How Foreclosure Works in Vermont
Whether Vermont forecloses through the courts or by power of sale, the notices required, the time frames set by law, and how to catch up before the sale.
Short answer: 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
| 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 |
More Vermont foreclosure & homeowner law
- Redemption and Deficiency Judgments in Vermont
- Getting Your Home Back After a Tax Sale in Vermont
- All Vermont foreclosure & homeowner law rules
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.
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.