AB328: Bill Text

AB328,10,11 a. If there are any parties that held a lien or security interest junior to that of the foreclosing entity, the foreclosing entity may make an equitable and proper distribution of the surplus to those parties, or may bring an action of interpleader, turn the surplus over to the court, name the parties with the junior liens or security interests, and ask the court to determine the proper distribution of the surplus. The foreclosing entity shall recover reasonable attorney fees in any interpleader action under this subd. 2. a.

AB328,10,17 b. If no party held a lien or security interest junior to that of the foreclosing entity, or if all parties holding junior liens or security interests have been paid, any surplus shall be paid to the former time-share owner. If the foreclosing entity is unable to locate the former time-share owner within one year after the foreclosure sale, the foreclosing entity shall deliver the surplus to the state treasurer as provided under ch. 177.

AB328,11,4 (4) Time-share license foreclosure procedure. (a) Procedure. If the owner of a time-share license fails to pay assessments when due or breaches the terms of an instrument granting a security interest in the time-share license, a foreclosing entity may foreclose the security interest in, or lien for assessments under s. 707.37 on, the time-share license in accordance with s. 409.610, except that "secured party" as used in s. 409.610 means "foreclosing entity" for purposes of this subsection, and "collateral" as used in s. 409.610 means "time-share license" for purposes of this subsection. No proceedings may be brought to foreclose the security interest or lien for assessments unless the foreclosing entity provides at least 30 days' prior written notice by registered mail with return receipt requested to the last-known address of the time-share owner as shown on the books or other records of the managing entity or other person specified in the project instrument.

AB328,11,10 (b) Consequences of sale. Upon the sale of the time-share license, the time-share owner's right to redeem the time-share license is extinguished. Unless the successful buyer is the time-share owner, the successful buyer takes title to the time-share license free and clear of any outstanding assessments owed by the previous time-share owner to the managing entity or other person specified in the project instrument or time-share instrument.

AB328,11,14 (5) Waiver of deficiency. Any foreclosing entity that forecloses a mortgage, lien, or security interest under this section waives the right to bring an action for any deficiency that may remain due to the foreclosing entity after the sale of the time-share estate or license.

AB328, s. 2 Section 2. 707.37 (6) of the statutes is amended to read:

AB328,12,5 707.37 (6) Enforcement of lien. A lien may be enforced and foreclosed by a managing entity, or any other person specified in the time-share instrument, in the same manner, and subject to the same requirements, as a foreclosure of mortgages on real property in this state or, in the case of a time-share license, under chs. 401 to 411 provided in s. 707.28. The managing entity may recover costs and actual attorney fees. The managing entity may, unless prohibited by the project instrument or time-share instrument, bid on the time share at foreclosure sale and acquire, hold, mortgage, and convey the time share. Suit to recover a money judgment for unpaid time-share expenses shall be maintainable without foreclosing or waiving the lien securing the time-share expenses. Suit for any deficiency following foreclosure may be maintained in the same proceeding. No action may be brought to foreclose the lien unless brought within 3 years after the recording of the statement of time-share lien and unless 10 days' prior written notice is given to the time-share owner by registered mail, return receipt requested, to the address of the time-share owner shown on the books of the managing entity.

AB328, s. 3 Section 3. Initial applicability.

AB328,12,9 (1) This act first applies to foreclosures of mortgage, security interest, or assessment liens on time-share estates or time-share licenses that are commenced on the effective date of this subsection.

AB328,12,10 (End)