Legal Question in Real Estate Law in California

First, there are two kinds of timeshares recognized by California law. One is a true interest in real property, where a deed is recorded. The other is a contractual right, created by a contract rather than a deed. Real estate law applies to the former, contract law to the latter. See Business & Professions Code ("B&P") section 11212(x)(1) and (2) and 11213.

Foreclosures on real estate are done, 99+% of the time, by a trustee's sale. After a trustee's sale, if the proceeds of sale didn't cover the debts and costs, the seller or lender cannot come after the buyer/borrower for a deficiency. Presumably, your timeshare would be foreclosed by trustee sale and that's the last you'd hear about it.

If you have a contract rather than a deed, technically you are breaching your contractual promises rather than defaulting on a note secured by deed of trust, and the process against you would amount to a suit for breach of contract rather than a foreclosure sale. There is probably a provision in your contract, however, under which you simply forfeit your rights and no lawsuit is necessary for the seller to cancel you out.

Your first step is to figure out which category and what process applies. Check your records. Do you have a deed? Do you pay property taxes? Does your paperwork demand that you do not record any instruments? Is default discussed at all?

Also, does your documentation make any references to foreclosure, default, forfeiture, termination by the seller, deeds of trust, and most importantly, attorney fees or arbitration of disputes?

Timeshares are tightly governed under the Vacation Ownership and Time-Share Act of 2004, which became effective July 1, 2005, and in many respects applies to older timeshares. It is codified in the B&P Code as sections 11210 to 11288. You might want to look it up and skim it for parts that apply to your problem, but be forewarned, it is somewhat lengthy in the overall.

Finally, I have never heard of anyone being pursued by a timeshare operator for post-default costs, fees, etc., although I sure can't say it has never happened.

Mr. Whipple's response was one of the best I have ever read.