If you are facing foreclosure in Vermont, it’s important to understand some of the basics, including:
- the most common type of foreclosure procedure (judicial v. nonjudicial) used in Vermont
- how much time you have to respond
- your rights and protections in the process, and
- what happens afterwards (for example, whether you’ll be liable for a deficiency judgment).
Below we have outlined some of the most important features of Vermont foreclosure law. Keep in mind that this is just a summary; we’ve included statute citations so you can get more details from the laws themselves. And be sure to check out Nolo’s extensive Foreclosure section, where you can find information about all aspects of foreclosure, definitions of foreclosure terms (like redemption and reinstatement), and options to avoid foreclosure.
|Common type of foreclosure process||Judicial (strict foreclosure) Nonjudicial foreclosure not available for owner-occupied one- or two-unit dwelling|
|Time to respond||Judicial: After foreclosing party files lawsuit, homeowner has 20 to 30 days to respond. When the court issues a foreclosure judgment, it may also transfer ownership to foreclosing party (strict foreclosure), if there is no equity in the house after costs of sale are subtracted.|
|Reinstatement of loan before sale||None|
|Redemption after sale||Judicial: allowed six months from date of foreclosure judgment unless judge orders a shorter time.|
|Special protections for foreclosures involving high-cost mortgages||None|
|Special state protections for service members||Vt. Stat. Ann. tit. 12, § 553|
|Deficiency judgments||Must be requested in the foreclosure complaint. If the mortgage holder buys the property, the amount of the deficiency is limited by the property’s fair market value.|
|Cash exempted in bankruptcy||About $11,000 for one person, $22,000 for a married couple under federal bankruptcy exemptions|
|Notice to leave after house is sold||After foreclosure judgment is issued and redemption period has ended, new owner must serve writ of possession on former owner; homeowner has 30 days to leave.|
|Foreclosure statutes||Vt. Stat. Ann. tit. 12, §§ 4526-4533a|