trustee's sale) foreclosure. When Marcus defaults, the trustee can sell the property after providing the required statutory notice periods without needing to file a lawsuit or obtain a court order. This process is faster and less expensive than judicial foreclosure.
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Related Topics & Key Terms
Key Terms:
Related Concepts
TILA is a federal law that requires lenders to disclose the true cost of credit to borrowers, including the annual percentage rate (APR), total finance charges, and loan terms. It is implemented by Regulation Z.
A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
Usury is the practice of charging an interest rate that exceeds the maximum rate permitted by state law. Usury laws protect borrowers from excessive interest charges on loans.
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