Rhode Island Foreclosure Law
Rhode Island foreclosures are most commonly handled out of
court. Rhode Island foreclosures are quite simple, typically
concluded in about two months.
Pre-foreclosure Period
Rhode Island foreclosures can occur through the court system,
but only if there are title problems or other significant
issues. Otherwise, a lender may foreclose on a property when a
clause exists in the mortgage that empowers them to sell if a
borrower defaults. The terms of the mortgage often require the
lender to send letters warning the borrower of default on the
loan prior to initiating the foreclosure proceedings. For
out-of-court foreclosures, the process begins when the lender
forwards all pertinent documentation to the attorney and a title
search is performed. Before scheduling a sale, the lender's
attorney must give the borrower a notice of the sale at least 20
days before starting to advertise for the sale.
Notice of Sale / Auction
The notice of sale must be published at least once per week
for three weeks in a local newspaper, and the first notice must
appear at least 21 days prior to the sale date. The notice must
include the property address, the mortgage date, the amount due,
and the date and location of the sale. An auctioneer conducts
the sale, and anyone may bid, including the lender. The highest
bidder receives a certificate of sale and a deed is recorded
transferring ownership. Any surplus in sale proceeds is paid to
the secondary lenders.
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