RI Underwriting Summary
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Revision as of 15:23, 30 January 2018 by Davidjenkins (talk | contribs) (→Non-Judicial Foreclosure)
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.
Judicial Foreclosure
This type of foreclosure is not as common in Rhode Island.
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.
- 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 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 - Old foreclosures may have these to demonstrate compliance with local mediation conferences. These procedures were superseded by a uniform state requirement implemented September 13, 2013 pursuant to R.I.G.L. § 34-27-3.2.
- 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.
- 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.
