Real Estate Auction Finder

Vermont Counties

Real Estate Auction In Vermont

Vermont operates under a tax lien system, which means that when property owners do not pay their property taxes, the county government sells tax liens on the delinquent properties to investors. Investors pay the outstanding taxes on behalf of the property owner and receive a tax lien certificate in return. This certificate represents the investor’s claim on the property and accrues interest at a rate of 12% per year. The property owner is responsible for repaying the investor, including the accrued interest, within a specified redemption period. If the property owner fails to redeem the tax lien, the investor may eventually have the right to foreclose on the property.

Tax Deed Auctions in Vermont

In addition to tax liens, Vermont also conducts tax deed auctions to sell properties with unpaid property taxes. The process generally works as follows:

  1. Delinquent Taxes: When property owners fail to pay their property taxes in Vermont, the county or municipality may initiate the tax foreclosure process. Property taxes are considered delinquent when they remain unpaid for a specific period of time, typically a few years.
  2. Notice of Delinquency: The county or municipality sends a notice of delinquency to the property owner, informing them about the outstanding taxes and the potential consequences, including the possibility of a tax deed auction.
  3. Tax Sale Process: If the property taxes remain unpaid, the county or municipality proceeds with a tax deed auction. The auction is usually held at a designated location, such as the county courthouse or an online platform. Specific details, such as the date, time, and location of the auction, are typically published in advance.
  4. Auction Bidding: Interested bidders can participate in the tax deed auction by registering and submitting their bids. The bidding process may involve competitive bidding, with the property being sold to the highest bidder. It’s important to carefully review the auction rules and requirements, including any deposit or registration fees.
  5. Winning Bid and Payment: If your bid is successful, you become the winning bidder. You will be required to pay the full amount of your bid, which includes the delinquent taxes, accrued interest, fees, and any additional costs associated with the auction. The payment is typically due immediately or within a specified timeframe set by the auctioneer.
  6. Tax Deed Issuance: After the payment is made, the county or municipality issues a tax deed to the winning bidder. The tax deed represents ownership of the property, subject to any applicable redemption period or other legal provisions. It’s important to understand the specific rights and obligations associated with the tax deed, as they can vary depending on state laws.
  7. Redemption Period: In some cases, the property owner may have a redemption period during which they can repay the delinquent taxes and reclaim the property. If the redemption period expires without the property owner redeeming the property, the winning bidder’s ownership becomes more secure.

Foreclosure Process in Vermont

Vermont follows a judicial foreclosure process. In Vermont, the foreclosure process may come into play when a property owner fails to redeem the tax lien or pay the delinquent taxes. The investor or winning bidder from a tax deed auction may have the right to foreclose on the property. The foreclosure process typically involves the following steps:

Notice of Foreclosure: The investor or winning bidder initiates the foreclosure process by filing a lawsuit against the property owner. The lawsuit includes a notice of foreclosure, informing the property owner about the legal action being taken.

Court Proceedings: The lawsuit proceeds through the court system. The court will review the case, and if the property owner does not present a valid defense or fails to appear in court, a judgment may be issued in favor of the investor or winning bidder.

Court Order: Once the court has issued a judgment in favor of the investor or winning bidder, a court order is obtained. This order grants the right to foreclose on the property and transfer ownership to the investor or winning bidder.

Sale of the Property: With the court order in hand, the investor or winning bidder proceeds with the sale of the property. The sale may be conducted through a public auction or a private sale, depending on state laws and the specific circumstances of the case.

Distribution of Proceeds: The proceeds from the sale are used to satisfy the delinquent taxes, interest, fees, and any additional costs associated with the foreclosure process. If there is any surplus after covering these expenses, it may be returned to the property owner or other eligible parties.

Transfer of Ownership: Upon completion of the sale and distribution of proceeds, the investor or winning bidder becomes the new legal owner of the property.

In Summary

The important points of the state auction process in Vermont are summarised below-

  1. Type of auction– Tax Lien
  2. Time and locationThe auction is usually held at a designated location, such as the county courthouse or an online platform. Specific details, such as the date, time, and location of the auction, are typically published in advance.
  3. Redemption period– 1 year from the date of the tax lien sale
  4. Type of foreclosure– Judicial
  5. Foreclosure Redemption period– 6 months from the date of foreclosure sale
CountyClerk WebsiteTax Deed Sales
Addison Countyhttps://www.addisoncounty.com/town-clerksInformation will be available on clerk's website
Bennington Countyhttps://benningtonvt.org/services/town_clerk/index.phphttps://benningtonvt.org/services/collections.php
Caledonia Countyhttps://bgs.vermont.gov/facilities/east/caledoniacourtInformation will be available on clerk's website
Chittenden Countyhttps://www.burlingtonvt.gov/CTInformation will be available on clerk's website
Essex Countyhttps://www.essexvt.org/225/Clerk-and-Treasurerhttps://www.essexvt.org/238/Property-Taxes
Franklin Countyhttps://www.franklinvermont.org/Information will be available on clerk's website
Grand Isle Countyhttps://www.grandislevt.org/departments-2/town-clerk/Information will be available on clerk's website
Lamoille Countyhttps://www.vermontjudiciary.org/court-locations/lamoille-civil-divisionInformation will be available on clerk's website
Orange Countyhttps://orangevt.org/https://orangevt.org/government/property-taxes/
Orleans Countyhttps://www.vermontjudiciary.org/court-locations/orleans-civil-divisionInforamtion will be available in clerk website
Rutland Countyhttps://www.rutlandcity.org/departments/clerks-office/Information will be available on clerk's website
Washington Countyhttps://www.vermontjudiciary.org/court-locations/washington-criminal-divisionInformation will be available on clerk's website
Windham Countyhttps://townofwindhamvt.com/Information will be available on clerk's website
Windsor Countyhttps://www.windsorvt.org/town-clerkInformation will be available on clerk's website
Scroll to Top