What the Signing of the Wisconsin NonJudicial Timeshare Foreclosure Law Means
Wednesday, December 14, 2011
Earlier this month, the state of Wisconsin passed a NonJudicial Foreclosure law for timeshare. With Governor Scott Walker’s signature, SB241 became effective immediately. A Wisconsin timeshare can now be foreclosed through a process that is more expeditious and less expensive for all involved than was previously possible.
SB241 permits nonjudicial foreclosures of mortgagees and assessment liens on timeshare estates and licenses. The previous process for timeshare foreclosure in Wisconsin was often lengthy and costly. The new Wisconsin timeshare foreclosure law makes it possible for timeshare developers and homeowners associations to more effectively deal with delinquent assessments and to do so outside the court, when all parties are agreeable to so doing.
Why the Wisconsin Timeshare Foreclosure Law is Good for Timeshare Owners
In an environment where consumers are naturally apprehensive about processes that make foreclosures of any type, “too easy” it is important to note that this new legislation actually benefits timeshare owners and prospective owners as much as it does developers and HOAs. When homeowners associations are forced to bear the burden of delinquent timeshare fees, the people who are hurt most are the timeshare owners who are timely with their mortgage and/ or association fees and assessments. Even those whose timeshares are being foreclosed will benefit by being able to respond within a process that is quicker, simpler, and thereby less expensive and perhaps even less stressful.
As an added layer of consumer protection, SB241 allows timeshare owners subject to foreclosure to file an objection to the use of the new approach, in which case, the foreclosing part must then follow standard judicial process.
ARDAWisconsin and ARDA ROC supported the bill with the assistance of representation by Foley & Lardner.
Two resources for learning more about this new law are: ARDA-ROC
and the Hospitality Lawg, the Hospitality Law blog of Baker & Hostetler.
