Vermont Foreclosure Guide
Vermont uses strict foreclosure — similar to Connecticut, the court sets a redemption deadline and title vests in the mortgagee if unredeemed. Vermont also allows foreclosure by judicial sale. The process is slow (12–18 months typical) and the state has a very low volume of distressed properties. Vermont's transfer tax applies to foreclosure deeds and must be factored into cost analysis.
Process Type
Judicial (Strict)
Typical Timeline
12–18 months
Sale Method
Strict foreclosure or judicial sale
Vermont Title Risk Articles
Vermont's Strict Foreclosure: The 6-Month Redemption Period That Blindsides Out-of-State Investors
Vermont's judicial strict foreclosure grants a 6-month statutory redemption—property you 'won' at auction may revert to the former owner months later.
The Vermont Community Land Trust Ground Lease That Caps Your Resale Profit at $12,000
Vermont CLT ground leases impose permanent resale formulas that can limit your profit to 25% of appreciation—and they survive foreclosure.
County-Level Exceptions Investors Should Know
Statewide rules only tell part of the story. These county-level quirks catch out-of-state investors off guard.
Chittenden County (Burlington)
Vermont strict foreclosures require that all junior lienholders be named as defendants and given successive Law Days. Burlington has local tax liens and special assessment bonds for streetscape improvements that must be named in the action — failure to name them allows the junior lienholder to retain their interest despite the strict foreclosure.
Windham County (Brattleboro)
Southern Vermont has significant amounts of land encumbered by Act 250 (Vermont land use control) permits. Act 250 conditions run with the land and are enforceable by the state regardless of who holds title. Buyers should review the Act 250 permit for any construction or use restrictions before acquiring.
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