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Rhode Island Foreclosure Law Summary
Quick Facts
- 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:
- 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.
- 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.
- 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.
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