How to Recover Surplus Funds from Tax Foreclosure Sales in Vermont
Did you know that if your Vermont property was sold at a tax foreclosure auction for more than what you owed, the extra money might belong to you?
How Vermont Tax Foreclosure Works
In Vermont, when taxes go unpaid for more than two years, the town can foreclose on the property through the court system -- just like a mortgage foreclosure. Under Chapter 133, Section 5061, a judge issues a decree, appoints a bonded commissioner, and gives you a full year to redeem your property by paying the back taxes.
If you do not redeem within that year, the commissioner sells the property. The proceeds are applied in this order:
- Sale expenses and commissioner's compensation
- Town solicitor's fee
- Taxes and costs owed to the town
- The residue (surplus) goes to the former owner
How to Claim Your Surplus
- Contact the town: Reach out to your Local Tax Collector or Treasurer and ask if surplus was generated from your property's sale.
- Check with the court: Contact the superior court in the county where your property was located. Ask about the commissioner's distribution and whether surplus is being held.
- File a claim: Provide your ID, proof of prior ownership, and any foreclosure correspondence.
- Search unclaimed property: If it has been more than a year, check Vermont's unclaimed property database -- your funds may have been transferred there.
The One-Year Deadline
Under Title 27, Section 1242(a)(11), surplus held by a court or government agency is presumed abandoned after just one year. That means your funds could be moved to the state's unclaimed property division relatively quickly. Do not wait.
Are You Still in the Redemption Period?
If the foreclosure decree was issued less than a year ago, you may still be able to redeem your property by paying the overdue taxes. This is worth exploring before the window closes.
Who to Contact
- Local Tax Collector or Treasurer for surplus funds
- Sheriff or Clerk for mortgage foreclosure surplus
- Superior Court for judicial foreclosure records
Tyler v. Hennepin County: A Landmark for Property Owners
In 2023, the U.S. Supreme Court ruled unanimously in Tyler v. Hennepin County that governments cannot keep surplus proceeds from tax sales beyond what is owed, finding this violates the Takings Clause of the Fifth Amendment. This landmark decision has strengthened property owners' rights to surplus funds nationwide and prompted many states to reform their tax foreclosure laws. As of 2026, laws in this area are evolving rapidly, so always verify current statutes in your state.
Get Free Help from AuctionBlock.org
AuctionBlock.org is a mission-driven company that helps former property owners recover surplus funds at no cost at all. We will research your case, help you file your claim, and make sure you get every dollar owed to you.
Do not let your money become unclaimed property. Contact AuctionBlock.org today for a free consultation.
AuctionBlock.org is a mission-driven company providing surplus fund recovery assistance. This guide is for educational purposes only and does not constitute legal advice. Laws change frequently — always verify current statutes with a licensed attorney in your state. Last updated: April 2026.