HB1847 Summary

• Abolishes nonjudicial (statutory) mortgage foreclosure procedures established in 1987 and requires all residential mortgage foreclosures to be conducted exclusively through judicial proceedings under court supervision.

• Requires circuit clerks to serve as court-appointed commissioners to conduct judicial foreclosure sales and establishes commissioner fees ranging from $10 to 0.1% of sale price (up to $35,000+) with revenues directed to the circuit clerk's office for administrative costs and operations.

• Addresses documented abuses from statutory foreclosures including excessive lender fees, inadequate notice to borrowers, improper recording of deeds, and sales conducted without proper court supervision or oversight.

• Restores protections for homeowners including requirements for lenders to provide proof of ownership, proper notice to all interested parties, opportunity for borrowers to cure defaults, and commercially reasonable sales conducted by licensed professionals.

• Repeals Arkansas Code Title 18, Chapter 50 (Statutory Foreclosures) in its entirety, effective immediately upon enactment.