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Rhode Island · Weigh your options

Can the lender come after you for the rest? Deficiency judgments in Rhode Island

Possibly. We found no Rhode Island statute that stops a lender from suing you for the balance left after a foreclosure sale, and no fair value hearing like some states have. That means you should treat a deficiency claim as possible and get any waiver in writing. Rhode Island's required mediation conference is a good place to ask for one.

Ask for help in Rhode Island Free HUD counselor: (800) 569-4287

Reviewed against Rhode Island law and official sources on October 12, 2026. General information, not legal advice.

Deficiency rules in Rhode Island, point by point

  • No anti-deficiency law found

    After a power of sale or court foreclosure

    The foreclosure chapter we read has no rule that bars or limits a deficiency on a home loan. If the sale price does not cover the debt, the lender would have to sue you on the note to get a money judgment.

    R.I. Gen. Laws ch. 34-27

  • No fair value credit found

    If the lender sues

    We found no Rhode Island statute that credits you with the home's fair market value instead of a low sale price. If you think the home sold far below its value, raise it with a lawyer as a defense in the lawsuit.

  • Time limit to sue

    Generally 10 years; 20 years for some contracts

    Rhode Island's general limit for civil actions is 10 years after the claim arises. Contracts under seal have 20 years. Which applies to a deficiency on your note was not confirmed, so ask a lawyer before assuming a claim is too old.

    R.I. Gen. Laws §§ 9-1-13, 9-1-17

  • Use mediation to settle the balance

    During the mediation conference

    A short sale or deed in lieu agreed in mediation counts as a workout, and the coordinator issues a Certificate of Eligible Workout Agreement only if the deal gives you a net financial benefit. Ask that the written agreement say the lender waives any deficiency.

    R.I. Gen. Laws § 34-27-9(i)

  • Short sale and deed in lieu

    Before you sign

    We found no Rhode Island statute that sets a deficiency rule for a short sale or deed in lieu. The general rule is that the written agreement controls, so a deal that does not say the debt is satisfied may leave you owing the rest.

  • How a judgment could be collected

    Up to 20 years to sue on a judgment

    Actions on a judgment must be brought within 20 years. Some property is exempt from attachment, including household goods up to $9,600, tools of your trade up to $2,000 and IRAs. Most wages are protected only up to $50, with full protection for some people receiving public relief.

    R.I. Gen. Laws §§ 9-1-17, 9-26-4

  • If you get a deficiency letter or lawsuit

    Before the answer deadline on the summons

    Do not ignore it. Call Rhode Island Legal Services or the Rhode Island Bar Association lawyer referral service, and bring your foreclosure deed, any mediation certificate and any workout or release you signed.

The short answer in Rhode Island

Can the lender come after me for the rest?

Deficiency judgments allowed

We found nothing in Rhode Island's foreclosure chapter that stops a lender from suing for the unpaid balance after the sale, so you should assume a deficiency claim is possible. Ask a lawyer or legal aid before agreeing to anything, and ask in mediation for a written waiver of any deficiency.

Common questions in Rhode Island

Does a Rhode Island foreclosure wipe out what I owe on the note?

Not by itself. The sale price is applied to the debt, but we found no Rhode Island law that cancels the rest. Unless you have a written release, the lender may be able to sue for the balance.

Can a Rhode Island lender garnish my wages for a deficiency?

Only after it wins a court judgment. Rhode Island's exemption law protects only $50 of most debtors' wages from attachment, and fully protects wages of people who have received public relief for a year after the relief ends. Ask legal aid to review any garnishment papers right away.

Should I ask for a deficiency waiver in Rhode Island foreclosure mediation?

Yes, if you are discussing a short sale, deed in lieu or other way of giving up the home. The mediation law treats an agreed short sale or deed in lieu as a workout, and it must be put in writing and signed by both sides. Make sure that writing says whether any balance is forgiven.

Step by step

More on foreclosure in Rhode Island

Understand the process

What is happening and how much time there is.

Weigh your options

What can stop it, and what happens if it goes ahead.

Get help now

Who to call, and what to do when a sale is scheduled.

Also in Rhode Island

Foreclosure mediation Property tax foreclosure Claim surplus funds Deficiency judgments (this page)Letters you may get

Back to the Rhode Island overview

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Sources for this page

  1. R.I. Gen. Laws § 9-1-13, Limitation of actions generally
  2. R.I. Gen. Laws § 9-1-17, Contracts under seal and judgments
  3. R.I. Gen. Laws § 9-26-4, Property exempt from attachment
  4. R.I. Gen. Laws § 34-27-9, Mediation conference
  5. R.I. Gen. Laws § 34-27-4, Publication of notice under power of sale
  6. R.I. Gen. Laws Chapter 34-27, index (shows §§ 34-27-3.1 and 34-27-3.2 repealed in 2024)
  7. R.I. Gen. Laws § 34-11-22, Statutory power of sale
  8. R.I. Gen. Laws § 34-27-7, Notice to tenants
  9. R.I. Gen. Laws § 5-79-3, Foreclosure consultant contract
  10. R.I. Gen. Laws § 5-79-4, Foreclosure consultant violations
  11. RIHousing: HAF-RI closing to new applications
  12. RIHousing: Homeowner assistance programs
  13. R.I. Gen. Laws § 34-18-38.2, Just cause needed for eviction of foreclosed residential property tenants
  14. R.I. Gen. Laws § 34-18-37, Termination of periodic tenancy