story by Kim Souza
The Pinnacle Country Club home of former Arvest Bank president Dennis Smiley will soon go on the auction block, with mortgage lenders First Security Bank and Arvest claiming rights to the property now in foreclosure.
First Security Bank recently filed foreclosure documents with the Benton County Circuit Court for real property located at 56 Champions Boulevard in Rogers. The 2,967 square-foot home was built in 1992 and has been on the market for 130 days listed at $568,500. There is a pending sale offer on the home for an unknown amount, according to Gary Leis, with Appraisers of NWA. Leis said the home, though it was built in 1992 has had contemporary updates including marble and Brazilian wood floors throughout.
First Security notes that it financed the mortgage for H. Dennis Smiley and wife Cynthia with a $200,000 note recorded May 16, 2012. County records indicate that Smiley purchased the home in April 2012 for $385,000 and Arvest Bank also recorded a mortgage that same month.
First Security said in the complaint that Smiley was in default of the $200,000 mortgage, owing $191,143 as of June 26, with an additional $3,800 owed in late fees and past due interest. Smiley is also in default of a second loan of $40,150 made by First Security in June 2013, using the home as collateral.
Arvest holds a $200,000 mortgage against the property and the assigned interest from Fort Smith-based Benefit Bank who also loaned $40,000 on the real property as the result of a mortgage filed on Dec. 28, 2012.
Counsel for Smiley filed an answer with the court that indicated the family is no longer residing in the home, but they do have some belongings there. The Smileys told the court they have not abandoned the home and are paying the utility bills and other bills related to yard and house maintenance.
Arvest responded to the court filing that it does hold a first lien on the property and has the responsibility for collecting another $40,000 which it was assigned by Benefit Bank’s interest as part of a settlement agreement. Arvest asked the court to dismiss First Security’s claim against the bank.
Smiley’s father, Henry D. Smiley Sr., also responded to the court as he was named as one of the guarantors in the second loan ($41,150) made to HDS Holdings in February 2013.
First Security said the loan to HDS was backed by the home as collateral. As of June 26, Smiley was in default for $37,240 with $1,150 in past due interest and late fees.
The bank asked for judgment against Dennis and Henry Smiley for $37,240.
The answer of Henry Smiley filed with the court July 30, indicates that he never signed the documents which were presented between his son and First Security Bank. He affirms defenses of fraud against him and asked the court to dismiss the claim.