Quick Answer: What Happens If You Stop Paying Timeshare Maintenance Fees?

How much does it cost to cancel timeshare?

But the costs can give you sticker shock: Typical costs to get out through one of the large specialist agencies can range from $4,000 to $12,000.

Timeshare Exit Team, which doesn’t sell timeshares but aims to dissolve your legal contract, is reported to cost thousands itself and can take years..

How can I get rid of my timeshare legally?

Looking to Get Out of a Timeshare? Here’s How to Do It LegallyCall the developer.Rent it out.Sell it on the resale market (expect to take a hit).Gift it to a friend, family member or stranger.Stop your payments (but expect consequences).Avoid scams.

How can I get rid of my timeshare maintenance fees?

What is the best way to get rid of my timeshare?Contact Your Timeshare Company. … Do Your Homework to Find out Your Timeshare’s Realistic Value on the Resale Market. … List Your Timeshare for Sale or Rent. … Consult an Attorney who Specializes in Timeshare Contracts. … Hang Up on Unsolicited Callers Offering a Guaranteed Exit. … Don’t Bother Giving Your Timeshare to a Charity.More items…•

Can you give a timeshare back to the resort?

Ask the Resort to Take It Back Some are surprisingly simple, like a timeshare deed-back. This is a legal, low-cost way to give the property back to the resort. Look through your timeshare’s paperwork to see if this is an option for you.

What happens if you abandon your timeshare?

If you stop paying it, the timeshare company will do whatever it takes to collect. They’ll make phone calls and send letters, then they’ll assign it over to (you guessed it) a collections company. If you still don’t pay, the situation sinks even further into foreclosure and possible legal action against you.

Can a timeshare put a lien on your house?

If you become delinquent in paying those fees and assessments, the timeshare association—the governing body that’s responsible for the operation of the timeshare project—will be able to get a lien on your timeshare that could lead to a foreclosure.

Why is it so hard to get out of a timeshare?

At the crux of the problem is that fact that timeshare has become progressively harder and harder to sell in recent years. … Timeshare companies rely on the annual maintenance fees gathered from the existing client base in order to earn enough to keep the resort running and make a profit.

How do timeshare cancellation companies work?

Timeshare cancellation companies will offer a money-back guarantee, promising to get you out of your timeshare. What this really entails is a letter sent to your resort or developer to cease all communication with you, the owner.

Can you just walk away from a timeshare?

You can’t just walk away from a timeshare. That’s because they often come with an obligation to pay maintenance fees for as long as you own them. … It says 85 percent of timeshare owners who go to contract regret their purchase. (Gamel says the research isn’t relevant because it is not specifically about timeshares.)

Can I refuse to inherit a timeshare?

If you are either left a timeshare in a will or are the legal heir of someone who owned a timeshare and died without a will, you may choose to refuse to accept your inheritance. In legal terms, this is generally called “renunciation of property.”

Can timeshare ruin your credit?

A timeshare foreclosure will likely cause your credit score to drop, which can affect your ability to get credit in the future. Timeshares can be a burden. … A timeshare foreclosure, like a residential foreclosure, will usually cause a major hit to your credit score.

How can I get rid of my timeshare without damaging my credit?

HOW TO DUMP YOUR TIMESHARE:First, beg. Call your resort and make your case. Ask for their exit program. … Second, sell. You can list your timeshare for less than $100 on a site like RedWeek.com. … Third, third party. Turn to a licensed broker. … Last, last resort. Hire an attorney.

Are Timeshares Worth the money?

No, the timeshare has no value, because you don’t own anything in the normal sense of the word. It’s not like your regular home, which likely has some equity built up. In fact, a timeshare goes down in value from the moment you sign the contract. There are much better ways to invest your hard-earned money.

Why would anyone buy a timeshare?

So, Why Do People Buy Timeshares? A timeshare is less expensive than a lifetime of vacations. Owners are guaranteed outstanding vacation time every year. … Exciting travel opportunities also come with timeshare ownership.

How do you sell a timeshare that is paid off?

How to Sell a TimeshareStep 1: Revisit Your Contract. To start with, dig your original contract—and any other paperwork about the timeshare—out of your files to see exactly what you signed way back when. … Step 2: Research Your Timeshare’s Value. … Step 3: Try to Sell Your Timeshare. … Step 4: Contact a Timeshare Exit Company.