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Subchapter 001: GENERAL PROVISIONS
§ 4931. Definitions
As used in this chapter:
(1) “Agricultural activity” includes the growing, raising, and production of horticultural
and silvicultural crops, grapes, berries, trees, fruit, poultry, livestock, grain,
hay, and dairy products.
(2) “Dwelling house” means a residential structure or mobile home which contains one to
four family housing units, or individual units of condominiums or cooperatives, other
than a time-share in a unit, each of which is used or intended to be used as a residence.
For the purposes of this subdivision, “time-share” means a time-share estate as defined
by 32 V.S.A. § 3619(a).
(3) “Farmland” means land devoted primarily to commercial agricultural activities.
(4) “Value” means market value less all reasonable expenses that would be incurred in
selling the property. Market value for purposes of this section may be determined
based on evidence of market value deemed by the court to be reasonably reliable, which
may include grand list valuation and the common level of appraisal used in the town
where the property is located, if the court finds such evidence to be reasonably reliable. (Added 2011, No. 102 (Adj. Sess.), § 1; amended 2013, No. 102 (Adj. Sess.), § 4.)
§ 4932. Venue; joinder of parties; recording
(a) Actions to foreclose a mortgage under subchapter 2 or 3 of this chapter shall be brought
in the Civil Division of the Superior Court for the county where the land lies, or,
if the land described in the mortgage lies in more than one county, then in one of
the counties in which the land lies.
(b) The plaintiff shall file a copy of the complaint in the town clerk’s office in each
town where the mortgaged property is located. The clerk of the town shall minute on
the margin of the record of the mortgage that a copy of foreclosure proceedings on
the mortgage is filed. The filing shall be sufficient notice of the pendency of the
action to all persons who acquire any interest or lien on the mortgaged premises between
the dates of filing the copy of foreclosure and the recording of the final judgment
in the proceedings. Without further notice or service, those persons shall be bound
by the judgment entered in the cause and be foreclosed from all rights or equity in
the premises as completely as though they had been parties in the original action.
(c) If the mortgaged property is subject to a residential rental agreement, as defined
in 9 V.S.A. § 4451:
(1) The plaintiff shall join as a party defendant any person occupying the mortgaged property
pursuant to a residential rental agreement as of the date the copy of the complaint
is recorded in the land records. Service of the complaint on the tenant shall be sufficient
if mailed to the tenant by first class mail at the address specified in the rental
agreement, if the agreement is recorded, or to the “occupant” at the address of the
leased premises if the agreement is not recorded.
(2) The summons and complaint served on any person occupying the premises pursuant to
a residential rental agreement shall contain the following notice, written in at least
14-point type:
THE PROPERTY IN WHICH YOU LIVE IS BEING FORECLOSED UPON. YOU ARE NAMED AS A DEFENDANT
IN THE FORECLOSURE BECAUSE YOUR RIGHT TO REMAIN ON THE PREMISES MAY END WHEN THE FORECLOSURE
IS COMPLETED. YOU MUST NOTIFY THE COURT OF YOUR NAME AND ADDRESS IN ORDER TO BE KEPT
INFORMED OF THE STATUS OF THE FORECLOSURE.
(3) Upon receipt of the complaint, the owner of the mortgaged property shall notify each
tenant who enters into a residential rental agreement that the premises are the subject
of a pending foreclosure action and that, in the event the owner is unable to redeem
the premises, the tenant may be required to vacate the premises upon 30 days’ notice,
or upon such other notice as is required by federal law, whichever is longer. The
failure of the owner to provide notice under this subsection shall not affect or invalidate
the foreclosure action.
(d) All proceedings shall be before the Superior judge alone, and trial shall be without
jury. (Added 2011, No. 102 (Adj. Sess.), § 1.)
§ 4933. Repealed. 2019, No. 20, § 105.
§ 4934. Supplemental judgment joining parties; recording
At any time, without further notice or service on the purchaser or mortgagor or lienholder
whose interest in the property being foreclosed first arose after the filing of the
complaint in the town clerk’s office, and upon filing certified copies of the deed,
mortgage, or attachment with the clerk of the court by the plaintiff in the foreclosure
action, any Superior judge may sign a supplemental judgment specifically naming that
party. Reference to the deed, mortgage, or lien and the supplemental judgment may
be filed in the town clerk’s office for record, and it shall have the same force and
effect as though that person had been made a party defendant in the original action. (Added 2011, No. 102 (Adj. Sess.), § 1.)
§ 4935. Taxes paid by mortgagee
A tax assessed upon mortgaged real estate in this State may be paid by the mortgagee
or assignee of the mortgage upon such property. The amount so paid, including costs,
if any, shall thereupon be added to and become a part of the debt or obligation secured
by such mortgage. (Added 2011, No. 102 (Adj. Sess.), § 1.)
