The best way to recover foreclosures in Rhode Island is to notify your lender immediately when you won't be able to make a payment. Lenders usually end up losing money in the foreclosure process and do not actually want to foreclose on your home.

Lenders therefore have an interest in exploring all possibilities in the Rhode Island foreclosure process, including forbearance, partial claim, payment modification and payment suspension. More of these options will be available if you are only one or two payments behind.

There are three key actions to take in the Rhode Island foreclosure recovery process:

1. Review and answer all correspondence from your lender. These notices will contain important information on the foreclosure recovery process in Rhode Island and any pending legal actions.

2. Make a missed payment by raising money quickly. You may be able to sell a second car, jewelry or other assets, and a family member may be able to get an extra job.

3. Avoid foreclosure recovery scams. Many companies will charge you for information you could get for free. Others may ask you to sign over the title to your house.

Action Steps
The best contacts and resources to help you get it done

Know how Rhode Island foreclosure laws will affect you

Laws on foreclosure vary considerably by state so you should be familiar with at least a summary of foreclosure laws in Rhode Island. You should also read your loan documents to know what your lender can do if you can't make your payments.

I recommend: ForeclosureS.com provides the contact information for the Attorney General’s Office in Rhode Island and links to specific legislation regarding foreclosure in Rhode Island. In addition to a summary of Rhode Island law, American Foreclosure Specialists provides a description of possible strategies for avoiding a foreclosure on your home.

Get assistance with Rhode Island foreclosure recovery information

There are housing counselors and online resources available to help you understand your options, assist you in organizing your finances and negotiate with your lender, if needed.

I recommend: The Department of Housing and Urban Development provides contact information for approved housing counselors in Rhode Island that are available for free or very low cost. The Home Loan Learning Center offers extensive resources, including an online quiz for assessing your risk of losing your home.

Retain foreclosure attorneys in Rhode Island

You may need Rhode Island foreclosure lawyers to protect your interests, especially if you need to sign documents. If your regular attorney does not handle Rhode Island foreclosure law, he may be able to make a referral.

I recommend: Michelle D. Baker at Thibodeau & Baker in Providence handles the real estate cases for that firm. Shechtman Halperin Savage in Pawtucket specifically includes foreclosures as one of its practice groups.

Watch out for mortgage recovery scams

The Federal Trade Commission warns that there are plenty of bad guys operating in the foreclosure recovery business who will take your money and provide no service. Some warning signs, according to the FTC: advertising terms like 'guarantee' and '97% success rate', upfront fees before services and company names or websites designed to make you think you're dealing with a government or nonprofit agency.

I recommend: Educate yourself about foreclosure recovery scams through the Federal Trade Commission. The FTC recommends you only seek foreclosure help from government sanctioned counseling agencies like the ones recommended by the U.S. Department of Housing and Urban Development or the federal Making Home Affordable program.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  You may want to include refinancing in your Rhode Island foreclosure process if you have built up some equity in your home. You would usually require at least 10 percent equity to have a reasonable chance at refinancing and it will be easier with more equity. However, you don't want to simply take out a new loan to repay the original mortgage.