How foreclosure works in Rhode Island

The notices you will receive in Rhode Island, in order

1. Notice of mediation conference

   Mailed by the lender before it starts the sale notices; a penalty applies if it is later than 120 days after default

   This notice says the lender may not foreclose without first taking part in a mediation conference. It must be in English, Portuguese and Spanish. Answer the mediation coordinator as soon as they contact you.

   R.I. Gen. Laws § 34-27-9(d), (e)

2. Contact from the mediation coordinator

   The conference must happen within 60 days after the notice is mailed

   A coordinator from a Rhode Island HUD-approved counseling agency sets a conference in person or by phone. It is free to you. You must provide your financial and job information and fill out the loan applications the coordinator asks for.

   R.I. Gen. Laws § 34-27-9(f)

3. Mediation certificate

   Issued by the coordinator when mediation ends without a deal, or after 2 failed attempts to reach you

   This certificate lets the lender go ahead and must be recorded with the foreclosure deed. If you reach a deal, the coordinator issues a Certificate of Eligible Workout Agreement instead. Keep copies of everything you send and receive.

   R.I. Gen. Laws § 34-27-9(g), (h), (i)

4. Certified mail notice of sale

   Mailed at least 30 days before the first newspaper ad

   It gives the time and place of the auction. It must include a notice about the rights of servicemembers. A newspaper notice is not valid unless this letter was mailed on time to the property and to your address on file with the tax assessor, if different.

   R.I. Gen. Laws § 34-27-4(b), (c)

5. Newspaper notice of sale

   Once a week for 3 weeks; first ad at least 21 days before the sale

   The third ad must run 7 to 14 days before the sale date. The ad runs in a daily newspaper set by law for your city or town. Tenants in the building also get a notice by first-class mail at least one business day before the first ad.

   R.I. Gen. Laws §§ 34-27-4(a), 34-11-22, 34-27-7

6. Foreclosure deed and notice to leave

   After the auction

   The buyer's deed cannot be recorded without the mediation certificate. If you are still living in the home, the new owner must give you written notice and go to court to remove you. It cannot simply change the locks.

   R.I. Gen. Laws §§ 34-27-9(m), 34-18-38.2(e)

The legal steps in Rhode Island

1. Missed payments and pre-foreclosure

   Federal rules generally bar the servicer from starting foreclosure until you are more than 120 days behind. Call your servicer and a housing counselor right away.

   12 C.F.R. § 1024.41(f)

2. Notice of mediation conference

   Before it can foreclose by power of sale, the lender must mail you a written notice that it may not foreclose without first taking part in a mediation conference. A lender that does not mail it within 120 days after default owes a penalty of $1,000 a month.

   R.I. Gen. Laws § 34-27-9(d)

3. Mediation conference

   A mediation coordinator from a HUD-approved counseling agency sets a conference, in person or by phone, within 60 days of the notice. It is free to you. Answer the coordinator and send the papers they ask for. If you do not respond after two attempts, the lender gets a certificate to go ahead.

   R.I. Gen. Laws § 34-27-9(f), (g)

4. Mailed notice of sale

   The lender must mail you notice of the time and place of the sale by certified mail at least 30 days before the first newspaper publication.

   R.I. Gen. Laws § 34-27-4(b)

5. Newspaper notice

   The sale is advertised once a week for three weeks in a row. The first ad must run at least 21 days before the sale, and the third ad must run no fewer than 7 and no more than 14 days before the sale date. The sale must be held no more than 14 days after the third ad.

   R.I. Gen. Laws § 34-27-4(a)

6. Auction and after

   The home is sold at public auction and the sale ends your rights in the property. The foreclosure deed cannot be recorded without the mediation certificate. If you stay in the home, the new owner must give you at least 30 days' written notice and go to court to evict you.

   R.I. Gen. Laws §§ 34-11-22, 34-27-9(m), 34-18-38.2(e)

Common questions in Rhode Island