Foreclosure Process in Vermont (VT)Topic: Foreclosure
Vermont is a strict foreclosure state. That means that foreclosures in this state proceed on the premise that the lender owns the home, not the borrower. So, if the borrower transgresses on any condition in the mortgage before the loan is paid in total, they will lose all right to be in the home. The lender will take hold of the property and set up the auction. The first step in this state is; the borrower/homeowner must be served a summons to appear in court and there be apprised of his or her rights in the case. At this time, the lender can request a summary judgment. This, if granted, will by pass a trial completely.
If the lender chooses to go for the in court foreclosure, they must first file a complaint in court and receive a decree of sale. The occasions when this type of foreclosure is required, is when the property includes a dwelling of two units or a building that has less than two units . The owner must be utilizing this as their principle residence.
Another rule that applies to this form of foreclosure is that the property cannot be sold until after seven months following the granting of the decree of sale. Vermont allows for out of court foreclosure when, again it is not a 2 unit or less dwelling with owner residing in one of those units as their primary home or farmland. If these conditions are met, then the lender can sell the place without either a formal foreclosure proceedings or bothering to get decree of sale. This is how the sale would proceed, at a minimum of thirty days before the advertising of the notice of sale , a letter called the notice of intent to foreclose, must be sent to the home owner by registered mail. This must be sent to their last known address. This letter must contain a description of the condition in the mortgage that the borrower has not honored. It must also explain the lender's right to accelerate the mortgage (call it due in full). This letter must state that the homeowner will receive a notice of sale, no sooner than sixty days before the sale date.
At anytime before the sale, the borrower can 'buy back'?? the home and avoid foreclosure by paying the total amount of the mortgage plus attorney's fees and other lender expenses. If and when the sale date does arrive, it will be held on the property itself. Sometimes the court will designate some other location. The property will then be sold to the highest bidder. Anyone, including the lender, may bid.
If there is not enough money from the winning bid, to pay off the amount owed, then the lender has the right to continue to pursue the borrower for the additional money. They will do this through a law suit. In Virginia, if the mortgage was initiated after 1968, the home owner has six months to regain ownership of the property. If the home has a mortgage that was entered into before 1968, then the home owner can 'buy it back'?? for a full 12 months after the sale. The cost of the option to the home owner is the highest or winning bid amount at the auction plus interest.
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In nearly every jtsordicuiin, efforts targeted at helping householders in the struggle against foreclosure have run against a standard road-block : the disinclination of many owners to file the court forms that are needed for them to exploit the new, anti-foreclosure initiatives.
I too think that this loan modification is a big joke. More than lielky you will be denied and not qualify for any other program that your bank may offer. I am disillusioned and very, very upset with this entire process. I had 2 aneuryms and have yet to return to work. I am looking but have not found anything yet. I am going to lose my house. I got a 3 month fornearance and now they want all the back payments.
The lender's power of sale reerfs to the clause in the original mortgage documents that allow the bank to take a house to a public auction without going through the whole lawsuit process. It is used in nonjudicial foreclosure settings, which are the predominant types of foreclosure proceedings in California.The other type of foreclosure, judicial foreclosure, is rarely used in California and only when the loan documents do not have the power of sale clause, or if the bank wants to pursue a deficiency judgment against the owners after the sheriff sale. Since most homeowners have little other assets than the house, it is usually not worth it for the bank to go after another judgment after foreclosure.The power of sale clause, to be accepted most easily, needs to specify the time, date, and place that the sale can be conducted. Obviously, it doesn't have to go so far as to name specific months, days, or years. If these aren't mentioned in the documents, then additional guidelines would have to be followed in order to use nonjudicial foreclosure.There are still notice requirements for the lender to be able to sell the foreclosed house in this manner, and there is no redemption period after the auction. Homeowners have 90 days after the initial notice of default is sent to cure the default, but if they are unable to do so and the house is auctioned, the lender can not sue them for a deficiency judgment afterwards.Hope that answers your question.ForeclosureFish
If you're reandig this, you're all set, pardner!
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