§ 4936. Foreclosure of real or personal property
A mortgage or a security agreement constituting a lien on both real and personal property
to secure the payment of a debt, whether evidenced by one or more instruments, may
be foreclosed in an action under subchapter 2 or 3 of this chapter. (Added 2011, No. 102 (Adj. Sess.), § 1.)
§ 4937. Attorney’s fees
When a mortgage contains an agreement on the part of the mortgagor to pay the mortgagee,
in the event of foreclosure, the attorney’s fees incident thereto, and claim is made
therefor in the complaint, the court in which the complaint is brought shall allow
such fee as in its judgment is just. (Added 2011, No. 102 (Adj. Sess.), § 1; amended 2025, No. 64, § 7, eff. June 12, 2025.)
§ 4938. Effect on bankruptcy proceedings
Nothing in this chapter shall be construed to supersede any provision of Title 11
of the United States Code. (Added 2011, No. 102 (Adj. Sess.), § 1.)
§ 4939. Appeals
When a judgment is for the foreclosure of a mortgage, permission of the court shall
be required for review. (Added 2011, No. 102 (Adj. Sess.), § 1.)
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Subchapter 002: STRICT FORECLOSURE
§ 4941. Decree foreclosing equity of redemption; writ of possession
(a) In any action for foreclosure with regard to any mortgage encumbering property, the
court may, if no sale is requested by the plaintiff or ordered by the court pursuant
to subsection (b) of this section, issue a judgment and decree of foreclosure without
requiring a judicial sale of the premises.
(b) In an action brought under subsection (a) of this section, any party may by written
motion request, or the court in its discretion may order, that property be sold at
a judicial foreclosure sale, whether or not the mortgage contains a power of sale.
(c) No decree foreclosing the right of redemption without sale shall be issued absent
a finding by the court that there is no substantial value in the property in excess
of the mortgage debt found by the court to be due to the plaintiff and any other lienholder,
plus assessed but unpaid property taxes due on the property. The court shall include
in its order a summary of the evidence upon which its finding is based.
(d) If a decree is issued foreclosing the right of redemption without sale, the time of
redemption shall be six months from the date of the decree unless a shorter time is
ordered, or the mortgagor and mortgagee plaintiff agree to a shorter period. The court
shall fix the period of redemption taking into consideration whether there is value
in the property in excess of the mortgage debt and debt owed to junior lienholders,
any assessed but unpaid property taxes, the condition of the property, and any other
equities.
(e) If the premises are not redeemed agreeably to the decree, the clerk of the court shall
issue a writ of possession at the plaintiff’s request. Such writ shall have the same
force and effect and be executed in the same manner as similar writs issued after
judgment by a court of law in ejectment proceedings. Where the premises are occupied
by a residential tenant, the writ shall be served on the tenant, and the plaintiff
shall be placed in possession of the property without further proceedings not sooner
than 30 days after the writ is served, or upon such other time as is required by federal
law, whichever is longer.
(f)(1) In an action for foreclosure under this section, if a lien or interest in such realty
is held by any person or federal agency which may not be foreclosed by strict foreclosure
pursuant to federal law, the court shall proceed in accordance with subchapter 3 of
this chapter.
(2) In an action for foreclosure, if a lien or interest in such realty is held by any
person or federal agency which may not be foreclosed by strict foreclosure pursuant
to federal law, a decree may be entered providing for such period of redemption as
the court may determine, and providing for a sale of the mortgaged premises at the
conclusion of such period if the premises are not redeemed, and for the time, manner,
and notice of sale, if required, and the application of any proceeds.
(g) In an action for foreclosure under this section, where the time of redemption has
expired, the party obtaining the foreclosure shall cause a certified copy of the judgment
and the certificate of nonredemption to be recorded in the office where by law a deed
of the lands is required to be recorded.
(h) If the plaintiff complies with subsection (g) of this section, the expiration of the
right of redemption under the decree shall foreclose the interest of subsequent purchasers,
mortgagees, or attaching creditors whose interest in the property being foreclosed
first arose after the filing of the complaint for foreclosure in the land records
as provided in section 4932 of this chapter. (Added 2011, No. 102 (Adj. Sess.), § 1.)
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Subchapter 003: FORECLOSURE BY JUDICIAL SALE
§ 4945. Judicial sale foreclosure
(a) All liens and mortgages affecting real property may, on the written motion of any
party to any suit for foreclosure of such liens or mortgages, or at the discretion
of the court before which the foreclosure proceedings are pending, be foreclosed by
a judicial foreclosure sale, even if the mortgage does not contain a sale provision
instead of a strict foreclosure.
