Mortgage Foreclosure and Sale

SECTION 34-27-7

§ 34-27-7. Notice to tenants of foreclosure sale.

(a) The mortgagee shall provide to each bona fide tenant a written notice: (1) Stating that the real estate is scheduled to be sold at foreclosure; (2) Stating the date, time, and place initially scheduled for the sale; (3) Informing of the availability and advisability of counseling and information services; (4) Providing the address and telephone number of the Rhode Island housing help center and the United Way 2-1-1 center; (5) Reminding the recipient to continue paying rent to the landlord until the foreclosure sale occurs; and (6) Stating that this notice is not an eviction notice. The notice shall be mailed by first-class mail at least one business day prior to the first publication of the notice required by § 34-27-4. A form of written notice meeting the requirements of this section shall be promulgated by the department of business regulation for use by mortgagees no later than sixty (60) days after the effective date of this section. The notice may be addressed to "Occupant" and mailed to each dwelling unit of the real estate identified in the application for the loan secured by the mortgage being foreclosed. Failure of the mortgagee to provide notice as provided herein shall not affect the validity of the foreclosure.

(b) For purposes of this section, a lease or tenancy shall be considered bona fide only if:

(1) The mortgagor, or the child, spouse, or parent of the mortgagor, under the contract is not the tenant;

(2) The lease or tenancy was the result of an arms-length transaction; and

(3) The lease or tenancy requires the receipt of rent that is not substantially less than fair-market rent for the property or the unit's rent is reduced or subsidized due to a federal, state, or local subsidy.

History of Section.
(P.L. 2014, ch. 486, § 3; P.L. 2014, ch. 513, § 3; P.L. 2016, ch. 512, art. 1, § 23.)