3.__Foreclosure of mortgage not containing power of sale.__In the event of a breach of the conditions of a mortgage on a time- share estate that does not contain a power of sale, the holder of the mortgage may conduct a nonjudicial foreclosure of the interest of the time-share owner in the time-share estate pursuant to subsection 1 if, at the same time the holder gives written notice of default to the time-share owner as provided in subsection 1, paragraph A, the holder also gives written notice to the time-share owner stating that unless the time-share owner objects in writing to the nonjudicial foreclosure within the 30- day period required by subsection 1, paragraph A, the holder will proceed to conduct the foreclosure pursuant to subsection 1.__The holder must explain in the notice that the time-share owner has the right to a judicial foreclosure if the owner asserts the objection within the specified time period and must include with the notice an objection form together with an envelope addressed to the holder.__Failure of a time-share owner to object as required by this subsection in a timely manner is deemed a waiver of the owner's right to a judicial foreclosure.

SUMMARY

Under current law, time-share estates are considered to be real property. The judicial foreclosure of a mortgage or the execution of a lien for assessments is expensive. The cost is disproportionately high relative to the value of time-share estates. This bill provides for a nonjudicial process for the foreclosure of time-share estates pursuant to a power of sale granted in a mortgage instrument and for the foreclosure of a lien for assessments. This bill requires that notice of the foreclosure of a time-share estate be given by certified mail to the time-share estate owner and by means of newspaper publication to the public. The sale of the time-share estate must be conducted at an auction. The foreclosure of the rights of time- share owners in time-share licenses may only be conducted as a sale under the commercial reasonableness standard of the Uniform Commercial Code. Mortgages on time-share estates that do not contain a power of sale also may be foreclosed by a nonjudicial process if notice is given to the time-share owner