(b) In an action for foreclosure, if a lien or interest in such realty is held by any
person or federal agency which may not be foreclosed by strict foreclosure pursuant
to federal law, a decree may be entered providing for such period of redemption as
the court may determine, and providing for a sale of the mortgaged premises at the
conclusion of such period if the premises are not redeemed, and for the time, manner,
and notice of sale, if required, and the application of the proceeds therefrom. (Added 2011, No. 102 (Adj. Sess.), § 1.)
§ 4946. Procedure
(a) Order for judicial sale. Upon entry of a decree of judicial sale foreclosure, the court shall order that the
mortgaged property be sold at a public sale if it is not redeemed within the time
period allowed by the court. The public sale shall be conducted on or before six months
from the expiration of the last redemption date set forth in the decree unless extended
by the court or stayed by a bankruptcy filing. The time and manner of the sale shall
be specified in the notice of sale required by section 4952 of this title.
(b) Time for redemption; owner-occupied dwelling house or farmland. If a decree is made foreclosing the right of redemption by judicial sale with respect
to farmland or a dwelling house that is occupied by the owner as his or her principal
residence at the time the plaintiff applies for entry of judgment, the time of redemption
shall be established by the court and shall be six months from the date of the decree,
unless a shorter time is ordered by the court. The court shall fix the period of redemption
taking into consideration whether there is value in the mortgaged property in excess
of the mortgage debt and debt owed to junior lienholders, any assessed but unpaid
property taxes, the condition of the mortgaged property, and any other equities. No
sale of a dwelling house when occupied by the owner as his or her principal residence
at the time the plaintiff applies for entry of judgment may take place within seven
months of service of the foreclosure complaint, unless the court orders a shortened
redemption period pursuant to this section or the plaintiff and the mortgagor mutually
agree to a shorter period after commencement of the action to foreclose the mortgage.
(c) Time for redemption; other property. If a decree is made foreclosing the right of redemption by judicial sale with respect
to any property other than farmland or a dwelling house that is occupied by the owner
as his or her principal residence at the time the plaintiff applies for entry of judgment,
the redemption period shall be eliminated or reduced by the court to no more than
30 days.
(d) Writ of possession. Upon expiration of the period of redemption in the decree, other than farmland or
a dwelling house when currently occupied by the owner as his or her principal residence,
if the mortgagor or the mortgagor’s successors, heirs, or assigns have not redeemed
the mortgage, any remaining rights of the mortgagor to possession shall terminate,
and the clerk of the court shall issue a writ of possession at the plaintiff’s request
and upon court approval. In the case of farmland or a dwelling house currently occupied
by the owner as his or her principal residence when the period of redemption in the
decree expires, the clerk shall issue a writ of possession at the plaintiff’s request
and upon approval of the court. Such writ shall have the same force and effect and
be executed in the same manner as similar writs issued after judgment by a court of
law in ejectment proceedings. Where the mortgaged property is occupied by a residential
tenant, the writ shall be served on the tenant, and the plaintiff shall be placed
in possession of the mortgaged property without further proceedings no sooner than
30 days after the writ is served, or upon such other time as is required by federal
law, whichever is longer. (Added 2011, No. 102 (Adj. Sess.), § 1.)
§ 4947. Foreclosure of equity of redemption; recording
(a) In an action for foreclosure under this subchapter where the time of redemption has
expired, the party obtaining the foreclosure shall cause a certified copy of the judgment
and the certificate of nonredemption to be recorded in the office where by law a deed
of the lands is required to be recorded.
(b) If the plaintiff complies with subsection (a) of this section, the expiration of the
right of redemption under the decree shall foreclose the interest of subsequent purchasers,
mortgagees, or attaching creditors whose interest in the property being foreclosed
first arose after the filing of the complaint for foreclosure in the land records
as provided in section 4932 of this chapter. (Added 2011, No. 102 (Adj. Sess.), § 1.)
§ 4948. Reinstatement of mortgage prior to sale
(a) Upon agreement of the mortgagor and mortgagee, the mortgagor may reinstate or modify
the loan after the expiration of the redemption period set forth in the judgment order
but before the public sale. Upon reinstatement or modification of the loan, the mortgagee
shall execute a waiver of foreclosure and, after receiving court approval, record
it in the land records of the city or town where the mortgaged property lies. Upon
recording, the waiver of foreclosure shall operate to terminate the foreclosure and
restore the parties and all junior lienholders to the positions they held prior to
the filing of the foreclosure, as amended by any modification agreement between the
mortgagor and mortgagee.
