Renting a home that was foreclosed in Vermont: your rights

Your rights as a renter in Vermont, in order

1. Federal floor: 90 days' notice, and your lease may continue

   After the foreclosure

   A bona fide tenant gets at least 90 days' written notice to vacate, and a lease signed before the foreclosure runs to its end unless the buyer will live in the home. If you have a Section 8 voucher, the new owner takes over your lease and housing assistance contract. See [tenant notice after foreclosure](/notices/tenant-notice-after-foreclosure/).

   Pub. L. 111-22 § 702; Pub. L. 115-174 § 304; 42 U.S.C. § 1437f(o)(7)

2. You are named in the court case and get a warning

   When the foreclosure complaint is served

   In a court foreclosure, the lender must name as a defendant anyone renting the home when the complaint is recorded. Your papers must say, in large type, that the property is being foreclosed and that you must tell the court your name and address to be kept informed. Do that, so you get notice of each step.

   12 V.S.A. § 4932(c)(1), (2)

3. New tenants must be told about a pending foreclosure

   When you sign a lease after the case is filed

   After the owner receives the foreclosure complaint, it must tell each new tenant that the home is in foreclosure and that, if the owner does not redeem, the tenant may have to leave on 30 days' notice or the longer notice federal law requires. The foreclosure is not invalid if the owner skips this, so ask before you sign.

   12 V.S.A. § 4932(c)(3)

4. Notice before a power of sale auction

   At least 60 days before the sale

   If the lender uses Vermont's power of sale process instead of a court sale, it must send a copy of the notice of sale to a tenant lawfully living in the home at least 60 days before the sale, by first class mail to the address in a recorded lease or to the "occupant" at the home.

   12 V.S.A. § 4965(b)

5. No removal sooner than 30 days after the writ is served

   30 days after service, or longer if federal law requires

   After a court foreclosure, the writ of possession must be served on a residential tenant, and the new owner cannot be put in possession until at least 30 days after service or the longer time federal law requires. Vermont also bars a landlord from shutting off your utilities or locking you out without court process.

   12 V.S.A. §§ 4941(e), 4946(d); 9 V.S.A. § 4463

6. Your security deposit moves to the new landlord

   When the landlord's interest ends

   When your landlord's interest in the home ends, the deposit must be transferred to the new landlord, and the new landlord must tell you its name and address and that it has your deposit. When you move out, the deposit, with a written list of any deductions, is due within 14 days.

   9 V.S.A. § 4461(c), (f)

7. Keep paying rent and ask who to pay

   Every month

   We did not find a Vermont statute that says who a renter pays during or after a foreclosure. Keep paying as your lease requires, ask in writing for the new owner's name, address and proof of ownership before you pay someone new, and keep every receipt. Vermont lets a landlord end a tenancy for nonpayment on at least 14 days' notice.

   9 V.S.A. § 4467(a)

Common questions in Vermont