Timeline:
60 Days
Redemption:
No
Deficiency
Judgments: Yes
Judicial
Foreclosure: Yes
Non-Judicial
Foreclosure: Yes
Security
Instruments: Deed of Trust, Mortgage
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Rhode
Island foreclosure law allows a lender to pursue either Non-Judicial
or Judicial Foreclosure procedures. If there is no “power of
sale” clause in the original loan documents, then the Judicial
Foreclosure process must be followed. The lender must sue the
borrower in court to obtain an order to foreclose.
Alternatively,
the lender may be able to take possession of the home. This
must be done peaceably and in the presence of two witnesses
who then give the lender a certificate of possession that has
been notarize. The borrower can also give up the property to
the lender voluntarily. |
The
lender can follow the Non-Judicial Foreclosure process if a
“power of sale” clause is present in the loan documents. This
clause gives the lender authorization to sell the property to
pay the loan balance in the event the borrower defaults.
The
sale process in Rhode Island requires that the notice of sale
be published for three (3) consecutive weeks in a local newspaper.
The first publication must be at least twenty-one (21) days
before the scheduled sale date. A copy of the notice must be
sent to the borrower by certified mail no less than twenty (20)
days before the first publication of the notice.
The
county sheriff or a deputy conducts the sale at the place specified
in the notice of sale between the hours of 9:00 AM and 5:00
PM . Anyone may bid at the sale, and the borrower has no right
to redeem the property after the sale.
Rhode Island Foreclosure Law