Vermont Servicing Reference Guide
- Kacey Olson
| Citation | Topic | Requirement |
| Real Property Laws / Vt. Stat. Ann. tit. 27, §463(a) | Acknowledgment of Satisfaction | Mortgages may be discharged by an acknowledgment of satisfaction, executed by the mortgagee or his attorney, executor, administrator or assigns. |
| Vt. Stat. Ann. tit 12, §4954(a) | Confirmation Order | (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. |
| Vt. Stat. Ann. tit. 12, §4966(e) | Distribution of Proceeds of 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. |
| Real Property Laws / Vt. Stat. Ann. tit. 12, §4632(c) | Foreclosure Mediation Notice | In an action for foreclosure of a mortgage, the mortgagee must serve upon the mortgagor 2 copies of a notice as described below, together with the summons and complaint. The Vermont Supreme Court may by rule consolidate this notice with other foreclosure-related notices as long as the consolidation is consistent with the content and format of the notice described below. The notice must: (1) be on a form approved by the court administrator; (2) advise the homeowner of the homeowner's rights in foreclosure proceedings; (3) state the importance of participating in mediation even if the homeowner is currently communicating with the mortgagee or servicer; (4) provide contact information for legal services; and (5) incorporate a form that can be used by the homeowner to request mediation from the court. |
| Real Property Laws / Vt. Stat. Ann. tit 12, §4962(a) | Notice of Intent to Foreclose | At least 30 days prior to publication of a Notice of Sale, a lender must provide the mortgagor with written notice of intention to foreclose by registered or certified mail at the mortgagor's last known address. |
Vt. Stat. Ann. tit. 12, §4952(b), (c) | Notice of Sale - Judicial | (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 no fewer than 30 days before the date of the 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. |
Notice of Sale - Non-Judicial | 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. (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. | |
| Court Procedures / Vt. Stat. Ann. tit. 12, §4933(a) | Notice to Commissioner of Department of Financial Regulation | When the mortgage holder files an action to foreclose owner-occupied dwelling house, the mortgage holder must file a notice of foreclosure with the Commissioner of the Department of Financial Regulation. |
| Rules of Civil Procedure / Vt. Rule of Civ. Proc. 80.1(b) | Notice to Homeowner | A copy of the Notice to Homeowner must be served and filed as the top page of the summons and complaint in any action to foreclose a mortgage on a residence. If the notice is not incorporated, the clerk will not accept the complaint for filing, and the summons and complaint may not be served by an officer, attorney, or other authorized person. |
| Real Property Laws / Vt. Stat. Ann. tit. 27, §464(a) | Payoff Statement Request | Within 5 business days after the lender's receipt of a written request for a statement of the amount of funds or other obligations required to satisfy a note or other obligation secured by a mortgage, the lender must provide a written payoff statement to the borrower. The lender may not impose a fee or other charge for providing the payoff statement, unless the request specifically asks for expedited service. A request for a payoff statement must include the name of the lender, the loan number assigned to the loan, and the address of the property securing the loan. |
| Vt. Stat. Ann. tit. 12, §4967(a) | 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. |
| Vt. Stat. Ann. tit 12, §4948(a) | Reinstatement Prior to Foreclosure 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. |
Release of Lien | Each licensed lender must, upon repayment of a loan in full, promptly mark indelibly every obligation and security signed by the borrower with the word “Paid” or “Canceled,” and within 30 days, release any mortgage, restore any pledge, cancel and return any note, record or file any necessary release or discharge, cancel and return any assignment given to the licensee by the borrower, and refund to the borrower, any unearned portion of the premium for credit life or disability insurance if a premium for the insurance was disbursed on behalf of the borrower at the time the loan was originally made. If the lender or servicer does not execute and deliver the release to the borrower within 30 days, the lender or servicer will be liable to the borrower for damages of $25 per day up to $5,000. |