After a foreclosure sale in Rhode Island, if the sale proceeds do not cover the outstanding loan balance, the lender may:
Correct Answer
B) Seek a deficiency judgment against the borrower for the remaining unpaid balance
Rhode Island allows lenders to seek deficiency judgments after a foreclosure sale. If the foreclosure sale proceeds are insufficient to cover the outstanding loan balance, the lender may pursue the borrower in court for the remaining deficiency amount. Rhode Island does not have a blanket anti-deficiency statute prohibiting such judgments, unlike some other states.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
TILA is a federal law that requires lenders to disclose the true cost of credit to borrowers, including the annual percentage rate (APR), total finance charges, and loan terms. It is implemented by Regulation Z.
A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
Usury is the practice of charging an interest rate that exceeds the maximum rate permitted by state law. Usury laws protect borrowers from excessive interest charges on loans.
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