TO AUTHORIZE A MORTGAGOR TO RECOVER FEES IN CERTAIN CIRCUMSTANCES UNDER THE STATUTORY FORECLOSURE LAW.

HB 1238 allows homeowners (mortgagors) to recover reasonable attorney fees if a court invalidates a foreclosure sale due to a lender's (mortgagee's) failure to follow Arkansas foreclosure procedures. It directly affects homeowners facing foreclosure and lenders who may face fee recovery claims. The bill creates a new provision (Ark. Code § 18-50-118) permitting fee recovery when a foreclosure sale is set aside for procedural errors, but excludes cases where the homeowner and lender resolved the debt, bankruptcy was filed, or the lender relied in good faith on title insurance or other property records. This law changes the financial consequences for lenders who don't strictly follow foreclosure rules.