Kevin is an investor who purchased a property at a trustee's sale in Arkansas. The original borrower, Lisa, is claiming she has a right to reclaim the property after the completed sale. Under Arkansas law governing deeds of trust, which statement most accurately describes Lisa's post-sale rights?
Correct Answer
B) Lisa has no post-sale rights because the completed trustee's sale extinguishes all of the borrower's redemption rights under the deed of trust
Under Arkansas's non-judicial deed of trust foreclosure process governed by Ark. Code Ann. § 18-50-101 et seq., once the trustee's sale is completed, the borrower's equity of redemption is extinguished. Arkansas's non-judicial foreclosure under a deed of trust generally does not provide a statutory post-sale right of redemption comparable to what some states offer in judicial mortgage foreclosures. The completed trustee's sale conveys title to the purchaser free of the borrower's redemption rights.
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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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