Vermont foreclosure

The Vermont foreclosure process can be either judicial or non-judicial, but the non-judicial foreclosure process is reserved for properties of 3 units or more or those not used as the dwelling for the owner.

If your property is your residence and it's 2 units or less, then regardless of whether the lender inserted a power of sale clause or not, it must use the judicial foreclosure process.

It must file a lawsuit at the courthouse of the county where the property is located. You will be served a summons to appear in court, so that you may be advised of your rights. The lender may avoid a trial by seeking a summary judgment at this time. The sale will not be allowed to go forward until seven months after it has been decreed.

If the lender inserted a power of sale clause in the mortgage or deed of trust and the property is not your residence or it's 3 units or more, then it can use the non-judicial processto foreclose on the property.

The non-judicial foreclosure process will proceed as follows:

1. The borrower must be sent a letter stating the intent to foreclose.


2. No sooner than 30 days after that letter has been sent, a notice of the sale must be sent to the last known address of the borrower.


3. At least another 30 days after that, the sale will be held at the property, except in cases where the court has allowed for it to be held elsewhere. It must be sold to the highest bidder.