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H7654aaVeterans & Military

Property - Mortgage Foreclosure and Sale

This bill changes how foreclosure notices are mailed and extends foreclosure protections for military servicemembers to one year post-deployment.

In committee33 Yea4 Nay0 Not voting
Population
Affected
15
Email Legislator
Introduced Feb 11, 2026Committee House Judiciary

Plain-English Summary

This bill updates the rules for notifying homeowners about a mortgage foreclosure sale. Instead of requiring certified mail with a return receipt, notices must now be sent using both First Class Mail and an overnight delivery service. Additionally, the bill extends the foreclosure protection period for military servicemembers. Previously, servicemembers were protected from foreclosure during their active duty and for nine months afterward. This bill extends that post-service protection period to one full year. It also updates the definition of military branches to explicitly include the Space Force.

For younger readers

If someone can't pay for their house, the bank might have to take it back. This is called a foreclosure. This bill changes the rules for how banks send warning letters to people about foreclosures. It says banks must use regular mail and a fast overnight delivery service to send the letters. It also gives extra help to people in the military. If a soldier is away serving our country, the bank cannot take their house. This bill gives soldiers a full year after they come home before a bank can try to take their house.

Who & Where It Applies

Impacted groups
Military servicemembersVeteransHomeowners facing foreclosureMortgage lendersBanks and financial institutions
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
None
Estimated revenue
Amount unknown

Bill Analysis

Both viewpoints
For Progressives
  • Increases protections for military servicemembers by extending the foreclosure grace period from nine months to one year, providing a stronger social safety net for veterans transitioning back to civilian life.
  • Requires foreclosure notices to be sent via both First Class Mail and an overnight delivery service, potentially ensuring that vulnerable homeowners actually receive the notice and have time to respond.
  • Maintains strict penalties, including fines and potential imprisonment, on banks and mortgage lenders who illegally foreclose on protected servicemembers, holding powerful financial institutions accountable.
  • Removing the certified mail requirement eliminates the need for a signed receipt, potentially making it harder for homeowners to prove in court that they never received a foreclosure notice.
  • The extended foreclosure protections are exclusively for military servicemembers, missing an opportunity to expand these vital housing protections to other vulnerable or low-income populations.
  • The $1,000 fine for banks that illegally foreclose on a servicemember is extremely low for large financial institutions and may not serve as an adequate deterrent against corporate misconduct.
For Conservatives
  • Strongly supports military personnel by extending their protection from foreclosure to a full year after active duty, aligning with traditional values of honoring the armed forces.
  • Eases the notification process for mortgage lenders by removing the requirement to obtain a certified mail return receipt, preventing homeowners from dodging notices by simply refusing to sign for them.
  • Explicitly recognizes the Space Force as a branch of the military, updating state law to reflect modern national defense structures and institutions.
  • Mandates that lenders use an overnight delivery service in addition to First Class Mail, imposing a new, potentially costly regulatory mandate on private businesses.
  • Extends the period during which a lender cannot foreclose on a property, interfering with private contracts and delaying a financial institution's ability to recover its collateral.
  • Retains the threat of imprisonment for mortgage lenders who violate the foreclosure stay, which could be viewed as an overly harsh government penalty on business operations.

Votes

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Full Bill Text

2 versions
Changes to existing Rhode Island law · 9 additions · 10 deletions

SECTION 1. Section 34-27-4 of the General Laws in Chapter 34-27 entitled "Mortgage Foreclosure and Sale" is hereby amended to read as follows: 34-27-4. Publication of notice under power of sale and rights of active military servicemembers.

(a) Whenever any real estate shall be sold under any power of sale mortgage executed subsequent to May 4, 1911, and the mortgage shall provide for the giving of notice of the sale by publication in some public newspaper at least once a week for three (3) successive weeks before the sale, the first publication of the notice shall be at least twenty-one (21) days before the day of sale, including the day of the first publication in the computation, and the third publication of the notice shall be no fewer than seven (7) days before the original date of sale listed in the advertisement, including the day of the third publication in the computation, and no more than fourteen (14) days before the original date of sale listed in the advertisement. The sale may take place no more than fourteen (14) days from the date on which the third successive notice is published, excluding the day of the third publication in the computation. Provided, however, that if the sale is adjourned as provided in § 34-11-22, and the adjourned sale is held during the same calendar week as the originally scheduled day of sale, no additional advertising is required. Otherwise, publication of the notice of the adjourned sale, together with a notice of the adjournment or adjournments, shall be continued at least once each week commencing with the calendar week following the originally scheduled day of sale; the sale, as so adjourned, shall take place during the same calendar week in which the last notice of the adjourned sale is published, at least one day after the date on which the last notice is published.

