Getting Court Approval to Sell Real Estate to Pay a Mortgage — Arkansas

Short answer: If the house is part of a probate estate or under a court guardianship/conservatorship in Arkansas, you usually must open the appropriate court case (probate or guardianship), get appointed as the personal representative or guardian/conservator, file a petition asking the court to authorize sale of the real property, give required notice to interested parties and creditors, obtain a court order approving the sale, and then close the sale and pay the mortgage from estate or fiduciary funds. Specific documents (appraisal, purchase contract, payoff statement) and a court hearing are commonly required.

Detailed Answer — step-by-step under Arkansas law

This section assumes a common fact pattern: a decedent owned a home subject to a mortgage and the appointed personal representative needs court permission to sell the house to pay the mortgage and other estate expenses. Many of the same steps apply if a guardian or conservator must sell a protected person’s home. This is general information only and not legal advice (see disclaimer below).

Confirm ownership and encumbrances.

Before filing anything, determine how title is held (sole ownership, joint tenancy, tenancy in common, living trust). If the property passes outside probate (for example, held in a revocable trust or joint tenancy with right of survivorship), court approval may not be required. Retrieve the mortgage payoff statement from the lender and get a current title search and preliminary payoff figures.
Decide the correct court process.

If the owner is deceased and the property is in the estate, you must open probate (or if probate already open, proceed under that file). If the owner is alive but incapacitated, a guardianship/conservatorship case is used. Arkansas probate and guardianship matters are filed in the circuit court (probate docket). See Arkansas Code Title 28 (Probate) for the statutory framework: Arkansas Code — Title 28 (Probate).
File the petition and supporting documents.

In a probate case, the personal representative (executor or administrator) files a petition asking the court to authorize sale of the estate’s real property. Typical attachments: copy of the death certificate, the will (if one exists), an inventory of estate assets, an appraisal or real estate broker’s market analysis supporting the proposed sale price, a copy of the purchase agreement (if already under contract), and the mortgage payoff statement. In a guardianship/conservatorship case, the guardian/conservator files a petition describing the need for sale and the proposed terms.
Provide required notices.

Arkansas law requires notice to heirs, beneficiaries, creditors, and other interested parties before a sale or at least before confirmation. The court will set notice requirements (method and time frames) when it sets the hearing. Allow time for creditors to file claims if the sale proceeds will pay debts. Reference the probate statutes and local court rules for specific notice requirements: Ark. Code — Title 28.
Attend the hearing and obtain the court order.

The court will schedule a hearing. Be prepared to explain why sale is necessary (to pay the mortgage, administration expenses, or to preserve estate value), present the appraisal or listing information, and show the proposed sale complies with the estate’s best interests. If the court finds the sale appropriate, it will issue an order authorizing the sale and specifying whether a public auction or private sale is allowed and under what terms.
Complete the sale according to the court order.

Carry out the sale following the terms approved by the court. If a lender must approve a payoff or short sale, coordinate with the lender to obtain a written payoff amount and release instructions. Collect closing statements and pay closing costs and the mortgage from estate or fiduciary funds at closing.
File closing documents and accounting with the court.

After closing, file the final accounting, receipts showing mortgage payoff, and a request for distribution of remaining proceeds to heirs or creditors as appropriate. The court must approve the accounting and distribution before the personal representative or guardian is discharged from further responsibility.
Special considerations.
- If the estate’s value qualifies for a small estate procedure or summary administration, a full court-authorized sale might not be necessary—check Arkansas small estate rules.
- If the property is in a trust, the successor trustee typically can sell without court approval if the trust terms allow; consult the trust document.
- If the mortgage lender is reluctant and the sale price won’t cover the loan, you may need lender approval for a short sale or pursue other options (loan modification, refinance, deed in lieu).
- If litigation arises (disputes among heirs, creditor claims, or claims against the estate), the court process can lengthen and require additional filings.

Where to look in Arkansas law

Arkansas law governing probate, administration, and guardianship is codified in Title 28 of the Arkansas Code. For local filing procedures and forms, consult the circuit court clerk in the county where the property is located or where the decedent resided. General statute overview and text: Arkansas Code — Title 28 (Probate). For court forms and administrative rules, check the Arkansas Judiciary website: arcourts.gov.

Typical documents you will need

Death certificate (if sale is from a decedent’s estate)
Copy of the decedent’s will (if any)
Petition to open probate or to authorize sale (filed with circuit court)
Inventory of estate assets
Appraisal or broker price opinion
Mortgage payoff statement from the lender
Purchase agreement (if sale already under contract)
Proposed order authorizing sale
Proof of notice to heirs, beneficiaries and creditors
Closing/settlement statements showing mortgage paid

Timing and costs

Time to complete the process varies: opening probate and obtaining authority often takes several weeks to a few months, depending on court schedules, notice periods, and creditor timelines. Expect court filing fees, publication costs for notices, appraisal fees, realtor commissions, and attorney fees if you hire counsel. If disputes or creditor claims arise, the process can take significantly longer.

Alternatives to a court-supervised sale

Sale outside probate if property is held in a living trust or joint tenancy with rights of survivorship.
Short-form or small-estate procedures (when allowed by Arkansas law and the estate value qualifies).
Negotiating with the lender for a loan modification, refinance, short sale, or deed in lieu without a full court sale (may still require court approval if estate property).

Disclaimer

This article is informational only and is not legal advice. It does not create an attorney-client relationship. For advice specific to your situation, consult a licensed Arkansas attorney experienced in probate, guardianship, or real estate foreclosure matters.

Helpful Hints

Start by confirming title and whether the property actually needs probate. That single check can save time and court costs.
Obtain a written mortgage payoff that includes daily interest figures and any lender fees before scheduling closing.
Get a local appraisal or broker opinion so the court can see the sale price is fair and in the estate’s best interest.
Give clear, documented notice to heirs and creditors—missing a required notice can delay approval or require re-doing steps later.
Coordinate with the lender early if the sale might be a short sale; some lenders have specific forms and approval timelines.
Keep detailed receipts and closing statements; the court will want an accounting showing the mortgage was paid from sale proceeds.
If you anticipate disputes among heirs, consider mediation before the court hearing to save time and legal costs.
If unsure, consult a local probate attorney. Many attorneys offer an initial consultation to explain options and likely timelines in your county.