- Who sends it
- The Superior Court, Civil Division, after a default, summary judgment or trial
- What it starts
- A redemption period, normally 6 months from the decree for a home you live in
- Do this first
- Find the redemption end date on the decree and call Legal Services Vermont at 800-889-2047
What this decree is in Vermont
VTLawHelp says that after the court rules for the lender, it first issues a clerk's accounting of what you owe, and you have only a short time to say you disagree. Then the court issues the Final Judgment Order and Decree of Foreclosure, with the total due and the date your redemption period ends.
The decree is either a strict foreclosure, where title passes to the lender if you do not redeem, or a judicial sale, where the home is sold at auction if you do not redeem (12 V.S.A. §§ 4941, 4946).
For a home you live in as your principal residence when the lender applies for judgment, the redemption period is 6 months from the decree unless the court orders less. The court sets it based on your equity, debts to other lienholders, unpaid taxes, the condition of the home and other fairness factors (12 V.S.A. §§ 4941(d), 4946(b)).
For how this kind of document works in every state, see the national guide: Judgment of foreclosure and sale.
What it does and does not mean
- It is not an eviction. VTLawHelp says you can stay in the home during the redemption period and do not have to make mortgage payments, but anything unpaid is added to what you must pay to redeem and could be part of a deficiency.
- You can redeem by paying the full amount in the judgment order, plus later costs agreed or ordered by the court (12 V.S.A. § 4949(a)).
- If the lender agrees, you can redeem for less, with court approval. The court then issues a Supervening Certificate of Redemption (12 V.S.A. § 4949(b)).
- In a judicial sale case, your right to redeem lasts until the public sale, not just until the redemption date (12 V.S.A. § 4949(a), (c)).
- After redemption ends and before a sale, you and the lender can agree to reinstate or modify the loan. The lender then signs a waiver of foreclosure that ends the case once the court approves it and it is recorded (12 V.S.A. § 4948).
The deadlines it starts and how to count them
- Redemption: use the end date printed in the decree. If none is printed, count 6 months from the date of the decree for a home you live in.
- Earliest sale: no sale of your home can take place within 7 months of service of the complaint, unless the court shortened redemption or you agreed (12 V.S.A. § 4946(b)).
- Sale window: in a judicial sale case, the sale must be held within 6 months after the last redemption date, unless the court extends it or a bankruptcy pauses it (12 V.S.A. § 4946(a)).
- Mediation: you can still ask the court for mediation up to 4 months after judgment, if redemption has not ended (12 V.S.A. § 4632(a)).
- When redemption ends, the lender records the judgment and a certificate of nonredemption in the land records (12 V.S.A. §§ 4941(g), 4947(a)).
See Vermont after the foreclosure sale for what follows.
What to do this week
- Read the decree. Write down the total due, the redemption end date and whether it orders a sale.
- If the clerk's accounting is wrong, tell the court in writing right away. VTLawHelp says the window is short.
- Ask the lender's lawyer in writing for a redemption figure good through the end date.
- If you have equity, talk to a real estate agent about selling before redemption ends. Selling and paying the redemption amount keeps the rest.
- If you have not asked for mediation, file the request now. Read how to stop foreclosure in Vermont.
Free help in Vermont and scam warnings
Legal Services Vermont at 800-889-2047 and the Vermont Bar Association's Find a Lawyer page can help you weigh your options. See the Vermont foreclosure help page.
- People may offer to buy your home cheaply during redemption. Get a lawyer to look at any offer before you sign.
- We did not confirm a Vermont law aimed at foreclosure consultants. Do not pay anyone up front to save your home, and report scams to the Vermont Attorney General.
The rest of the Vermont process
See how foreclosure works in Vermont, the timeline, ways to stop it and free help in Vermont, or read the national guide to this letter.
Common questions
How long is the redemption period in Vermont?
For a home you live in as your principal residence, 6 months from the decree unless the court orders a shorter time (12 V.S.A. §§ 4941(d), 4946(b)). For other property in a judicial sale case, it is 30 days or less (12 V.S.A. § 4946(c)).
Do I have to keep paying the mortgage during redemption?
VTLawHelp says you do not have to make mortgage payments during the redemption period, but anything unpaid is added to the amount you must pay to redeem and could be included in a deficiency judgment.
Can I still save the home after the redemption date in Vermont?
In a judicial sale case you can redeem any time before the public sale by paying the full judgment amount plus later costs (12 V.S.A. § 4949). You can also reinstate or modify the loan if the lender agrees (12 V.S.A. § 4948).
Other Vermont letters
- Foreclosure Summons and Complaint, with the Important Notice to Homeowner and Verified Answer formA Vermont lender must sue in the Civil Division of the Superior Court to foreclose on a home you own. The papers include a notice to homeowners, a mediation request form and a blank Verified Answer form. Vermont legal aid says your written, signed answer is due within 21 calendar days of receiving the complaint.
- Notice of Mediation Rights and Request for Mediation formIf you live in your Vermont home and it has 4 or fewer units, the lender must serve you a notice of your mediation rights with a form to ask the court for mediation. When you ask in time, the court must send the case to a neutral mediator who is a Vermont lawyer. The lender has to review you for options like reinstatement, modification, forbearance and short sale, and explain any denial.
- Notice of SaleIn a Vermont judicial sale foreclosure, the notice of sale gives the date, time and place of the auction of your home. It is mailed after your redemption date has passed and at least 30 days before the sale, and it runs in a local newspaper for 3 weeks. The notice itself says you can still redeem before the sale by paying the full amount due plus sale costs.
- Report of Sale and Request for ConfirmationAfter the auction, the lender files a sworn report of the sale with an accounting of the money and asks the court to confirm the sale. It must mail you a copy. Title passes to the buyer when the confirmation order is recorded, any surplus is paid out under that order, and the lender must ask for any deficiency before the order issues.
- Writ of PossessionOnce your redemption period ends, the lender can ask the court for a writ of possession. For a home you live in, the clerk issues it only with the court's approval. A sheriff serves it on you and cannot put the new owner in possession until at least 14 days later.