(b) Provided, however, that no notice shall be valid or effective unless the mortgagor has been mailed sent written notice of the time and place of sale by certified mail return receipt requested at way of United States Postal Service First Class Mail and an overnight delivery service the address of the real estate and, if different, at the mortgagor’s address listed with the tax assessor’s office of the city or town where the real estate is located or any other address the mortgagor designates by written notice to the mortgagee at their, or its last known address, at least twenty (20) days for mortgagors other than individual consumer mortgagors, and at least thirty (30) days for individual consumer mortgagors, days prior to the first publication, including the day of mailing in the computation. The mortgagee shall include in the foreclosure deed an affidavit of compliance with this provision.

(c) Provided further, that the notice mailed sent to the mortgagor in accordance with subsection (b) above shall also contain a copy of subsection (d) below (printed in not less than 12 point type) headed by the following notice (printed in not less than 14 point type): “A servicemember on active duty or deployment or who has recently ceased such duty or deployment has certain rights under § 34-27-4(d) of the Rhode Island general laws set out below. To protect your rights if you are such a servicemember, you should give written notice to the servicer of the obligation or the attorney conducting the foreclosure, prior to the sale, that you are a servicemember on active duty or deployment or who has recently ceased such duty or deployment. This notice may be given on your behalf by your authorized representative. If you have any questions about this notice, you should consult with an attorney.” The mortgagee shall include in the foreclosure deed an affidavit of compliance with this provision.

(d) Foreclosure sales affecting servicemembers.

(1) The following definitions shall apply to this subsection and to subsection (c):

(i) “Servicemember” means a member of the Army, Navy, Air Force, Marine Corps, Space Force, or Coast Guard and members of the National Guard or Reserves called to active duty.

(ii) “Active duty” has the same meaning as the term is defined in 10 U.S.C. §§ 12301 — 12304. In the case of a member of the National Guard, or Reserves “active duty” means and includes service under a call to active service authorized by the president or the secretary of defense for a period of time of more than thirty (30) consecutive days under 32 U.S.C. § 502(f), for the purposes of responding to a national emergency declared by the president and supported by federal funds.

(2) This subsection applies only to an obligation on real and related personal property owned by a servicemember that:

(i) Originated before the period of the service member’s military service or in the case of a member of the National Guard or Reserves originated before being called into active duty and for which the servicemember is still obligated; and

(ii) Is secured by a mortgage or other security in the nature of a mortgage.

(3) Stay of right to foreclose by mortgagee. Upon receipt of written notice from the mortgagor or mortgagor’s authorized representative that the mortgagor is participating in active duty or deployment or that the notice as provided in subsection (c) was received within nine (9) months one year of completion of active duty or deployment, the mortgagee shall be barred from proceeding with the execution of sale of the property as defined in the notice until such nine-month

(9) one year period has lapsed or until the mortgagee obtains court approval in accordance with subsection (d)(5) below.

(4) Stay of proceedings and adjustment of obligation. In the event a mortgagee proceeds with foreclosure of the property during, or within nine (9) months one year after a servicemember’s period of active duty or deployment notwithstanding receipt of notice contemplated by subsection (d)(3) above, the servicemember or their authorized representative may file a petition against the mortgagee seeking a stay of such foreclosure, after a hearing on such petition, and on its own motion, the court may:

(i) Stay the proceedings for a period of time as justice and equity require; or

(ii) Adjust the obligation as permitted by federal law to preserve the interests of all parties.

(5) Sale or foreclosure. A sale, foreclosure or seizure of property for a breach of an obligation of a servicemember who is entitled to the benefits under subsection (d) and who provided the mortgagee with written notice permitted under subsection (d)(3) shall not be valid if made during, or within nine (9) months one year after, the period of the servicemember’s military service except:

(i) Upon a court order granted before such sale, foreclosure, or seizure after hearing on a petition filed by the mortgagee against such servicemember; or

(ii) If made pursuant to an agreement of all parties.

(6) Penalties. A mortgagee who knowingly makes or causes to be made a sale, foreclosure, or seizure of property that is prohibited by subsection (d)(3) shall be fined the sum of one thousand dollars ($1,000), or imprisoned for not more than one year, or both. The remedies and rights provided hereunder are in addition to and do not preclude any remedy for wrongful conversion otherwise available under law to the person claiming relief under this section, including consequential and punitive damages.

(7) Any petition hereunder shall be commenced by action filed in the superior court for the county in which the property subject to the mortgage or other security in the nature of a mortgage is situated. Any hearing on such petition shall be conducted on an expedited basis following such notice and/or discovery as the court deems proper.

SECTION 2. This act shall take effect upon passage.