Under Vermont law, when a lender seeks to enforce a defaulted residential mortgage, which legal process is required?
Correct Answer
B) Judicial foreclosure through the Vermont court system
Vermont is a judicial foreclosure state. All residential mortgage foreclosures must proceed through the Vermont court system. There is no recognized power-of-sale clause for residential mortgages in Vermont, meaning lenders cannot bypass the courts and must obtain a court judgment before selling the property.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
Usury is the practice of charging an interest rate that exceeds the maximum rate permitted by state law. Usury laws protect borrowers from excessive interest charges on loans.
A VA loan is a mortgage guaranteed by the Department of Veterans Affairs available to eligible veterans, active-duty service members, and surviving spouses. It offers no down payment and no private mortgage insurance requirements.
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