Vermont Renters' Rights During Foreclosure

When your landlord is facing foreclosure, the experience can feel overwhelming. As a renter in Vermont, you have important rights and protections—it's crucial to know what to expect, especially regarding eviction, notice periods, and where to go for support. This guide explains your legal protections during a foreclosure as a renter in Vermont, including the official steps and resources available to help you stay secure in your home.

What Happens When Your Rental Property Faces Foreclosure?

Foreclosure is when a mortgage lender takes legal action to repossess a property because the landlord has failed to make loan payments. Even if the landlord is in foreclosure, the law requires specific processes before renters can be evicted or asked to leave.

• Property ownership may change, but your tenancy isn’t automatically canceled.
• You have a right to proper written notice before you can be made to move out.
• The new owner (often the bank or lender) must follow state and federal tenant protections.

Your Rights as a Renter Under Vermont Law

Vermont’s tenant rights are governed by the Vermont Residential Rental Agreements Act, which covers rental agreements, required notices, and eviction procedures. During foreclosure, renters are also protected by the federal Protecting Tenants at Foreclosure Act (PTFA).

• Notice Requirement: The new owner must give you at least 90 days’ written notice to vacate after a foreclosure sale, if you do not have a lease.
• If you have a valid lease, you generally have the right to stay until the end of your lease (unless the new owner intends to move in as their primary residence).
• You are not required to leave immediately when foreclosure proceedings begin.

Eviction Process After Foreclosure

If the new owner wants to end your tenancy, they must follow Vermont’s legal process for eviction (known formally as "ejectment"). Any eviction must go through the courts; you cannot be locked out or forced out without a court order.

• Ejectment Complaint (Form 700-00123): Used by property owners to start the legal process to remove tenants after foreclosure. If you receive a Summons and Complaint, respond by the deadline indicated to protect your rights.
• If you believe the eviction is improper, you may present your case at the hearing.

The Vermont Judiciary (District and Superior Courts) handles rental disputes and eviction actions.

Forms You May Encounter and How to Use Them

• Ejectment Complaint (Form 700-00123): This form is filed by the new owner to start the eviction process after foreclosure. If you receive this form, read the notice carefully. Respond by submitting your defenses before the deadline stated in the summons.
  Official source and instructions: Ejectment (Eviction) Packet.

Practical Example: If you get an Ejectment Complaint in the mail or by a sheriff, you must respond by filing an "Answer" form included with the packet. Failure to respond can result in a default judgment and faster eviction.

What to Do If You Receive a Notice to Vacate

If you receive a written notice to leave your home due to foreclosure, here's what to do:

• Check if the notice gives you 90 days (the minimum required by federal law unless you have a longer lease).
• Verify if your lease entitles you to stay longer, unless the new owner plans to move in.
• Contact legal aid or tenant resources listed below if you are unsure.

Staying Informed and Protecting Yourself

Keep all documents, notices, and mail related to the foreclosure and your lease. Maintain records of all communication with your landlord or the new property owner.

Common Questions About Renters’ Rights in Foreclosure Situations

The following section provides clear answers to some of the most frequently asked questions Vermont renters have about foreclosure and evictions. If you have further questions, consult the resources listed below or seek legal advice.

1. Does a foreclosure automatically end my lease?
   No. In most cases, your lease remains valid until it expires—even if there is a new owner—unless they plan to move in.
2. How much notice do I have before I need to move?
   Federal law requires at least 90 days’ written notice to vacate. Your lease may entitle you to more time.
3. Can the new owner evict me right away?
   No. The new owner must give you notice, follow Vermont’s eviction laws, and get a court order before you can be removed.
4. Am I still required to pay rent during foreclosure?
   Yes. You must continue to pay rent to the rightful owner or as directed by the court after foreclosure. Keep proof of all payments.
5. Where can I get help if I face eviction after foreclosure?
   Contact the resources below, such as Vermont Legal Aid or the Vermont Judiciary, for assistance or free legal advice.

Conclusion: Key Takeaways for Vermont Renters

• Foreclosure does not immediately end your right to stay; you are protected by both state and federal law.
• You must receive proper written notice and can only be evicted by court order.
• Use official forms and resources and seek help if you receive any legal papers or eviction notices.

Understanding your rights and acting quickly will help you protect your home and remain secure during a Vermont foreclosure situation.

Need Help? Resources for Renters

• Vermont Legal Aid – Renters & Foreclosure Help
• Vermont Judiciary (Courts for Rental Disputes & Evictions)
• Vermont Residential Rental Agreements Act
• Dial 2-1-1 for state housing assistance and referrals

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1. Vermont Residential Rental Agreements Act – Title 9, Chapter 137
2. Protecting Tenants at Foreclosure Act
3. Vermont Judiciary (District and Superior Courts)
4. Ejectment (Eviction) Official Forms

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