Timeline:
210 Days
Redemption:
Yes
Deficiency
Judgments: Yes
Judicial
Foreclosure: Yes, in Strict Foreclosure process
Non-Judicial
Foreclosure: Yes
Security
Instruments: Deed of Trust, Mortgage
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Vermont
foreclosure law allows the lender to pursue foreclosure by Judicial
or Non-Judicial Foreclosure procedures. The Judicial Foreclosure
process is based on the Strict Foreclosure premise that the
borrower does not own the property until paying the loan balance
in full. Until this occurs, the lender is considered the owner
of the property and if the borrower breaks any of the conditions
of the mortgage, the lender can take possession of the property
or arrange its sale. However, the lender must sue the borrower
and be granted a decree of foreclosure. The borrower must object
to the decree within five (5) days.
If the
property consists of two or fewer units and is the borrower's
principal residence, the lender must sue and obtain a decree
of sale. The sale of the property may not take place for seven
(7) months following the issuance of the decree. |
If the
original loan documents contain a “power of sale” clause authorizing
the lender to sell the property in the event of a default by
the borrower, the lender can use the Non-Judicial Foreclosure
process. The borrower must be sent a notice of intent to foreclosure
no less than thirty (30) days before a notice of the sale is
published. The notice of intent to foreclose must inform the
borrower of his right to receive a copy of the notice of sale
at least sixty (60) days before the scheduled sale date. The
notice of sale must be published no less than thirty (30) days
before the sale.
The
borrower can stop the sale at any time by paying the full amount
due on the mortgage plus costs.
The
redemption period in Vermont is six months from the date of
the sale, if Non-Judicial Foreclosure procedures are used.
Vermont Foreclosure Law