Chapter 384

2009 -- H 5492 AS AMENDED

Enacted 01/05/10

A N A C T

RELATING TO PROPERTY -- MORTGAGE FORECLOSURE AND SALE

Introduced By: Representatives Segal, Fierro, Giannini, DaSilva, and Almeida

Date Introduced: February 12, 2009

It is enacted by the General Assembly as follows:

SECTION 1. Chapter 34-27 of the General Laws entitled "Mortgage Foreclosure and

Sale" is hereby amended by adding thereto the following section:

34-27-3.1. Foreclosure counseling. – (a) No less than forty-five (45) days prior to

initiating any foreclosure of real estate pursuant to subsection 34-27-4(b), the mortgagee shall

provide to an individual consumer mortgagor written notice of default and the mortgagee’s right

to foreclose by first class mail at the address of the real estate and, if different, at the address

designated by the mortgagor by written notice to the mortgagee as the mortgagor’s address for

receipt of notices.

(b) The written notice required by this section shall be in English and Spanish and,

provided the same is then available, shall advise the mortgagor of the availability of counseling

through HUD-approved mortgage counseling agencies and, the toll-free telephone number and

website address maintained to provide information regarding no-cost HUD-approved mortgage

counseling agencies in Rhode Island. The written notice may also contain any other information

required under federal law. A form of written notice meeting the requirements of this section

shall be promulgated by the department of business regulation for use by mortgagees at least

thirty (30) days prior to the effective date of this section. Counseling shall be provided at no cost

to the mortgagee.

(c) Failure of the mortgagee to provide notice to the mortgagor as provided herein shall

render the foreclosure void, without limitation of the right of the mortgagee thereafter to

reexercise its power of sale or other means of foreclosure upon compliance with this section. The

mortgagee shall include in the foreclosure deed an affidavit of compliance with this section.

(d) As used herein and in this chapter, the term “HUD” means the United States

Department of Housing and Urban Development and any successor to such department.

SECTION 2. This act shall take effect sixty (60) days after passage

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LC01009

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