Vermont · Weigh your options
Can the lender come after you for the rest? Deficiency judgments in Vermont
In Vermont you can owe a deficiency after a foreclosure sale only if the lender asked for one in its foreclosure complaint and asks again before the court confirms the sale. If it does not ask, the law treats the deficiency as waived. Because a home you own and live in must be foreclosed through the court, the confirmation papers are where you will see whether a deficiency is being sought.
Reviewed against Vermont law and official sources on October 12, 2026. General information, not legal advice.
Deficiency rules in Vermont, point by point
Your home must go through the court
From the start of the case
Vermont's nonjudicial power of sale cannot be used on farmland or on a dwelling house owned by a natural person. So for most homeowners the deficiency rules for a judicial sale are the ones that matter.
12 V.S.A. § 4961
The lender must ask in the complaint
In the foreclosure complaint
The lender may request a deficiency judgment in the complaint. Read the complaint you were served with: if it does not ask for a deficiency, that is a strong sign the lender is not seeking one.
12 V.S.A. § 4954(d)
And ask again before confirmation
Before the confirmation order
After the sale, the lender files a report of sale and asks the court to confirm it, and mails you a copy. A deficiency must be requested before the confirmation order issues. If the lender does not request it, the deficiency is deemed waived.
12 V.S.A. § 4954(a), (d)
How the shortfall is figured
At confirmation
The court may enter a deficiency judgment if the sale money does not cover the expenses of the sale and the amount due the lender. The report of sale must include an accounting of the sale proceeds, so check its numbers.
12 V.S.A. § 4954(a), (d)
Short sale or deed in lieu
Before you sign
Vermont's foreclosure statute addresses deficiencies after a foreclosure sale. We did not find a Vermont statute with deficiency rules for a short sale or deed in lieu, so the written agreement controls. Ask the lender to state in writing that it waives any remaining balance.
How long a judgment can be enforced
8 years, renewable by new action
An action on a Vermont judgment, including an action to renew it, must be brought within eight years after the judgment. VTLawHelp notes that some income and property are protected from collection even if a judgment is entered.
12 V.S.A. § 506
The short answer in Vermont
Can the lender come after me for the rest?
LimitedThe lender can get a deficiency judgment if the sale does not cover the debt and sale costs, but only if it asked for one in the foreclosure complaint and requests it before the court issues the confirmation order. If it does not, the deficiency is waived.
12 V.S.A. § 4954(d)
Common questions in Vermont
Can a Vermont lender ask for a deficiency for the first time after the sale?
The statute says the lender may request a deficiency in the foreclosure complaint and, if it seeks one, must request it before the confirmation order. If it fails to request it, the deficiency is deemed waived under 12 V.S.A. § 4954(d). If the complaint did not ask for one and a request appears later, ask legal aid or a lawyer to look at it before the confirmation.
What should I check in the Vermont report of sale?
The lender must mail you the report of sale and its request for confirmation, which includes an accounting of the sale money (12 V.S.A. § 4954(a)). Check the sale price, the costs deducted, and whether a deficiency is requested. The court can confirm without a hearing, so if something looks wrong, tell the court in writing right away and talk to legal aid.
Can mediation costs be added to what I owe after a Vermont foreclosure?
If there is no surplus, the lender may shift up to half of the mediator's cost to you, but not its own attorney or travel costs for mediation. If the sale produces a surplus, the lender may recover the full mediation cost from that surplus (12 V.S.A. § 4637(c)).
Step by step
More on foreclosure in Vermont
Understand the process
What is happening and how much time there is.
Weigh your options
What can stop it, and what happens if it goes ahead.
Get help now
Who to call, and what to do when a sale is scheduled.
Also in Vermont
Foreclosure mediation Property tax foreclosure Claim surplus funds Deficiency judgments (this page)Letters you may getFree, official, nationwide
Free help anywhere in the country
HUD-approved housing counselors
Free foreclosure prevention counseling from agencies approved by the U.S. Department of Housing and Urban Development. A counselor can review your budget and deal with your servicer alongside you.
(800) 569-4287CFPB: help for struggling homeowners
Plain-language guides from the Consumer Financial Protection Bureau, and a complaint form if your mortgage servicer is not following the rules.
Legal Services Corporation: find legal aid
Find the free civil legal aid office for your county if you have been served with a foreclosure lawsuit or given a sale date and cannot afford a lawyer.
Ask a question
Need help avoiding foreclosure in Vermont?
Tell us where things stand. A person reads every message and writes back with the options that fit your situation and the free, official help available in Vermont.
- Free. There is nothing to buy and no fee, ever.
- No loan number, Social Security number or documents needed.
- We are not your lender, a law firm or a government agency.
If a sale is days away, do not wait for an email. Call a free HUD-approved housing counselor now at (800) 569-4287.
Sources for this page
- 12 V.S.A. § 506 (limit on actions on judgments)
- 12 V.S.A. Chapter 172: Foreclosure of Mortgages
- 12 V.S.A. Chapter 163 (includes §§ 4631 to 4637, foreclosure mediation)
- VTLawHelp: Foreclosure Process in Vermont
- VTLawHelp: Foreclosure Mediation
- Vermont Attorney General: Foreclosures
- Vermont Housing Finance Agency: COVID Homeowner Assistance Program
- Vermont Judiciary: Eviction and Foreclosure
- 12 V.S.A. § 4854, Judgment for plaintiff; writ of possession