Find out what the Vermont Supreme Court decision could mean for your business
A Vermont Supreme Court decision has put a foreclosure case back on track after years of twists over who really owned the mortgage.
Here’s what happened: Back in 2015, Ditech Financial LLC, which had taken over from Green Tree Servicing, started foreclosure proceedings against Karen Brisson. The loan dated to 2007, and like many in the industry know, the mortgage had already changed hands a few times – first with Chittenden Trust Company, then Everbank, then Green Tree, and finally Ditech. Brisson defaulted, and after a trial in 2018, the court sided with Ditech, confirming it held the original note and setting the amount owed. Brisson was given a six-month window to pay up or lose the property.
But things didn’t go as planned. After the redemption period ended, Brisson filed for bankruptcy in 2019. The foreclosure was put on pause. Once she was discharged from bankruptcy, Ditech tried to get the case moving again and asked for a new sale date. The parties attempted mediation, but no deal was reached.
Fast forward to 2023, and the paperwork trail got even messier. Ditech wanted to swap in US Bank Trust National Association as the plaintiff, saying the mortgage had been reassigned again. Brisson, representing herself, pushed back, arguing Ditech no longer had any stake in the mortgage – and that Ditech itself had gone through bankruptcy. The court first agreed to the switch, then changed its mind, asking for proof of who really had the right to foreclose.
A hearing was held in August 2024. Ditech couldn’t convince the court that it – or anyone else – had the clear right to enforce the foreclosure. The judge dismissed the case with prejudice, meaning it was closed for good, and wiped out the foreclosure judgment. Ditech tried to fix things by saying it had found the original note and that Shellpoint Mortgage Servicing was acting for it, but the court wasn’t buying it.
Ditech appealed, and in June 2025, the Vermont Supreme Court stepped in. The justices said the lower court went too far by dismissing the case outright. According to the Supreme Court, there wasn’t enough evidence that Ditech had dragged its feet or ignored court orders. The foreclosure judgment was put back in place, and the case was sent back for more proceedings.
For anyone in the mortgage business, this case is a reminder of just how important it is to keep your paperwork straight and know exactly who owns what, especially when loans get passed around and companies go through bankruptcy. The court’s decision also shows that even if a company is no longer in business, it might still be able to enforce a foreclosure if the rules allow.
This isn’t just a story about one borrower and one lender. It’s a real-world example of the headaches that can come from unclear assignments and missing documents. For mortgage professionals, it’s a call to double-check those files and make sure every step is documented – because when things end up in court, the details matter.
As of now, the Vermont Supreme Court’s decision isn’t final – it could still be revised or challenged. But the message is clear: in the world of mortgage servicing and foreclosures, clarity and diligence are your best defense.
