RI Underwriting Summary

Foreclosure Review

Mortgages and Deeds of Trust are both recognized in Rhode Island.
Only Mortgages and Deeds of Trust the contain a Power of Sale Clause may be foreclosed non-judicially.

This type of foreclosure is not as common in Rhode Island.

Non-Judicial foreclosure in Rhode Island is similar to other New England states which differs somewhat from non-judicial foreclosure in other states.
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:
- Statutory Form of Foreclosure Deed Under Power of Sale in Mortgage
- Affidavit of Sale Under Power of Sale in Mortgage
- Affidavit of Exemptions (if applicable)
- NOTE: This list does not cover all of the requirements to ensure a valid foreclosure, but the basics that should be reviewed by a title examiner.
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.
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.
What service is required on junior lien holders? What is the cutoff date for service requirements?
Where and how are properties auctioned?
There is no right of redemption in any parties once the sale has been completed except for those given for federal liens.
Who prepares and records Foreclosure Deed?
When does title become vested?
How are evictions against FC Borrowers handled?