Vermont Foreclosure Laws: Process, Timeline and Your Rights
Vermont foreclosure rules: judicial or non-judicial, required notices, time frames, right to cure, redemption period, deficiency judgments, HOA liens and help for homeowners.
Quick answers for Vermont
- Judicial or non-judicial
- Judicial for homes. Vermont foreclosures go through the Superior Court, either as a "strict foreclosure" (the court enters a decree without a sale, allowed only if the court finds there is no substantial value in the property above the debts and unpaid taxes) or as a foreclosure by… 12 V.S.A. §§ 4941, 4945, 4961
- Time frames set by law
- For a home occupied by the owner as a principal residence (or farmland), the redemption period in a judicial sale decree is six months from the date of the decree unless the court orders a shorter time, and no sale of an owner-occupied principal residence may take place within seven… 12 V.S.A. § 4946(a)–(c)
- Redemption after the sale
- Vermont's redemption period comes after the court's judgment and before any sale. For an owner-occupied principal residence or farmland, it is six months from the date of the decree unless the court orders a shorter time, considering factors such as equity in the property, unpaid taxes… 12 V.S.A. §§ 4946(b), 4949
- Deficiency judgments
- Yes, if requested. The lender may request a deficiency judgment in the foreclosure complaint, and the court may enter one against the borrower if the sale proceeds do not cover the sale expenses and the amount owed. 12 V.S.A. § 4954(d)
Last verified: 2026-10-27
How foreclosure works
| Judicial or non-judicial | Judicial for homes. Vermont foreclosures go through the Superior Court, either as a "strict foreclosure" (the court enters a decree without a sale, allowed only if the court finds there is no substantial value in the property above the debts and unpaid taxes) or as a foreclosure by judicial sale. Nonjudicial foreclosure by power of sale is available only for other property: it may not be used for farmland or a dwelling house owned by a natural person. Source: 12 V.S.A. §§ 4941, 4945, 4961 |
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| Required notices | The homeowner is served with the foreclosure complaint and summons, along with the court's "Important Notice to Homeowner," which explains the right to request mediation and gives legal-help contacts. After the redemption period in the court's decree ends without redemption, the notice of a judicial sale must be published once in each of three successive weeks in a newspaper of general circulation in the town, with the first publication at least 21 days before the sale, and mailed to all parties who appeared (and to the homeowner if the homeowner did not appear) at least 30 days before the sale. |
| Time frames set by law | For a home occupied by the owner as a principal residence (or farmland), the redemption period in a judicial sale decree is six months from the date of the decree unless the court orders a shorter time, and no sale of an owner-occupied principal residence may take place within seven months after the foreclosure complaint is served unless the court shortens the redemption period or the parties agree. The sale must be held within six months after the last redemption date unless extended. For other property, the redemption period is eliminated or reduced to no more than 30 days. Source: 12 V.S.A. § 4946(a)–(c) |
| Right to catch up (reinstate) | The homeowner may redeem the property at any time before the public sale by paying the full amount due under the court's judgment plus post-judgment amounts such as sale costs (or a lesser amount if the lender agrees). By agreement with the lender, the homeowner may also reinstate or modify the loan after the redemption period but before the sale; the lender then records a court-approved waiver of foreclosure. Source: 12 V.S.A. §§ 4948, 4949 |
| Foreclosure mediation | Yes. Vermont's foreclosure mediation program applies to foreclosure actions on owner-occupied homes of four units or less (with some exceptions, such as loans not subject to government loss mitigation program requirements). If the homeowner requests mediation before four months after judgment and before the redemption period ends, the court generally must refer the case to mediation. In mediation the lender must consider foreclosure prevention tools such as reinstatement, loan modification, forbearance and short sale. The homeowner does not have to pay for mediation, and the Vermont Bar Association helps with mediator selection before the court appoints the mediator. Court notice form: https://www.vermontjudiciary.org/media/21 (dated 06/2017) |
After the sale
| Redemption after the sale | Vermont's redemption period comes after the court's judgment and before any sale. For an owner-occupied principal residence or farmland, it is six months from the date of the decree unless the court orders a shorter time, considering factors such as equity in the property, unpaid taxes and the property's condition. The homeowner can still redeem up to the public sale by paying the full judgment amount and post-judgment costs. Source: 12 V.S.A. §§ 4946(b), 4949 |
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| Deficiency judgments | Yes, if requested. The lender may request a deficiency judgment in the foreclosure complaint, and the court may enter one against the borrower if the sale proceeds do not cover the sale expenses and the amount owed. The request must be made before the court confirms the sale; failing to request it is treated as a waiver of any deficiency judgment against the borrower. Source: 12 V.S.A. § 4954(d) |
HOAs, taxes and selling
| Property tax sales | After land is sold for unpaid property taxes, the owner, a lienholder or mortgagee may redeem within one year from the day of sale by paying the tax collector (or town clerk) the sale price plus interest of 1% per month or fraction of a month from the sale date; if redeemed, no deed is given to the buyer. During the redemption period, the tax collector must send the delinquent taxpayer a written warning by certified mail, and post it publicly, between 90 and 120 days before the redemption period ends. Source: 32 V.S.A. § 5260 |
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Getting help
| Free help for homeowners | The Vermont Superior Court's notice to homeowners in foreclosure lists Vermont Legal Aid (1-800-889-2047) and the Vermont Bar Association Lawyer Referral Service (1-800-639-7063) for free or reduced-fee legal help, and explains how to request free foreclosure mediation. The Vermont Housing Finance Agency advises homeowners to speak with a HUD-certified housing counselor for free help evaluating options. VHFA page: https://vhfa.org/news/blog/watch-out-homeowner-relief-scams |
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Foreclosure & Homeowner Law FAQ
Is Vermont a judicial or non-judicial foreclosure state?
