State Foreclosure Laws

Vermont
 Attorney General's Office
109 State Street
Montpelier, VT 05609-1001
Ph: (802) 828-3171
Fax: (802) 828-2154

Summary:

Judicial Foreclosure Yes, in strict foreclosure process
Non-Judicial Foreclosure Yes
Security Instruments Deed of Trust, Mortgage
Right of Redemption Yes
Deficiency Judgments Yes
Time Frame Usually 210 days

Judicial foreclosure in Vermont follows the strict foreclosure process based on the premise that the lender owns the property until the mortgage is paid. If the borrower breaks any of the conditions of the mortgage, the lender can take possession of the property and/or arrange for its sale. Prior to so acting, the lender must sue and obtain a decree of foreclosure. The borrower has five days in which to object to the decree.

When the property consists of two units or less and is the borrower’s principal residence, the lender sues and obtains a decree of sale. The sale may not take place for seven months following the issuance of the decree.

Non-judicial foreclosure requires that a power of sale clause authorizing the lender to sell the property to satisfy the loan balance exists in the loan document, and that the borrower receives a notice of intent to foreclose at least 30 days before publication of a notice of sale. The notice will inform the borrower that he is entitled to receive a notice of sale at least 60 days prior to the date of sale, and the notice must be published at least 30 days prior to the sale.

The borrower may stop the sale at any time prior to the sale date by paying the full amount due on the mortgage plus costs. Following the sale, the borrower has six months in which to redeem the property.


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