Vermont Foreclosure Laws
Attorney General's Office
109 State Street
Montpelier, VT 05609-1001
Ph: (802) 828-3171
Fax: (802) 828-2154
Foreclosure Laws in Vermont
Judicial Foreclosure: Yes. In Strict Foreclosure Process
Non-Judicial Foreclosure: Yes
Security Instruments: Mortgage / Trust Deed
Right of Redemption: Yes
Deficiency Judgments: Yes
Time Frame: 210 Days
Public Notice: Complaint
Judicial foreclosure: 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.
Laws:
