Challenging Foreclosures of Florida Timeshares

The Timeshare Lien Foreclosure Act

The Timeshare Lien Foreclosure Act controls foreclosure actions brought against timeshares and is governed by F.S. 721.80 et seq. F.S. 721.855 and 721.856.  The Act provides a foreclosure trustee with a procedure that allows him/her to foreclose assessment liens and mortgages outside of the court system- as opposed to a judicial procedure that is normally afforded to defendants.  The process applies only to mortgages executed after May 27, 2010 (i.e., the effective date of the law) and that contain specific disclosure language, and to pre-existing mortgages if the specific disclosure language is added to the mortgage with the consent of the borrower.

You have a right to defend the case in court but only if you opt out of the trustee foreclosure process

In addition to detailing the specific procedures for initiating and executing a trustee foreclosure action, as outlined in Florida Statute 721.856(5), the Act also provides the timeshare owner with the option to opt out of the trustee foreclosure process and instead choose the judicial foreclosure process for any reason and at any time before the trustee issues a certificate of sale. Furthermore, lienholders are prohibited from pursuing legal action against the timeshare owner for any debt deficiency arising from the trustee’s sale of the foreclosed timeshare interest. F.S. 721.856(8)(c). Upon the completion of the trustee’s sale, a $50 fee is charged for the recording of the trustee’s deed. F.S. 721.8561.

Who can serve as a foreclosure trustee?

The Act authorizes attorneys in good standing with The Florida Bar, who have been licensed to practice law in Florida for at least five years, and title insurance companies authorized to conduct business in Florida for at least five years, to provide trustee services. F.S. 721.82(14).

Volusia County foreclosure defense lawyer for timeshares

It is critically important timeshare owners promptly retain a lawyer at the first sign that their timeshare interest is in danger of foreclosure. As discussed above, foreclosure of a timeshare may be accomplished without court intervention by a trustee-unless the timeshare owner timely invokes his/her right to a judicial foreclosure.  Failure to correctly opt out of the trustee’s non judicial foreclosure will result in a waiver of your rights to challenge the foreclosure in court.  If you’re facing foreclosure, contact Volusia County timeshare defense attorney Andrew J. Pascale today at 877-667-1211 to discuss your case. Please note that this blog does not provide legal advice and is intended for illustrative purposes only.