Where any dwelling unit of a foreclosed mortgaged estate is occupied by a bona fide
tenant of the foreclosed mortgagor, the bona fide tenant assumes a month-to-month
periodic tenancy governed by the provisions of R.I.G.L tit. 43, ch. 18, except in those instances in which the bona fide tenant has entered into a written
rental agreement with a homeowner or landlord (mortgagor) with respect to a dwelling
unit of a mortgaged residential premises. In such instances tenancy is assumed for
the duration specified in the written agreement.
(4)
The lender/mortgagee shall provide notice to each bona fide tenant, as defined in
section 13-19, by mailing an envelope addressed to "Resident of property subject to foreclosure
sale" and by posting, in the same manner required for posting the notice of sale on
the property to be sold, at the same time notice is provided to the mortgagor, a written
notice in both English and Spanish: (i) stating that the real estate is to be sold
in foreclosure, which may affect the tenant's right to continue to live in the property;
(ii) stating the date, time and place of sale; (iii) providing the address and telephone
number of Rhode Island Legal Services; and (iv) providing the name, address and telephone
number of HUD-approved counseling agencies in Rhode Island. Failure of the lender/mortgagor
to provide notice as provided herein shall not affect the validity of the foreclosure;
however, no successor in interest to the mortgagor shall be permitted to initiate
an action for possession of the premises against such bona fide tenant until notice
as required herein, in addition to the notice required in subsection (2), is provided.
(Ord. 2013, ch. 2013-5, 3-18-13)