Rhode Island
When you develop a definite plan of action with
well-timed, well-informed steps, you can stop
the foreclosure process and save your home. We
have outlined the foreclosure process for the
state of Rhode Island .
The Process
Rhode Island mortgages may contain a statutory
power of sale clause, which may be incorporated
by reference into the mortgage document. If the
mortgage does not contain a power of sale
clause, then the lender has four options:
File a lawsuit seeking a court-ordered sale
File a lawsuit seeking ejectment (eviction)
Peaceably enter the house in the presence of two
witnesses, who must give a certificate of
possession which they must acknowledge
(notarize) before a notary or a Justice of the
Peace
Have the borrower voluntarily agree to give up
possession before a notary public or a Justice
of the Peace.
If the lender maintains possession, then, after
a time, the lender gets full title. The borrower
has three years to file a lawsuit to redeem the
property by paying up the full sum, both
principal and interest, that is due on the
mortgage (but not interest for future years).
Rhode Island does not bar deficiency lawsuits.
Power of Sale Foreclosure
Lenders in Rhode Island generally prefer to
foreclose under a power of sale clause. The
lender first accelerates the loan, then conducts
a foreclosure sale after giving proper notice.
The lender must send a notice of the foreclosure
by certified mail, return receipt requested, to
the buyer 20 days before publishing the first
newspaper ad. Notice of the time and place of
the sale must be published once a week for three
weeks in the proper newspaper. The notice must
be published not only on the day before sale,
but on the same weekday for each of the three
weeks preceding the sale. Furthermore, the power
of sale statute literally spells out which
city's newspaper must be used! The statute
further specifies that the sale must take place
at a public auction conducted on the premises,
or at a location specified in the deed. The
lender may bid at the sale in the same manner as
other bidders
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