Timeshare Foreclosures and Your Credit Score
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 somewhat 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. Being armed with information, and knowing how this process can affect you and your future purchasing/lending power is a key part of a successful foreclosure. This post will help to prepare you for what may lie ahead, and provide information regarding credit score changes you may experience as a result of a timeshare foreclosure.
How the foreclosure is executed:
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. 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.
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.
Hi, we purchased a timeshare at Westgate Resorts in Florida about 15 years ago, we have no mortgage but have to pay yearly maintenance fees. It has now become to expensive and have not used it for around 8-10 years – wasted money!!.
We live in the UK and if i let it go into foreclosure will that affect my credit rating in the UK? Will we also be able to entre the states if we have credit issues?
Please can anyone advise onthe above.
I purchased a SolMar unit 23 years ago and was transferred to a Grand SolMar due to demolishing of some units. I do not have a mortgage on it, but due to husband’s serious health issues stopped traveling and paying my yearly maintenance 2 years ago. I was hoping they would just let it expire or resell, but they have sent to a Collection Agency for just a little over $2000.00. It has hit my credit. Does anyone know how far they might take this and if they would take to a Foreclosure?? Any advice greatly appreciated. Should I pay off the collection agency? HELP!
Never pay collections. Write them a certified letter proving they own the debt and you owe the debt. Tell them returned certified letters are accepted; all others are sent back return to sender. If they sue, respond to the debt. Again, get them to prove they own the debt and you owe the debt. Then, countersue for Costs. They rarely sue especially when you hold them accountable and make them pay dear to communicate with you.
As for foreclosure, it varies by resort. Somewhere between 2 to 5 years.
They are telling me they can foreclose on my home, which is frightening. I own my home and a car. I have a letter from the collection agency and have called the Grand Solmar which said yes they sent to a collection agency. In 2 years, my timeshare will have expired. How do I hold them accountable and how do I make “them pay dear”. Never been in this situation. Thanks for any followup. I was going to pay Collection Agency today. Monterey Collections. Confused.
Bully tactics. To take your home, they need to sue you. Then, they need a judgement to collect, then they need to attempt payment..etc.
So, on slim chance they follow thru and sue, reply and countersue for fraud. The fraud being they claim maintenance but charge other hidden fees. Have them prove they own and owe the debt.
Yup, you get the picture.
Me and my ex purchased a timeshare in Las Vegas, Tahiti Village. They told us so many things that were untrue, gave a “free week” that isn’t even free. We are current and up to date with maint fee/payments. We got the timeshare in 11/2016 and have had it since but havent been able to use it yet. We want to get rid of it. Does anyone have any suggestions? I have an attorney who is going to look over the deed paperwork, also, does anyone know if there are any class action lawsuits going on for tahiti village? Your help and responses are most appreciated.
We own a timeshare at Tahiti village also….we do not have a mortgage either and are up to date on maintenance fees. We are wanting to get rid of the unit…we have never used it but have rented for the costs of our maintenance fees. 10 years now. Have you had any great or not great ideas? thnks
Did yoi resolve thts? How?
I have 2 timeshares with hilton Grand Vacations and want out. They are not on my credit report as far as showing a debt. My concern is that if I stop paying and let them foreclose that they will come after me and affect my credit? Anyone have experience with Hilton vacations club on something like this?
Hi we just bought a time share with warfare and have just finished paying our down-payment.we want to be Di e with it but are afraid of the credit hit does anyone have any advice for going to foreclosure with them and the effects
Having the same problem. Those people are scam artist and they only disclose what benefits them.
Hi, My family and I purchased a time share years back at the Palms Resort and Country Club in Orlando (later changing its name to Mystic Dunes and finally being acquired by Diamond Resorts Intl.). We live in Costa Rica and throughout the years we’ve paid our mortgage and maintenance fees with no problem (automatic card charge). The time share was finally paid in full but since last year’s maintenance fees weren’t charged I decided to call and see why and what the status was. To finish the story I was told that the property had been foreclosed since my october 2015 payment was not received!! I said we had not received any type of call or notification by any means, and all I got was that “we’re not required to notify you”. But reading a little, Florida Statutes say differently (http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0700-0799/0721/Sections/0721.855.html) Is there anything we can do? How could we loose thousands of hard earned dollars like this?? All advice is welcome!!
I would recommend contacting the office of the Florida Attorney General.
I would thank my lucky stars you got rid of it!
Does anyone know where Starwood Vacations files their foreclosures? Orlando or overseas?
I stopped paying my Las Vegas Grandview timeshare over 10 years ago and have never had any issues with my credit, nor have I been threatened with any lawsuit. I am a US citizen and paid the timeshare for about 1 year before ceasing payments. My best advice to you, if you do not gain benefit from your timeshare, is to STOP PAYING!
Hey Susan I read your response. I too got a time share at the Las Vegas Grand view. Going over everything I just realized Wow it’s going to be a lot of money. Way more than even makes sense to keep it. I’m so upset. All the fees are just crazy. I don’t want to pay my 1st pmt. But I’m scared. The timeshare I bought was one that had already been foreclosed. Its not on my credit now. So it still has not shown up on your credit?