Judicial for homes. Vermont foreclosures go through the Superior Court, either as a "strict foreclosure" (the court enters a decree without a sale, allowed only if the court finds there is no substantial value in the property above the debts and unpaid taxes) or as a foreclosure by judicial sale. Nonjudicial foreclosure by power of sale is available only for other property: it may not be used for farmland or a dwelling house owned by a natural person.
What notice is required before a foreclosure sale in Vermont?
The homeowner is served with the foreclosure complaint and summons, along with the court's "Important Notice to Homeowner," which explains the right to request mediation and gives legal-help contacts. After the redemption period in the court's decree ends without redemption, the notice of a judicial sale must be published once in each of three successive weeks in a newspaper of general circulation in the town, with the first publication at least 21 days before the sale, and mailed to all parties who appeared (and to the homeowner if the homeowner did not appear) at least 30 days before the sale.
How long does foreclosure take in Vermont?
For a home occupied by the owner as a principal residence (or farmland), the redemption period in a judicial sale decree is six months from the date of the decree unless the court orders a shorter time, and no sale of an owner-occupied principal residence may take place within seven months after the foreclosure complaint is served unless the court shortens the redemption period or the parties agree. The sale must be held within six months after the last redemption date unless extended. For other property, the redemption period is eliminated or reduced to no more than 30 days.
Can you stop a foreclosure by catching up on payments in Vermont?
The homeowner may redeem the property at any time before the public sale by paying the full amount due under the court's judgment plus post-judgment amounts such as sale costs (or a lesser amount if the lender agrees). By agreement with the lender, the homeowner may also reinstate or modify the loan after the redemption period but before the sale; the lender then records a court-approved waiver of foreclosure.
Is there a right of redemption after foreclosure in Vermont?
Vermont's redemption period comes after the court's judgment and before any sale. For an owner-occupied principal residence or farmland, it is six months from the date of the decree unless the court orders a shorter time, considering factors such as equity in the property, unpaid taxes and the property's condition. The homeowner can still redeem up to the public sale by paying the full judgment amount and post-judgment costs.
Can the lender come after you for the rest of the loan after foreclosure in Vermont?
Yes, if requested. The lender may request a deficiency judgment in the foreclosure complaint, and the court may enter one against the borrower if the sale proceeds do not cover the sale expenses and the amount owed. The request must be made before the court confirms the sale; failing to request it is treated as a waiver of any deficiency judgment against the borrower.
Does Vermont have a foreclosure mediation program?
Yes. Vermont's foreclosure mediation program applies to foreclosure actions on owner-occupied homes of four units or less (with some exceptions, such as loans not subject to government loss mitigation program requirements). If the homeowner requests mediation before four months after judgment and before the redemption period ends, the court generally must refer the case to mediation. In mediation the lender must consider foreclosure prevention tools such as reinstatement, loan modification, forbearance and short sale. The homeowner does not have to pay for mediation, and the Vermont Bar Association helps with mediator selection before the court appoints the mediator.
How do you get your home back after a tax sale in Vermont?
After land is sold for unpaid property taxes, the owner, a lienholder or mortgagee may redeem within one year from the day of sale by paying the tax collector (or town clerk) the sale price plus interest of 1% per month or fraction of a month from the sale date; if redeemed, no deed is given to the buyer. During the redemption period, the tax collector must send the delinquent taxpayer a written warning by certified mail, and post it publicly, between 90 and 120 days before the redemption period ends.
Where can homeowners get free foreclosure help in Vermont?
The Vermont Superior Court's notice to homeowners in foreclosure lists Vermont Legal Aid (1-800-889-2047) and the Vermont Bar Association Lawyer Referral Service (1-800-639-7063) for free or reduced-fee legal help, and explains how to request free foreclosure mediation. The Vermont Housing Finance Agency advises homeowners to speak with a HUD-certified housing counselor for free help evaluating options.
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General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.