AN ACT RELATING TO PROPERTY -- MORTGAGE FORECLOSURE AND SALE (Allows for sending of the notice under power of sale and rights of active military servicemembers by USPS First Class Mail and/or an overnight delivery service, instead of by USPS certified mail return receipt requested.)

H7654

2026 -- H 7654
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO PROPERTY -- MORTGAGE FORECLOSURE AND SALE

Introduced By:
Representative Matthew S. Dawson

Date Introduced:
February 11, 2026

Referred To:
House Judiciary
It is enacted by the General Assembly as follows:
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SECTION 1. Section 34-27-4 of the General Laws in Chapter 34-27 entitled "Mortgage
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Foreclosure and Sale" is hereby amended to read as follows:
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34-27-4. Publication of notice under power of sale and rights of active military
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servicemembers.
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(a) Whenever any real estate shall be sold under any power of sale mortgage executed
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subsequent to May 4, 1911, and the mortgage shall provide for the giving of notice of the sale by
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publication in some public newspaper at least once a week for three (3) successive weeks before
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the sale, the first publication of the notice shall be at least twenty-one (21) days before the day of
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sale, including the day of the first publication in the computation, and the third publication of the
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notice shall be no fewer than seven (7) days before the original date of sale listed in the
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advertisement, including the day of the third publication in the computation, and no more than
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fourteen (14) days before the original date of sale listed in the advertisement. The sale may take
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place no more than fourteen (14) days from the date on which the third successive notice is
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published, excluding the day of the third publication in the computation. Provided, however, that
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if the sale is adjourned as provided in § 34-11-22, and the adjourned sale is held during the same
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calendar week as the originally scheduled day of sale, no additional advertising is required.
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Otherwise, publication of the notice of the adjourned sale, together with a notice of the adjournment
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or adjournments, shall be continued at least once each week commencing with the calendar week
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following the originally scheduled day of sale; the sale, as so adjourned, shall take place during the

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same calendar week in which the last notice of the adjourned sale is published, at least one day
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after the date on which the last notice is published.
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(b) Provided, however, that no notice shall be valid or effective unless the mortgagor has
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been
mailed

sent
written notice of the time and place of sale by
certified mail return receipt
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requested at

way of United States Postal Service First Class Mail and/or an overnight delivery
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service
the address of the real estate and, if different, at the mortgagor’s address listed with the tax
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assessor’s office of the city or town where the real estate is located or any other address the
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mortgagor designates by written notice to the mortgagee at their, or its last known address, at least
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twenty (20) days for mortgagors other than individual consumer mortgagors, and at least thirty (30)
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days for individual consumer mortgagors, days prior to the first publication, including the day of
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mailing in the computation. The mortgagee shall include in the foreclosure deed an affidavit of
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compliance with this provision.
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(c) Provided further, that the notice
mailed

sent
to the mortgagor in accordance with
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subsection (b) above shall also contain a copy of subsection (d) below (printed in not less than 12
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point type) headed by the following notice (printed in not less than 14 point type): “A
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servicemember on active duty or deployment or who has recently ceased such duty or deployment
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has certain rights under § 34-27-4(d) of the Rhode Island general laws set out below. To protect
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your rights if you are such a servicemember, you should give written notice to the servicer of the
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obligation or the attorney conducting the foreclosure, prior to the sale, that you are a servicemember
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on active duty or deployment or who has recently ceased such duty or deployment. This notice may
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be given on your behalf by your authorized representative. If you have any questions about this
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notice, you should consult with an attorney.” The mortgagee shall include in the foreclosure deed
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an affidavit of compliance with this provision.
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(d)
Foreclosure sales affecting servicemembers.
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(1) The following definitions shall apply to this subsection and to subsection (c):
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(i) “Servicemember” means a member of the Army, Navy, Air Force, Marine Corps, Space
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Force, or Coast Guard and members of the National Guard or Reserves called to active duty.
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(ii) “Active duty” has the same meaning as the term is defined in 10 U.S.C. §§ 12301 —
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12304. In the case of a member of the National Guard, or Reserves “active duty” means and
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includes service under a call to active service authorized by the president or the secretary of defense
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for a period of time of more than thirty (30) consecutive days under 32 U.S.C. § 502(f), for the
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purposes of responding to a national emergency declared by the president and supported by federal
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funds.
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(2) This subsection applies only to an obligation on real and related personal property

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owned by a servicemember that:
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(i) Originated before the period of the service member’s military service or in the case of
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a member of the National Guard or Reserves originated before being called into active duty and for
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which the servicemember is still obligated; and
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(ii) Is secured by a mortgage or other security in the nature of a mortgage.
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(3)
Stay of right to foreclose by mortgagee.
Upon receipt of written notice from the
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mortgagor or mortgagor’s authorized representative that the mortgagor is participating in active
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duty or deployment or that the notice as provided in subsection (c) was received within nine (9)
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months of completion of active duty or deployment, the mortgagee shall be barred from proceeding
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with the execution of sale of the property as defined in the notice until such nine-month (9) period
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has lapsed or until the mortgagee obtains court approval in accordance with subsection (d)(5)
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below.
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(4)
Stay of proceedings and adjustment of obligation.
In the event a mortgagee proceeds
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with foreclosure of the property during, or within nine (9) months after a servicemember’s period
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of active duty or deployment notwithstanding receipt of notice contemplated by subsection (d)(3)
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above, the servicemember or their authorized representative may file a petition against the
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mortgagee seeking a stay of such foreclosure, after a hearing on such petition, and on its own
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motion, the court may:
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(i) Stay the proceedings for a period of time as justice and equity require; or
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(ii) Adjust the obligation as permitted by federal law to preserve the interests of all parties.
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(5
)

Sale or foreclosure.
A sale, foreclosure or seizure of property for a breach of an
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obligation of a servicemember who is entitled to the benefits under subsection (d) and who provided
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the mortgagee with written notice permitted under subsection (d)(3) shall not be valid if made
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during, or within nine (9) months after, the period of the servicemember’s military service except:
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(i) Upon a court order granted before such sale, foreclosure, or seizure after hearing on a
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petition filed by the mortgagee against such servicemember; or
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(ii) If made pursuant to an agreement of all parties.
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(6)
Penalties.
A mortgagee who knowingly makes or causes to be made a sale, foreclosure,
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or seizure of property that is prohibited by subsection (d)(3) shall be fined the sum of one thousand
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dollars ($1,000), or imprisoned for not more than one year, or both. The remedies and rights
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provided hereunder are in addition to and do not preclude any remedy for wrongful conversion
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otherwise available under law to the person claiming relief under this section, including
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consequential and punitive damages.
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(7) Any petition hereunder shall be commenced by action filed in the superior court for the

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county in which the property subject to the mortgage or other security in the nature of a mortgage
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is situated. Any hearing on such petition shall be conducted on an expedited basis following such
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notice and/or discovery as the court deems proper.
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SECTION 2. This act shall take effect upon passage.
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO PROPERTY -- MORTGAGE FORECLOSURE AND SALE
***
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This act would allow for sending of the notice under power of sale and rights of active
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military servicemembers by United States Postal Service First Class Mail and/or an overnight
3
delivery service, instead of by United States Postal Service certified mail return receipt requested.
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This act would take effect upon passage.
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