Arkansas Passes Foreclosure Info Law
Posted by Miriam Axel-Lute on April 27, 2011
While housing counseling funding is being slashed, it’s worth noting that Arkansas has enacted a modest yet important law (hat-tip Naked Capitalism) requiring that servicers give homeowners in danger of foreclosure a lot more information about what’s going on and what they can do about it.
Of particular note, given the systemic problems with documentation of loans and titles, is the requirement that homeowners be sent a copy of the title and the loan document and be told where the original, plus their payment history, resides. While it seems simple, in the current environmental that’s a bold move toward leveling the playing field in favor of borrowers.
On the other hand, since the notification requirements were raised from five days before a sale to a whopping ten days, homeowners may still find themselves scrambling to prevent foreclosures from going forward. Especially without housing counselors to help them navigate and negotiate.