Effective Date: August 4, 2025

​Statute:
18-50-118. Recovery of fees.

• (a) A mortgagor may recover reasonable attorney's fees under this subchapter if a court sets aside the statutory foreclosure sale due to a mortgagee’s failure to strictly comply with any provision of § 18-50-101 et seq., under § 18-50-116(d)(2)(B)(ii).
• (b) A mortgagor shall not be awarded attorney's fees under subsection (a) of this section if the:
  1. Mortgagor and mortgagee reach a mutual resolution of the debt and corresponding foreclosure;
  2. Mortgagor files a petition for bankruptcy while the foreclosure or any related litigation is pending;
  3. Mortgagee instituted the statutory foreclosure while in good faith relying on a policy of title insurance that was subsequently found to be in error;
  4. Mortgagee instituted the statutory foreclosure in good faith without knowledge of unrecorded debt on the subject property;
  5. Mortgagee instituted the statutory foreclosure in good faith without knowledge of assessments, taxes, or liens filed against the subject property subsequent to the final policy of title insurance being issued; or
  6. Mortgage is reinstated under § 18-50-114.

Implications:
The Act 306 amends the Arkansas Code concerning statutory foreclosures by introducing a new section that allows a mortgagor to recover reasonable attorney's fees under specific circumstances. According to the new provision, a mortgagor can seek these fees if a court sets aside a statutory foreclosure sale due to the mortgagee's failure to comply with relevant legal provisions.

The new legal language added to the Arkansas Code includes the specific criteria for fee recovery and the exceptions that would prevent such recovery. This amendment aims to clarify the rights of mortgagors in foreclosure situations and provides a means to recover legal costs when appropriate.However, the Act also provides important protections for mortgagees. Attorney’s fees cannot be awarded if the mortgagor and mortgagee reach a mutual resolution, if the mortgagor files for bankruptcy during the foreclosure process, or if the mortgagee acted in good faith—for instance, by relying on title insurance or lacking knowledge of specific liens or debts, or if the mortgagor reinstates.
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The statute specifically sets out that the fees are permissive, not mandatory, by statute. It would be within a Court’s discretion as to whether to award said fees to the mortgagor(s). We encourage a review of internal and external processes for compliance with the provisions of AR Code § 18-50-101 et seq., AR Code § 18-50-117 to avoid an award of attorney’s fees under the new statute.

​Questions? Contact [email protected]

​Questions? Contact [email protected]

Amendments have been proposed for seven Florida Rules of Civil Procedure. If these amendments take effect, it will change how foreclosures are handled in the State of Florida. Below, please find a synopsis of the proposed amendments and their potential impacts as evaluated by PLG: ​

Padgett Law Group successfully argues that an action for foreclosure of a mortgage securing a time-barred note can be maintained in Trinity Fin. Servs., LLC v. D'Apolito, 7th Dist. Mahoning No. 23 MA 0028, 2024-Ohio-825.

​In D'Apolito, the borrower appealed the decision of the Mahoning County Common Pleas Court granting summary judgment to Plaintiff and ordering foreclosure of the mortgage asserting that the trial court erred in “failing to conclude the expiration of the statute of limitations on a note necessarily barred the action on the mortgage securing the debt.”  The borrower based his argument upon, "Long-standing Ohio Supreme Court precedent holds that when action on a promissory note is time-barred, then foreclosure of a mortgage securing that note is time-barred as well." 

Introduced in the Senate on January 23, 2023, and referred to committee on February 8, 2023, Ohio Senate Bill 25, known in short form as the Bill that “regards real property foreclosures,” sponsored by Senator Bob D. Hackett (R), seeks to alter the procedures for foreclosure sales.
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Chapter 2329 of the Ohio Revised Code currently governs execution upon judgments, including sales of real property resulting from foreclosure actions. SB25 proposes four significant changes to the foreclosure sale process that could result in a reduction in the length of time and cost of the foreclosure sale process:

The Ohio Legislature is currently considering Senate Bill 334, titled (in short) “Grant certain bidders rights – foreclosed residential property,” which seeks to amend section 2329.27 and to enact sections 2329.261 and 2329.313 of the Revised Code to grant tenants and certain other eligible bidders rights relating to the purchase of residential property sold through the process of foreclosure. The Bill applies to foreclosure sales of one to four family residential properties, and requires the selling officer, whether sheriff or private selling officer, to include in its sale advertisement, the following notice:

"NOTICE TO TENANTS AND OTHER ELIGIBLE BIDDERS: You may have a right to purchase this property after the sale pursuant to R.C. 2329.313. If you are an "eligible-tenant buyer," you can purchase the property if you match the successful bid placed at the sale. If you are an "eligible bidder," you may be able to purchase the property if you exceed the successful bid placed at the sale. There are three steps to exercising this right of purchase. First, two calendar days after the date of the sale, you can call [telephone number for information regarding the sale], or visit this web site [web site address for information regarding the sale], using the file number assigned to this case [case file number] to find the date on which the sale was held, the amount of the successful bid, and the address of the person who conducted the sale. Second, you must send a written notice of intent to place a bid so that the person who conducted the sale receives it not more than fifteen days after the date of the sale. Third, you must submit a bid so that the person who conducted the sale receives it not more than forty-five days after the date of the sale. If you think you may qualify as an "eligible tenant-buyer" or "eligible bidder," you should consider contacting an attorney or appropriate real estate professional immediately for advice regarding this potential right to purchase.”