For most people, their home is their most valuable asset. However, when circumstances unexpectedly change, many people find that it is challenging to keep up with a mortgage, utilities, and the other expenses of maintaining a home. If a mortgage goes unpaid, the lending financial institution will eventually initiate Rhode Island foreclosure proceedings.
A foreclosure is when a lender forces the sale of a property to cover the remaining balance of the loan. Typically, a lender will foreclose on a property if there is a significant history of non-payment. While the length of time that a lender will wait to initiate foreclosure proceedings can vary, it is common for a foreclosure to begin within six months of the first missed payment. This is not to say that a single missed payment will result in a foreclosure; most lenders understand that a homeowner may be facing a short-term financial hardship that they will be able to recover from if given the opportunity.
While the foreclosure process can be frightening, there are certain actions homeowners can take to prevent a foreclosure. It is important for Rhode Island homeowners to understand that the foreclosure process must follow strict guidelines, and a lender cannot suddenly foreclose on a home.