Rhode Island Foreclosure Help – Stop Foreclosure in Rhode Island

 


Finding Foreclosure Help in Rhode Island

Foreclosure prevention counseling services are provided free of charge by nonprofit housing counseling agencies working in partnership with the Federal Government. These agencies are funded, in part, by HUD and NeighborWorks® America. There is no need to pay a private company for these services.

Providence Field Office

121 South Main Street, Suite 300
Providence, RI 02903-7104

Phone: (401) 277-8300

Fax: (401) 277-8398
TTY: (401) 277-8391

Jurisdiction: State of Rhode Island

Nancy D. Smith Greer
Field Office Director

Office Hours: 8:00 a.m. to 4:30 p.m.

Monday through Friday

Rhode Island Foreclosure Laws Summary

Quick Facts:

  • Judicial foreclosure process is available.
  • Non-judicial foreclosure process is available.
  • The primary security instruments are mortgages and deed of trust.
  • The timeline can vary by process, which typically takes 60 days.
  • The borrower has rights of redemption depending on the process.
  • The lender may sue for deficiency judgements.

There are five ways in which the lender may foreclose their mortgage in default in Rhode Island.

First, they may do it by the judicial process.

Second, they can file a lawsuit for eviction.

Third, the lender may take possession of the said property.

Fourth, they can voluntarily give up the property.

Lastly, they may do it by the non-judicial process.

Judicial Foreclosure
The judicial process is the method by which lenders may foreclose a mortgage in default when there is no power of sale present. The property is then auctioned off by the court to the highest bidder.

Special Procedures
The lender may take his property in the event of a mortgage in default. This should be done in a civilized manner with the following: (1) at least two witnesses and (2) a certificate of possession that must be notarized.

The borrower may also give up the property voluntarily but it should be that a notary is present. There is a specified time at which the lender may obtain posession of the property. If done within that period, he gets the full ownership of the property.

Non-Judicial Foreclosure
A non-judicial foreclosure process is done when a power of sale clayse is included in the mortgage. In the presence of this, the lender has the authority, given by the borrower to sell the property when the debts are not settled.

The lender or his trustree may lead the sale of the property. There are certain guidelines that must be followed stated in the section “Power of Sale Foreclosure Guidelines”.

Power of Sale Foreclosure Guidelines
These are the following guidelines that must be followed if there are no specific terms of sale stated in the power of sale clause.

  1. The notice of sale must appear on the newspaper of the county where the property is. This should be published once for three consecutive weeks. Take note that the first notice is published 21 days prior to the date of sale.
  2. The borrower should receive a copy of the notice 20 days before the sale.
  3. The notice must have the important details of the sale – the borrower and lender’s names, amount dure, description of peroperty, date of mortgage and the time and place of the sale.

The lender is free to bid for this property.