Sell Your Vermont Home Before the Court-Ordered Sale

Vermont is a judicial foreclosure state, and it works a little differently than most of the country. Every foreclosure has to go through Vermont Superior Court. There's no out-of-court trustee sale process here. But unlike many judicial states, Vermont commonly uses two different paths through that court: foreclosure by judicial sale, which ends in a public auction, and strict foreclosure, where the court sets a redemption period and, if it passes without the debt being resolved, title to the home transfers directly to the lender with no auction held at all. Which path a lender pursues depends on the property, the equity involved, and the lender's own process.

Before a case reaches court, Vermont law generally calls for the lender to send a written notice giving the homeowner a chance to cure the default. Once a complaint is filed and served, the case moves through the Superior Court's civil docket, and if it isn't resolved, the court enters a judgment that sets a redemption period: the window during which the homeowner can still pay off the debt and keep the home. That redemption period is often around six months for an owner-occupied home, though courts have discretion to set a different length, and Vermont law allows for a shorter, expedited timeline on properties that are vacant or abandoned. Between the initial notice, the filing and service of the complaint, and the redemption period itself, it's common for a year or more to pass between a first missed payment and the point where a sale is actually held or title transfers, though every docket and every case moves at its own pace.

Along the way, homeowners typically receive a written notice of default and right to cure, a summons and complaint once the case is filed in Superior Court, and eventually a judgment order spelling out the redemption period and which type of foreclosure applies. If the case proceeds as a foreclosure by judicial sale, notice of the sale date follows once the redemption period expires. One important quirk worth knowing: in Vermont, the redemption window generally runs before the sale or vesting happens, not after, so there typically isn't a further right to redeem the property once a sale has closed or title has already vested with the lender.

Whether a lender can pursue a deficiency judgment (suing for the difference between what's owed and what a sale brings in) generally depends on which type of foreclosure was used and the specifics of the case. It's a question worth putting directly to a Vermont attorney rather than assuming either way. What doesn't change through any of this: as long as you hold title, you can generally sell your Vermont home right up until the redemption period runs out and a sale is held or title transfers. A completed sale pays your mortgage off in full, and once that debt is satisfied there's nothing left to foreclose on, so the scheduled process is called off. That's the entire premise behind AuctionProof: closing before your redemption deadline, so paying off the loan becomes the outcome instead of losing the house.

Questions Vermont homeowners ask us

Is Vermont a judicial or non-judicial foreclosure state?

Vermont is judicial only: every foreclosure has to go through Vermont Superior Court, and there's no non-judicial trustee sale process here like you'd find in states such as Georgia or Texas. What makes Vermont unusual is that the court can order two different outcomes: foreclosure by judicial sale, which ends in a public auction, or strict foreclosure, where title simply transfers to the lender once the court-set redemption period expires, with no sale held at all.

What is "strict foreclosure," and how is it different from an auction?

In a strict foreclosure, the court doesn't order a public sale. Instead, it sets a redemption period (often around six months for an occupied home, though the court can set a different length) during which the homeowner can pay off the debt and keep the property. If that period passes without a payoff, title moves directly to the lender rather than going to a bidder at auction. Foreclosure by judicial sale, by contrast, does end in a public sale once the redemption period runs. Which process applies to your case is set out in your judgment, so that document is the place to confirm which path you're on.

Can I still sell my house after a Vermont foreclosure judgment has been entered?

In almost every case, yes. You still hold title to the home and can generally sell it right up until the redemption period expires and a sale is held or title transfers. If a sale closes and pays off your loan before that deadline, the debt no longer exists, so there's nothing left for the court process to act on and it's called off. That's the exact situation AuctionProof is built for: we work with your redemption deadline because we know it's already set by the court.