What Happens if I Stop Paying My Timeshare?


Timeshare foreclosure and your credit scoreThis question comes up a lot on timeshare forums and blogs, and it can be complicated depending on the exact procedures outlined in your particular contract. There are a few main points that stay the same regardless of whether you have a deeded timeshare or right-to-use, and whether or not you have paid off the entire amount of the timeshare. The following is a description of the steps that will take place if you decide to throw in the towel and allow your timeshare to go into default, leading to timeshare foreclosure.

Timeshare is treated equal to real estate in the eyes of the law, and it follows the same rules and regulations as a homeowners deed. 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. After your first missed payment, whether it be a monthly payment on the principal balance or your maintenance fees, you will start receiving calls from your timeshare resort’s collection company attempting to collect a payment. You will also receive information by mail detailing the amount due, including any applicable late fees, and their intentions on reporting your delinquency to the IRS.

The harassing telephone calls and letters will continue if you choose to not pay the balance due on your timeshare, and after anywhere from 6-24 months (this is dependent on the procedure of your resort company) your timeshare company will begin foreclosure proceedings on your timeshare. 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. I have heard instances of resorts offering to lower the amount due on the principal, changing contacts to make maintenance fees due only every 2 years, adding extra perks into your vacation package such as extended stays, rental cars, airfare, and sometimes even offering to forgive the amount owed if the two parties can reach a suitable agreement for payments to continue.

What happens if I stop paying for timesharesIf your timeshare does go all the way through the foreclosure proceedings you will be notified by mail that your deeded timeshare will be part of a trustee’s sale or public 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. This strike on your credit score can make it difficult to finance a car, obtain a loan or even buy a home. 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

Timeshares can be hard to wiggle out of, but most anything is better than letting the property foreclose and take a major hit on your credit score – especially if you are anticipating a major purchase in the near future. Timeshare foreclosure should be your last resort if there is absolutely no way you can make the monthly or yearly payments. 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. You will also want to check out possibly donating your timeshare if the principal amount is paid off in full – this is not an option if you still owe money on a loan.

Helpful Timeshare Foreclosure Links:

Deed in Lieu of Foreclosure for Timeshare –  http://rcivip.com/deed-in-lieu-of-foreclosure-for-timeshare/

Timeshare Foreclosure and Your Credit Score – http://rcivip.com/timeshare-foreclosures-and-your-credit-score/

Alternative Timeshare Sales Options – http://rcivip.com/alternative-timeshare-sales-options/

2,048 Responses to “What Happens if I Stop Paying My Timeshare?”

  1. Maurice says:

    Hi everyone,
    Just like each and everyone of you, I also bought a timeshare. I bought mine at Massanutten Ski Resort or Woodstone Resort in Mcgaheysville, VA. I bought it back in November of 2015. I paid the full deposit of(roughly $1,100)and made timely payments of $168 a month for the last 15months. This past February of 2017, I called the resort to go ahead and make a full payment for the remaining balance of my account just to find out that after making monthly payments for 15 months the resort tells me that only only $180 went towards the principal. After reading some of the comments here, especially from Samteny, comments he made in March 2017; I completely stopped making payments since March 2017, now I’m receiving emails and phone call from the resort and totally ignoring it. Whatever happens I’ll keep you guys posted. Whatever happens I’m not afraid anymore, even if I go to jail about a stupid timeshare then so be it. The resort will just get a bad reputation about it. Whatever judgement a judge will impose, I will not make a single payment.

    • Unknown says:

      Good for you Maurice

      I too stopped paying on a timeshare. Actually 4 of them due to rising fees that just made no sense. How can it cost 40 k a year to maintain a 650 to 700 square foot place and 1/52 of one unit / all units of common area? In my case, I did a resale and NEVER signed a contract or received a public report. How they ever went through was beyond me. Anyway, they do send their whip cracking letters and I just send them back return to sender. If they want to sue, so be it. They always threaten this and tell you this will cost you more. In reality, it costs them more in postage, legal costs, etc. To chase you down.
      Once they foreclose, you are done. Many states have non judicial foreclose with anti deficiency rules. This means all they can possibly get is their timeshare back.

      With one of them I did write them a certified letter and told them no contract and no receipt of public report. I found even talking to them once increases their letter campaign. If you ignore them, they subside. If you call them like others suggest, they simply tell you that it’s not their department and where’s your payment? So, why bother?

      Remember, they are in the business to get paying owners not leaving it as non performing inventory forces them to take it back and find another sucker.

      Time is on your side, not theirs. Also, check they rent out your unit on Expedia, etc. And collect rent money from your week and then have the gull to want you to pay maintenance too? That’s a double dip. Google delinquent owners and you will get great information from resorts themselves on what they do.

