Rhode Island Foreclosure Laws: Process, Timeline and Your Rights

Both. A lender may file a complaint in court to foreclose, or, under a mortgage with a power of sale, may sell the property after giving the mailed and published notices required by statute, without a court case.

Before starting a foreclosure on an owner-occupied, one- to four-unit primary residence, the lender must send the homeowner written notice that it may not foreclose without first participating in a mediation conference (see mediation_program). For a power-of-sale foreclosure, the homeowner must be mailed written notice of the time and place of sale by certified mail, return receipt requested, at the property address (and any tax-assessor or designated address) at least 30 days before the first newspaper publication for individual consumer borrowers (20 days for others). The notice must include information about servicemember rights. The sale must then be advertised in a newspaper once a week for three successive weeks, with the first publication at least 21 days before the sale and the third publication 7 to 14 days before the original sale date. Bona fide tenants must be mailed a notice of the scheduled sale at least one business day before the first publication.

Minimums set by statute for a power-of-sale foreclosure: the mediation requirement must be completed first for covered homes; the mailed notice must go to an individual consumer borrower at least 30 days before the first publication; the first of three weekly publications must be at least 21 days before the sale; and the sale may take place no more than 14 days after the third publication.

Yes. Rhode Island requires a mediation conference before foreclosure of an individual consumer first-lien mortgage on an owner-occupied, one- to four-unit primary residence. The lender must notify the homeowner that it cannot foreclose without first participating in mediation, and must mail that notice within 120 days after the default or pay a $1,000-per-month penalty. The conference is run by a mediation coordinator from a Rhode Island-based, HUD-approved counseling agency, who certifies whether the lender participated in good faith before it can proceed. RIHousing provides these mediation services free of charge to homeowners.

The lender must mail each bona fide tenant a written notice at least one business day before the first newspaper publication of the sale, stating that the property is scheduled for foreclosure sale and when and where, advising of counseling and information services (including the Rhode Island housing help center and United Way 2-1-1), reminding the tenant to keep paying rent to the landlord until the sale, and stating that it is not an eviction notice. A tenancy is bona fide only if, among other things, the tenant is not the borrower or the borrower's child, spouse or parent.

Yes, for condominiums. A condominium association has a lien on a unit for assessments and fines from when they become due, and the lien may be foreclosed under R.I. Gen. Laws § 34-36.1-3.21. The lien has limited priority over a first mortgage for up to six months of regular common-expense assessments plus capped collection and foreclosure costs. Once common-expense charges are at least 60 days delinquent, the association must send the owner a notice of the delinquency by certified and first-class mail. A judgment in a lien case must include costs and reasonable attorney's fees for the prevailing party.

Yes. As soon as practicable, and before any agreement to transfer real estate is signed, the seller must give the buyer (and each agent involved) a written disclosure of all deficient conditions the seller actually knows about, on a form approved by the Rhode Island Real Estate Commission (or a substantially conforming form). The agent may not communicate the buyer's offer until the buyer has received the disclosure and signed a receipt.

After a property tax sale to a private buyer, a person entitled to notice of the sale may redeem at any time before the buyer files a petition to foreclose the right of redemption, by paying the buyer the original sum plus intervening taxes paid, interest of 1% per month, costs, and a statutory penalty (or, for a city or town's assignee, the amount in the assignment plus the penalty). Payment may be made to the city or town treasurer as the buyer's agent until one year after the sale.

RIHousing's HelpCenter is a HUD-approved counseling agency that provides free foreclosure prevention counseling to Rhode Island homeowners struggling with their mortgage payments; counselors work with homeowners and lenders on options such as loan modifications, work-out agreements and repayment plans, or refer to RI Legal Services. Call 401-457-1130. RIHousing also provides the state's foreclosure mediation services free of charge to homeowners.