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Searching 2023-2024 Session

The Vermont Statutes Online

 

Title 12 : Court Procedure

Chapter 163 : CHANCERY PROCEEDINGS

Subchapter 009 : MEDIATION IN FORECLOSURE ACTIONS

(Cite as: 12 V.S.A. § 4631)
  • § 4631. Mediation program established

    (a) This subchapter establishes a program to assure the availability of mediation and application of government loss mitigation program requirements in actions for foreclosure of a mortgage on any dwelling house of four units or less that is occupied by the owner as a principal residence.

    (b) The requirements of this subchapter shall apply to all foreclosure actions on dwelling houses of four units or less that are occupied by the owner as a principal residence unless:

    (1) the loan involved is not subject to any government loss mitigation program requirements;

    (2) prior to commencing the foreclosure action, the mortgagee or a representative of the mortgagee met with or made reasonable efforts to meet with the mortgagor in person in Vermont to discuss any applicable loss mitigation options; and

    (3) the plaintiff in the foreclosure action certifies in a separate document filed with its complaint that the requirements of subdivisions (1) and (2) of this subsection have been satisfied and describes its efforts to meet with the mortgagor in person to discuss applicable loss mitigation efforts.

    (c) To be qualified to act as a mediator under this subchapter, an individual shall be licensed to practice law in the State and shall be periodically required to take specialized, continuing legal education training courses on foreclosure prevention or loss mitigation approved by the Vermont Bar Association.

    (d) This subchapter shall not apply to a commercial loan.

    (e) As used in this subchapter:

    (1) “Commercial loan” means any loan described in 9 V.S.A. § 46(1), (2), or (3).

    (2) “Government loss mitigation program” means:

    (A) the federal Home Affordable Modification Program (HAMP);

    (B) any loss mitigation program for loans owned or guaranteed by government-sponsored entities such as the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac), the U.S. Federal Housing Administration, or the U.S. Department of Veterans Affairs;

    (C) any loss mitigation program for loans guaranteed by the U.S. Department of Agriculture-Rural Development that are not owned by an instrumentality of the United States or the State of Vermont; or

    (D) a settlement agreement with a government entity, or any state or federal law or regulation, regarding the notification, consideration, or offer of loss mitigation options. (Added 2009, No. 132 (Adj. Sess.), § 4; amended 2013, No. 8, § 1, eff. Dec. 1, 2013.)