Rhode Island Foreclosure Overview
A Rhode Island foreclosure is a non-judicial foreclosure, meaning all foreclosure proceedings are handled without the need to go to court. Typically the foreclosure process lasts 60 days.
Before the foreclosure process can begin, the borrower must be a minimum of 60 days late on payments. Federal guidance suggests 120 Days late, so Rhode Island is a bit more aggressive in the foreclosure process. The lender sends the borrower two letters before starting the foreclosure. The first is a Notice of Intent to Foreclose. This is also called a “Breach Letter”. The second letter details options to reinstate the loan including mediation and state programs. The owner has between 2 and 4 months to rectify the default in order to prevent the foreclosure. The lender takes no further action during this time period.
If the borrower does not find a way to prevent the foreclosure, then the lender is allowed to file suit against the borrower for the amount due. The borrower is notified of the foreclosure action in person or by mailing if they cannot be found. The lender is also allowed to notify by publication if necessary. Once the borrower is notified of the foreclosure action, they usually have 30 days to respond before the court rules that the property be sold to recover the amount due.
The borrower can prevent the sale at any time up to one hour before the sale by paying the full amount owed.
In a Rhode Island foreclosure, the borrower typically gets the right to:
- receive a pre-foreclosure breach letter
- apply for loss mitigation
- participate in foreclosure mediation
- receive notice of the foreclosure
- receive special protections if the borrower or spouse is in the military
- pay off the loan to prevent a sale
- file for bankruptcy, and
- get any excess money after a foreclosure sale.
Notice of Sale & Auction
A minimum of 30 days prior to the sale, the county sheriff is required to give notice of the sale. In the Pennsylvania foreclosure process, this is completed by posting a handbill on the property and serving a copy of the notice to the borrower. The sale is advertised a minimum of once a week for three consecutive weeks in two newspapers: a local general-interest newspaper and a local legal newspaper.
The sale is a public auction overseen by the county sheriff. It takes place between1 and 2 months following the court order to sell. The property is sold to the highest bidder. the sheriff completes the necessary documents to transfer ownership. The sale may be postponed only once for up to 100 days and is done so by announcement at the sale. The court must approve any further postponements.
There is no right of redemption for borrowers after the sale.