Arkansas at a glance
Checked against the sources cited, 2026-09-19
| Topic | What the law says, and where it says it |
|---|---|
| How foreclosure works here | Arkansas has an out-of-court process called statutory foreclosure: a power of sale is implied in every properly acknowledged and recorded mortgage, and the trustee or mortgagee may sell the property at public auction once at least 60 days have passed after a notice of default and intention to sell is recorded. The statutory process does not take away the lender's right to foreclose through a court case instead. Ark. Code §18-50-115(a); §18-50-104(a); §18-50-107; §18-50-116(a) (Statutory Foreclosure Act); court foreclosure: Ark. Code §18-49-101 et seq. Show the source texta power of sale is implied in every mortgage of real property situated in this state that is duly acknowledged and recorded |
| Who holds foreclosure surplus | After a statutory (out-of-court) foreclosure sale, the trustee or mortgagee who held the sale applies the proceeds in this order: the expenses of the sale, the debt owed, holders of later recorded liens in order of priority, and then any surplus to the grantor (the borrower) or the grantor's successor in interest. Ark. Code §18-50-109 Show the source textThe surplus, if any, to the grantor of the trust deed or to the successor in interest of the grantor entitled to the surplus. |
| Tax sale excess proceeds | Arkansas does not sell tax liens at the county level. Tax-delinquent land is certified to the Commissioner of State Lands, who sells the land itself and holds any excess proceeds in escrow. After a one-year escrow period the record owner at the time of sale may apply to the Commissioner for the excess proceeds; for parcels sold after July 1, 2018 the funds stay available for two years, and if not collected they go to the county where the property is located. Arkansas Commissioner of State Lands, Available Excess Proceeds page; 26 CAR §400-405; Ark. Code §26-37-205(a)(6), (b), (c); Ark. Code §26-37-101 Show the source textfunds are held available for two years. If the funds are not collected during the time period pertaining to the specific parcel, they are returned to the county in which the property is located. |
| Redemption after the sale | After a statutory (out-of-court) foreclosure sale there is no right to redeem. After a foreclosure sale ordered by a court, the mortgagor or the mortgagor's heirs or legal representatives may redeem within one year from the date of sale, unless the right of redemption was waived in the mortgage or deed of trust. Ark. Code §18-50-108(b) (statutory foreclosure); Ark. Code §18-49-106 (court foreclosure) Show the source textA sale shall terminate all rights of redemption, and no person shall have a right to redeem the trust property after a sale |
| Rules for recovery companies | Arkansas caps recovery fees at 10 percent in two places. For excess proceeds from a tax-delinquent land sale, a claim made through a third-party agent must include the signed contract, which may not allow a fee greater than 10 percent of the excess proceeds; by statute the agreement must also be in writing, signed by the former owner, and state the value of the funds before and after the fee, and the Commissioner pays the former owner only unless a court orders otherwise. For unclaimed property held by the Auditor of State, a finder may charge no more than 10 percent of the amount collected, no fee is allowed until the property has been in the Auditor's custody for at least 24 months, and the agreement must be written, signed, dated and notarized. 26 CAR §400-403(b)(4)(A); Ark. Code §26-37-205(b)(2)(F)-(I); Ark. Code §18-28-225; 18 CAR §21-501 and §21-502 Show the source textA copy of the signed contract between the agent and the former owner, which may not allow for a fee of greater than ten percent (10%) of the excess proceeds to be paid to the agent |
How surplus funds arise in Arkansas
When a home in Arkansas is sold at a foreclosure sale or a tax sale for more than the debt and the costs of the sale, the money left over is surplus funds, also called excess proceeds or overage. It does not belong to the lender or to the buyer. Liens recorded behind the foreclosed debt are paid first, and what remains belongs to the former owner or to the owner's heirs. Read surplus funds explained for the general rules and liens and competing claims for the order of payment.
How a claim moves in Arkansas
We confirm the sale figures in the public record, identify which office in Arkansas is holding the money, and prepare and file the claim the way that office requires, advancing the costs. Because we bring the whole record with us, the claim does not stall on a missing document, a competing name or a missed date. See how to qualify for what we handle and what you provide. Notices about surplus are usually mailed to the last address on record, which is often the home that was sold, so do not wait for a letter. In Arkansas that program is the Great Arkansas Treasure Hunt (Arkansas Unclaimed Property Program, Auditor of State).
If the owner has died
The right to the money belongs to the estate. Depending on the size of the estate, Arkansas law may allow a simplified procedure, or a probate court may need to appoint a personal representative. See estate and heir recovery and probate assistance.
Working with a recovery company in Arkansas
Arkansas regulates this kind of service. Arkansas caps recovery fees at 10 percent in two places. For excess proceeds from a tax-delinquent land sale, a claim made through a third-party agent must include the signed contract, which may not allow a fee greater than 10 percent of the excess proceeds; by statute the agreement must also be in writing, signed by the former owner, and state the value of the funds before and after the fee, and the Commissioner pays the former owner only unless a court orders otherwise. For unclaimed property held by the Auditor of State, a finder may charge no more than 10 percent of the amount collected, no fee is allowed until the property has been in the Auditor's custody for at least 24 months, and the agreement must be written, signed, dated and notarized. (26 CAR §400-403(b)(4)(A); Ark. Code §26-37-205(b)(2)(F)-(I); Ark. Code §18-28-225; 18 CAR §21-501 and §21-502)
Any agreement you sign, with us or with anyone else, has to follow that rule.
No out-of-pocket expense. Our only payment is a completion fee taken from the surplus once it is recovered. Where your state requires a licensed attorney for a court or probate filing, a licensed attorney handles it, and you still pay nothing out of pocket. Before you sign with anyone, read what a surplus funds scam looks like.
Questions about surplus funds in Arkansas
Enough to prove who you are and how you held the property: identification, the deeds, any notice you received, and, if the owner has died, the estate paperwork. We do the rest for Arkansas, from locating the funds to filing the claim.
After a statutory (out-of-court) foreclosure sale, the trustee or mortgagee who held the sale applies the proceeds in this order: the expenses of the sale, the debt owed, holders of later recorded liens in order of priority, and then any surplus to the grantor (the borrower) or the grantor's successor in interest.
No out-of-pocket expense. We advance the costs and are paid a completion fee from the surplus only after it is recovered. Where a court or probate filing requires a licensed attorney, a licensed attorney handles it.