After a foreclosure completes, the proceeds from the sale go toward paying off the remaining loan balance.

In many cases, if your land doesn’t sell for enough to cover what you owe, a deficiency judgment might be issued against you as the borrower.

A deficiency judgment allows the bank to pursue you for the difference between what your land sold for at auction and what you still owed on the loan.

Vermont and other states have different rules about deficiency judgments. Some limit the amount to the fair market value of the property, while others may allow the lender to pursue the full remaining loan balance.

Here’s a great resource that lists the state by state deficiency judgment laws, since every state has different regulations.

Typically, it’s best to avoid a foreclosure auction altogether. Consider contacting your lender directly or working with a land specialist like us at Sell Vermont Land Fast | Vermont's #1 Trusted Cash Land Buyer to help negotiate reductions on what you owe and find win-win solutions.

As experienced land investors, we can often help by negotiating directly with lenders to reduce your debt burden – sometimes even eliminating it completely, even when your land is underwater (worth less than you owe).

If you need to sell your land in the area, our community-focused team is ready to help with a fast, transparent solution.

We buy land in Vermont from landowners who need a quick, hassle-free sale, helping both sellers move on and creating affordable housing opportunities.