Rhode Island Foreclosure Law
- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: No
- Primary Security Instruments: Deed of Trust, Mortgage
- Timeline: Usually 60 days
- Right of Redemption1: Varies by Process
- Deficiency Judgments2 Allowed: Yes
Lenders in the state of Rhode Island may foreclose on deeds of trusts and mortgages in default using a variety of judicial procedures.
Judicial Foreclosure
A judicial process of foreclosure requires that the lender file a lawsuit and attain a court order to foreclose on a particular property. This type of process is generally used when no power of sale is present in the mortgage or deed of trust. A power of sale is a clause found in a deed of trust or mortgage that authorizes the sale or transfer of land as outlined by the terms of that clause.
Judicial Foreclosure Procedure
If the deed of trust or the mortgage documents does not contain a power of sale clause, lenders can pursue a foreclosure by:
- Filing a lawsuit requesting a court-ordered sale
- Filing a lawsuit requesting an ejectment
- Peaceably entering the house in the presence of two statute-specified witnesses
- Having the borrower voluntarily agree to give up possession
The lender receives full title if they maintain possession. If the borrower pays the full sum, both principal and interest due on the mortgage within three (3) years, they can redeem the property. Lenders do have the option to file a deficiency judgment.
Non-Judicial Foreclosure
If a power of sale clause exists in the deed of trust or mortgage document, a non-judicial process of foreclosure is used. This allows the lender to sell the property and pay off the balance of the loan in the event the homeowner defaults. The power to sell may be completed by the lender or their representative in situations where a power of sale exists. The procedure for this type of foreclosure process is explained in the "Power of Sale Foreclosure Procedure" listed below.
Power of Sale Foreclosure Procedure
The lender provides the borrower with notice of the foreclosure twenty (20) days prior to publishing the notice in the newspaper. Notice of the time and place of the sale is published in a statute-specified newspaper once a week, on the same weekday, for three (3) consecutive weeks. The notice must also be published on the day before the sale.
The sale is by public auction held either at the property or at a location specified in the deed. The lender is allowed to bid at the sale.
1 A borrower’s right to reacquire property lost due to a foreclosure.
2 A personal judgment against the borrower for the remaining balance on the loan after a foreclosure sale.
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