For homeowners facing foreclosure in Rhode Island, the following is a summary of the state’s foreclosure laws:
Foreclosures in Rhode Island can be judicial, meaning the bank must file a lawsuit in court in order to foreclose.
Foreclosures in Rhode Island can also be nonjudicial but a court must confirm the sale.
Rhode Island law requires two foreclosure notices:
- Before initiating the foreclosure process, Rhode Island law requires banks to provide written notice that it will not foreclose on the mortgaged property without first taking part in a mediation meeting. This requirement applies to a first-lien mortgage on any homeowner-occupied, one-to-four unit residential property that serves as the homeowner’s primary residence.
- If, after two attempts by the mediation coordinator to contact the homeowner, the homeowner fails to respond to the mediation coordinator’s request to appear at a mediation meeting, or the bank fails to cooperate in any respect with the requirements of this section, the foreclosure can begin.
- The bank will publish a notice of sale in a local newspaper weekly for three weeks and send the notice to the homeowner at least 30 days before the first publication date.
Rhode Island Foreclosure Protections
Rhode Island law provides protections in accordance with the federal Service Members Civil Relief Act.
Rhode Island also provides protections to all national guard members on state active duty for a continuous period over 90 days.
Rhode Island law also states that the homeowner can ask a court to stop a foreclosure process if the bank violated the Rhode Island Home Loan Protection Act, which prohibits balloon payments and negative amortization when it comes to high-cost home loans.
Reinstatement and Redemption
Rhode Island law does not allow the homeowner with a right to reinstate, however most Rhode Island mortgages permit reinstatement of the loan under certain circumstances.
In Rhode Island, foreclosed homeowners cannot redeem the home following a nonjudicial foreclosure. If the foreclosure is by another method, such as by peaceable and open entry, the redemption period is three years.
In Rhode Island, a deficiency judgment is allowed following a nonjudicial foreclosure if the bank files a separate lawsuit.
If the foreclosed homeowners do not leave the property after a Rhode Island foreclosure, the buyer can send a notice to leave and then file an eviction lawsuit. The former homeowners get 20 days to respond to the lawsuit seeking eviction. For information regarding how to avoid foreclosure in Rhode Island, visit HUD.gov.