    • Unknown says:

      Interesting. I googled timeshare exit team reviews and came across reviews at Yelp. Many of these reviews said they were asked to stop payment. One review said all they did was wait until foreclosure. It seems the cost of this service is around 4 k. So, you are better keeping your 4 k and stop paying. Save that money for a lawyer if you need to dispute their claim. Remember though, many states have non judicial anti deficiency laws which mean they can only rake your timeshare back and can’t sue you for any deficiency.

      The more I research the more I see bad advice being given like talk to them, beg them, etc versus stop paying. It all goes to credit report concerns. If that’s an issue, get a big cr3dit line or mortgage with a 7 year fixed rate and then pull the plug. That way, you left time for it to naturally repair.

      Funny how sometimes the advice given on the internet is really opposite of what you should do.

    • Rodney says:

      Maurice.

      Can you please share what’s the latest news on this. I am also trying to get out of a place at massanutten.

      Thanks

  2. Ryan says:

    Hi,

    I purchased a timeshare, made 50% payment on the down in 25th May and the other 50% of the is suppose to be paid in at the end of June 2017

    I am having second thoughts of continuing with this timeshare, can I still get the 50% payment i made on the deposit back if I cancelled now.

    Thanks

    • Unknown says:

      Unfortunately no because you didn’t cancel in writing using prescribed legal approaches (usually sending a certified letter, return receipt requested) before the Recission period that ranges from 5 business days to 10 days depending on the State where your timeshare is at. Unless your signed contract says otherwise.

  3. Unknown says:

    One of the biggest things here is that the timeshare industry creates fear. Fear of credit, fear of lawsuit, harassment based on fear. The best course of action is to not be afraid. Many of you were told one thing but signed another. Why not put the ball in their court? Simply write them a certified letter once and tell them you do not agree and never agreed to them charging whatever fees they choose. Also, you agreed to pay 1/52 of a small unit plus 1/52 of the common area divided by all the unit. You never and will never agree to pay someone else’s bills through bad debt and otherwise. That is like asking your block to pay the neighbor down the street’s utility bills. Tell them to only send certified receipt requested mail and you will respond. Emails calls will be ignored and blocked and regular mail returned.

    Put them on the defense.

  4. Linux says:

    Hello guys! I was wondering if you can give me some advices, please. I made a stupid contract with El Dorado resort in July last year in my vacation in Las Vegas. However I live in Canada and I stopped paying the monthly and maintenance fees. So will this affect my credit in Canada? Please, helped me. What should I do?
    Thanks for your time.

    • R says:

      The answer is, probably not. However, you should check your credit report and, if necessary, schedule an appointment with an attorney who has expertise in these things.

    • Samteny says:

      Hi Linux,

      I just want to thank to everybody for sharing their timeshare experiences and most of all special thanks Tom and Bob, for their advises “Do not to Pay” and “Run”. I purchased a timeshare and paid the initial deposit in 2015. It was too late for me to cancel my contract but I followed what people were saying “do not pay” and “run” and which I did, I did not complete the deposit required which is payable thru my credit card. I requested a new credit card so they would not be able to process my next deposit. For so many months, I received calls, emails, collection letters and lawyer’s letters, but I disregarded them. I did not answer any call or email from them but I must admit I was so nervous in those times and did not have a good sleep. In their letter, they mentioned that for being delinquent, I will be reported to the credit bureau and that if I don’t pay them legal processing will begin. Still, I did not do anything and did not pay them even a single cent. Finally, after so many months receiving those calls and letters, I received a final letter to them that they decided to proceed with filing the Special Warranty Deed and if I don’t pay them within 10 days (for sure I will never pay them, never), my ownership of the lot will revert back to the resort and once completed, my account will be closed and credit report will reflect a “Settled” account. Thanks to all for sharing your experiences and so I just want to share my experience and hope this helps you and I live in Canada, too.

    • George says:

      Hey Linux! Just wanted to follow up with you with your timeshare situation. I’m in a similar spot. Bought in Las Vegas with Worldmark. Did your credit score take a hit?

      • samteny says:

        Hi George,

        My credit score was not affected at all since I just applied for increase of credit line and it got approved, no problem. Yes, after getting the “Settled Letter”, no more collection letters or calls.

    • Kay says:

      Hi. What did you finally do to get out if your TS. Also Canadian.

  5. Debby says:

    My husband and I stupidly got hooked into the Bluegreen timeshare a little over a year ago. Since then he lost his job and I had major back surgery and was off work for 7 months. He is back to work but we are at the point we can not continue to make the morgage payments on them let alone the yearly payment. My husband will have to file chapter 7. So what do you think we should do? Just stop paying or what?

