June 2007
Increased Foreclosure Advertising Rates in
Rhode Island
Charles A.
Lovell, Esq., Partner
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. For questions, please contact Charles
A. Lovell at cal@psh.com or 401-861-8200.
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