In Vermont, before a bank can take away a property in foreclosure, the bank must file a lawsuit in court. The first thing the bank must do is have the sheriff serve the landlord with a summons and complaint.
In Vermont, the bank is also required to serve the tenant(s) with the summons and complaint. The bank does not have to send a sheriff to serve you. It can send you the papers in the mail. If you receive a summons and complaint from a bank about the property where you live, the foreclosure process has begun.
Why am I a defendant?
Vermont law requires the bank to include you in the foreclosure case so that you know what happens in the proceedings. You are not required to hire a lawyer. You are not required to pay any money towards the lawsuit or your landlord's mortgage.
If you fill out and send a Notice of Appearance form to the Court and to the bank's lawyer, the court will send you copies of all the documents filed and orders issued in the case. You will be sent information about what is happening with the foreclosure case. This includes notice that the case is being dismissed, notice of foreclosure sale of the property, and other important notifications.
Is the property I live in going to be sold?
That is between your landlord and the bank. If your landlord can work out a plan with the bank or can pay off the mortgage, then the foreclosure case will be dismissed, and you will not be affected. However, if your landlord loses the foreclosure case or cannot do any of those options, the property will eventually be put up for sale.