HB 1364: Property; nonjudicial foreclosures on time-share estates; provisions

Under current Georgia law, owners' associations and mortgage holders can foreclose on a time-share estate without going to court, using a nonjudicial process spelled out in O.C.G.A. sections 44-3-206 and 44-3-207. This bill narrows when that process is allowed. It says the existing nonjudicial foreclosure rules will not apply to time-share estates created before July 1, 2023 or after June 30, 2026, which effectively limits the old process to time-shares created in that roughly three-year window. Starting July 1, 2026, owners' associations trying to collect unpaid assessments would instead have to foreclose their lien using the procedure described in O.C.G.A. section 44-3-109(c). Mortgage lenders would foreclose using the judicial foreclosure process found in Part 2 of Article 7 of Chapter 14 of Title 44, rather than the current time-share-specific trustee process. The changes take effect July 1, 2026.

• Cuts off the current nonjudicial (out-of-court) foreclosure process in O.C.G.A. 44-3-206 and 44-3-207 for time-share estates created before July 1, 2023 or after June 30, 2026.
• Leaves the existing nonjudicial foreclosure process in place only for time-share estates created between July 1, 2023 and June 30, 2026.
• Requires owners' associations, starting July 1, 2026, to foreclose liens for unpaid assessments using the procedure in O.C.G.A. section 44-3-109(c) instead.
• Requires mortgage lenders to foreclose on time-share estates using the judicial foreclosure process in Title 44, Chapter 14, Article 7, Part 2, rather than the current time-share trustee foreclosure method.
• Sets the effective date of the changes as July 1, 2026.

Time-share owners' associations, time-share estate owners who fall behind on assessments or mortgage payments, mortgage lenders holding liens on time-share properties, and trustees who currently handle nonjudicial time-share foreclosures in Georgia.

Owners' associations and lenders would lose access to the quicker, out-of-court foreclosure method for most time-share estates and would instead need to use different, and in the mortgage lender's case judicial, foreclosure procedures. This could change how long collections take and what steps are required before a time-share owner loses their interest.

• Section 1 adds subsection (e) to O.C.G.A. 44-3-206, exempting time-share estates created before July 1, 2023 or after June 30, 2026 from the current owners' association nonjudicial lien foreclosure rules.
• Section 1 adds subsection (f), requiring owners' associations, effective July 1, 2026, to foreclose liens on time-share estates created on or after July 1, 2023 under the procedure in O.C.G.A. 44-3-109(c).
• Section 2 adds subsection (f) to O.C.G.A. 44-3-207, applying the same created-date exemption to the current trustee foreclosure rules for time-share estates.
• Section 2 adds subsection (g), allowing a mortgagee to foreclose its mortgage on a time-share estate using the judicial foreclosure process in Title 44, Chapter 14, Article 7, Part 2.
• Section 3 sets the Act's effective date as July 1, 2026.
• Section 4 repeals any conflicting laws.

1. 2026-02-24House Committee Favorably Reported (House)
2. 2026-02-20House Second Readers (House)
3. 2026-02-19House First Readers (House)
4. 2026-02-18House Hopper (House)

• Rob Leverett (R, HD-123)Primary sponsor
• Mitchell Scoggins (R, HD-014)
• Trey Kelley (R, HD-016)
• Martin Momtahan (R, HD-017)
• Matthew Gambill (R, HD-015)

• time-share law
• foreclosure procedures
• property law
• homeowners associations
• real estate