On March 18, the state of Arkansas enacted HB 1238 (the “Act”) to amend the state’s foreclosure law to allow mortgagors to recover attorney’s fees if a foreclosure sale is set aside due to a mortgagee’s failure to comply with foreclosure provisions. The Act specifies that mortgagors cannot recover fees if they reach a mutual resolution of the debt with the mortgagee, file for bankruptcy during foreclosure proceedings, or if the mortgagee acted in good faith under certain conditions, such as relying on a title insurance policy later found erroneous.
