Difference between revisions of "RI Underwriting Summary"
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===Non-Judicial Foreclosure=== | ===Non-Judicial Foreclosure=== | ||
* Non-Judicial foreclosure in Rhode Island is similar to other New England states which differs somewhat from non-judicial foreclosure in other states. | * Non-Judicial foreclosure in Rhode Island is similar to other New England states which differs somewhat from non-judicial foreclosure in other states. | ||
| + | * Foreclosure is commenced outside of the public records, so there will not be any indication of a non-judicial foreclosure in the public records until the foreclosure deed has been recorded. | ||
* Review of a non-judicial foreclosure requires review of the foreclosure deed and several documents that are typically recorded with the foreclosure deed. Key documents are: | * Review of a non-judicial foreclosure requires review of the foreclosure deed and several documents that are typically recorded with the foreclosure deed. Key documents are: | ||
** '''Foreclosure Deed''' - Usually title as "Foreclosure Deed Under Power of Sale in Mortgage" or something similar | ** '''Foreclosure Deed''' - Usually title as "Foreclosure Deed Under Power of Sale in Mortgage" or something similar | ||
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** '''Affidavit of Exemptions''' (if applicable) - Older foreclosure commenced from 2013 on may have these to demonstrate that the foreclosure is exempt from mediation requirements pursuant R.I.G.L. § 34-27-3.2 because the mortgage was more than 120 days delinquent with the law was implemented. | ** '''Affidavit of Exemptions''' (if applicable) - Older foreclosure commenced from 2013 on may have these to demonstrate that the foreclosure is exempt from mediation requirements pursuant R.I.G.L. § 34-27-3.2 because the mortgage was more than 120 days delinquent with the law was implemented. | ||
** '''Affidavit of Compliance''' - Older foreclosures from 2009 until 2013 may have these to demonstrate compliance with local mediation conferences that were implemented in 2009 pursuant to R.I.G.L. § 34-27-3.1. These procedures were superseded by a uniform state requirement implemented September 13, 2013 pursuant to R.I.G.L. § 34-27-3.2. | ** '''Affidavit of Compliance''' - Older foreclosures from 2009 until 2013 may have these to demonstrate compliance with local mediation conferences that were implemented in 2009 pursuant to R.I.G.L. § 34-27-3.1. These procedures were superseded by a uniform state requirement implemented September 13, 2013 pursuant to R.I.G.L. § 34-27-3.2. | ||
| − | ** NOTE: | + | ** NOTE: The above list does not cover all of the requirements to ensure a valid foreclosure, but the basics that should be reviewed by a title examiner. |
| − | |||
* The IRS/USA or any branch of the federal government must be served notice of the foreclosure as required by federal law. | * The IRS/USA or any branch of the federal government must be served notice of the foreclosure as required by federal law. | ||
* Senior liens cannot be discharged in a foreclosure. | * Senior liens cannot be discharged in a foreclosure. | ||
Revision as of 06:30, 2 February 2018
Contents
Foreclosure Review
- Mortgages and Deeds of Trust are both recognized in Rhode Island.
- The most common form of Security Instrument is usually called a "Mortgage Deed" and is typically a mortgage that contains a Power of Sale clause.
- Only Mortgages and Deeds of Trust the contain a Power of Sale Clause may be foreclosed non-judicially.
Judicial Foreclosure
This type of foreclosure is not as common in Rhode Island and is primarily used for Security Instruments that do not contain a Power of Sale clause.
Other Forms of Foreclosure
Foreclosure by Peaceable Entry is also permitted in Rhode Island. 34-23-3. This is almost never used.
Non-Judicial Foreclosure
- Non-Judicial foreclosure in Rhode Island is similar to other New England states which differs somewhat from non-judicial foreclosure in other states.
- Foreclosure is commenced outside of the public records, so there will not be any indication of a non-judicial foreclosure in the public records until the foreclosure deed has been recorded.
- Review of a non-judicial foreclosure requires review of the foreclosure deed and several documents that are typically recorded with the foreclosure deed. Key documents are:
- Foreclosure Deed - Usually title as "Foreclosure Deed Under Power of Sale in Mortgage" or something similar
- Affidavit of Sale - This must show compliance with requirements regarding foreclosure notices, legal advertisements, and the provisions of the SCRA. R.I.G.L. § 34-11-22.
- Affidavit of Exemptions (if applicable) - Older foreclosure commenced from 2013 on may have these to demonstrate that the foreclosure is exempt from mediation requirements pursuant R.I.G.L. § 34-27-3.2 because the mortgage was more than 120 days delinquent with the law was implemented.
- Affidavit of Compliance - Older foreclosures from 2009 until 2013 may have these to demonstrate compliance with local mediation conferences that were implemented in 2009 pursuant to R.I.G.L. § 34-27-3.1. These procedures were superseded by a uniform state requirement implemented September 13, 2013 pursuant to R.I.G.L. § 34-27-3.2.
- NOTE: The above list does not cover all of the requirements to ensure a valid foreclosure, but the basics that should be reviewed by a title examiner.
- The IRS/USA or any branch of the federal government must be served notice of the foreclosure as required by federal law.
- Senior liens cannot be discharged in a foreclosure.
- Junior liens other than federal liens are not entitled to receive any separate notice of the foreclosure.
- Properties are publicly auctioned.
- There is no right of redemption in any parties once the sale has been completed except for those given for federal liens.
- Actions to eject a holdover tenant including any foreclosed borrowers must be pursued in a separate legal action pursuant to R.I.G.L. § 34-18-38.
