Hypothetical...
So IF the resort is unwilling to take a deed-back and the estate is unable to sell the TS...Lets assume in this hypothetical that its a poor TS with with a horrible fixed week that has a super high MF...The Estate has to continue to pay all future MF's until it is completely broke? What happens after the estate is completely broke, the homes, bank accounts have been wiped out all inheritance that would have went to the family...Who's Credit score is effected by the Foreclosure? the Executor of the Estate?
All states have different laws but, once the estate is closed there is no one to bill. MF's would not have to be paid past the estate closure.
There are procedures that must be followed such as giving appropriate notice. That might include sending letters to known creditors and/or placing adds in newspapers concerning the settlement of the estate. Creditors then have a specified time to respond and file claims against the estate for payment. Probate court should then validate these claims and determine what/who will be paid based upon the assets of the estate, the assets available to pay such claims and the heirchy of claims should there not be enough assets to pay all claims against the estate.
In my own personal experience, we had to notify all known creditors of my mothers estate and place adds in newspapers. Creditors then filed claims and those claims were paid before the estate was closed. One creditor actually failed to file a claim before the estate was closed. They contacted me one month AFTER the estate was closed. They were SOL and lost over $30,000 on what would have been a valid claim IF they had followed the probate courts instructions for filing a claim. Since they did not follow procedures for filing a claim against the estate, they had no recourse. They did have a lein against the property (a mobile home) and they were able to take posession through an expiditied foreclosure procedure. I would assume that HOA's would have to do the same if they did not accept the deed back from the estate.
I really don't believe this will be much of an issue if all procuders are followed accoring to the probate laws. Any MF's owed before the estate is settled or before the owner expired (not sure how the laws are written) will be billable to the estate. Any debts after the estate is settled won't be collectable if the estate is closed properly.
The trick is knowing how to do this properly so it doesn't come back to bite the heirs in the hind end.