LITTLE ROCK, AR - The recent recession has made it more difficult for all of us to pay our bills, what with costs rising everywhere from the grocery store to the gas station. The weak economy has been particularly tough on some homeowners, whose tight finances have put them at risk of losing their homes because they have fallen behind in their mortgage payments.

Attorney General Dustin McDaniel is aware that too many families face such a crisis, and he is concerned that homeowners often have too little notice to act before their homes are placed in foreclosure and offered for sale by the mortgage servicer. While not every foreclosure can be prevented, it is in everyone's best interest to make sure that whenever a family home can be saved, it is saved.

For that reason, the Attorney General's Office issued this consumer alert today to make citizens aware of Representative Tiffany Rogers House Bill 1811, which was signed into law by the Governor as Act 885. This new law will be a huge help to many consumers as it will require additional information be provided to homeowners and encourage loss mitigation or loan modification before a foreclosure can be initiated.
"This bill will help families by giving them information that could possibly help them avoid the loss of their homes," McDaniel said.

Right now, Arkansas's non-judicial foreclosure statutes ensure that people in default will receive one piece of mail informing them of the mortgagee's foreclosure and intent to sale. That is likely the only information they will receive before the sale sign goes up.
The new law modifies the non-judicial foreclosure statutes to provide two significant benefits to Arkansas homeowners.

First, by requiring the mortgage servicer to provide the homeowners with copies of all relevant documents ...