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Re: Are they worth it? (by Beck):

If you fail to pay your annual fees, eventually your resort will foreclose and sell your unit. Usually (In most states) the foreclosure will be non-judicial. This just means that after the legal period of waiting and giving you proper notice, the resort or mgt company has the right to sell your unit in a foreclosure sale without legal proceedings. It is most likely the foreclosure sale for your ownership will result in an entry on your credit report.

It is possible this is all that will happen, although a foreclosure sale will probably have a significant effect on your credit report. Depending on the laws of each state, the non-judicial foreclosure should result in the end of the matter for you. However, it is possible in some states that regardless of whether a judicial or non-judicial foreclosure ocurrs, the resort / mgt co removing the unit from your ownership will not be the only action they may take against you. They might still legally be able to go to court to sue you for the difference between the foreclosure sale and the amount you owe. For example, if you didn't pay maintenance of $1,000 and at the time of the foreclosure sale there are $400 in late fees, interest, and penalty plus maybe another $1,000 for the company performing collections and processing the foreclosure = maybe $2,400. So, if the foreclosure sale doesn't start with min bid of $2,400 and the final bid is not $2,400 or greater (let's say it was $400), the resort / mgt co could then go to court to sue for $2,400 - $400 = $2,000.

But as far as I can tell, once the unit goes to the foreclosure sale it sounds to me that owners are not sued for any funds not realized at the foreclosure sale.