Rhode Island Foreclosure Laws

A Rhode Island foreclosure can either be administered through judicial or non-judicial proceedings. Typical foreclosure timeline is 60 to 80 days and depends on the court schedule. There are instances that a delay occurs. This happens when the borrower challenges the foreclosure by filing a bankruptcy or adjourning a hearing. For non-judicial process, the lender is required to notify the borrower about the impending foreclosure at least 21 days before the sale.

For both judicial and non-judicial foreclosures, borrowers are given a grace period where they can cure debt to halt the auction. By making full payment of the outstanding balance plus any additional costs, a borrower can stop the foreclosure sale.

Judicial And Non-Judicial Foreclosure Information

Under Rhode Island foreclosure laws, a lender can foreclose a property in the event that the borrower defaults on payments. The presence or absence of a Power of Sale clause in the loan document determines the legal procedure to be utilized. A Power of Sale authorizes the lender to foreclose the borrower’s property to pay off debt. This provision is signed by the borrower. When the loan document contains a Power of Sale clause, the lender can pursue a foreclosure against the defaulted homeowner through non-judicial means. This can be done without obtaining a court order. The borrower is aware of the consequences when he/she fails to meet the terms in the mortgage agreement.

Foreclosure laws in Rhode Island state that a judicial foreclosure should be followed when the mortgage agreement does not contain a Power of Sale clause. To initiate a foreclosure, the lender should file a complaint against the defaulted borrower. This complaint is known as lis pendens or a recorded document that provides information to the public about an impending foreclosure of a distressed property. The court has the final judgment for in-court foreclosures.

After-sale statutory right of redemption is not supported in Rhode Island foreclosure laws. In other states that support redemption, a borrower can reclaim ownership of a foreclosed property by making a full payment of the total unpaid loan plus any additional costs

A lender may obtain payment from a borrower due to deficiency judgment if the property is sold for less than the amount of the mortgage loan. When this happens, the borrower should pay the lender for the difference between the amount of the property sold for at the sale and the amount of the original loan.

Notice Of Sale Rhode Island

A Notice of Sale is necessary and should be published for 3 weeks (at least once a week) in a local newspaper. The first Notice should be published at least 21 days prior to the auction. Also, a Notice should be sent to the borrower. A Rhode Island foreclosure is conducted by a licensed auctioneer. The sale is carried out in a form of a public auction where the property is auctioned off to the highest bidder.