  6. Maintenance fee blues says:

    I have a time share that is current in payment as far as the mortgage because it is direct payment. We are behind on the maintenance fees and they keep getting more and more expensive every year. I have sent in payments to the home owners association and they have returned the checks and tell me that they have sent it to collections. That being said I still get a bill each year from them. What is someone’s advice on how to get rid of this time share and how to deal with the maintenance fees.

  7. Toni says:

    If you really want out of it then just stop paying for a year or two and then, when they finally start to bother you, renegotiate your contract. This only works well if it’s paid for, especially if you got the thing on EBay for $1. Because of all the hassles, legal issues, and, most importantly, not wanting to have to put it back into their own inventory , you can negotiate some good terms for maintenance. Just make sure they are aware that you’re willing to walk away from the whole thing.

    Note: This doesn’t work as well if you’re still on the hook with the mortgage. It only works well if i’s paid off.

  8. Heather says:

    Thanks for all the advice. My Mexican timeshare is all paid off except the annual fees and the extra maintenance fees that add up to not leaving me enough money to actually go on the vacation to use the darn thing. A few years ago I stopped paying for about 2 years, then they started ramping up the letters, e-mail and phone calls and I caved in and got current. This time I’m going to try it again. I have no use for it and I figure I have paid about $26,000-30,000 for this stupid thing and I don’t way to pay another nickel for it. I don’t care if my credit is ruined for 7 years, it would be a blessing to be able to be done with it. I figure in about 2 years they can start hounding me and then making bogus threats. The rest of my credit is stellar and I bet one default on a maintenance fee from a Mexican timeshare isn’t going to make a dent in it. They got plenty of money out of me already. I always tell friends and family- DO NOT EVER BUY A TIMESHARE! Help spread the word!

    • Sharon says:

      Heather,

      I’m at the same point! I already have a great mortgage on my house and my credit is 800+. I am willing to let me credit take a hit for 7 years just to be gone from this. I literally get sick to my stomach at hearing or reading the name. It seems that so many people are in this situation and there seems to be no way out. It is a life sentence! People who have murdered have been “punished” less for their mistake. The legislation really needs to change. I have owned mine for 30 years and it was paid off long ago. I have begged and pleaded for them to take it back and they won’t. I’ve tried selling it and even giving it away with no success. Personally, I have a moral issue doing either of those anyway because I wouldn’t wish this on my worst enemy. Seriously. People make jokes about ambulance chasers and used car salesmen, but truly, timeshare salesmen are the scum of the earth. I don’t know how they live with themselves. I paid $15k for the “privilege” of renting my unit for, what now is, over $1000. I am being penalized as an owner since you can go online and easily rent a week for hundreds of dollars less. If anyone reading this is considering a timeshare – Just say NO!

    • BERNEDETTE WALSER says:

      Heather where in mexico where you. Im thinking of doing this in cabo. how did you make out. just found out they change the contract and we signed for a life time instead of 20 yrs.

  9. Irrelevant says:

    My mother and father were given a timeshare 11 years ago at Mountainside Lodge in Whistler BC as a ‘gift’ from one of my dads clients. My father has since passed away and my mother, now retired, can no longer afford to pay her maintenance fees. She has consulted a lawyer, and the advice given was a) do NOT contact them – it is a waste of time and if anything will only be used against her, and b) stop payment and wait for the reaction.

  10. carl says:

    my bluegreen timeshare is paid for but the maintenance fees keep growing, what happens if you stop paying the fees please?

  11. Olivia says:

    already got the deed even though it’s not my name anymore.
    Same boat except mine has been paid off for years but fees are ridiculous and keep going up, they’ve offered to let me give it back for $800…. More than I want to pay to give something away that I paid over 15,000 not including on aver 900-1200 a year fees for that past 11 years and $ to bank it and $ to go to different resort and $to split my week… Ect ect

  12. Janine F Lancaster says:

    I purchased with Wyndham probably 11 years ago in Pompano Beach. I was young, 22, and circumstances arose making payments difficult. They called relentlessly for years as I did not make my payments, threatening foreclosure etc. Well, it’s been almost 8 years since I’ve made a payment. I’ve never seen foreclosure papers, however,it is a derogatory late payment on my credit report. I’ve bought a brand new car and currently getting a home mortgage. Take what you will from that.

