An act TO AMEND THE LAW CONCERNING STATUTORY 10 FORECLOSURES, the official text

Stricken language would be deleted from and underlined language would be added to present law.

1 State of Arkansas             As Engrossed: S3/3/25
2 95th General Assembly
                                     A Bill

3 Regular Session, 2025                                            HOUSE BILL 1238

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5 By: Representative Cavenaugh

6 By: Senator D. Sullivan

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8                               For An Act To Be Entitled

9   AN ACT TO AMEND THE LAW CONCERNING STATUTORY

10  FORECLOSURES; TO AUTHORIZE A MORTGAGOR TO RECOVER

11  FEES IN CERTAIN CIRCUMSTANCES; AND FOR OTHER

12  PURPOSES.

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15                                      Subtitle

16                       TO AUTHORIZE A MORTGAGOR TO RECOVER FEES

17                       IN CERTAIN CIRCUMSTANCES UNDER THE

18                       STATUTORY FORECLOSURE LAW.

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20 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:

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22  SECTION 1. Arkansas Code Title 18, Chapter 50, Subchapter 1, is

23 amended to add an additional section to read as follows:

24  18-50-118. Recovery of fees.

25  (a) A mortgagor may recover reasonable attorney's fees under this

26 subchapter if a court sets aside the statutory foreclosure sale due to a

27 mortgagee's failure to strictly comply with any provision of � 18-50-101 et

28 seq., under � 18-50-116(d)(2)(B)(ii).

29  (b) A mortgagor shall not be awarded attorney's fees under subsection

30 (a) of this section if the:

31  (1) Mortgagor and mortgagee reach a mutual resolution of the

32 debt and corresponding foreclosure;

33  (2) Mortgagor files a petition for bankruptcy while the

34 foreclosure or any related litigation is pending;

35  (3) Mortgagee instituted the statutory foreclosure while in good

36 faith relying on a policy of title insurance that was subsequently found to

    *CRH106*                                                 03-03-2025 10:09:42 CRH106
    As Engrossed: S3/3/25                                        HB1238

1 be in error;

2   (4) Mortgagee instituted the statutory foreclosure in good faith

3 without knowledge of unrecorded debt on the subject property;

4   (5) Mortgagee instituted the statutory foreclosure in good faith

5 without knowledge of assessments, taxes, or liens filed against the subject

6 property subsequent to the final policy of title insurance being issued; or

7   (6) Mortgage is reinstated under � 18-50-114.

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9                          /s/Cavenaugh

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