Is a foreclosure on a timeshare considered a mortgage foreclosure or installment loan?

A loan secured by an interest in a timeshare must be considered an Installment Loan and not a housing obligation, even in the event of a foreclosure. 

For additional information see Handbook  4000.1 II.A.4.b.iv.(I); II.A.5.a.iv.(H) at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-04887