If you’ve gotten a foreclosure notice of default and want to know what this means and what options you have…keep reading.
Basically, a foreclosure notice of default is a document that has to be filed by a lender in order to start the process of foreclosing on a home in Rhode Island.
The foreclosure notice of default must be sent to everyone who has an interest in the property – anyone who is on title or may have a lien on the property will thus be notified (any other loans, lenders, or even contractors who are owed money for work done to a property will get a copy of the notice of default as well).
In Rhode Island – The foreclosure notice of default must also be published in a newspaper and physically posted in a prominent place on the property itself. This is to alert the general public to a potential upcoming auction sale and is needed in order to give notice to creditors of some kind of transaction that might affect their interest.
Although this aspect of the situation can be embarrassing and may feel like a violation of privacy to someone going through foreclosure, it is actually a very important protection for consumers and creditors within the local Rhode Island real estate market.
Back before US law required a notice of default, people were sometimes foreclosed on without any warning.
In fact, it’s happened even in the past few years – at least one bank has accidentally foreclosed on the wrong property and kicked people out of their house without due process or warning. It’s even happened around the Ocean State.
The notice of default is a very important step within the foreclosure process that should not be overlooked by any lender. Notice of default gives people with an interest in the property a chance to claim their rights – before it’s too late. This is the point where homeowners may still be able to make up for overdue payments and potentially even restructure their loan. (For more information on this, see last week’s article).
If you’re a Rhode Island homeowner and you’ve received a notice of default, don’t wait…Time is definitely of the essence, and you should take action as soon as possible.
Here are a few key steps you could take:
1) Stay calm and don’t panic or do anything irrational.
This may sound obvious, but it’s probably the most important. Any homeowner going into foreclosure is dealing with a lot of stress beyond just with their property. These situations don’t just resolve themselves overnight, the take time and effort on the part of the homeowner to get through it. Homeowners going through foreclosure should focus on taking small daily steps and focusing on what is still within their control while taking care of themselves and their family. Panic can lead to bad decisions, so stay collected, gather your thoughts, and take action.
2) Educate yourself.
Learn everything you can about the foreclosure process in Rhode Island state so that you know what’s happening and what to expect. You can find several useful resources here on my website as well as other reputable websites you may find through a simple google search. If you are in search of a trusted Realtor and Rhode Island real estate investment resource, feel free to reach me by text or call any time of the week. Matt – 401-527-0667 I could talk for hours about real estate and my experience and knowledge within the Rhode Island market will help make your transaction seamless and as stress-free as possible.
3) Gather your resources.
There are also several non-profit and government resources available to you out there. You’ll want sound legal and tax advice along the way so be sure to seek proper counsel. Definitely don’t try to do it all yourself – The process can be extremely complicated with lots of rules and steps along the way. A local Realtor connection or if you know any contractors, they can also be great resources to lean on for information, advice, and potentially a cash buyer for your foreclosed property.
4) Learn your options.
At Home Tree LLC, we help Rhode Island homeowners sell their home fast and for cash no matter their situation. We are able to buy several homes each month and we also have several investor connections that may also make a cash offer for your home. We’re here to help you avoid foreclosure and weigh your options accordingly. We buy houses with cash and can close quickly depending on your needs. We can help you negotiate short sales with your lender and could offer a rent-back situation so you (potentially) may be able to keep living in your home. There are many more options than you think, so don’t be afraid to reach out and have Matt run you through some potential choices you may have. Foreclosure in Rhode Island can be stressful, call me and let me take some of the logistics/decisions off your plate so you can get back to focusing on what matters most to you.
5) Communicate.
The banks involved don’t want your property. They want their money and interest, therefore what you say to them and any documentation you can provide will go a long way in the negotiation process. You can slow down or stop the foreclosure process if you take the appropriate action by communicating with your lender and providing proof of financial hardships. Further – if you reach out to us here at Home Tree LLC, we will be happy to walk you through your options for your foreclosure in Rhode Island.
Want to know more?