Under the Arkansas Deeds of Trust Act, which of the following statements accurately describes the non-judicial foreclosure process in Arkansas — EXCEPT?
Correct Answer
D) A lender must obtain a court judgment before the trustee may sell the property.
Option C is the EXCEPT answer because it is FALSE. Under the Arkansas Deeds of Trust Act (Ark. Code Ann. § 18-50-101 et seq.), non-judicial foreclosure in Arkansas does NOT require the lender to obtain a court judgment. The entire purpose of the deed-of-trust structure is to allow the trustee to conduct a foreclosure sale without court involvement, making the process faster than judicial foreclosure states. Requiring a court judgment would describe a judicial mortgage foreclosure, which is not the primary foreclosure method in Arkansas.
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