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Foreclosure mediation in Vermont

Vermont has a statewide court foreclosure mediation program for owner-occupied homes of four units or fewer. You start it by filling out the mediation request form that comes with the foreclosure complaint and filing it with the court. A neutral Vermont lawyer serves as mediator, and the lender must review you for loan modification and other options under the program rules. The program is set by statute, 12 V.S.A. §§ 4631 to 4637, which has no end date.

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Reviewed against Vermont law and official sources on October 12, 2026. General information, not legal advice.

How foreclosure mediation works in Vermont, step by step

  1. Who qualifies

    Any court foreclosure of your home

    Mediation applies to foreclosures of a dwelling of four units or fewer that you live in as your main home. Commercial loans are not covered. A lender can skip mediation only in a narrow case: the loan is not subject to any government loss mitigation rules, it met or tried to meet you in person in Vermont before filing, and it certifies this with the complaint.

    12 V.S.A. § 4631(a), (b), (d)

  2. Ask with the form served on you

    Before 4 months after judgment and before redemption ends

    The lender must serve two copies of a mediation notice with the summons and complaint, including a request form. File the form with the court. If you ask before four months after judgment and before your redemption period ends, the court must refer the case, though it can shorten the time or say no for good cause or delay.

    12 V.S.A. § 4632(a), (c), (d)

  3. Choosing the mediator

    After the court's referral

    Mediators must be Vermont lawyers with foreclosure prevention training. VTLawHelp says the court's letter lists three mediators and you and the lender have seven days to agree on one; if you do not agree, the court appoints one.

    12 V.S.A. §§ 4631(c), 4632(e)

  4. Send your financial documents

    Phone conference within 45 days of appointment

    You must make a good faith effort to give the mediator your household income and other papers the loss mitigation program requires. VTLawHelp lists recent bank statements, two years of tax returns, pay stubs, a utility bill, your tax bill and insurance page. The mediator holds a pre-mediation phone call within 45 days to sort out the document exchange.

    12 V.S.A. § 4633(b)

  5. The session and who must attend

    Within 120 days of appointment

    The lender or its servicer, with authority to agree to a settlement or modification and real-time access to your account, must take part along with its lawyer. The lender must consider reinstatement, modification, forbearance and short sale, and explain in writing any denial. The redemption period keeps running during mediation.

    12 V.S.A. §§ 4632(b), 4633(a), (d)

  6. If the lender does not take part in good faith

    Report due 7 days after mediation

    The mediator reports to the court whether anyone failed to attend, mediate in good faith, or provide documents. The court can impose sanctions such as stopping interest and fees, attorney's fees, money penalties, dismissal, or barring the sale.

    12 V.S.A. §§ 4634, 4635

  7. If there is no agreement

    After the report

    Taking part in mediation does not waive any of your rights or defenses in the case. If no agreement is reached, the foreclosure moves ahead on its schedule, so keep track of your redemption deadline and talk to legal aid.

    12 V.S.A. § 4637(a)

The program in Vermont

Foreclosure mediation

Program available

Vermont has a statewide court foreclosure mediation program for owner-occupied homes of four units or fewer. The lender must serve a mediation notice and request form with the complaint. Fill out the form and file it with the court as early as you can. The mediator is a neutral Vermont lawyer, and the parties must go over the foreclosure prevention tools that apply to your loan. The lender pays the mediation costs up front, but you pay your own lawyer and travel. If the home is sold and there is money left over, the lender can take the full mediation cost out of that surplus. Otherwise it can charge you up to half of the mediator's fee (12 V.S.A. § 4637). Mediation does not pause the redemption period.

Official program page

Common questions in Vermont

My lender met with me before it filed. Do I still get Vermont mediation?

Usually yes. A lender can skip mediation only if the loan is not subject to any government loss mitigation program requirements, it met or tried to meet you in person in Vermont, and it certified both in a filing with the complaint (12 V.S.A. § 4631(b)). Those rules count federal and state loss mitigation laws as a government program, so the exception is narrow.

Can I join my Vermont mediation by phone or video?

The mediator may let a party take part by phone or video. But each side must have at least one required person there in person unless everyone, including the mediator, agrees otherwise in writing (12 V.S.A. § 4633(e)). Mediation usually takes place in the county where the case was filed.

Who sees the Vermont mediator's report?

The mediator sends the report to the court and both sides, and a copy goes to the Attorney General's Office for data collection, where it is kept confidential (12 V.S.A. § 4634(a)). The report does not share the mediator's view of the case, but it does say whether a deal was reached and whether anyone failed to take part in good faith.

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 (this page)Property tax foreclosure Claim surplus funds Deficiency judgments Letters you may get

Back to the Vermont overview

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Sources for this page

  1. 12 V.S.A. § 506 (limit on actions on judgments)
  2. 12 V.S.A. Chapter 172: Foreclosure of Mortgages
  3. 12 V.S.A. Chapter 163 (includes §§ 4631 to 4637, foreclosure mediation)
  4. VTLawHelp: Foreclosure Process in Vermont
  5. VTLawHelp: Foreclosure Mediation
  6. Vermont Attorney General: Foreclosures
  7. Vermont Housing Finance Agency: COVID Homeowner Assistance Program
  8. Vermont Judiciary: Eviction and Foreclosure
  9. 12 V.S.A. § 4854, Judgment for plaintiff; writ of possession