Vermont Foreclosure Help: Know Your Timeline, Know Your Equity
The earlier you act, the more options you may have.
Vermont foreclosures go through court, and homes cannot be sold non-judicially
Vermont does have a non-judicial sale statute, but it expressly excludes farmland and a dwelling house owned by a natural person. In practice, if it is your home, the lender must go to court.
Two judicial routes exist: strict foreclosure, where there is no auction at all and title vests in the mortgagee after the redemption period, and foreclosure by judicial sale. Strict foreclosure is available only where there is no substantial value above the mortgage debt; judicial sale is the norm for homes with equity.
Timeline and the seven-month rule
You have 21 days to answer the complaint. For an owner-occupied dwelling, no sale may occur within seven months of service of the foreclosure complaint unless the court shortens the redemption period or the parties agree.
Add the federal 120-day delinquency floor, service, judgment and the redemption period, and Vermont timelines commonly run 12 to 20 months.
Redemption runs from the decree — before the sale
This is the point to get right. Vermont's redemption period is six months from the date of the decree for owner-occupied homes and farmland, unless the court orders shorter. For other property the court eliminates it or reduces it to no more than 30 days.
Under strict foreclosure it is also six months from the decree, after which title vests in the mortgagee with no sale at all.
Courts weigh excess value over the debt, unpaid taxes, property condition and other equities when deciding whether to shorten. Redemption expires before the sale, so the decree date is the one to work backward from.
Mediation you can request after judgment
Vermont's mediation right is unusual in one important way: it survives judgment. Mediation is mandatory on request for owner-occupied residential property of four units or fewer used as a principal residence, and you may request it any time before four months after judgment is entered and before the end of the redemption period.
A premediation telephone conference happens within 45 days of the mediator's appointment, and mediation must conclude within 120 days of appointment. If the mortgagee fails its obligations, sanctions include tolling of interest, fees and costs, attorney's fees, monetary sanctions, dismissal without prejudice, and barring the sale or possession.
No other state on this site lets you demand mediation this late. If judgment has already entered, you may still have this.
Deficiency is procedurally fragile
The plaintiff may request a deficiency judgment in the complaint and must request it before the confirmation order issues. Failure to request one is deemed a waiver of any deficiency against the mortgagor.
Between a seven-month floor on the sale, six months of redemption from the decree, and post-judgment mediation, Vermont gives homeowners a lot of usable time — more than most people realize is still available once a judgment has been entered.
A note on what this page is
This is general information about how the foreclosure process works in this state. It is not legal advice and it is not a prediction about your loan. Timelines vary by lender, by servicer, by county and by the specifics of your file, and the law changes. If you are facing foreclosure, a conversation with an attorney licensed in your state about your particular situation is time well spent — and a confidential review with us costs you nothing and commits you to nothing.
Understand your value. Know your equity. Review your options.
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