If you have exhausted all of your other options for getting rid of your timeshare including selling on the web, auctions sites like eBay and Craigslist, donation to charity, and giving it away, a timeshare foreclosure may be your only option.  The time share foreclosure process is similar to a home foreclosure in that eventually the property will eventually be returned to the lender and sold at a sheriff’s auction to the highest bidder.  This process can be a time-consuming hassle, but most of all, you will want to be prepared and know how your credit score will be affected by a timeshare foreclosure.

When you signed the contract for your timeshare, you signed a promissory note for the lender to assure them that you would be paying the money back with interest.  When your timeshare forecloses, the lender will obtain possession of the property and sell it at auction.  Be aware that not all timeshare companies will report missed, late, or foreclosure account notifications to credit agencies, but this does not mean your foreclosure will never get reported.  There are many instances where timeshare owners do not notice any blemish on their credit score during the foreclosure process, but just because your lender/timeshare company is not reporting the actions, does not necessarily mean you will never take a hit to your credit.

Sheriff sales, like the one your timeshare property will go through when it is auctioned off after foreclosure, are matters of public record.  A foreclosure itself is a legal action which is handled by the court system, which is again, public record.  All of the major credit agencies - Experian, Equifax, and Transunion - monitor, report, and base their credit scores on information contained in court public records.

How much will a timeshare foreclosure affect my credit score?

A foreclosure, and similarly a deed in lieu of foreclosure, will affect your credit score between 230-280 points, depending on the reporting credit company.  This point deduction of 230-280 points, and negative mark on your credit score, will stay on your credit report for anywhere from 7-10 years, and companies will be able to purge this information upon closer inspection after the 10 year period has elapsed.

I am not positive if short sales are done in timesharing, but a short sale will affect a homeowner’s credit score from 80-120 points, and will be present on the credit score for a period of at least 7 years following the short sale.

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