(b) The following form of waiver of foreclosure may be used. Nothing herein shall be construed
to prevent the use of other forms or to prevent alteration of the form as circumstances
require:
WAIVER OF FORECLOSURE
MORTGAGEE, holder of record of a mortgage deed dated ____ , 20__ and of record in Book ____ at Page ____ of the City/Town of ______ Land Records (“the Mortgage”) executed and delivered to it by MORTGAGOR(S) covering
real estate located in the Town of ______ , Vermont hereby acknowledges and agrees:
1. For the breach of the condition of the Mortgage, MORTGAGEE initiated a foreclosure
action against MORTGAGOR by Complaint for Foreclosure dated ______ , 20__ which is of record in Book ____ at Page ____ of the Town of _____ Land Records.
2. That MORTGAGOR(S) has/have now cured the default and requested reinstatement of
the Mortgage and the MORTGAGEE agrees to reinstate the mortgage, as amended by any
modification agreement between the mortgagor and mortgagee.
NOW THEREFORE, MORTGAGEE does hereby acknowledge that it has received payment of the
arrearages due it under the Mortgage and the promissory note which it secures, and
in consideration thereof, does hereby waive the above-entitled foreclosure action
and release unto said MORTGAGOR, his/her/its heirs, personal representatives, successors,
and assigns, all claims asserted in the foreclosure action. THE MORTGAGE IS NOT DISCHARGED.
This waiver is given pursuant to 12 V.S.A. § 4948. This waiver shall have no effect on the Mortgage referenced above other than to
reinstate the same, as amended by any agreement between the mortgagor and mortgagee,
and the rights of all parties named in the foreclosure action, as well as the rights
of any junior lienholders, remain intact, except as amended by any agreement between
the mortgagor and mortgagee, as if no foreclosure had been commenced.
IN WITNESS WHEREOF, the said MORTGAGEE has caused this instrument to be executed by
its duly authorized agent this ____ day of ______ , 20__ .
MORTGAGEE
By: __________
Its Duly Authorized Agent
Printed Name: ________
State of _____
County of ______
At ______ in said County and State, then personally appeared the above-named duly authorized
agent who acknowledged the foregoing waiver of foreclosure to be his/her free act
and deed and the free act and deed of the MORTGAGEE.
Before me, ______
Printed Name:________
Notary Public
My Commission expiration ______
_________________________________________
The request for waiver of foreclosure is SO ORDERED this ____ day of ______ , 20__ .
_________________________________________
Superior Court Judge
(Added 2011, No. 102 (Adj. Sess.), § 1.)
§ 4949. Mortgagor’s redemption prior to judicial sale
(a) The mortgagor is entitled to redeem the premises at any time prior to the public sale
by paying the full amount due under the judgment order and such other amounts, including
costs and expenses of sale, accruing postjudgment as agreed upon by the mortgagor
and mortgagee or ordered by the court.
(b) Upon agreement of the parties, the mortgagor may redeem the premises at any time prior
to the public sale by paying less than the full amount due under the judgment order.
In such case, the parties to the foreclosure shall, with court approval, amend the
redemption amount. Upon payment of the amended redemption amount, the court shall
issue a Supervening Certificate of Redemption as evidence that the judgment amount
was redeemed. Upon the recording of a certified copy of the Supervening Certificate
of Redemption in the land records, the foreclosed mortgage shall be of no further
force or effect and any junior lienholder shall return to the position it held prior
to the filing of the foreclosure.
(c) The redemption right established by this section shall be in addition to the redemption
right set forth in the decree. (Added 2011, No. 102 (Adj. Sess.), § 1.)
§ 4950. [Reserved.]
(Added 2011, No. 102 (Adj. Sess.), § 1.)
§ 4951. Judgment vacated
Notwithstanding any provision to the contrary in this chapter or other law, the mortgagor
and mortgagee may stipulate and move to vacate the judgment at any time prior to the
public sale. If the court approves the motion, the judgment shall be vacated and all
parties, the property, and any lienholders of record in the land records will be restored
to their original positions as if no foreclosure had been commenced and no judgment
entered. Notwithstanding any other provision of law, this section will apply retroactively
and apply to orders to vacate in existence on July 1, 2012. (Added 2011, No. 102 (Adj. Sess.), § 1.)
§ 4952. Sale procedures
(a) Generally. If the mortgaged property is not redeemed, the plaintiff shall sell the mortgaged
property in accordance with this section, complying with all court orders and applicable
power of sale provisions.
(b) Notice of sale; publication. Notice of sale shall be published once in each of three successive weeks in a newspaper
of general circulation in the town where the land lies, the first publication to be
no fewer than 21 days before the day of sale.
(c) Notice of sale; service. A copy of the notice of sale shall be mailed by first class mail, postage prepaid,
to all parties who appeared in the foreclosure action or to their attorneys of record.
