Missouri Bill to eliminate Non-Judicial Foreclosure for Third Consecutive Year (S 716)


Issue Brief

Introduced on January 6, 2016, S 716 seeks to repeal existing provisions set for Non-Judicial Foreclosure (NJF) of timeshares in the state and to require that all foreclosure proceedings be handled judicially. This is the third consecutive year that this bill has been introduced, in 2015 with SB 183 and in 2014 with HB 2282. Although consistently introduced, this bill has never been considered by the Legislature and it would seem that this 2016 iteration will suffer the same fate. 


Applying standard judicial foreclosure laws to timeshare interests is costly when compared to the value of a single timeshare unit. In addition, it would burden the judicial system in Missouri, which is stretched, like in many other states.

Non-judicial foreclosure provides Home Owner Associations (HOAs) with a relatively inexpensive and more efficient option to manage delinquent timeshares. Timeshare owners benefit from NJF as well. With NJF, owners are no longer subject to increased assessments to cover the revenue shortfalls brought about by delinquent inventory. 

Position/Call to Action

NJF is essential to the efficient management of delinquency and recovery of inventory. ARDA and ARDA-ROC continue to oppose these bills and will support NJF laws that provide strong consumer protection provisions, beneficial options for HOAs and relief to stressed judicial systems. 

Issue Updates

S 716 was referred to the House Committee on House-Civil and Criminal Proceedings where it is expected to remain through the end of this session without any action taken.