Vt. Stat. tit. 27 § 145
If the homestead or lands included therein are mortgaged by the joint deed of husband and wife, the joining of the wife or husband in the mortgage shall have no other effect than to bar her or his claim to the homestead as against the mortgage. If the mortgage includes lands other than the homestead, and the owner thereof dies, the other lands shall be first sold by the executor or administrator and applied on the mortgage and the residue only shall rest on the homestead. When the Probate Division of the Superior Court orders the whole to be sold, the balance of the proceeds after the payment of the mortgage not exceeding $125,000.00 shall be under the control of the court as in case of the sale of a homestead under this chapter.
27 V.S.A. § 145