A Rhode Island mortgage lender initiates a judicial foreclosure action against a homeowner in default. The court issues a foreclosure judgment in the lender's favor. Before the foreclosure sale takes place, the homeowner pays the full amount of the outstanding debt, interest, and court costs. Under Rhode Island law, what is the most likely outcome?
Correct Answer
A) The homeowner may redeem the property by satisfying the debt before the foreclosure sale, and the lender must cancel the sale
In Rhode Island's judicial foreclosure process, a homeowner generally retains the right of equitable redemption — the right to redeem the property by paying the full amount owed (including principal, interest, fees, and court costs) before the foreclosure sale is completed. Once the homeowner satisfies the debt in full prior to the sale, the lender must cancel the foreclosure sale. This equitable redemption right is a fundamental protection for borrowers in judicial foreclosure states.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An adjustable-rate mortgage (ARM) has an interest rate that changes periodically based on market conditions, typically after an initial fixed-rate period. The rate adjustment is tied to a financial index plus a margin.
Closing costs are the fees and expenses paid by the buyer and seller at the closing of a real estate transaction, beyond the purchase price. They typically range from 2-5% of the purchase price.
A conventional loan is a mortgage that is not insured or guaranteed by a government agency such as the FHA, VA, or USDA. It is originated and funded by private lenders and may be conforming or non-conforming.
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