Foreclosure advertisement discrepancy did not overturn foreclosure auction in Rhode Island

Foreclosure advertisement non fatal to foreclosure auction in Rhode Island

Coventry Credit Union v. John T. Trafford et al.
No. 98-421-A

Case Law
SUPREME COURT OF RHODE ISLAND
764 A.2d 179; 2000 R.I. LEXIS 228

April 19, 2000, Entered

Facts: Creditor commenced a foreclosure proceeding against debtor. But he did not include a street address number in advertisements for the foreclosure sale. Creditor felt inclusion of a number would be misleading, as city records were unclear exactly what the street address number of the property was. Debtor counterclaimed, arguing that creditor failed to comply with the statutory requirements for advertising foreclosures and that it slandered their title when it noticed foreclosure proceedings with respect to their mortgaged property.

Issue: Whether the omission to include a street address number was fatal.

Ruling: No. The court held that under R.I. Gen. Laws § 34-27-5, inclusion of a street address number in auction advertising was discretionary. The court held that because the town records were unclear, exclusion of the street address number was appropriate. The court held defendants were not prejudiced by the exclusion of the street address number. The record indicates that the purchase price at the foreclosure sale was not affected adversely by the omission of the street address number.

Lesson Learned: A foreclosure which had one or more alleged defects in the foreclosure advertisement will be upheld, as long as these supposed discrepancies did not have a negative effect on the foreclosure purchase price.

Written by Kevin Levonas and Jerry L.