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Foreclosure and tax sales in Vermont

What our research shows about Vermont's rules. General information with sources — not legal advice, and not a reading of your papers.

CoreResearched in depth, key rules checked against the official text.Research last reviewed 2026-09-22
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How foreclosure works

Usual process
Judicial (through court)

Foreclosure by judicial sale, or strict foreclosure when the property has no substantial equity (you can ask for a sale instead).

From a reputable summary[1]
Allowed processes
Judicial (through court)
From a reputable summary[1][2]
Main statutes
Vt. Stat. tit. 12, § 4631 et seq.; Vt. Stat. tit. 12, § 4941; Vt. Stat. tit. 12, § 4946; Vt. Stat. tit. 12, § 4948; Vt. Stat. tit. 12, § 4952; Vt. Stat. tit. 12, § 4954; Vt. R. Civ. P. 80.1
From a reputable summary[1]
Typical length (estimate)
Not researched yet for this state.

The usual timeline

  1. +At least 120 days

    Federal rule: the servicer generally cannot make the first foreclosure notice or filing until you are more than 120 days behind

    Applies to most home loans in every state. A complete loss-mitigation application sent more than 37 days before a sale also triggers federal protections.

    Checked against the official text12 CFR § 1024.41(f)(1)

  2. Lawsuit filed and you are served with the summons and complaint

    Foreclosure by judicial sale, or strict foreclosure when the property has no substantial equity (you can ask for a sale instead).

    From a reputable summary
  3. +At least 21 days

    Answer due — 21 days after service

    Generally 21 days after service (Vt. R. Civ. P. 12(a)(1)(A)).

    From a reputable summary

  4. Ask for mediation — your state gives you the right to request it

    Vermont foreclosure mediation program. Many homeowners in foreclosure have a right to court mediation; ask for it early in the case.

    From a reputable summary

  5. Court judgment of foreclosure (if the lender wins)

    From a reputable summary
  6. +At least 30 days

    Sheriff’s / court sale

    After the redemption period, the lender mails notice of sale at least 30 days before and publishes it at least 21 days before the sale. For an owner-occupied home the sale generally cannot occur until 7 months after the complaint was served.

    From a reputable summary

  7. Court confirms (ratifies) the sale

    In many states you can still redeem or object until the court confirms the sale.

    From a reputable summary
  8. +At least 180 days

    Redemption window (at least 180 days in the shortest common case)

    Six months from the foreclosure decree for an owner-occupied home (the court may shorten it), and after that any time before the sale.

    From a reputable summary

A general sequence built from the rules above. "At least" periods are the shortest we found; your case can take longer.

Notices and the sale

Notice before foreclosure
Not researched yet for this state.
Notice of sale
At least 30 daysAfter the redemption period, the lender mails notice of sale at least 30 days before and publishes it at least 21 days before the sale. For an owner-occupied home the sale generally cannot occur until 7 months after the complaint was served.

Vt. Stat. tit. 12, §§ 4946(b), 4952

From a reputable summary[1]
Publication
Newspaper at least 21 days before the sale.
From a reputable summary[1]
When sales happen
Not researched yet for this state.
Time to answer the lawsuit
21 days

Generally 21 days after service (Vt. R. Civ. P. 12(a)(1)(A)).

From a reputable summary[1]
Court confirms the sale
Yes
From a reputable summary[1]

Your rights before and after the sale

Catching up (reinstatement)
After the redemption period and before the sale, only if you and the lender agree.

Vt. Stat. tit. 12, § 4948

From a reputable summary[1][2]
Buying the home back (redemption)
YesSix months from the foreclosure decree for an owner-occupied home (the court may shorten it), and after that any time before the sale.

Vt. Stat. tit. 12, §§ 4941, 4946(b), 4952

From a reputable summary[1][2]
Owing money after the sale (deficiency)
LimitedMust be requested before the confirmation order; if the lender bought the home, limited by fair market value.

Vt. Stat. tit. 12, § 4954(d)

From a reputable summary[1]
Mediation
Available on requestVermont foreclosure mediation program.Many homeowners in foreclosure have a right to court mediation; ask for it early in the case.

Vt. Stat. tit. 12, § 4631 et seq.

From a reputable summary[1]

Property tax sales

Tax sale system
Redeemable tax deed

Town tax collector auctions the property; the buyer gets a deed only if you do not redeem within a year.

From a reputable summary[3]
How it works
Towns must offer a written, reasonable repayment plan before a tax sale. Certified notice 30 days before; three weeks of newspaper notice.
From a reputable summary[3]
Redeeming after a tax sale
One year after the sale, paying the price plus 1% a month; a reminder comes 90–120 days before the end.

Vt. Stat. tit. 32, § 5260

From a reputable summary[3]
Relief programs
Not researched yet for this state.
Payment plans
Towns must offer a reasonable written repayment plan before a tax sale.
From a reputable summary[3]
Surplus after a tax sale
Not researched yet for this state.

Bankruptcy exemptions

Federal exemption list
You may choose the federal list

You may choose the federal bankruptcy exemption list (11 U.S.C. § 522(d)) instead of the state list — one list or the other, never a mix.

From a reputable summary[4]
Homestead exemption
$125,000$125,000 in the dwelling, outbuildings and land used with them.(Vt. Stat. tit. 27, § 101)
From a reputable summary[5]

Where to get free help

Free legal aid (LSC-funded)
Checked against the official text[7]
Legal help website
Checked against the official text[8]
State housing agency
Checked against the official text[6]
Attorney general / consumer protection

The official site blocked our automated check on 2026-09-22; confirm the page before relying on it.

Not confirmed — check it[9]
Court self-help
Checked against the official text[10]
HUD-approved housing counselors
HUD-approved housing counseling agencies — Free or low-cost, HUD-approved housing counselors in every state. Call or search by ZIP code.

Sources

Retrieved 2026-09-22. Official texts are marked “official”; summaries are marked “summary”.

  1. [1]Nolo — Vermont Foreclosure Laws and Proceduressummary
  2. [2]Nolo — State Foreclosure Laws: 50-state chart (process, deficiency, redemption, reinstatement)summary
  3. [3]Nolo — Vermont property tax salessummary
  4. [4]Nolo — Federal Bankruptcy Exemptions — which states allow the federal list11 U.S.C. § 522(b)(2)summary
  5. [5]Asset Protection Planners — Homestead Exemptions by U.S. State and Territory (2026 chart with statute cites)summary
  6. [6]VHFA.org | Vermont Housing Finance Agency (official site, checked live)official
  7. [7]Legal Services Corporation — Our Grantees (official list of LSC-funded programs by state)official
  8. [8]VTLawHelp.org | Legal help and info from Legal Services Vermont and Vermont Legal Aid (official site, checked live)official
  9. [9]Vermont Attorney General — Consumer Assistance Programofficial
  10. [10]Self-Help for the Public | Vermont Judiciary (official site, checked live)official