Stop Foreclosure in Rhode Island

 


How to Stop Foreclosure in Rhode Island

If you are residing in Rhode Island and feel that you are slightly being affected by the current financial crisis, then it would be best for you to know certain information that are important to your quest for answers. If you are currently paying your dues for your home on time then chances are you are still on the right track. However, when you feel that you are already being troubled, then know that there are some steps that you can take into consideration.

Since 2008, Rhode Island has ranked 3rd among all the states in the United States that are delayed when it comes to their mortgage payments. This is probably due to the fact that there is a growing crisis and more and more people are affected by it. The thing is that you are not alone in the situation.

Here are some terms you have to know and understand. Mortgage is simply defined as the money that you borrow to purchase a home. As such, upon inability to pay your dues on time, this home can be revoked from your ownership. This usually happens after you’ve missed out on your payment and refuse to do something about it.

There are some foreclosure methods worth knowing as well. There are several ways on how your property or properties can be reclaimed. In Rhode Island alone, there are already about 5 methods of reclamation. Some include taking possession of the home, administering the intervention of the court, asking the owners to give up their property and so much more other ways depending on the current situation.

But before foreclosure itself happens, you would be faced first with pre-foreclosure and this is like an extended chance or a lifeline for you to still be able to do something before your home is reclaimed.

Synopsis of Rhode Island Foreclosure Laws

Judicial Foreclosure Available: Yes

Non-Judicial Foreclosure Available: Yes

Primary Security Instruments: Deed of Trust, Mortgage

Timeline: Typically 60 days

Right of Redemption: Varies by process

Deficiency Judgments Allowed: Yes

In Rhode Island, lenders may foreclose on deeds of trusts or mortgages in default: 1) by using the judicial foreclosure process; 2) by filing a lawsuit seeking eviction; 3) by taking possession of the house; 4) by the borrower voluntarily giving up possession; or 5) by using the non-judicial foreclosure process.

Judicial Foreclosure

The judicial process of foreclosure, which involves filing a lawsuit to obtain a court order to foreclose, is used when no power of sale is present in the mortgage or deed of trust. Generally, after the court declares a foreclosure, your home will be auctioned off to the highest bidder.

Special Procedures

In instances where the lender takes possession of the house, they must do so peaceably and in the presence of two witnesses. Said witnesses must give a certificate of possession, which must then be notarized. Additionally, borrowers who voluntarily give up possession of the property must do so in the presence of a notary. In these instances, the lender will obtain the full title to the property if they are able to maintain possession for an established period of time.

Non-Judicial Foreclosure

The non-judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust. A “power of sale” clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of the their default. In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative, typically referred to as the trustee. Regulations for this type of foreclosure process are outlined below in the “Power of Sale Foreclosure Guidelines”.

Power of Sale Foreclosure Guidelines

If the deed of trust or mortgage contains a power of sale clause and specifies the time, place and terms of sale, then the specified procedure must be followed. Otherwise, the non-judicial power of sale foreclosure is carried out as follows:

  1. The lender must mail a written notice of the time and place of sale, by certified mail, return receipt requested, to the borrower at his or her last known address, at least twenty (20) days prior to the first publication, including the day of mailing in the computation.
  2. The lender must give notice of the sale by publication in some public newspaper at least once a week for three (3) successive weeks before the sale, with the first publication of the notice being at least twenty-one (21) days before the day of sale, including the day of the first publication in the computation.
  3. Said notice must contain the names of the borrower and lender, the mortgage date, the amount due, a description of the premises and the time and place of sale.

Any person may bid at the sale, including the lender.

Where to go to for Foreclosure Help

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

Stop Foreclosure Early

Home Savings Of America
866 803 8185 ext 311
800 Oaklawn Ave
Cranston, RI

Citizens Bank – Kent Heights
401-434-1400
2823 Pawtucket Avenue
East Providence, RI

Citizens Bank – North Smithfield
401-235-1000
67 Eddie Dowling Highway
North Smithfield, RI

Citizens Bank – Warwick West SS
401-828-8611
300 Quaker Lane
Warwick, RI

Citizens Bank – East Avenue
401-722-7065
409 East Avenue
Pawtucket, RI

Action Mortgage Corp.
401-943-7300
1120 Park Avenue
Cranston, RI

Bank of America – Greenville
800.432.1000
440 Putnam Pike (Rt 44)
Greenville, RI

Bank of America – Hope St
800.432.1000
814 Hope St
Providence, RI

Citizens Bank – Smith Street
401-354-7922
1798 Smith Street
North Providence, RI

Citizens Bank – West Warwick
401-821-7900
1220 Main Street
West Warwick, RI