by
Charles A. Lovell

June 2007

The Providence Journal is raising its foreclosure advertising rates in Rhode Island. By statute, lenders are required to use this newspaper for statutory legal advertisements for properties in most cities and towns in Rhode Island. By requiring the purchase of a package of ads, including an additional weekly Saturday ad not required by statute, and a website ad, the newspaper is increasing the ad cost from approximately $1,400 to $3,000 per foreclosure. This will, of course, make it more difficult for borrowers to reinstate and will impact on workouts, forbearance agreements and loss mitigation efforts by lenders.

It is possible that litigation may ensue over the terms of the newspaper's advertising program. We would expect that litigation to include lenders as defendants. We will keep you advised as this matter progresses.