What Happens if I Stop Paying My Timeshare?
This 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.
If 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 –Â 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/
Nicky, Ts's are only investments for the ts company(s) for us it is more like a 10 tonne anchor. If you read thru all the post here you will discover that most folks living outside the US simply walk away from the deal. You will get several nasty letters from the ts and it's lawyers but I think they cannot do much else to citizens of the UK.
Can anyone please advise me on a recent nightmare ts purchase in Orange Lake, Florida on 23/05 – 16 days ago.
I feel we were misrepresented as we were made to beleive that we were being sold an investment (you cant give ts away) as it was florida and everyone wants to go to florida for Disney so the demand for a timeshare would be in high.
I have returned to the UK and I know I have made a really bad mistake but my 10 day cooling off period has expired.
I have paid an initial payment by credit card but my first payment does not go out until 07/07 via my credit card again.
I have checked all the paperwork and the only reference regarding cancellation is the 10 days.
awesome website lot of disgruntiled people out there over timeshares yes im one of them
stoped paying maintince fees in jan 2010 sent me to collections april 2010 stoped paying morgage may on 2010 westgate calls a lot pinnicle collections calls a lot told westgate im done paying on this to take back the useual answer of we dont do that spent $25000 paying on this still owe over $6000 on it yet no daylight at end of tunnnel ill gladly take a hit on my credit it can recover i pay everything on time till westgate lied to me
has any body thought of protesting/picking at the resorts that will get there attention and maybe some press time on the news for there frauglent ways of doing bussieness
thanks jim
Hi All,
Update on my status. I have not paid since November of 2009. I am a USA resident btw. They only call me like once a week on both my phones landline and cell phone. I just don't answer the phone and let it go to voicemail. I receive a letter like once a month of late payments, etc.
My credit score is still good as of now. I'm suprised it hasn't taken a hit yet since it has been almost over 6 months now. I guess because I have been paying all my other bills on time, mortgage, car payment, credit cards (which I pay back in full each month).
But anyways…that is my update as of now. Will check my credit score again in about a couple of months from now. I will update if anything else changes.
jason,
how is your credit score? did they ruin it? mine was reported it hit down my score , but i expect that rather than paying $600/month which i rather pay off some bills.
thank you Jason for the updates.
Update! Still getting phone calls from Wyndham every day, at least 5-6 times a day! The collections department told me that in order to be considered for a Deed In Lieu of Foreclosure the timeshare account must be overdue by a minimum of 150 days. I have 107 days down and 43 to go. I will update after the 150 days.
jojo, try to call(without showing your number) but never give your current phone numbers, otherwise they will start harrassing you, just to make sure its for forclosure and you will be asked to pay for legal fees…that's what i understand.
help i bought a ts in st maarten, have not been able to pay the ts or the maintenance since 2006, the ts did report it to my credit, which my score has drop. that not the problem, how long does the ts have to begin foreclosure/default procedures th ts has already damage my credit, should i call or write the ts to see if the ts is in foreclosure, i never receive any paperwork
I owned a 2 BRM plus loft timeshare at Westgate Vacation Villas and it was completely paid off. While I was at the resort using my week 21, I went to the sales office and asked for the main manager. I told her right up front that my income was now lower after 65 and wife is retiring and couldn't afford the timeshare anymore. I asked if I could just give it back. They accepted and called it a "Voluntary Deed Back". I no longer own this timeshare and feel a big weight is off my shoulders. It cost me nothing to do this transaction. Honesty worked for me in this case but not sure about other resorts but worth a try.
I stopped paying maintenance fees on my TS 3 years ago. I am from Brazil and would like to know if I would have any problems acquiring a US Visa or at immigrations because of this situation. Could anyone help me?
Hi everyone, my wife and I bought a Westgate Planet Hollywood Towers timeshare back in Jan and planning on stopping our payments to them due to many reasons same as everyone here. I will keep peeps here posted as how it goes.
For those curious about quit claiming deed to another or to a spouse. You can quit claim off title however, you cannot claim yourself off the mortgage and will still be liable for it, unless there is a promise to pay from the new deed holder and proof of 12 consecutive payments under that person’s name. I don’t know if this is the same process when you sell your timeshare or not?
I have been trying to find an attorney for this matter but unless you find a timeshare attorney, it’s useless. Every attorney I have talked to don’t have a clue about timeshare foreclosures or want anything to do with it.
Did you found and attorney, there is and State Attorney name’s Ann Pellegrino google her, I got this information from somebody here and it was positive comment, my email is milegon@yahoo.com
I agree thanks for the info. I haven't had the pleasure/nightmare yet of receiving their harassment calls but know they will eventually start.
Thanks Bill, that's most helpful.
I wanted to add some information on the calls that you receive when you don't make a payment.
After the first 90 days, especially if the timeshare is paid off and the bill is just maintenance fees, the amount will be turned over to a collection agency. The collection agency only gets paid if you pay, so they will not be at all interested in a deed in lieu of payment. You are wasting your breathe to talk with a collection agency if you are trying to get rid of a timeshare. (these are the people who call daily or multiple times a day)
the collection agency will have the debt for a year or so, then it goes back to the actual timeshare to foreclose. When you are talking with the actual timeshare or the timeshare lawyer, you can pursue a deed in lieu. But there is no point in talking with a collection agency since all they are interested in is getting you to send money so that they get something. These are the people who lie and pressure you if you talk with them. Do not ever send them any money since that will reset the clock to day 1.