If the mortgagor has not appeared in the foreclosure action, a copy of the notice
of sale shall also be mailed by first class mail, postage prepaid, to the mortgagor
at the mortgagor’s last known address. The notice of sale shall include the specific
date, time, and location of the sale and shall be mailed after the last date of redemption
in the decree but not fewer than 30 days before the date of the sale.
(d) Notice of sale; waiver. Any party entitled to be sent notice under this section may, either before or after
the foreclosure sale, waive the party’s right to receive notice, in which case no
foreclosure sale shall be invalid or ineffectual to foreclose that party’s rights
under the mortgage. This subsection shall not apply to farmland or to a dwelling house
unless approved by the court at or before the confirmation of sale.
(e) Notice of sale; form. The following form of notice of sale may be used and may be altered as circumstances
require, but nothing herein shall be construed to prevent the use of other forms:
By virtue and in execution of the Power of Sale contained in a certain mortgage given
by ______ to ______ and recorded in Volume ____ of the land records of the municipality of ______ , of which mortgage the undersigned is the present holder (if by assignment, or in any fiduciary capacity, give reference) for breach of the conditions of said mortgage and for the purpose of foreclosing the same will be sold at Public Auction at ______ (place) at ____ o’clock, ____ M. on the ______ day of ____ , 20__ all and singular the premises described in said mortgage,
(In case of partial releases, state exceptions.)
To wit: (Legal description of the premises.)
Terms of sale: (State here the amount, if any, to be paid in cash by the purchaser
at the time of the sale, and the schedule for payment of the balance and other terms
of sale.)
The mortgagor is entitled to redeem the premises at any time prior to the sale by
paying the full amount due under the mortgage, including the costs and expenses of
the sale.
Other terms to be announced at the sale or inquire at _________________________________________
Signed: ______
Mortgagee (may be signed by mortgagee’s attorney)
Dated: ______ , 20__ .
(Added 2011, No. 102 (Adj. Sess.), § 1.)
§ 4953. Conduct and location of sale
(a) Location. The sale shall be held at the mortgaged property unless another place for sale is
directed by the court. At the sale, the mortgaged property shall be sold to the highest
bidder in conformance with the terms of sale set forth in the notice of sale.
(b) Adjournments. The public sale may be adjourned one or more times for a total time not exceeding
30 days, without further court order, and without publication or service of a new
notice of sale, by announcement of the new sale date to those present at each adjournment
or by posting notice of the adjournment in a conspicuous place at the location of
the sale. Notice of the new sale date shall also be sent by first class mail, postage
prepaid, to the mortgagor at the mortgagor’s last known address at least five days
before the new sale date. The public sale may be adjourned for a period of time in
excess of 30 days by agreement of the mortgagor and mortgagee or by order of the court.
(c) Permitted bidders. Any person may bid at the sale. All bidders, except for the mortgagee plaintiff or
designee, shall meet the requirements set forth in the notice of sale in order to
bid at the sale. (Added 2011, No. 102 (Adj. Sess.), § 1.)
§ 4954. Procedure following sale
(a) Confirmation order. Following the sale, the plaintiff shall file with the court a report on oath of the
sale, together with a request for confirmation of the sale, which shall include an
accounting of the sale proceeds, and a proposed order confirming the sale. Copies
of the report of the sale and request for confirmation shall be mailed by first class
mail, postage prepaid, to all parties who appeared in the foreclosure action or to
their attorneys of record and to the mortgagor at the mortgagor’s last known address.
The court may issue an order of confirmation of the sale without hearing, unless the
court in its discretion determines that a hearing is necessary. The order of the court
confirming the sale shall be conclusive evidence as against all persons that the foreclosure
and sale were conducted in accordance with this section.
(b) Transfer of title. The confirmation order shall be recorded in the land records of the town where the
mortgaged property is located and shall transfer title to the mortgaged property to
the purchaser upon recording.
(c) Disbursement of proceeds. In the event that the proceeds of the sale, after first deducting the reasonable expenses
incurred in making the sale, exceed the amounts due to the plaintiff at the time of
sale, the confirmation order shall provide for the payment of the surplus to other
lienholders of record in the order of the priority of their liens. In the event that
the proceeds of the sale exceed the amount due to the plaintiff and the amount due
to the other defendants, the excess shall be paid to the defendant mortgagor.
(d) Deficiency. The plaintiff may request a deficiency judgment in the foreclosure complaint. The
court may assess a judgment against the mortgagor for the deficiency if the proceeds
of sale are insufficient to meet the expenses incurred in making the sale and the
amount due to the plaintiff. If the plaintiff seeks a deficiency judgment, it shall
be requested prior to issuance of the confirmation order. Failure to request a deficiency
judgment shall be deemed a waiver of any deficiency judgment against a mortgagor.
