What happens if I Stop Paying my timeshare loan?

Foreclosure Action. Deeded timeshare owners with a deed of trust face a different dilemma. If you stop paying on your timeshare loan, you face foreclosure. Foreclosure is the process whereby the lender files to take possession of the property and sell it at auction to recover the money you owe.

What to do if you miss timeshare foreclosure payment?

It is wise to contact your timeshare resort if you are having financial difficulties and anticipate missing a payment, some properties will even offer to take your timeshare back under some circumstances; some resorts will also offer a Deed in Lieu of Foreclosure.

Can a timeshare be sold for the remaining balance?

Since timeshares rarely sell at auction for the amount owed on the deed, the timeshare resort company has the option to take legal action and sue you for the remaining balance owed. Read more on timeshare foreclosure and credit scores in the post – Timeshare Foreclosures and Your Credit Score

What’s the best way to get out of timeshare?

There are three ways to get out of timeshare in normal times: Sell it or give it back. A site like ARDA’s Responsibleexit.com can connect you with timeshare developers who have free or low-cost exit options or professional licensed real estate brokers that specialize in timeshares.

What happens if I stop making payments on my timeshare?

Your timeshare can foreclose in the same way as your home if you stop making payments – and this does not just mean payments on the principal balance, it also includes yearly maintenance fees.

How long do you have to pay timeshare maintenance?

It’s not pretty. You may be thinking that your timeshare resort doesn’t care enough about you to come after you in court for your maintenance fees, but stop and think for a second how much your maintenance fees are worth to them. The average timeshare owner pays maintenance fees for about 30 – 40 years.

What to do if your timeshare company defaults?

The timeshare company actually offered an in-lieu offer, that if they would sign the timeshare over to them, they would pay them $250.00 and the only thing they would owe would be the maintenance fees if any were due. Supposedly this will alleviate them foreclosing and not go bad against their credit.

Do you have to pay for timeshare foreclosure fees?

Timeshare companies will try to avoid this at all costs because a foreclosure means they have to take the property back and pay legal fees for the proper paperwork to be processed.

When is a timeshare foreclosure the last resort?

Timeshare foreclosure should be your last resort if there is absolutely no way you can make the monthly or yearly payments.

What happens when you walk away from a timeshare?

If you own a timeshare that you no longer want, you may have found yourself wondering what the consequences are of walking away from your timeshare maintenance fees. Perhaps you’ve tried to sell your timeshare in the past and couldn’t find a buyer.

How does a timeshare foreclosure affect your credit?

The auction is public record and the transaction can be recorded and reported to the IRS and credit bureaus, effectively ruining your credit for the next 7 years. This strike on your credit score can make it difficult to finance a car, obtain a loan or even buy a home.

How much does it cost to deed a timeshare?

For a deeded, U.S. timeshare, you can figure on about $200 to a closing company for new deed preparation and recording (this is a different and separate cost from resort-imposed transfer fees) once you find a willing new recipient. 3.

What to do if you fall behind on timeshare dues?

If you have fallen behind on your timeshare dues, your last thought may be to call your developer. In reality, calling your developer is the best place to start. Not to mention, some developers have programs that can help their owners who are past due.

Can a timeshare be put on the market?

While you search for the best option to quell maintenance fees, it doesn’t hurt to put your timeshare on the resale market. Not to mention, we help owners post their timeshares for sale every day. If you’re ready to take the first step, get in touch with us.

What happens if I don’t pay my timeshare fees?

If you can’t or don’t want to pay, the timeshare has the legal right to foreclose and take back your unit. That might be OK with you, except a foreclosure will seriously hurt your credit score for seven years. Before a timeshare owner forecloses on your unit, he will attempt to get you to pay your fees.

How much does it cost to sell a timeshare?

So, not only will you likely get $1 or less for your timeshare if you are able to sell it, but you’re also going to need to pay around $500 in additional fees to get rid of it.

What happens when a timeshare is sold at auction?

At the given date, time and place your timeshare will be sold at a sheriff’s auction to the highest bidder. The auction is public record and the transaction can be recorded and reported to the IRS and credit bureaus, effectively ruining your credit for the next 7 years.