There are four different type of foreclosure are followed in Vermont.

Strict foreclosure

Power of sale foreclosure

Judicial foreclosure

Non-Judicial foreclosure

What is the processing period for foreclosure in Vermont?

Processing period is normally 210 days (Approximately 7 months) in Vermont.

Is there any right of redemption in Vermont for foreclosure?

Yes, Vermont offers a right of redemption.

Are deficiency judgments permitted in Vermont?

Deficiency judgments are permitted in Vermont.

Which law provision governs foreclosure in Vermont?

They are found in Vermont Statutes, Title 12 (Court Procedure), Part 9 (Particular Proceedings), Chapter 163 (Chancery Proceedings), Subchapter 6 (Foreclosure of Mortgages)

What happens during Strict Foreclosure in Vermont?

In this type of foreclosure, the lender owns full right of the property, till the loan is paid fully. If the borrower breaks any condition, he or she loses all the right in the said property and lender can put up the property for sale. But before taking such action, a suit must be filed in the county office where property is located. The borrower is instructed to appear in court and informed of his rights, at which time the lender may move for a summary judgment and avoid the trial altogether. In this type of foreclosure, the borrower gets a redemption period either of six months (post-1968 mortgages) or 12 months (pre-1968 mortgages).

What happens during Power of sale foreclosure in Vermont?

In this type of foreclosure, foreclosure is conducted only when power of sale clause exists in deed of trust/mortgage. This clause allows borrower pre-authorizes the sale of property to pay off the balance loan in the incidence of their default. In such cases power is given to lender to sell the property by himself or his representative who generally referred as trustee. This foreclosure can be done judicially or non-judicially, depending on the type of property in deed of trust/mortgage.

What happens during Judicial Foreclosure in Vermont?

In this, the lender needs to file complaint against the borrower and obtain decree of sale from the county court where property is located. Generally this type of foreclosure takes place when the property includes a dwelling of two units or less and the owner is using property as main residence. The sale of such property can not be held until the 7 months after the decree of sale has been issued.

What happens during Non-Judicial Foreclosure in Vermont?

Non-judicial foreclosure is conducted only when power of sale is contained in mortgage related to property excluding for a dwelling house of two units or less and it is occupied by the owner as main residence. The lender may use the power of sale without first commencing a foreclosure action or obtaining a foreclosure decree.

Guidelines for power of sale

The lender must send notice with intention for foreclosure to the borrower at least 30 days before the publication of sale notice and it should be sent by certified mail. The notice should have information on property to be foreclosed, state the condition breached and lenders right to accelerate the mortgage and include the total amount necessary to prevent the foreclosure.

The borrower may receive the sale of notice 60 days before the schedule date of the sale. The sale should occur at property itself and any surplus money should be given to the borrower.
However if the property is sold without intervention of court, the notice must include the following language.

"The mortgagor is hereby notified that at any time before the foreclosure sale, the mortgagor has a right to petition the superior court for the county in which the mortgaged premises are situated, with service upon the mortgagee, and upon such bond as the court may require, to enjoin the scheduled foreclosure sale. Failure to institute such petition and complete service upon the foreclosing party, or their agent, conducting the sale prior to sale shall thereafter bar any action or right of action of the mortgagor based on the validity of the foreclosure, the right of the mortgage holder to conduct the foreclosure sale, or compliance by the mortgage holder with the notice requirements and other conditions of section 4532 of Title 12. An action to recover damages resulting from the sale of the premises on the date of the sale may be commenced at any time within one year following the date of the sale, but not thereafter."

This is legal information; it should not be treated as legal advice.

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