(e) Failure of sale; resale. In the event that the purchaser fails to pay the balance of the purchase price according
to the terms of the sale, then, upon the request of the plaintiff, the down payment
shall be forfeited and the court shall issue an order vacating the confirmation order.
Upon motion and after hearing, the court may issue a confirmation order to the second
highest bidder. (Added 2011, No. 102 (Adj. Sess.), § 1.)
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Subchapter 004: FORECLOSURE BY NONJUDICIAL SALE
§ 4961. Power of nonjudicial sale
Whether or not a power of sale is contained in a mortgage relating to any property,
except for farmland or a dwelling house owned by a natural person, instead of a suit
and decree of foreclosure, the mortgagee may, upon breach of mortgage condition, foreclose
upon the property without first commencing a foreclosure action or obtaining a foreclosure
decree by complying with the terms of this subchapter. No sale under and by virtue
of a nonjudicial power of sale shall be valid and effectual to foreclose the mortgage
unless the conditions of this subchapter are complied with. (Added 2011, No. 102 (Adj. Sess.), § 1.)
§ 4962. Notice of intention to foreclose
(a) At least 30 days prior to service of a notice of sale pursuant to subsection 4952(c) of this title, notice of intention to foreclose in a writing complying with this section shall
be sent to the mortgagor by registered or certified mail at his or her last known
address.
(b) The writing required by this section shall state, in a manner calculated to make the
mortgagor aware of the situation:
(1) the mortgage to be foreclosed;
(2) the mortgage condition claimed to have been breached;
(3) that the mortgagee has accelerated maturity of the debt secured by the mortgage, if
that is the case;
(4) the amount to be paid or other action necessary to cure, and the time within which
the cure must take place, which shall be not less than 30 days after the date of the
notice of intention to foreclose;
(5) the intention of the mortgagee to foreclose by exercising the power of sale contained
in the mortgage, if the breach of the mortgage condition is not cured within the time
and in the manner specified in the notice; and
(6) that the mortgagor will be entitled to be sent notice of the foreclosure sale at least
60 days prior to the sale and to redeem the mortgaged property at any time prior to
the sale by paying the full amount due under the mortgage, including the costs and
expenses of the sale.
(c)(1) The following notice of intent to foreclose form may be used and may be altered as
circumstances require:
PLEASE TAKE NOTICE that you have defaulted under Loan No. ____ by [mortgage condition breached] required by your Promissory Note dated ____ , 20____ . This default also constitutes a breach of the Mortgage, dated ____ , 20____ , recorded in Volume ____ at Page ____ of the Land Records, which secures the Loan. As a result of your default, we have
accelerated the maturity of all indebtedness due on the Loan and secured by the Mortgage,
totaling $____ as of today’s date. In order to cure this default, you must pay to us on or before
____ [a date not less than thirty (30) days after the date of this Notice] the sum of
$____ , plus interest at the rate of $____ per day to the date of payment. If you do not cure this default by making the payments
required, it is our intention to foreclose by exercising the power of sale contained
in the above Mortgage. You will be sent notice of the foreclosure sale at least sixty
(60) days prior to the sale, and you will be entitled to redeem your interest in the
mortgaged property at any time prior to the sale by paying the full amount due under
the Mortgage, including the costs and expenses of the sale. If you do not cure the
default or redeem your interest, your ownership of the mortgaged property will be
terminated.
(2) This subsection shall not be construed to prevent the use of other forms except that
all notices shall comply with the provisions of subsection (b) of this section. (Added 2011, No. 102 (Adj. Sess.), § 1.)
§ 4963. Publication of notice of sale
Notice of a sale conducted pursuant to this subchapter shall be published once in
each of three successive weeks, in a newspaper of general circulation in the town
where the land lies, the first publication to be not less than 21 days before the
day of sale. (Added 2011, No. 102 (Adj. Sess.), § 1.)
§ 4964. Recording
The mortgagee shall record the notice of sale in the land records of the town or city
where the land lies not less than 60 days prior to the sale. The filing of the notice
of the sale shall be in lieu of filing a foreclosure complaint under section 4932 of this title and shall be sufficient notice of the pendency of the nonjudicial foreclosure by
power of sale to all persons who acquire any interest or lien in the mortgaged property
between the dates of recording the notice of sale and recording the foreclosure deed.
Without further notice or service, those persons shall be bound by the power of sale
and the foreclosure deed and shall be foreclosed from all rights or equity in the
mortgaged property. (Added 2011, No. 102 (Adj. Sess.), § 1.)
