In the state of Rhode Island foreclosures out-of-court is most common. The procedures for foreclosure in this state are very simple and are completed typically over a period of about 2 months.
Foreclosure proceedings through the court are followed only if the mortgage does not provide a power-of-sale clause to the lender, and only if there are title and other significant issues in the property. Generally the power-of-sale clause is included and the foreclosure is conducted out of court.
The lender has to issue notices of default to the borrower before initiating the foreclosure procedures. The process begins when the lender sends all the necessary documents to the Attorney and a title search is made. Before the date of sale can be scheduled, the lender's attorney must give a notice of the foreclosure to the borrower within a period not less than 20 days from the date of advertisement of the sale.
The borrower has the option of stopping the foreclosure process within the notice period by paying the default dues to the lender. If there is no response to the attorney's notice from the borrower, the lender shall proceed with further steps in the foreclosure process.
The notice of sale of the foreclosure should be sent to the borrower and published in the local newspaper for at least once per week, for three consecutive weeks. The first publication shall be at least 21 days from the date of the sale.
The foreclosure sale is conducted by the Sheriff or his deputy, between 9:00 a.m. and 5:00 p.m. It is open to all including the lender can submit their bid for the property. The highest bidder is awarded the sale. A certificate of sale is issued to the highest bidder.
The conclusion of the sale by issue of a receipt of the highest bid by the lender is proof enough of the discharge of the debts. The highest bidder is not obliged to enquire if any other dues are pending on the borrower's account, and if there are any pending amounts the highest bidder shall not be bound by the same.
In the state of Rhode Island, the deficiency judgments can be obtained by initiating the judicial process separately from the foreclosure sale.
If you need more information about Rhode Island foreclosure laws, you should contact a foreclosure lawyer, or contact us so we can recommend one for you.
