Rhode Island Foreclosure Law

In Rhode Island Judicial Foreclosure and non-Judicial foreclosure both approaches are used. In Rhode Island state foreclosure timeline ranges up to 60 days. Rhode Island foreclosure law gives endorsement to deed of trust and mortgage as primary security instruments. Rhode Island foreclosure authorizes the statutory right of redemption but varies according to procedure in use. However deficiency judgments are allowed by Rhode Island Foreclosure law.

By way of judicial foreclosure, special practices, non-judicial foreclosure process lenders in the state of Rhode Island may foreclose on deeds of trusts or mortgages in default.

Judicial Foreclosure
The judicial foreclosure process authorizes lender, filing a lawsuit to obtain a court order to foreclose on a particular property. The property is auctioned off to the uppermost bidder condition the Court orders to foreclose. The judicial foreclosure process is mostly practiced when mortgage or deed of trust holds the clause “No power of sale. While using judicial foreclosure, the foreclosure process is performed in accordance to the term and conditions of that clause.

Special Procedures
Following procurers may be adopted to foreclose in State of Rhode Island.
1.    Filling a law suit seeking eviction, borrower has to leave the procession if court orders in favor of request.
2.    By entering in the property peaceably in presence of two witnesses, Said witnesses have to provide procession certificate which will have to be noted.
3.    Borrower voluntarily gives procession of the property in the presence of notary.

Non-Judicial Foreclosure
In case of default Rhode Island foreclosure law authorizes the lender to carry out the process of non-judicial foreclosure if a power of sale clause exists in the deed of trust documents. Deed of trust containing the “Power of sale” allows the lender to sell the property in favor of paying off balance of the loan in the case borrower defaults. Lender and their representatives can sell the property bearing the deeds of trust having power of sale clause.
Rules to be followed in the non-judicial foreclosure are explained below in “power of sale foreclosure guiding principles”

Power of sale foreclosure guiding principles
If the deed of trust comprises of the “power of sale clause” which specifies the time, place and the terms of sale then the specified course of actions must be followed. If power of sale clause does not facilitate the specifications of time, place and terms of sale then non-judicial foreclosure would be followed as bellow:
•    Lender must mail the notice of sale to the borrower at their last known address via certified mail at least 21 days prior to the sale including the day of first publication.
•    Notice must be published each week for (3) consecutive weeks in a newspaper of general circulation.
•    Notice must contain the date, place of sale, description of property, names of borrower and lender, mortgage date and the amount due, in addition return receipt request must also be there in the notice.
•    Anyone can bid at auction including the lender. Highest bidder will qualify the sale.