- Who sends it
- The lender, in two copies, served with the summons and complaint
- What it starts
- Your right to ask for mediation, up to 4 months after judgment and before redemption ends
- Do this first
- Fill out the request form and file it with the court now, even if you are already talking to your servicer
What this notice is in Vermont
Vermont's foreclosure mediation law, 12 V.S.A. §§ 4631 to 4637, covers foreclosures of a dwelling house of 4 units or fewer that the owner lives in as a principal residence. The lender must serve two copies of a notice with the summons and complaint (12 V.S.A. § 4632(c)).
By law the notice must be on a form approved by the Court Administrator, explain your rights, stress the importance of mediation even if you are already talking to the lender or servicer, give legal services contact information, and include a form you can use to ask the court for mediation (12 V.S.A. § 4632(d)).
The mediator must be licensed to practice law in Vermont and take ongoing training on foreclosure prevention (12 V.S.A. § 4631(c)). VTLawHelp says the court's mediation letter lists three qualified mediators, and you and the lender have seven days to agree on one or the court picks.
For how this kind of document works in every state, see the national guide: Foreclosure mediation notice.
What it does and does not mean
- In mediation, the lender must use and consider reinstatement, loan modification, forbearance and short sale, plus any government loss mitigation program rules and net present value calculations (12 V.S.A. § 4633(a)).
- If it does not offer you a modification or other agreement, the lender must explain why, and show the criteria, inputs and calculations it used (12 V.S.A. § 4633(a)(3)).
- You must make a good faith effort to give the mediator your household income and other required information on time (12 V.S.A. § 4633(b)(1)).
- If a party does not attend, does not mediate in good faith or does not supply required documents, the court can stop interest and fees, award attorney's fees, fine the party, dismiss the case or bar the lender from selling or taking possession (12 V.S.A. § 4635(b)).
- Mediation does not pause the redemption period (12 V.S.A. § 4632(b)). VTLawHelp says mediation puts the case on hold, but the statute is clear that the redemption clock keeps running.
- The law does not apply to commercial loans. It also does not apply if your loan is not covered by any government loss mitigation program and the lender met or tried to meet with you in person in Vermont before suing and certified that in a separate filing (12 V.S.A. § 4631(b), (d)).
The deadlines and how to count them
- Request: the court must refer your case if you ask before 4 months after judgment and before the redemption period ends. The court can shorten that for good cause, or decline a request made after judgment if it finds you are trying to delay (12 V.S.A. § 4632(a)). Ask now so this is never an issue.
- Premediation call: within 45 days after the mediator is appointed, the mediator holds a phone conference to sort out the documents (12 V.S.A. § 4633(b)(2)).
- Finish: mediation must be completed within 120 days of the mediator's appointment and before redemption ends, unless both sides agree or the court orders otherwise (12 V.S.A. § 4632(b)).
- Report: within 7 days after mediation ends, the mediator reports the results in writing to the court and both parties (12 V.S.A. § 4634(a)).
See Vermont foreclosure mediation for how the program works.
What to do this week
- Fill out the request form and mail it or bring it to the court. Keep a copy.
- Start gathering papers VTLawHelp lists: your two most recent bank statements for all accounts, a recent utility bill, your homeowners insurance declarations page, your two most recent pay stubs or a profit and loss statement if self-employed, and any benefit award letters.
- Even if you applied for a modification before, expect to send up-to-date papers again.
- Write down every document you send, the date and how you sent it.
- Keep filing your answer and following the court case. Mediation does not replace your answer to the complaint.
Free help in Vermont and costs
Legal Services Vermont at 800-889-2047 can tell you if you qualify for free help. The Vermont Attorney General's foreclosure page explains your mediation rights. See the Vermont foreclosure help page.
- The lender pays the required mediation costs. You pay your own lawyer and travel, if any (12 V.S.A. § 4637(b)).
- If the case ends in a sale with a surplus, the lender may take the full cost of mediation out of the surplus. Otherwise it may charge you up to half of the mediator's cost, but not its own lawyer's fees or travel (12 V.S.A. § 4637(c)). VTLawHelp describes mediation as free for the homeowner; the statute allows these later charges.
- If the lender is not cooperating, tell your mediator first. If that does not help, VTLawHelp says you can file a written motion asking the court to order the lender to cooperate.
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
When is it too late to ask for foreclosure mediation in Vermont?
The court must refer the case if you ask before 4 months after judgment and before the redemption period ends, subject to the court's power to shorten that for good cause or refuse a late request it sees as a delay tactic (12 V.S.A. § 4632(a)). Ask as early as you can.
Does Vermont mediation stop the foreclosure clock?
Not the redemption period. 12 V.S.A. § 4632(b) says the redemption period is not stayed because mediation is pending, and mediation should be done before redemption ends.
What can the court do if the lender does not cooperate in mediation?
It can stop interest, fees and costs, award attorney's fees, impose fines, dismiss the case without prejudice, or bar the lender from selling or taking possession (12 V.S.A. § 4635(b)).
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.
- Final Judgment Order and Decree of ForeclosureThe Final Judgment Order and Decree of Foreclosure says the lender won and states the total you owe and the date your redemption period ends. For a home you live in, that is usually 6 months from the decree unless the court orders less. You can stay in the home and keep it by paying the judgment amount before redemption ends, or before any public sale.
- 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.