Vermont Foreclosure Timeline and Laws

Vermont Foreclosure Process and Procedure

If you default on your mortgage, your lender can institute foreclosure proceedings against you and auction your property at a foreclosure sale.

Foreclosures in Vermont are conducted by judicial foreclosure. There is also a procedure entitled strict foreclosure which is quicker and extinguishes redemption rights.

Notice Requirements for Foreclosure in Vermont

The lender may file a notice of sale with the town records no less than 60 days before the foreclosure sale in lieu of filing a complaint with the court. The notice must contain the property description, lender and borrower names, mortgage date, time, location and terms of the sale. The borrower must receive a copy of the notice at least 60 days prior to the sale. The notice must be published in a newspaper of general circulation in the county where the property is located, the first notice appearing no less than 21 days prior to the sale.

Vermont Deficiency and Anti-Deficiency Laws

The lender may obtain a deficiency judgment if the property is sold at a public sale for less than the loan amount.

Vermont Redemption Rights

Vermont has a statutory right of redemption allowing the borrower to redeem the property after full payment and costs and fees within 6 months after the sale. Older (pre-1068 mortgages) have a one year right of redemption.

Vermont Assistance, Special Programs, Government Help, and Law Updates

Foreclosure Programs:

• Vermont Foreclosure Avoidance Counseling -HUD
• The Home Affordable Mortgage Modification Program
• The Home Affordable Refinance Program
• The Home Affordable Foreclosure Alternatives Program
• FHA Secure
• Hope for Homeowners

Foreclosure Lawyer

Vermont foreclosure laws are complex. It is recommended that you consult with a foreclosure lawyer who can advise you about options to avoid foreclosure including refinancing, reinstatement, deed in lieu, mortgage modification, short sale or bankruptcy.