Vermont Foreclosure Help – Stop Foreclosure in Vermont

 


Finding Foreclosure Help in Vermont

Foreclosure prevention counseling services are provided free of charge by nonprofit housing counseling agencies working in partnership with the Federal Government. These agencies are funded, in part, by HUD and NeighborWorks® America. There is no need to pay a private company for these services.

Burlington Field Office

159 Bank Street, 2nd Floor
Burlington, VT 05401-4411

Phone: (802) 951-6290

Fax: (802) 951-6298

Jurisdiction: State of Vermont

Michael F. McNamara
Field Office Director

Office Hours: 8:30 a.m. to 5:00 p.m.

Monday through Friday

Vermont Foreclosure Laws Summary

Quick Facts:

  • Judicial foreclosure process is available.
  • Non-judicial foreclosure process is available.
  • The primary security instruments are mortgages and deeds of trust.
  • The timeline can vary by process, which typically takes 210 days.
  • The borrower has rights of redemption.
  • The lender may sue for deficiency judgements.

Lenders in Vermont may foreclose on mortgages through the strict foreclosure or power of sale foreclosure process, which includes the judicial and non-judicial processes.

Strict Foreclosure
In this process, the lender owns the property in the duration of the mortgage. Once the borrower has paid his debts in full, the property can be returned to him. But if the borrower incurs any violations in the agreement, he automatically loses ownership of the property and the lender may now sell the property. The borrower may still reclaim the property but the redemption time varies depending on the date of the mortgage (6 months for post-1968 mortgages and 12 months for pre-1968 mortgages).

Power of Sale Foreclosure
The power of sale clause just states that the borrower has authorized the selling of the property in the event of their default. The presence or absence of this clause determines whether the judicial or non-judicial foreclosure process is to be used.

Judicial Foreclosure
A complaint must be filed in court to obtain a decree of sale. This foreclosure process is used if the property mortgaged is a dwelling of 2 units or less, and is the principal residence of the borrower. A foreclosure sale may only take place 7 months after the decree of sale has been issued.

Non-Judicial Foreclosure
The power of sale clause may be used for any other property aside from those that fall under the judicial process mentioned above. This must be done following the “Power of Sale Foreclosure Guidelines.”

Power of Sale Foreclosure Guidelines

At least 30 days prior to a notice of sale is to be published, a notice of intent to foreclose must be sent to the borrower through certified mail. This notice must state the condition that was violated, as well as the amount needed to cure the default. the borrower is entitled to be informed about the foreclosure process at least 60 days before the sale.

As long as the borrower pays the remaining balance of the mortgage plus additional costs, the property may be returned to him.

The foreclosure sale is to be held on the property itself unless otherwise ordered by the court. Anyone may bid on the property, including the lender. Any excess money must be given to the borrower, while deficiency suits may still be filed if the price of the property was not able to cover the remaining balance of the mortgage.

The notice of sale must include the following message if it is done through the non-judicial process:

“The mortgagor is hereby notified before the foreclosure sale, and he has the right to petition to the court of the county where the mortgaged property is located, with service upon the mortgagee as the court may require to join the foreclosure sale. Failure to petition will thereafter prevent any action of the mortgagor based on the validity of the mortgage, right of the mortgage holder to conduct a sale, or compliance of the mortgage holder to the requirement of the notice. Recovery of the damages incurred from the sale of the property may be done at any time within 1 year starting from the date of sale.”