The housing market has yet to rebound from the collapse it suffered in 2008. People are still struggling to pay their mortgages, and many of those who can’t, are faced with the grim reality of foreclosure. Rhode Island is not immune to this trend.
Statistics show that 1 in every 845 Rhode Island housing units received a foreclosure filing in October 2011 alone; a staggering number that doesn’t seem to be letting up any. If you’re a homeowner in Rhode Island it’s important that you understand what your rights are with regard to foreclosures in your state. Here’s a brief look at foreclosure redemption rights in Rhode Island and deficiency judgments in Rhode Island.
Note: The information contained herein is not intended to be law verbatim. Nor should it be taken as legal advice. If you are facing foreclosure in Rhode Island, it is your responsibility to know the laws or seek the advice of an attorney that is schooled in Rhode Island foreclosure laws to protect your interests.
What is a statutory right of redemption?
A statutory right of redemption is a legal right afforded to foreclosed borrowers that gives them the post-foreclosure right to reclaim foreclosed property after the foreclosure sale upon the payment of all defaulted amounts, costs and fees.
Does Rhode Island have foreclosure redemption rights?
Yes and no. In a non-judicial foreclosure, Rhode Island has no post-foreclosure redemption rights. However, in certain judicial actions a borrower’s redemption rights can be permitted up to three years.
What is a deficiency judgment?
A deficiency judgment is granted to a lender when the foreclosed property does not net the balance due and owing on the borrower’s loan for said property. The judgment finds the borrower financially liable for the remaining balance on the loan which they are obligated to pay.
Can a lender obtain a deficiency judgment in Rhode Island?
Yes. If a lender pursues court action and obtains a deficiency judgment against the borrower, the borrower is legally liable for the remaining balance on the loan that was not recovered by public auction.
These are only two potential aspects of a foreclosure in Rhode Island. The foreclosure laws of Rhode Island are actually very complex. As such, if you are facing a foreclosure in Rhode Island, seeking the counsel of a qualified foreclosure attorney would be in your best interest.
Foreclosure can be a very devastating experience. You can make the process less disheartening by ensuring that your rights are protect throughout the entire process.