§ 4965. Service; form
(a)(1) In all cases, unless service is waived under subsection 4966(g) of this title, a copy of the notice of sale shall be served on the mortgagor or his or her representative
in interest by:
(A) sending the notice by registered or certified mail addressed to the mortgagor or such
representative at his or her last known address, or to such person and address as
may be agreed upon in said mortgage, at least 60 days before said sale; or
(B) serving the notice in any manner authorized by the Vermont Rules of Civil Procedure.
(2) As used in this section, “mortgagor” shall mean the mortgagor or the then record owner
of the mortgaged property.
(b)(1) A copy of the notice of sale shall be sent to any tenant lawfully occupying the mortgaged
property and to any person having a recorded interest in the mortgaged property of
record which will be foreclosed by the sale, provided that the interest is recorded
in the applicable land records prior to the recording of the notice of sale. The notice
required by this subsection shall be sent not less than 60 days before the sale. Notice
to a tenant shall be sufficient if mailed to the tenant by first class mail at the
address specified in the lease, if recorded, or to the occupant at the address of
the mortgaged property, if the lease is not recorded.
(2) Compliance with this subsection shall be sufficient with respect to persons entitled
to receive notice under subdivision (1) of this subsection, and the failure to give
additional notice shall not be grounds to invalidate the sale. Any mortgagor or junior
lienholder who refuses to accept or claim mailed or served notice or who frustrates
attempts by the mortgagee to give notice of the sale by failing to give or leave a
forwarding address or by other acts or omissions shall be deemed to be notified of
the sale, provided that such mortgagee shall have made a good faith effort to provide
such notice.
(c)(1) The following notice of sale form may be used and may be altered as circumstances
require:
By virtue and in execution of the Power of Sale contained in a certain mortgage given
by ____ dated ____ and recorded in Volume ____ Page ____ of the land records of the town of ______ , of which mortgage the undersigned is the present holder (if by assignment, or in any fiduciary capacity, give reference) for breach of the conditions of said mortgage and for the purpose of foreclosing the same will be sold at Public Auction at ____ o’clock, ____ M. on the ____ day of ____ 20____ , (place) ____ at the mortgaged property.
To wit: (Legal description of the mortgaged property and in case of partial releases,
state exceptions.)
Terms of sale: (State here the amount, if any, to be paid in cash by the purchaser
at the time of the sale, and the schedule for payment of the balance.)
The mortgagor and all junior lienholders are entitled to redeem the mortgaged property
at any time prior to the sale by paying the full amount due under the mortgage, including
the costs and expenses of the sale.
Other terms to be announced at the sale or inquire at ______
(Signed) ________
Mortgagee (may be signed by mortgagee’s attorney)
______ 20____
(2) This subsection shall not be construed to prevent the use of other forms. A notice
of sale shall be sufficient if it fully sets forth the date, time, and place of sale;
the town, county, street, or highway and street number, if any, of the mortgaged premises;
the date of the mortgage; the volume and page of the recording of the mortgage; the
terms of the sale; the statement language required by subdivision (d)(1) of this section;
and notice of the right to redeem.
(d)(1) The notice of the sale shall include the following statement: “The mortgagor and all
junior lienholders are hereby notified that at any time before the foreclosure sale,
the mortgagor and all junior lienholders have a right to petition the Civil Division
of the Superior Court for the county in which the mortgaged property is situated,
with service upon the mortgagee, and upon such bond as the court may require, to enjoin
the scheduled foreclosure sale. Failure to institute such petition and complete service
upon the foreclosing party, or the party’s agent, conducting the sale prior to sale
shall thereafter bar any action or right of action of the mortgagor or any junior
lienholder based on the validity of the foreclosure, the right of the mortgagee to
conduct the foreclosure sale, or compliance by the mortgagee with the notice requirements
and other conditions of this section. An action to recover damages resulting from
the sale of the mortgaged property on the date of the sale may be commenced at any
time within one year following the date of the sale, but not thereafter.”
(2) The mortgagor and all junior lienholders shall have the rights contained in the notice
provided for in this subsection. (Added 2011, No. 102 (Adj. Sess.), § 1.)
§ 4966. Conduct and location of sale
(a) The sale shall be held at the mortgaged property except that it may be held elsewhere
if agreed to in writing by the mortgagor and the mortgagee not less than 60 days nor
more than 90 days before the sale. At the sale, the mortgaged property shall be sold
to the highest bidder in conformance with the terms of sale set forth in the foreclosure
notice.
(b) The mortgagor shall be entitled to redeem the mortgaged property at any time prior
to the sale by paying to the mortgagee the full amount due under the mortgage, including
the costs and expenses of the sale.
(c) The public sale may be adjourned one or more times for a total time not exceeding
60 days by announcement of the new sale date to those present at each adjournment
or by posting notice of the adjournment in a conspicuous place at the location of
the sale. Written notice of the new sale date shall also be given by first class mail,
postage prepaid, to any person who received notice of the sale pursuant to section 4965 of this title.
