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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