Foreclosure in Vermont: how it works, how long it takes, what rights you keep
Vermont requires judicial foreclosure of every home, offers mandatory mediation to owner-occupants, and gives a six-month redemption period after judgment — one of the slowest timelines in the country. Here is what that means for a homeowner who has fallen behind.
| Process | Judicial |
|---|---|
| Typical timeline | 10 to 18 months from first notice or filing to sale |
| Redemption after sale | The redemption period in Vermont is six months after the judgment (the court may shorten it to as little as one month for good cause, or extend it). |
| Mediation | Statewide program (mandatory or on request) |
| Deficiency judgment | Allowed |
| State housing agency | Vermont Housing Finance Agency (VHFA) |
How foreclosure works in Vermont
Vermont lenders foreclose in the civil division of the superior court. Residential foreclosures generally proceed by judicial sale (strict foreclosure is reserved for cases with no equity); owner-occupants are entitled to mediation under the state’s program before judgment. After judgment, the redemption period runs, and only then can the property be sold at public auction and the sale confirmed.
The timeline in Vermont
Count two clocks. The federal one runs first: no foreclosure filing until you are more than 120 days behind, and a pause whenever a complete loss mitigation application is pending. Then Vermont’s clock: 10 to 18 months is the usual span from the first notice or filing to the sale when nothing is contested — longer if you answer, request mediation, or the servicer stumbles on a notice. See how foreclosure works step by step for both procedures side by side.
Paying to stop the sale — before and after
The redemption period in Vermont is six months after the judgment (the court may shorten it to as little as one month for good cause, or extend it). The homeowner may redeem by paying the full amount due before the period expires; there is no redemption after the sale is confirmed. See reinstatement and redemption for the deadlines and how to get an accurate payoff figure.
What Vermont law gives you
The mandatory mediation program (12 V.S.A. 4631 et seq.), the redemption period, the judicial process, and the confirmation hearing are Vermont’s protections. Vermont Legal Aid provides representation and a self-help hotline.
Mediation and settlement conferences
Vermont’s foreclosure mediation program requires the lender to notify an owner-occupant of the right to mediation and, when the homeowner requests it (or the court orders it), to participate with authority and evaluate the homeowner for federal and investor loss mitigation programs before the court enters judgment.
State assistance programs
The Vermont Homeowner Assistance Program (VHAP), administered by VHFA with Homeowner Assistance Fund money, paid mortgage arrears, property taxes, insurance, association dues and utilities for eligible homeowners. It closed to new applications when its allocation was committed; VHFA’s site lists current counseling resources.
The mediation statute, the redemption period and VHFA’s counseling network define Vermont’s framework. Vermont’s Department of Financial Regulation oversees licensed servicers. Start with a free HUD-approved counselor, and avoid anyone who charges an upfront fee: see foreclosure rescue scams.
Deficiency judgments in Vermont
A Vermont court may enter a deficiency judgment after a judicial sale for the balance remaining after the sale proceeds are applied; in a strict foreclosure, the lender may seek a deficiency based on the property’s appraised value. The borrower may contest the adequacy of the price at the confirmation hearing.
The deficiency is sought within the foreclosure action after the sale is confirmed; Vermont’s general limitation period for civil actions is six years. Vermont has no anti-deficiency statute. The confirmation hearing and the mediation program are the practical forums to resolve the deficiency question; written waivers remain essential in negotiated exits. See which states bar deficiencies and the defenses elsewhere.
Frequently asked questions
How long does foreclosure take in Vermont?
Typically 10 to 18 months from the first formal notice or filing to the sale, after the federal 120-day delinquency rule. Answering a lawsuit, requesting mediation or submitting a complete loss mitigation application extends it.
Can I get my home back after a foreclosure sale in Vermont?
The redemption period in Vermont is six months after the judgment (the court may shorten it to as little as one month for good cause, or extend it). The homeowner may redeem by paying the full amount due before the period expires; there is no redemption after the sale is confirmed.
Can the lender sue me for the difference after foreclosure in Vermont?
A Vermont court may enter a deficiency judgment after a judicial sale for the balance remaining after the sale proceeds are applied; in a strict foreclosure, the lender may seek a deficiency based on the property’s appraised value. The borrower may contest the adequacy of the price at the confirmation hearing. The deficiency is sought within the foreclosure action after the sale is confirmed; Vermont’s general limitation period for civil actions is six years.
Guides for homeowners behind on payments
- Forbearance vs loan modification (vs repayment plan vs deferral): which tool fits
- How foreclosure works, step by step: judicial and non-judicial
- Short sale vs deed in lieu of foreclosure: leaving the home on your terms
- How to write a mortgage hardship letter (with a one-page template)
More on Vermont: first-time home buyer programs in Vermont · hard money rules in Vermont.