    • Madeline says:

      I’m in a similar situation I’m at foreclosure risk right now I cut afford to make payments no more but I’m so nervous about my credit score…

    • danny says:

      I have stopped paying the maintencance fees on my Wyndham property. Its been about 7-8 months. I am in collections right now with $132 in collections fees, that will increase every month I dont pay along with the maintenance fees already billed. I have a deeded property and its paid in full. But don’t use it and even after its paid for the maintenance fees are much more than someone can find a vacation for on their own. After reading Janines post I have decided not to pay it. If I get taken to court Ill let you all know.

    • David says:

      Hi. I toohave a Wyndham account that I’d like out of. Could you contact me? [redacted]
      I’d like to know how things went for you.

    • Artty says:

      I too stopped payments well over 7 years ago. The calls, emails and letter lasted just under a year. We persevered; we had a default registered to wyndammm finance but did not affect us whatsoever because it was their own financial institution. Since then we’ve financed two cars and a second property without any impedance from the “default”

  13. Swelldan says:

    Hi all,
    Hope this will help some ppl with wyndham accounts, predominantly Australians. We were on our honeymoon & naive; we bought into trap. We paid about six months of repayments after that we stop cold turkey. They call insistently once a day, some we’re nice explaining it was part of their job whilst some were a little onmious and some times i could almost it was the same person doing a jekyll/hyde routine. They called my wife a couple of time scaring the bejesus out of her, I promptly told them under no circumstances were they to contact her and that i alone would take the calls. All in all it took close to 1 year before they place me in default however it was in default with their own “wyndham” financing company; Ha. It had no impact on my credit rating; I monitored it with a subscription to a credit rating company, before and after the ‘default’. I gone onto refiance my home loan, leased a new car. This website was a godsend and it helped me take stand. Hope this helps.

    • PM says:

      Hi there, we are Australians who purchased a timeshare in USA and found that we were misled and there was false misrepresentation from the resort. We had already made an initial down payment fee and 2 monthly instalments. If we go cold turkey and just stop making the repayments, will our credit rating be affected in Australia? Thoughts anyone? Cheers

    • Sue Fleming says:

      I hate to admit how stupid we were, falling for purchasing more points with Wyndham. After having our mortgage with them paid off we went to a “learning session” with them. Ended up purchasing more and in debt again. We can not afford to travel anymore, we are in our 60s and my husband is starting to get dementia. They put this latest purchase on Barclay Wyndham rewards credit card, so my question is can we just stop paying them? Since it’s on credit card and not directly to Wyndham don’t know if it’s the same. We have excellent credit and my husband is worried about just stopping payments. We are not buying anything on credit anymore anyway so doesn’t bother me. Any help would be appreciated.

  14. Carl says:

    I hope this makes it out for someone to read.. I’m late to the party… (a sad one at that).
    My wife and I are in the same boat with the decision to dump the “time share scam”… We only have been paying for a year now, and keep getting hit with a ton of fee’s (maintance fee’s, RCI point fee’s, RCI transaction fees, and of course the “mogtage”). We too got all caught up in the hipe of it all…. embarrassing enough we didn’t read it word for word… (that’s their tractated on rushing you to sign).
    Having said this, watch what you read, as someone has already mentioned, and It’s “my oppion”…. this will not so called ruin your credit for 7yrs! It may put a ding on it but trust me after someone who filed bankruptcy a few years ago, a year or so later we got a car loan, credit card and this dumb ass purchase to help build our credit back up. Then I started doing the math and reasearching and then realized that this wasn’t for us… I did try to contact my resort and tried to come to a resolution… with absolutely zero out come and was treated like a stupid a**!!!!!
    So, where do we go from here…..
    ~Pay some internet attorney?? OR
    ~Take the beating???
    I have been told time and time angain….
    1st) If it’s too Good to be True… Than damn it It Is
    2nd) Never Ever make a Impulse Purchase… Sleep on it for 24hrs, than ask yourself if it’s really worth it.
    3rd) You get what you Pay For….. If you buy Sh*t…. You get Sh*t!!! (My favorite)

    Had I taken this advice I wouldn’t be in this Sh*t!

    • James says:

      Just stop paying buddy. I did as have many others on these threads. Nothing will come of it. Enjoy your life again

      • TD says:

        Hi James, I’m in the same position as Carl, signed stupidly a contract of timeshare in Mexico then realizing after arriving back in the UK what I’ve done. Again, the verbal agreement was completely different from the written contract (surprise surprise). Can they chase me from Mexico here if I completely stop the payment plans?

