Rhode Island § 5-80-1 - Mortgage Foreclosure Purchasers

§ 5-80-1. Definitions.

As used for §§ 5-80-1 — 5-80-9:

(a) “Foreclosed homeowner” means an owner of residential real property, including a condominium, that is the primary residence of the owner and whose mortgage on the real property is or was in foreclosure.

(b) “Foreclosure conveyance” means a transaction involving:

(1) The transfer of title to real property by a foreclosed homeowner during a foreclosure proceeding, either by transfer of interest from the foreclosed homeowner or by creation of a mortgage or other lien or encumbrance during the foreclosure process that allows the acquirer to obtain title to the property by redeeming the property as a junior lienholder; and

(2) The subsequent conveyance, or promise of a subsequent conveyance, of an interest back to the foreclosed homeowner by the acquirer or a person acting in participation with the acquirer that allows the foreclosed homeowner to possess the real property following the completion of the foreclosure proceeding, which interest includes but is not limited to, an interest in a contract for deed, purchase agreement, option to purchase, or lease.

(c) “Foreclosure purchaser” means a person who has acted as the acquirer in more than four (4) foreclosure reconveyances during any twenty-four-month (24) period. “Foreclosure purchaser” also includes a person who has acted in joint venture or joint enterprise with one or more acquirers in more than four (4) foreclosure reconveyances during any twenty-four-month (24) period. A federal or state chartered bank, savings bank, thrift, or credit union is not a foreclosure purchaser.

(d) “Resale” means a bona fide market sale of the property subject to the foreclosure reconveyance by the foreclosure purchaser to an unaffiliated third-party.

(e) “Resale price” means the gross sale price of the property on resale.