Steps to Protect Your Arkansas Property from County Tax Foreclosure

If you cannot pay your county property taxes in Arkansas, you face the risk of a tax sale and eventual foreclosure. However, Arkansas law provides several avenues to protect your home or land. Below, we explain key steps, relevant statutes, and best practices to help you avoid losing your property.

1. Understand the Foreclosure Process

Under Ark. Code Ann. § 26-37-301 et seq., counties may sell tax-delinquent properties at public auction. A notice of delinquency and intent to sell goes to the owner at least 30 days before the sale date (Ark. Code Ann. § 26-37-301).

After the sale, the former owner has a three-year redemption period. During that time, you can reclaim the property by paying:

• All unpaid taxes;
• Accrued interest (12% per year by statute);
• Penalties and sale costs.

(See Ark. Code Ann. § 26-37-306.)

2. Request an Installment Agreement or Hardship Deferral

Many county collectors allow informal payment plans for taxpayers facing financial hardship. Although Arkansas law does not mandate installment plans, most collectors exercise discretion. Contact your county collector’s office immediately to:

• Explain your inability to pay;
• Request a written payment schedule;
• Confirm agreed-upon interest and penalties in writing.

3. Apply for Property Tax Relief Programs

Arkansas offers special relief for seniors, veterans, and disabled homeowners:

• Senior and Disabled Freeze (Art. 16, § 5 of the Arkansas Constitution): Homeowners over 65 or with disabilities may freeze their property tax valuation. (Ark. Const. art. 16, § 5.)
• Veterans’ Exemptions: Qualified veterans can exempt up to $5,000 of property value under Ark. Code Ann. § 26-3-302.

4. Redeem Quickly After Sale

If your property sells at auction, act fast. You have exactly three years from the sale date to redeem. To redeem:

1. Obtain a redemption statement from the county collector.
2. Pay the total redemption amount (taxes, interest, fees).
3. Record your redemption receipt with the county clerk’s office.

5. Consider a Redemption Loan

If you cannot gather redemption funds upfront, look into specialized lenders that offer redemption loans. These loans cover back taxes, interest, and fees. Compare rates carefully and ensure the lender files deeds of trust properly.

6. Explore Selling or Deeding in Lieu of Foreclosure

When no other option exists, you may:

• Sell the Property on the open market to pay taxes and avoid foreclosure.
• Deed in Lieu of Foreclosure by transferring ownership to the county or a willing third party in exchange for canceling tax debt.

Disclaimer

This article is for educational purposes only and does not constitute legal advice. Consult a qualified Arkansas attorney or tax professional to discuss your specific situation.