        • TonyB says:

          We have fallen into the same trap but about five years ago, thought it was a good idea and actually had a couple of decent holidays through the timeshare, but UK economy, exchange rate and other financial factors now mean this is dragging us into debt.
          We live in the U.K. But are Wyndham owners in Orlando.
          If we stopped paying and just walked away would they be able to chase us back to the UK and go legal, would this effect us being able to visit the USA again…visions of being handcuffed at the arrivals gate and marched to some US courthouse???

          • Unknown says:

            US Customs and border patrol are only interested if you have a criminal history. Defaulting on a timeshare is a civil matter so they aren’t going to care.

            As for a US timeshare company chasing you down in a foreign country, that is highly unlikely as the legal costs on their end are far too expensive. They just foreclose and resell at a profit. As for Credit, the Credit Bureaus are not connected globally. The only impact possibly is your US credit rating that doesn’t exist if you are a foreigner.

            Sadly, the only folks financially harmed from US timeshares are US citizens or those with US credit file. Accessing foreign credit files is near impossible and extremely costly on their end.

            Just remember, chasing you down can make the endeavour so costly for them which deters action. They always threaten costs to you but going into action costs them a ton.

      • Bev says:

        Really? Just stop…have been considering it and your post makes me hopeful!

    • Olivia says:

      Same boat except mine has been paid off for years but fees are ridiculous and keep going up, they’ve offered to let me give it back for $800…. More than I want to pay to give something away that I paid over 15,000 not including on aver 900-1200 a year fees for that past 11 years and $ to bank it and $ to go to different resort and $to split my week… Ect ect

  15. Kimberly Cherrix says:

    We own a 2 bdrm lockoff, every year floating unit in Hawaii. The mortgage is paid in full.
    Also own a 3 bdrm lockoff, every year week 48 unit in Florida just outside DisneyWorld. Also paid in full.
    We purchased 15 years ago and both maintenance fees were under $800/ea. We have used them both a total of 3 times and have exchanged them both a total of 5 times. Now we are only 8 years from retirement and we can’t afford to fly to Hawaii and with young grandchildren, we prefer to stay inside the Disney park. As for exchanging, we are in both II and RCI and neither have properties any place we want to go. Can’t even get New York City… ever. Now the total of the feels is over $ 3500/year. We can stay almost anywhere in the world for a week at that price. We can no longer afford the fees nor do we use the properties. Since we no longer plan to ever finance anything again, I was thinking of just not paying the fee’s anymore and letting them go. We even tried selling them both for a $1 all closing costs paid… no luck.

  16. Rick Rockwell says:

    Ha! This article gave me the feeling it was written by a timeshare scam artist. Why would the IRS care if you defaulted on your timeshare payments? Answer: They wouldn’t. As long as you pay your taxes on income and capital gains, IRS couldn’t care less that you didn’t pay the thing off and finally let it go. And you can take this to the bank: The chances of ever having any capital gains from this are zero to negative. You might try to claim a loss on your taxes – but it probably won’t fly if you’re audited. It’s not business. In fact, it may be more of a red flag than anything else if you try to write it off.

  17. […] Stop Paying Timeshare Foreclosure … – Find out what happens if you are unable to keep paying your timeshare and you stop paying … Happens if I Stop Paying My Timeshare? … mortgage payment … […]

  18. M B walker says:

    Timeshare should be stop all it is they taking your money.

  19. housieboo says:

    Hi,

    My Fiance and I had bought a timeshare last year Dec 7, 2015 with Westgate in Las Vegas. We both didn’t know anything about it. Everything sounded great, because this was exactly what we wanted, we wanted to travel the world and explore new things, so we signed up with them. They said we had to pay $300 down today, then the next 3 months we have to pay $375 for the down payment, after the 3 months we will start our monthly payments for our place of $178 a month. My fiance and I said ok, that was fine and we proceeded. The third/last month we paid our last down payment of $375. For some reason, I started to look online and reviews about this place and other timeshares, I kept reading and nothing good came out of it. So my fiance and I had talked about it and we want out from this plus my fiance will now be working part time instead of full time soon, we will definitely not be able to afford it. Also, we have not paid our first mortgage payment and i dont want to after reading all the reviews about it. My question is, how do we get out of it? will it really affect our credit? Can someone please help us on what we should do. Thank you.

    • Tony says:

      You’re screwed

    • Rick Rockwell says:

      You’re going to screw up your credit since you financed it. They will hound you with the threat of default and maybe even a lawsuit and judgment. In the extremely unlikely event you could find someone dumb enough to take over the payments, the first thing you would need to do is bring all the payments – including maintenance fees – current. Then assign the title in a quitclaim deed to another entity. The only way around it – depending on how much you value your credit – is to pre-pay the principle. Once you get rid of that, you can create a transaction that will transfer the title to another entity.

Post a New Comment