Facing Foreclosure in Vermont?

Vermont uses judicial foreclosure. In Vermont, the bank can foreclose in roughly 360 days from the first notice to the sale date — though the actual timeline depends on how you respond and which protections apply. Vermont also grants a 6 months redemption period after the sale, which extends the full timeline. When 12 C.F.R. § 1024.41 applies to a principal-residence mortgage, the rule generally bars a servicer in an ordinary delinquency-based foreclosure from making the first notice or filing until the loan is more than 120 days delinquent. Limited exceptions apply to due-on-sale violations and joining a superior or subordinate lienholder's foreclosure.

Yes. You have several options: (1) Reinstatement — pay all missed payments plus fees to bring your loan current. (2) Loan modification — if 12 C.F.R. § 1024.41 applies to a mortgage secured by your principal residence and no § 1024.30 exemption applies, including exemptions for small servicers, reverse-mortgage transactions, and qualified lenders, a complete application received more than 37 days before a scheduled sale generally requires evaluation for available options and a written decision; the rule does not require a particular modification. (3) Forbearance — temporary payment pause. (4) Bankruptcy — triggers an automatic stay that halts the sale immediately. (5) Short sale — sell the property before the lender does.

Yes. Vermont offers the Vermont Foreclosure Mediation Program, which may be required as part of the court process. Mediation gives you a chance to negotiate directly with your lender under the supervision of a neutral third party. This can result in loan modifications, payment plans, or other alternatives to foreclosure.

Vermont limits deficiency judgments. Your lender's ability to pursue you for the remaining balance is restricted by state law. Requirements may include fair market value credits or time limitations. See our Vermont foreclosure law guide for specific details.

Yes. There are 7 HUD-approved counseling agencies in Vermont. Call 1-800-569-4287 for a free referral. HUD counselors can negotiate with your servicer on your behalf at no cost to you. Find one near you.

Vermont's homestead exemption is $125,000. Important: this exemption does not protect your home from mortgage foreclosure. It only protects equity from unsecured creditors like credit card companies. It will not stop or slow a foreclosure.

Government-backed loans have additional protections beyond Vermont state law. FHA loans require a face-to-face meeting attempt before foreclosure. VA loans require the servicer to explore all alternatives. USDA loans have their own loss mitigation process. These protections generally extend the timeline beyond the state minimums.

Federal law (the Protecting Tenants at Foreclosure Act) gives tenants with valid leases at least 90 days' notice before they must vacate after a foreclosure sale. Vermont's strong landlord-tenant protections (9 V.S.A. If you rent out the property, notify your tenants as soon as possible and advise them to document their lease.

Yes. If your Vermont home sells at auction for more than the total owed (including fees and costs), you have the right to claim the difference. Contact the county clerk, court, or trustee who conducted the sale. These funds can be significant — don't assume nothing is left.

Funds are limited. The Vermont HAF / Vermont Homeowner Assistance Fund is winding down and may close soon. Check current availability at the program website. Apply immediately if you need help — these funds are first-come, first-served.

Yes. In Vermont, you can negotiate a deficiency waiver as part of a short sale approval. Short sales require servicer approval. Get the waiver in writing before closing. A HUD-approved counselor can help negotiate the terms.