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New Arkansas Legislation Assists Homeowners Facing Foreclosure

A new law requires that Arkansas homeowners receive critical documents prior to a foreclosure and encourages loss mitigation or loan modification efforts before the foreclosure is initiated.

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Arkansas Governor Mike Beebe signed Act 885 of 2011 into law March 31. It passed both houses overwhelmingly.

The law was a part of Arkansas Attorney General Dustin McDaniel's legislative package. Rep. Tiffany Rogers of Stuttgart was the lead sponsor.

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""It's easy to understand the frustration of homeowners who are unable to access the information they need that could help them stay in their homes,"" McDaniel said. ""This Act addresses the concerns that we often hear from consumers. We appreciate Rep. Rogers' work on this bill, which improves the foreclosure process for Arkansas consumers.""

The Act requires mortgage servicers to provide copies of the note, mortgage, and any assignments; the physical location of the note; and payment history to homeowners facing nonjudicial foreclosures. Homeowners must also receive information about assistance programs that are available. Currently, such information is not typically given to Arkansas homeowners.

The Act does not offer financial assistance or foreclosure relief, but it directs mortgage services to provide names and contact information for loss mitigation or loan modification services available.

""Homeowners have had difficulties in learning where the loan was even located, never mind finding out what was needed, so that they could make good on their debt and keep their homes,"" Rogers said. ""We hope these changes will help Arkansans work through a difficult experience.""

About Author: Heather Cernoch

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