HB1364: HB1364 Property; nonjudicial foreclosures on time-share estates; provisions

Georgia law currently lets owners' associations and mortgage holders foreclose on time-share estates without going to court, under O.C.G.A. §§ 44-3-206 and 44-3-207. This bill narrows that power. It adds new subsections saying the existing nonjudicial foreclosure rules no longer apply to time-share estates created before July 1, 2023, or after June 30, 2026, effectively limiting the current foreclosure process to time-shares created during that three-year window. For time-shares created or amended on or after July 1, 2023, the bill lets an owners' association still foreclose its lien for unpaid assessments and charges, following a specific procedure in O.C.G.A. § 44-3-109(c). It also lets a mortgage holder foreclose a mortgage on a time-share estate, but only by following the foreclosure procedures in a different part of Georgia law (Chapter 14, Article 7, Part 2) rather than the time-share-specific rules. The changes take effect July 1, 2026.

• Cuts off the current nonjudicial foreclosure rules 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.
• Preserves an owners' association's ability to foreclose its lien for unpaid assessments on time-shares created or amended on or after July 1, 2023, but only under the procedure in O.C.G.A. § 44-3-109(c).
• Requires mortgage holders (mortgagees) to use the general foreclosure procedure in Chapter 14, Article 7, Part 2 of Title 44 instead of the time-share-specific rules, when foreclosing on a time-share estate to satisfy a mortgage.
• Sets the effective date of these changes as July 1, 2026, and repeals any conflicting state laws.

Time-share owners in Georgia, time-share owners' associations that collect assessments and fees, and mortgage lenders holding loans secured by time-share estates. The scope of who can use fast, out-of-court foreclosure depends on when a particular time-share estate was created.

Time-share owners who fall behind on payments could face different foreclosure paths depending on when their time-share was created, and mortgage lenders would have to use a different, more general legal process rather than the streamlined time-share foreclosure rules currently on the books.

• Section 1 adds subsection (e) to O.C.G.A. § 44-3-206, saying the existing owners' association nonjudicial foreclosure rules do not apply to time-share estates created before July 1, 2023, or after June 30, 2026.
• Section 1 also adds subsection (f), letting owners' associations foreclose liens on time-shares created or amended on or after July 1, 2023, for unpaid assessments, using the procedure in O.C.G.A. § 44-3-109(c), effective July 1, 2026.
• Section 2 adds subsection (f) to O.C.G.A. § 44-3-207, similarly limiting the existing trustee foreclosure rules to time-shares created before July 1, 2023, or after June 30, 2026.
• Section 2 also adds subsection (g), allowing mortgagees to foreclose mortgages on time-share estates using the general foreclosure procedure in Part 2 of Article 7 of Chapter 14 of Title 44.
• Section 3 sets the effective date of the entire Act as July 1, 2026.
• Section 4 repeals any conflicting state 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
• property foreclosure
• real estate
• owners' associations
• mortgage foreclosure