(d) Any person may bid at the sale. All bidders, except for the mortgagee plaintiff or
designee, shall meet the requirements set forth in the notice of sale in order to
bid at the sale.
(e) In the event that the proceeds of sale, after first deducting the reasonable expenses
incurred in making the sale, exceed the amounts due to the mortgagee at the time of
sale, the surplus shall be paid to other lien holders of record in the order of the
priority of their liens. In the event that the proceeds of sale exceed the amount
due to the mortgagee and the amounts due to the other lien holders, the excess shall
be paid to the mortgagor. The mortgagee or person conducting the sale may interplead
any sale proceeds in excess of the indebtedness and expenses secured by the mortgage
in the event there are any liens of record against the real estate.
(f) This section shall not preclude the mortgagee from maintaining a subsequent action
against the mortgagor for any deficiency.
(g) Any party entitled to be sent notice under this section may, either before or after
the foreclosure sale, waive the party’s right to receive notice, in which case no
foreclosure sale shall be invalid or ineffectual to foreclose that party’s rights
under the mortgage. A waiver of notice authorized or validated under this section
shall be recorded in the land records in the town or city where the property is located. (Added 2011, No. 102 (Adj. Sess.), § 1.)
§ 4967. Recording following sale
(a) Within 90 days after the sale, the mortgagee selling pursuant to the power shall cause
the foreclosure deed and an accompanying affidavit to be recorded in the land records
of the town where the property is situated. The affidavit setting forth fully and
particularly the mortgagee’s acts with respect to the sale of the mortgaged property,
including the dates that notices of the sale were published, shall set forth facts
showing that no person in interest is in the military service as defined in the Service
Members Civil Relief Act of 2003. The affidavit or a duly certified copy thereof shall
be admissible in evidence on the issue of whether the power of sale was duly executed.
(b) If the recording required by this section is prevented by an order or stay of any
court, the time for such recording shall be extended until 10 days after the expiration
or removal of such order or stay.
(c) If the recording required by this section is made more than 60 days after the sale,
the affidavit shall state why the recording was not made earlier.
(d) Failure to record the deed and affidavit within the statutory period required by this
subsection shall render the sale void and of no effect only as to liens or other encumbrances
of record intervening between the day of the sale and the time of recording of the
deed and affidavit.
(e) Correction of error. In case of an alleged error or omission in the affidavit, the
court, on petition and after notice to interested parties, may validate the affidavit
or authorize the recording of an affidavit amending, correcting, or in substitution
for an affidavit so recorded, and the affidavit so authorized to be recorded or a
certified copy of the record thereof shall have the same effect and shall be admitted
in evidence as if it had been recorded within the 90-day period required by this section. (Added 2011, No. 102 (Adj. Sess.), § 1.)
§ 4968. Transfer of title
Title to the foreclosed mortgaged property under this section shall not pass to the
purchaser until the time of the recording of the deed and affidavit. Upon such recording,
title to the mortgaged property shall pass to the purchaser free and clear of all
interests and encumbrances which do not have priority over such mortgage. (Added 2011, No. 102 (Adj. Sess.), § 1.)
§ 4969. Failure of sale; resale
If the purchaser does not pay the balance of the purchase price according to the terms
of the sale, and at the option of the mortgagee, the down payment, if any, shall be
forfeited and the foreclosure sale shall be void. (Added 2011, No. 102 (Adj. Sess.), § 1.)
§ 4970. Form and effect of foreclosure deed
(a) The foreclosure deed shall be in substantially the following form:
______ of ______ County, ______ State of ______ , holder of a mortgage from ____ to ____ dated ____ , recorded in ____ Book____ at Page ____ of the Town of ____ Land Records, by the power conferred by said mortgage and every other power, for
____ dollars paid, grant to ______ , (complete mailing address) ______ , of ______ Street, Town (City) of ____ , ______ County, State of ______ , the premises conveyed by said mortgage.
(Here add acknowledgment)
(b) A deed substantially in the form set forth in subsection (a) of this section shall,
when duly executed and delivered, have the force and effect of a deed in fee simple
to the grantee, heirs, successors, and assigns, to their own use, with covenants on
the part of the mortgagee, for himself or herself, that, at the time of the delivery
of such deed, the mortgagee was duly authorized to make sale of the mortgaged property;
that in all of the mortgagee’s proceedings in the sale thereof, the mortgagee has
complied with the requirements of this subchapter; and that the mortgagee will warrant
and defend the same to the grantee, heirs, successors, and assigns against the lawful
claims of all persons claiming by, from, or under him or her. (Added 2011, No. 102 (Adj. Sess.), § 1.)