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How to claim foreclosure surplus funds in Vermont
Vermont home foreclosures go through court, and a sale happens only if the court orders a foreclosure by judicial sale. After the sale, the lender must file a report and an accounting with the court and mail it to you. The court's confirmation order pays costs, the lender and other lienholders in priority order, and must pay anything left to you.
Reviewed against Vermont law and official sources on October 12, 2026. General information, not legal advice.
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How to claim surplus funds in Vermont
Ask for a sale if you have equity
While the foreclosure case is openA court may order a strict foreclosure, with no sale and so no surplus, only if it finds there is no substantial value above the debts and unpaid taxes. Any party can file a written motion asking for a judicial sale instead. If your home is worth more than you owe, tell the court.
12 V.S.A. § 4941(b), (c)
Read the report of sale and accounting
Mailed to you after the saleThe lender files a sworn report of the sale with a request for confirmation, an accounting of the sale money and a proposed order. Copies must be mailed to you at your last known address. Check the sale price, costs and the amount claimed for the loan.
12 V.S.A. § 4954(a)
Raise problems before confirmation
Before the court signs the confirmation orderThe court may confirm the sale without a hearing, and the confirmation order is conclusive. If you think the accounting is wrong or money is owed to you, file a written response in the foreclosure case right away.
12 V.S.A. § 4954(a)
Who gets paid, in order
Set in the confirmation orderReasonable sale expenses and the foreclosing lender are paid first. Any surplus then goes to other lienholders of record in order of priority, and whatever remains must be paid to you as the mortgagor.
12 V.S.A. § 4954(c)
Unclaimed money goes to the State Treasurer
If you cannot be foundMoney that cannot be delivered can end up with the Vermont State Treasurer's unclaimed property program. Search missingmoney.vermont.gov or call the Treasurer's office at (802) 828-2407.
27 V.S.A. ch. 18
Be careful with fee offers to recover money
Before you sign anythingIf your money reaches the State Treasurer, a fee agreement signed within 24 months after the transfer is void, and a court can cut an unconscionable fee. Vermont has no percentage cap for surplus that is still in the court case. You can ask the court for your money yourself.
27 V.S.A. §§ 1601, 1602
Surplus after a tax sale
Money left over after a town tax sale is handled by the town's collector of delinquent taxes, not the court. See the Vermont property tax foreclosure page for how that works.
32 V.S.A. § 5260
What Vermont law says about leftover sale money
Surplus after a mortgage foreclosure sale
After a judicial sale, the confirmation order directs how the money is paid. Sale costs and the lender are paid first, then other lienholders in order of priority. Anything left must be paid to you as the mortgagor. Watch for the report of sale and request for confirmation, which must be mailed to you, and tell the court if you believe money is owed to you.
12 V.S.A. § 4954(a), (c)
Common questions in Vermont
Is there surplus money after a Vermont strict foreclosure?
No. In a strict foreclosure there is no sale, so there is no surplus, and the lender takes title if you do not redeem. That is why the court may order strict foreclosure only after finding there is no substantial equity, and why you can ask for a judicial sale (12 V.S.A. § 4941).
Who decides how Vermont foreclosure sale money is split?
The court does, in the order confirming the sale (12 V.S.A. § 4954(c)). Junior lienholders such as a second mortgage or judgment creditor are paid in order of priority before you. Anything left after them must be paid to you.
Does a Vermont company that offers to find my foreclosure money need my signature?
Yes. For money held by the State Treasurer, an agreement must be in writing, signed by you, and show the amount you expect before and after the fee (27 V.S.A. § 1601). The Treasurer's own site warns that some recovery offers are fraudulent. Searching and filing a claim yourself is straightforward.
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(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.
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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.
Sources for this page
- 32 V.S.A. Chapter 133: Assessment and Collection of Taxes (§§ 5136, 5252 to 5262)
- Vermont League of Cities and Towns: Delinquent Tax Collection Manual (2023)
- Vermont Legislature: S.196 (2026), An act relating to property tax sales, bill status
- 27 V.S.A. Chapter 18: Revised Uniform Unclaimed Property Act
- Vermont State Treasurer: Unclaimed Property
- 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