Rhode Island Foreclosure Laws

The state of Rhode Island is another of many states that have fairly common laws with foreclosure. Both methods of foreclosure are allowed, judicial and non-judicial using the deed of trust and the mortgage as instruments of security. It takes a full 60 days to complete a foreclosure here and the borrowers right of redemption is going to vary depending on the foreclosure process used. The lender does retain the right to a deficiency judgement.

There are special procedures in place in the state of Rhode Island whereby the lender may simply take possession of the home. This has to be done in a peaceable manner and in the presence of two witnesses. The witnesses then will give the lender a notarized certificate of possession. The defaulted borrower can also voluntarily surrender the property to the lender if he or she prefers to bypass this step and save everyone a lot of trouble.

The non-judicial foreclosure process is used when a power of sale exists in the loan document. The notice of sale must be published in a public newspaper weekly for three consecutive weeks beginning at least 21 days before the sale date. The notice of sale must be sent via certified mail to the defaulted borrower at least 20 days prior to the first publication.

The county sheriff or his deputy between the hours of 9:00 AM and 5:00 PM at the place designated in the notice of sale conducts the sale. Anyone, including the lender, may bid at the sale.

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