Rhode Island Foreclosure Laws

Most foreclosures in Rhode Island are non-judicial. Most foreclosures in the state require about two months to complete. Rhode Island does allow for judicial foreclosures, but this is only usually selected as an option if there are problems such as clouds on title.

Pre-Foreclosure

Most Rhode Island mortgages have power of sale clauses, which allow lenders to seek non-judicial foreclosures. To begin such proceedings, lenders are typically required to send warning letters to the debtor before filing for foreclosure. The letters warn the debtor that the loan is in default and that foreclosure may occur.

The lender actually begins the foreclosure process when he or she runs a title search and hires an attorney for the foreclosure process. The lender must give the attorney all the documents pertinent to the case. The attorney must give the debtor a notice of auction at least twenty days before the auction for the property is advertised.

The Foreclosure Sale in Rhode Island

The first official notice of auction must appear in a local newspaper at least twenty-two days before the day of the auction. The notice must then be printed in the newspaper once a week or more for three weeks. The notice of auction must contain the mortgage date, the default amount, the address of the property and the time and location of the auction.

In Rhode Island, an auctioneer oversees the foreclosure auction. The auction is conducted until the highest bidder is declared. This person receives a certificate of sale as well as a deed. If the sale makes more than the default amount, the excess is paid out to junior lien holders.