12 V.S.A. § ___ § 4932
Venue; joinder of parties; recording
Operative Text
(a) Actions to foreclose a mortgage under subchapter 2 or 3 of this chapter shall be brought in the Civil Division of the Superior Court for the county where the land lies, or, if the land described in the mortgage lies in more than one county, then in one of the counties in which the land lies. (b) The plaintiff shall file a copy of the complaint in the town clerk’s office in each town where the mortgaged property is located. The clerk of the town shall minute on the margin of the record of the mortgage that a copy of foreclosure proceedings on the mortgage is filed. The filing shall be sufficient notice of the pendency of the action to all persons who acquire any interest or lien on the mortgaged premises between the dates of filing the copy of foreclosure and the recording of the final judgment in the proceedings. Without further notice or service, those persons shall be bound by the judgment entered in the cause and be foreclosed from all rights or equity in the premises as completely as though they had been parties in the original action. (c) If the mortgaged property is subject to a residential rental agreement, as defined in 9 V.S.A. § 4451: (1) The plaintiff shall join as a party defendant any person occupying the mortgaged property pursuant to a residential rental agreement as of the date the copy of the complaint is recorded in the land records. Service of the complaint on the tenant shall be sufficient if mailed to the tenant by first class mail at the address specified in the rental agreement, if the agreement is recorded, or to the “occupant” at the address of the leased premises if the agreement is not recorded. (2) The summons and complaint served on any person occupying the premises pursuant to a residential rental agreement shall contain the following notice, written in at least 14-point type: THE PROPERTY IN WHICH YOU LIVE IS BEING FORECLOSED UPON. YOU ARE NAMED AS A DEFENDANT IN THE FORECLOSURE BECAUSE YOUR RIGHT TO REMAIN ON THE PREMISES MAY END WHEN THE FORECLOSURE IS COMPLETED. YOU MUST NOTIFY THE COURT OF YOUR NAME AND ADDRESS IN ORDER TO BE KEPT INFORMED OF THE STATUS OF THE FORECLOSURE. (3) Upon receipt of the complaint, the owner of the mortgaged property shall notify each tenant who enters into a residential rental agreement that the premises are the subject of a pending foreclosure action and that, in the event the owner is unable to redeem the premises, the tenant may be required to vacate the premises upon 30 days’ notice, or upon such other notice as is required by federal law, whichever is longer. The failure of the owner to provide notice under this subsection shall not affect or invalidate the foreclosure action. (d) All proceedings shall be before the Superior judge alone, and trial shall be without jury. (Added 2011, No. 102 (Adj. Sess.), § 1.)
Vermont law under 12 V.S.A. ch. 172 § 4932 establishes where and how mortgage foreclosure actions must be filed, who must be notified, and how the proceedings are conducted. Foreclosure cases must be filed in the Superior Court of the county where the mortgaged property sits, and a copy of the complaint must be recorded with the relevant town clerk's office, which serves as public notice to anyone who later acquires an interest in the property. When the mortgaged property is occupied under a residential rental agreement, tenants must be formally joined as defendants and served with a specific written notice explaining that their right to remain may end when foreclosure is complete. All foreclosure proceedings under this chapter are decided by a Superior Court judge without a jury.
Plain English — not legal advice.
Under 12 V.S.A. ch. 172 § 4932, a mortgagee or plaintiff initiating foreclosure is generally expected to file the complaint in the correct county court and record a copy with each relevant town clerk's office to establish proper notice. When tenants occupy the property under a residential rental agreement, compliant practice includes joining those tenants as defendants and serving them with the statutorily required notice written in at least 14-point type. Additionally, the property owner is expected to inform any tenant who enters a new rental agreement during a pending foreclosure that the property is subject to that action and that vacating may be required on 30 days' notice or the notice period required by federal law, whichever is longer.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 4932 of Title 12 of the Vermont Statutes gives tenants living in a property under a residential rental agreement the right to be formally named as defendants in any foreclosure action affecting their home, ensuring they receive direct notice of the proceedings. The law requires that the summons and complaint served on tenants include a specific written notice — in at least 14-point type — explaining that their right to remain may end when foreclosure is complete and that they must notify the court of their name and address to stay informed. Tenants who receive such notice may wish to contact a tenant-rights organization or legal aid service to understand how the foreclosure timeline under § 4932 may affect their tenancy and what options may be available to them.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 18, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
Effective Timeline
References In
Rules and statutes that cite this regulation