Vermont situation guide · Updated November 2026

Wholesaling REO Bank-Owned Properties in Vermont

Wholesaling REO bank-owned properties in Vermont means getting a house under contract after a lender takes it back, then passing that deal to a cash buyer. In Burlington and across Chittenden County, banks usually sell through listing agents, so you must read the bank contract before you promise anything to a buyer.

Bank-owned homesVermont foreclosure law100% online mentorship

Get the free starter kit Book a free call

Call/Text818-532-0481

Let’s find your starting point

Explore the mentorship.

Request a free fit call to discuss your goals and whether the program is right for you.

The short answer

Can you wholesale a bank-owned REO property in Vermont?

Often yes, but many bank contracts bar assignment, so you may need to buy the house yourself and resell it. Vermont has no wholesaler-specific statute that we found, yet 26 V.S.A. chapter 41 broker rules can still apply, so check current text and ask an attorney.

An REO property is a house the lender owns after a foreclosure that ended without a buyer at the sale. In Vermont, a judicial sale only transfers title once the court confirms it and the confirmation order is recorded, under 12 V.S.A. 4954(b). Only after that does the bank own the house. Our REO properties guide covers the basics.

The catch is the bank’s own paper. Asset managers often add clauses that forbid assignment or require proof of funds. Read every page. If assignment is banned, a double closing may be the only clean path, and it adds a second set of closing costs. Compare options with our assignment guide before you bid.

REO Bank-Owned Properties in Vermont at a glance

Who sells	Banks, servicers and their asset managers
Title step	Court confirmation order recorded, 12 V.S.A. 4954(b)
Contract risk	Assignment bans are common in bank forms
Transfer tax	A landlord buyer should price in 3.4%
Flood rule	27 V.S.A. 380; ask the listing agent how the bank handles it
Wholesaler statute	None found; check current text

The opportunity

Why REO deals appear in Burlington

Burlington is a tight market. Rentals are scarce, students fill the Hill Section, and older two- and three-unit buildings sit in the Old North End and the South End. When a bank takes one back, local investors want it fast. Vacant bank-owned houses get tired quickly in a Vermont winter, so lenders like quick, clean closings. That gives a prepared buyer an opening. Smaller Chittenden County towns, such as Winooski and Essex, can produce a few REO listings too.

Fast-closing buyers

Cash investors can close faster than owner-occupants who need appraisals.

Winter pressure

Frozen pipes and heating costs push banks toward quick sales.

Multi-unit stock

Older duplexes and triplexes suit rental investors.

Get the free starter kit See the mentorship

Lead sources

Where to find bank-owned leads near Burlington

Listing portals. Filter local listings for bank-owned or foreclosure language and track price drops.
Asset-management firms. Ask who handles a lender’s Vermont REO list and request to be added to the buyer list.
Land records. Town clerks keep records in Vermont, so check the Burlington city clerk for recent deeds and foreclosure filings.
Listing agents. Agents who sell bank homes can tell you which lenders accept investors. See our off-market guide.
Court filings. Foreclosure complaints are filed in the Civil Division of Superior Court and copied to the town clerk under 12 V.S.A. 4932.

Your exit

Who buys REO deals in Vermont

Small landlords and house flippers buy most bank-owned deals. Landlords like Burlington’s low vacancy. Flippers look at the New North End, where ranch houses need updates. Ask each buyer about price range, unit count and repair budget before you send a deal. Build a list with our cash buyers guide.

Tell a flipper about the 3.4% transfer tax that can apply when the buyer will not live in the home and will not file a landlord certificate, under 32 V.S.A. 9602. The rate changes the most a flipper can offer, so verify it first.

Book a free call

Step by step

How to start wholesaling REO bank-owned properties in Vermont

Find the listing. Spot a bank-owned house and note the listing agent and asset manager.
Read the contract. Look for assignment bans, proof-of-funds rules and short deadlines.
Check title. Order a title search; see our title search guide.
Run the numbers. Check the spread on the bank price with the MAO calculator and the ARV calculator.
Pick the structure. Assign if allowed. Otherwise plan a double closing with funding.
Inspect the house. Check heat, roof and water damage after a cold season.
Close with title. Use an investor-friendly title company.

Your checklist for wholesaling REO Bank-Owned Properties in Vermont

Confirm the bank owns the house of record.
Read the assignment clause twice.
Ask your attorney about broker-license risk.
Price in the possible 3.4% transfer tax for investor buyers.
Walk the house before the inspection deadline.

A Vermont example: a bank-owned duplex in Burlington

Bank list price	$385,000
Your contract price	$362,000
Buyer pays	$379,000
Spread	$17,000
Double-closing costs	$3,500
Net to you	$13,500

This worked example uses a bank-owned duplex in Burlington’s Old North End. The bank listed it at $385,000 after a foreclosure sale was confirmed. You offered $362,000 in cash and the asset manager accepted.

The contract banned assignment, so you lined up a local landlord who agreed to pay $379,000. You used transactional funding and ran a double closing through a title company.

After about $3,500 in extra closing costs, you kept $13,500. The landlord got a rentable building under market. These figures illustrate the method only.

Vermont rules to know

Foreclosure sales, brokerage rules and REO

Vermont allows judicial and non-judicial foreclosure under 12 V.S.A. chapter 172. Non-judicial sale is not available for farmland or a dwelling house owned by a natural person, so most bank-owned houses come through court. Check current text, since redemption periods depend on the type of property. Tenants who stay get at least 30 days after the writ is served.

Buying and reselling for yourself is different from marketing a contract for a fee. 26 V.S.A. 2212 bars acting as a broker without a license, and 2211(a)(4) lists purchasing or selling any interest in real estate for another. For bank-owned deals the practical advice is simple: buy in your own name when the contract bans assignment, and have counsel confirm the setup. See our license guide.

Learn it with a mentor

Get your first REO deal reviewed

Bank contracts are full of traps. Bring one to a mentorship call and we will walk through the clauses with you.

See the course See the mentorship

FAQ

REO Bank-Owned Properties in Vermont: common questions

Is wholesaling REO bank-owned properties in Vermont legal?

We found no law written for wholesalers in Vermont. Purchasing and reselling in your own name is generally allowed. Paid marketing of a bank contract is where brokerage questions arise under 26 V.S.A. 2211 and 2212, so confirm current text with counsel.

Do banks allow assignment of REO contracts?

Many do not. Bank and asset-manager forms often ban assignment or demand proof of funds. Read the exact clause. If it bars assignment, a double closing, where you buy and then resell, is the usual workaround, and it adds a second set of closing costs.

When does a bank own a Vermont foreclosed house?

After a judicial sale, title generally passes when the court confirmation order is recorded, under 12 V.S.A. 4954(b). Redemption periods vary by property type, so check current text of chapter 172. A title search confirms who holds record title before you sign.

What transfer tax might my buyer pay?

A buyer who will not live in the house and files no landlord certificate can face 3.4% on habitable residential property, per 32 V.S.A. 9602. Owner-occupants get a lower rate on the first $200,000. Rates were amended in 2026, so confirm them before you quote a net.

Does Vermont require a flood disclosure on bank sales?

Sellers must provide flood information before or with a contract under 27 V.S.A. 380, and a missing form lets the buyer terminate. How a bank handles that form varies, so ask the listing agent at the start and read the current statute.