The best way to recover from foreclosures in VT is to let your lender know when you will not be able to make a payment. Lenders usually end up losing money in the foreclosure process and do not actually want to foreclose on your house.

Lenders therefore have an interest in exploring all possibilities in the Vermont foreclosure process, including forbearance, partial claim, payment modification and payment suspension. More of these options will be available if you are only one or two payments behind.

There are three key actions to take in the Vermont foreclosure recovery process:

1. Review and answer all correspondence from your lender. These notices will contain important information on the foreclosure recovery process in Vermont and any pending legal actions.
2. Make a missed payment by raising money quickly. You may be able to sell a second car, jewelry or other assets, or a family member may be able to get an extra job.
3. Avoid foreclosure recovery scams. Many companies will charge you for information you could get for free. Others may ask you to sign over the title to your house.

Action Steps
The best contacts and resources to help you get it done

Know how Vermont foreclosure laws will affect you

Laws on foreclosure vary considerably by state so you should be familiar with at least a summary of foreclosure laws in Vermont. You should also read your loan documents to know what your lender can do if you can't make your payments.

I recommend: In addition to a summary of Vermont law, American Foreclosure Specialists provides a description of possible strategies for avoiding foreclosures in Vermont. ForeclosureS.com provides the contact information for the Attorney General’s Office in Vermont and links to specific legislation regarding foreclosure in Vermont.

Get assistance with Vermont foreclosure recovery information

There are housing counselors and online resources available to help you understand your options, assist you in organizing your finances and negotiate with your lender if needed.

I recommend: Visit the National Foundation For Credit Counseling’s Homeowner Crisis Resource Center for information and tools to get started understanding your foreclosure options. The Department of Housing and Urban Development provides contact information for approved housing counselors in Vermont that are available for free or at a very low cost.

Retain a Vermont foreclosure lawyer

You may need one of the many Vermont Foreclosure attorneys to protect your interests, especially if you need to sign documents. If your regular attorney does not handle Vermont foreclosure law, he or she may be able to make a referral.

I recommend: Cohen & Rice serves clients in the Rutland area specifically handles foreclosure cases. Stevens Law Office in Stowe has specific experience in providing foreclosure assistance to its clients.

Watch out for mortgage recovery scams

The Federal Trade Commission warns that there are plenty of bad guys operating in the foreclosure recovery business who will take your money and provide no service. Some warning signs, according to the FTC: advertising terms like 'guarantee' and '97% success rate', upfront fees before services and company names or websites designed to make you think you're dealing with a government or nonprofit agency.

I recommend: Educate yourself about foreclosure recovery scams through the Federal Trade Commission. The FTC recommends you only seek foreclosure help from government sanctioned counseling agencies like the ones recommended by the U.S. Department of Housing and Urban Development or the federal Making Home Affordable program.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  You may want to include refinancing in your Vermont foreclosure process if you have built-up some equity in your home. You would usually require at least 10% equity to have a reasonable chance at refinancing and it will be easier with more equity. However, you don't want to simply take out a new loan to repay the original mortgage.