I have the same problem with Las Vegas Grandview too. The different thing is the women tried to sale it was lied to me and I too believe her when I signed the contract. Same like you Anita , I don’t want to pay my 1st payment !!! I just signed the contract on January 11 ……
What happened to your timeshare? Did they foreclose on you. I purchased 1 with Hilton, LAs Vegas on June/01/2016 and its been close to two months and now we want to get rid of it as we came to know that we were lied. The Sales rep said it is a property which we could sell in future and would reap us good money as the price will appreciate. They sold it to us saying it is a good investment, but there are many timeshares on eBay for $0-$1. We disputed all the downpayment we made using the AMEX cards they issued us while signing the contract. Our 1st payment was deducted from our bank account and our next payment which is the maintenance fees is due August/01. Also ours was a financed purchase, the loan was arranged by Hilton from some third party agency.
How did the dispute with AMEX go?? Were in the same situation as you and have settled with the fact of screwing my credit for a little while by stopping payments. but what i am fretting about is this $5,000 down payment on a VISA card they signed us up for. Was just wondering what kind of process you went through and how you got AMEX to believe it was fraud or what you told them? Thanks!
We have a time share with exploria resorts. We have checked our credit and we have not seen the timeshare on there. We are thinking about letting the time share go be foreclosed on. Will it eventually go on our credit reports.
I do not owe any money on my timeshare. It was paid off years ago. its free and clear. I do still have maintenance fees, I still find that I am not using my timeshare very much. How do I turn it back rather than sell it. It is a diamond resort in Maui. I just want to get rid of it!
I just found out that if you own your property, but want to get out of maintenance fees, you can call Diamond Resorts Foreclosure department and ask for a Deed in Lieu of Surrender Property. Diamond stated that they do not report to credit agencies foreclosures as a result of non-payment of fees. It’s only reported if you still owe on the mortgage. The fee they quoted is $450 to process. Or, the rep gave me another option of simply allowing the foreclosure to process which will cost nothing but could take longer. She stated that they sell the properties in batches a few times per year. The next sale was expected to be in Feb of 2015. She said they send further coorespondence such as “claim of lien”, then “notice of sale”. After sale of the property, she stated that I would be free and clear of any fees and none of the proceedings affect credit. She did, however, state that it is a matter of public record and would be reported in the local paper of the county in which the foreclosure took place.
In what was my understanding, this was the process for Palms Country Club and Resorts, Mystic Dunes, or Diamond Resorts. The number I was given to request the paperwork was 877.497.7521. This is Diamond Resorts who now owns all of these properties. The rep said basically 3 options: 1) pay fee and get back in good standing and out of foreclosure; 2) request “deed in lieu…”; or 3) allow foreclosure to take it’s course. But, again, she stated that if your own your property outright, they do not report “maintenance fee foreclosures”. Call them to verify. I only have all this info because I just hung up the phone with them about an hour ago.
My timeshare is paid in full. I only have the annual dues and maintenance fees to pay. I want to give back the timeshare. They tell me I cannot cancel my timeshare, so I may just stop paying the dues and fees.
What will the impact be with regard to my credit rating. Is this considered a foreclosure for non payment of dues and fees. Note: I paid cash for the timeshare so there wasn’t ant finanacing.
I am in same situation. They sent me a letter telling me they were putting a lien on it. Do I care? I just dont want this to ruin our credit. Haven’t paid maintenance fees since January,, Help. Am I in trouble?
Do you mind if I ask what happened to you legally. My husband and I are both retired. The timeshare is paid in full but we no longer use it. We tried to sell it and even give it away but couldn’t. We can’t afford the monthly maintenance fee and just want to give it back.
I need advice for a 2015 smuck that signed.. I don’t have a mortgage and paid in full. Will I loose it all? Is there new help from our lawmakers? DRI is not for me. I was told I had 1 day (24 hrs) to cancel – verbally. Buyer beware no doubt. Sooo I’m willing to loose to get out of this. Any learned lessons here?
I realy at this point I am very sick and under psychiatry care and also psychologist due to all this problem, i am disable and with the money I recived is not enough to make my payments. I have an apoitment with my lawyer to file bankruptcy. is imposible lieve like this.
And the Bluegreen they do not help you at all, eve before I could never get an apartment always full. so that is my story I will let you know what happen.
Hi a few years ago I brought a time share from Trendwest which is not Worldmark by Wyndham. I got behind on my loan due to loss of wages, I am now current on my loan and dues or so I thought, but when I called to see why I could not log on to the website, they said that they had “accidently put a stop on my dues” and they would have to send it over to accounting. I was under the impression that part of the money I paid the collection agency, yes they turned it over to one, was for my dues. I am more than happy to pay these back as well but there are 10 months of back dues at around $100 each month. What rights do I have on how I pay these back and can they keep me from using my points while I am paying it back? Also can they block me from the website that gives information on dues and payments? If I had access to the site I would have know that they were not adding the dues in.
From my experience, I needed to spread a annual dues over three months. I called the resort, told them my situation, and they allowed me to break down my payments over the three months, however, I could not make any reservations until my dues were paid in full. They also notified RCI of my late payments and could not access their website to make reservations either. Even though my RCI annual membership was paid, I could not make any reservations until my maintenance dues were paid.