Foreclosures in Rhode Island can be an incredibly difficult process for the homeowner to go through. When you are struggling with your mortgage payments, you are always worrying about facing foreclosure. What does this process entail? Is there anything that you can do in this situation? By reading on, you can learn the basics of this process and any programs that you can try to save your home.
Foreclosure Process in Rhode Island
For the most part, foreclosures in Rhode Island are a non-judicial process, meaning they aren’t settled in court. Forty-five days before starting the foreclosure process, the loan servicer sends the homeowner a notice of default and mentions HUD-approved financial counseling to help the homeowner. Before the foreclosure notice, the loan servicer sends out written notice that the property will not be foreclosed on without parties attending a mediation conference. When the loan servicer sells the property, they need to publish the notice of sale in a newspaper every week for three weeks and mail this notification to the borrower at least 30 days before putting this notice in the newspaper.
In Rhode Island, the law says that the borrower doesn’t have a right to reinstate, meaning that they can catch up on their missed payments and any late fees to save their home. However, if you look at your mortgage terms, there may be a right to reinstatement under some circumstances. This is why it’s essential to keep your loan documents. Unfortunately, you are not able to redeem your home, meaning that you can’t repurchase the house after a non-judicial foreclosure. Rhode Island state law also permits the servicer to seek a Deficiency Judgement, meaning if there is still money owed after the foreclosure, they can sue you to recover it.
Rhode Island Foreclosure Programs
One option that you have is the Hardest Hit Fund Rhode Island (HHFRI). This is a broad program that has four programs within it. One program is Temporary and Immediate Housing Assistance. This offers financial assistance that helps the homeowner keep their home. The funding received from this program can help the homeowner repay their delinquent mortgage payments or other homeowner-related expenses like property taxes or homeowner’s insurance. There’s Loan Modification Assistance, helping you get a permanent loan modification to make your home more affordable. Another program is the Mortgage Payment Assistance, which offers you money every month that you can use to help pay your mortgage payments in addition to your contribution to expenses. Lastly, there is the Moving Forward Assistance, which can help you sell your home and relocate if you are facing a severe financial crisis.
If you are facing foreclosure, you can feel better knowing that you do have a lot of options available to you during this difficult time. You can work with a HUD-approved counselor to help you take control over your finances and other programs that can help you stay in your home if that’s your primary goal.