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Read. Follow. Verify.North Carolina creates streamlined trustee foreclosure process for delinquent timeshare assessments
Last action · July 9, 2025: Ch. SL 2025-75Sponsors: Celeste Cairns and 11 others
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What This Bill Would Do
House Bill 992 establishes a nonjudicial procedure as an alternative to court-ordered foreclosure for managing entities collecting delinquent assessments. The law permits managing entities to deny facility use, rent out delinquent timeshares after proper notice, and conduct trustee sales without seeking a against the owner.
Timeshare owners facing unpaid assessments now face an expedited trustee auction process rather than traditional court foreclosure, while managing entities gain a faster collection route without the right to pursue a deficiency balance.
Who It Would Affect
Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.
Timeshare Owners
Owners face potential nonjudicial foreclosure of their timeshare interests for delinquent assessments after two years, with protections against deficiency judgments if they do not object.
Timeshare Managing Entities
Managing entities gain an alternative nonjudicial process to foreclose assessment liens, rent out delinquent timeshares, and deny usage rights.
Junior Interest Holders
Junior interest holders receive notice of trustee sales and have rights to redeem their interests or claim surplus auction proceeds.
Key Facts
- Managing entities may impose reasonable administrative late fees, interest, and collection costs secured by a lien on delinquent timeshares.
- Managing entities may deny timeshare use and reservations to delinquent owners after providing written notice at least 30 days after the due date.
- Managing entities may rent out a delinquent owner's timeshare after giving notice of intent to rent, applying net proceeds to the account.
- Assessment liens relate back to the recording of the original timeshare declaration.
Show all 11 facts
- Managing entities can initiate a nonjudicial timeshare trustee foreclosure proceeding as an alternative to judicial foreclosure.
- Nonjudicial trustee foreclosure can occur no sooner than two years after the indebtedness became due.
- Owners can object to the trustee foreclosure procedure within 30 days of notice, forcing the lien to be foreclosed only via judicial foreclosure.
- Owners who do not object to the trustee foreclosure procedure are exempt from deficiency judgments if sale proceeds are insufficient.
- Trustees must be appointed by the managing entity or lien holder, act as neutral third parties with fiduciary duties, and conduct public auctions.
- Fines-only or service/collection fee-only liens must still be enforced exclusively by judicial foreclosure.
- Foreclosure proceedings commenced before October 1, 2025, are declared valid unless challenged by that date or within one year.
Frequently Asked Questions
What happens if I object to the nonjudicial foreclosure process?
Can the managing entity come after me for remaining debt if my timeshare sells for less than I owe?
What else do you want to know?
News Coverage
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Votes, people, money & the original sourceWhere This Stands
Currently passed both. The next step in the legislative lifecycle is Law.
Procedural history
37 actions- Jun 26, 2025HouseOrdered Enrolled
- Jun 26, 2025HouseConcurred In S Com Sub
- Jun 25, 2025HousePlaced On Cal For 06/26/2025
- Jun 25, 2025HouseCal Pursuant 36(b)
- Jun 25, 2025HouseSpecial Message Received For Concurrence in S Com Sub
- Jun 25, 2025SenateSpecial Message Sent To House
Show 31 earlier actions
- Jun 25, 2025SenateEngrossed
- Jun 25, 2025SenatePassed 3rd Reading
- Jun 25, 2025SenatePassed 2nd Reading
- Jun 25, 2025SenateAmend Adopted A1
- Jun 24, 2025SenatePlaced On Cal For 06/25/2025
- Jun 24, 2025SenateWithdrawn From Cal
- Jun 23, 2025SenateReptd Fav
- Jun 19, 2025SenateRe-ref Com On Rules and Operations of the Senate
- Jun 19, 2025SenateCom Substitute Adopted
- Jun 19, 2025SenateReptd Fav Com Substitute
- Jun 18, 2025SenateRe-ref Com On Finance
- Jun 18, 2025SenateCom Substitute Adopted
- Jun 18, 2025SenateReptd Fav Com Substitute
- Jun 17, 2025SenateRe-ref to Judiciary. If fav, re-ref to Finance. If fav, re-ref to Rules and Operations of the Senate
- Jun 17, 2025SenateWithdrawn From Com
- May 7, 2025SenateRef To Com On Rules and Operations of the Senate
- May 7, 2025SenatePassed 1st Reading
- May 7, 2025SenateSpecial Message Received From House
- May 7, 2025HouseSpecial Message Sent To Senate
- May 7, 2025HousePassed 3rd Reading
- May 7, 2025HousePassed 2nd Reading
- May 6, 2025HousePlaced On Cal For 05/07/2025
- May 6, 2025HouseCal Pursuant Rule 36(b)
- May 6, 2025HouseReptd Fav
- May 6, 2025HouseRe-ref Com On Rules, Calendar, and Operations of the House
- May 6, 2025HouseReptd Fav Com Substitute
- Apr 17, 2025HouseRe-ref to the Com on Judiciary 3, if favorable, Rules, Calendar, and Operations of the House
- Apr 17, 2025HouseWithdrawn From Com
- Apr 14, 2025HouseRef to the Com on Finance, if favorable, Rules, Calendar, and Operations of the House
- Apr 14, 2025HousePassed 1st Reading
- Apr 10, 2025HouseIntroducedFiled
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Show 7 more sponsors
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Introduction of Nonjudicial Timeshare Foreclosures
North Carolina shifts from requiring court-based judicial foreclosures for timeshare assessment liens to permitting an alternative nonjudicial trustee auction process.
Connected Entities
Sources
www.ncleg.gov
Analysis Score
0–100- Significance75How much this matters to a regular citizen
- Controversy45Intensity of disagreement among stakeholders
- Entertainment10Compellingness for a non-policy-wonk reader
- Buzz30Current news / social attention level
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