- Who sends it
- Your lender or servicer, mailed to the home and to any other address you gave it for notices
- What it starts
- A free mediation conference that must take place within 60 days after the notice is mailed
- Do this first
- Call the mediation coordinator named in the notice; for RIHousing that is 401-457-1213
What this notice is in Rhode Island
R.I. Gen. Laws § 34-27-9 requires the lender, before it starts the sale notices under § 34-27-4(b), to send you written notice that it may not foreclose without first taking part in a mediation conference. It goes to the home's address and, if different, to any address you designated in writing for notices. The notice must be in English, Portuguese and Spanish (§ 34-27-9(d), (e)).
It applies to an individual consumer first mortgage on an owner-occupied home of 1 to 4 units that is your primary residence (§ 34-27-9(c)(7), (k)). It does not apply to reverse mortgages or to defaults dated on or before May 16, 2013 (§ 34-27-9(o)).
The conference is run by a mediation coordinator who works for a Rhode Island HUD-approved counseling agency chosen by the lender. The coordinator is neutral and cannot force a solution (§ 34-27-9(c)(6)). RIHousing is one of these coordinators.
For how this kind of document works in every state, see the national guide: Foreclosure mediation notice.
What it does and does not mean
- It is not a notice of sale. The certified notice of foreclosure sale comes later, if mediation does not end in a deal.
- The conference is free to you. The lender pays the counseling agency (§ 34-27-9(f)).
- The lender must take part in good faith. That includes sending someone with authority to agree to a workout and, if it rejects your proposal, giving you a detailed written reason (§ 34-27-9(c)(3)).
- If the lender did not mail this notice within 120 days after your default, it owes a penalty of $1,000 a month, paid to the coordinator before mediation can be completed (§ 34-27-9(d)(1), (2)).
- A lender headquartered in Rhode Island, or one running full-service mortgage operations from Rhode Island offices with local staff who can approve workouts, may be treated as complying if its foreclosure deed certifies it (§ 34-27-9(l)).
- The lender may still choose to foreclose through a court case instead (§ 34-27-9(d)(5)).
The deadline it starts and how to count it
- The conference must take place, in person or by phone, no later than 60 days after the notice was mailed (§ 34-27-9(f)). Count calendar days from the mailing date.
- If the coordinator tries twice to reach you and you do not respond, or you do not cooperate, the coordinator can issue a certificate letting the lender go ahead with foreclosure (§ 34-27-9(g)).
- RIHousing says that once the conference has taken place, the lender has 14 days to respond to your workout request.
- Federal rules generally bar the lender from making the first foreclosure notice until you are more than 120 days behind (12 C.F.R. § 1024.41(f)).
What to do this week
- Call the coordinator named in your notice. If it is RIHousing, call the Mediation Coordinator at 401-457-1213 or email mediationcoordinator@rihousing.com.
- RIHousing says the coordinator will give you a list of HUD-approved counseling agencies. Pick one; your counselor helps with the paperwork and comes to the conference with you.
- Gather your income, expenses and job information. The law requires you to give the coordinator all necessary financial and employment information and complete the applications it asks for (§ 34-27-9(f)).
- RIHousing's HelpCenter at 401-457-1130 asks homeowners to fill out its Financial Information Package and have recent pay stubs, your latest tax return, bank statements and your mortgage statement ready.
- Keep copies of everything you send, with dates. Read Rhode Island foreclosure mediation.
Free help in Rhode Island and scam warnings
RIHousing says to take part even if you are already working with your lender, because mediation may surface options sooner. Rhode Island Legal Services at 401-274-2652 may give free legal help. See the Rhode Island foreclosure help page.
- You do not need to pay anyone to take part. The coordinator and your HUD-approved counselor are paid by the lender.
- A Rhode Island foreclosure consultant cannot take any money until every promised service is done, cannot take a lien or an interest in your home, and must give you a written contract you can cancel until midnight of the third business day (R.I. Gen. Laws §§ 5-79-3, 5-79-4).
- Never sign over your deed to someone who says they will save the home.
The rest of the Rhode Island process
See how foreclosure works in Rhode Island, the timeline, ways to stop it and free help in Rhode Island, or read the national guide to this letter.
Common questions
What happens if I ignore the Rhode Island mediation notice?
If the coordinator tries twice to reach you and you do not respond, the law is treated as satisfied and the coordinator issues a certificate letting the lender proceed with foreclosure and record the deed (R.I. Gen. Laws § 34-27-9(g)).
Does Rhode Island foreclosure mediation cost me anything?
No. § 34-27-9(f) says the conference is provided at no cost to the mortgagor, and the lender pays the counseling agency. RIHousing also says the service is free to homeowners.
My loan is a reverse mortgage. Do I get mediation?
No. § 34-27-9(o) says the mediation law does not apply to reverse mortgages. It also does not apply to defaults dated on or before May 16, 2013.
Can I still do mediation if I am already talking to my lender?
Yes. RIHousing encourages it, and the law's notice form is meant to get you into the process early. A deal reached outside mediation is also sent to the coordinator for review.
Other Rhode Island letters
- Mediation Certificate (certificate to proceed, good faith certificate, or Certificate of Eligible Workout Agreement)When Rhode Island foreclosure mediation ends, the coordinator issues a certificate. If there was no deal, or you did not respond, the certificate lets the lender go ahead with the sale and must be recorded with the foreclosure deed. If you reached a workout that helps you, the coordinator issues a Certificate of Eligible Workout Agreement instead.
- Notice of Foreclosure Sale (certified mail notice of the time and place of sale)In Rhode Island, a power of sale foreclosure notice is not valid unless you were mailed written notice of the time and place of sale by certified mail at least 30 days before the first newspaper ad. The ad then runs weekly for 3 weeks, starting at least 21 days before the auction. The letter must also explain extra rights for servicemembers.
- Notice of Termination of Tenancy (notice to leave after a foreclosure sale)After a Rhode Island foreclosure sale, a foreclosing owner that wants to remove a former owner must follow the rules for ending a month-to-month tenancy. That means a written notice delivered at least 30 days before the date in it. If you have not left by then, the owner must file an eviction case and win before you can be removed.