Rhode Island Foreclosure Law Summary
by Alexander ThomasIn Rhode Island, a property can be foreclosed in 5 different ways.
By Judicial process
By filing a lawsuit and seeking eviction
Borrower gives possession voluntarily
By Non-judicial process
By taking possession of the property
Which law provision governs foreclosure in Rhode Island?
You can find about this in State of Rhode Island General Laws, Title 34 (Property), Chapter 34-27 (Mortgage Foreclosure and Sale).
What happens during Judicial Foreclosure in Rhode Island
It involves filing a law suite to obtain a court order. This is done when no power of sale is present in mortgage/deed. Once foreclosure is declared, property is auctioned off to highest bidder.
What happens during Non-Judicial Foreclosure in Rhode Island?
Non-judicial foreclosure is conducted only when power of sale clause exists in deed of trust/mortgage. This clause allows borrower pre-authorizes the sale of property to pay off the balance loan in the incidence of their default. In such cases power is given to lender to sell the property by himself or his representative who generally referred as trustee. Guidelines for such procedure are mentioned under Guidelines for power of sale foreclosure.
Guidelines for power of sale foreclosure
If the deed of trust/mortgage contains a power of sale clause with specified time, place and terms of sale, then it should be followed.
Otherwise Non-judicial foreclosure is done as follows:
The lender must send notice with date/time of sale to the borrower by certified mail. This should be done 20 days before the ad of sale appears in newspaper. The ad should be given once a week for three weeks, first ad should appear at 21 days before the sale. The notice should have borrowers name, lenders name, the amount due and details of the property.
What happens during Special Foreclosures (other than Judicial & Non judicial) in Rhode Island?
If lender is taking the possession of the property, he should take it peacefully and in the presence of two witnesses. The said witnesses are required to give a certificate of possession which should be notarized.
In case where the borrower gives up possession voluntarily, he should do this in the presence of notary.
In above cases, lender gains full title of the property, if the is able to hold the possession for a given period of time.
This is legal information; it should not be treated as legal advice.
To get more information:
http://www.entrusthome.com/46-stop-foreclosure-rhode-island.php
Article submitted Tuesday, November 06, 2007 & read 29 times.
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