Hi – has been awhile since I've been on the site. I stopped paying my maintenance with Holiday Estates in Cape Cod back in January. Have received one bill to date with a bunch of late fees attached to it and just ignored it. Have not received anything else yet and hoping that they will just foreclose on it. I doubt it is going to be that simple but hoping. Will keep checking this site and post anything that i can share.
amanda, leave it to them/ dont attend, default it and will be foreclosed.
I have not been paying my timeshare because I cant afford it and now i got a letter in the mail with a court date for foreclosure is there any way to make payments now and avoid this or do you think it is too late?
Hi again, Also interested if anyone, particulary UK residents, have any experience in stopping paying maintenance fees for timeshare in Europe? Have just stopped paying fees for one in Tenerife which is also fully paid off. First they called my work and left a message with the secretary to call them, and have now just received a letter from their "lawyers" stating I have 30 days to pay the fees and late fees or "we will commence legal proceedings to claim the debt". Is it likely that they'd go through with it, considering it's all paid off, and we don't owe them anything other than the maintenance fees?
Hi all, I'm a UK resident who has stopped paying maintenance fees on my Orange Lake Resort (Kissimmee Orlando) Timeshare. It's all fully paid but the maintenance fees are getting ridiculous, with no maintenance carried out to the units at all, wall paper peeling in some, and the same decor they've had for years. This year's payment was due in January, simply can't afford it so have just stopped paying. So far have just received bills with the fee and late payment fees on, and a letter of "Notice of Pending Owner Use Restriction" (the irony – I don't WANT to use it!). Fingers crossed for receiving a 'Warranty Deed in Lieu of Foreclosure',as Ken & Tracy did, when Orange Lake realise taking it back is cheaper than persuing me. Will keep you posted.
hi,Melham, do you mean to read this website or other links? thanks for your advise!
just read all the older post you'll get the answer same case as you are
My email is jianxi.lv1@gmail.com
I really appreciate anyone could give me some suggestion about what will happen if I do not pay the rest of the money for tiem share. Thanks!
I am a visitor from china and bought a 2 bedroom unit at grandview in las vegas last month. I find that it is a wrong decision for me now after reviewing comments from this website.
I just paid 10% of the total payment. Could anyone tell me that if I do not pay the rest of the money in the future,what will impact me?
For I am not in USA and not a　US citizen. Appreciate your help!
Thanks!
Hi Vincent,
My husband and I also also only paid the 10% deposit and now do no want the timeshare. We are in Australia, so were are not in the US too. Can you tell me what has happened with your case?
Any info at all would be very much appreciated.
Kind regards,
Zoe.
Update. Have not paid Wyndham since Jan, 2010. I receive one call every two or three hours, yes hours, every day from them. They are on my block call list on my cell phone. I spoke to them a few days ago and offered to do a Deed in Lieu of Foreclosure. Of course, they could not accept that, they wanted payment. I told them no more payments would be forthcoming. Yesterday I received a call from a Timeshare resale salesperson in Florida. Hmmm, did Wyndham give my information to a resale salesman in hopes of getting me to try that avenue again? Also, I have gotten two certified letter notices from the post office, sent by Wyndham. I refuse to pick them up at the post office, if they wont deliver them in person to my home, then I can't see wasting my time going to the post office to pick up a "nasty gram" from Wyndham. I'll update next month.
Hi,
My wife and I bought a timeshare at Grandview Las Vegas last month. We were told lies about it but we only realized that after reading and going through the documents but it was already too late for the revocation.
We are not US citizens or even an immigrants but we already own a house(fully paid). My wife is under a working visa. We are thinking of having it foreclosed. Aside from getting mails or receiving calls from the agency and damaging our credit score, what other consequences will there be? Do they usually sue or file cases?
Thanks in advance.
I stopped paying RCI timeshare tax day. Stopped the auto payment from my account and closed the credit card out. Gotten one call for payment. Had the ts for 3 years and all the payment was going to interest! not to the pricipal. Very frustrating. Scared of wage garnishment – but, hope they will offer me a deed in lieu of foreclosure instead. I am keeping my fingers crossed for a positive result.
All lawyers will tell you, "you have to pay" I did that already. I just ask people who had experienced how they overcome it. but you know what? if you can afford ,no problem ., but if no longer what can they get from us? its like a house all they have to do is foreclose it. I tried to stop paying since 2 yrs ago but I didnt I just stopped 2 mos ago I was trying to save my credit but I realized I have nothing left cant even afford to buy groceries esp last christmas," but I have a good credit" I would rather live with bad credit than to live poor or die with a good credit. Credit is temporary we can regain them later on , what important is to survive these days and can be able to pay what is more important. its more on priority, for me my priority are my medical bills and utilities. Nothing wrong in continue paying TS as long it wont deprive you in more important things to live.
Thanks Melham,
My lawyer told me to be caretful, because I didn't win my green card – my husband apply for it, like a person whit hight degree. I trying to get in touch with a real lawyer, so he can explain me more. I read for a person who stop paying his TS: they send him to a collection agency and make him sell his staff, and after that they give him the TS(he have it paid). I realy don't know what to do. I hope tomorrow I will meet a lawyer, and will give you an update.
Emilya, your green ard has nothing to do with this. before thay garnish your paycheck it will go to court order first, all they can do is foreclose it and ruin our credit or IRS payment.
thanks to all of you,
yesterday they make me pay. I fell so bad and scary(I don’t want to loss my green card). It is very hard to me to pay it every time. I reed all comments and try to take a decision to make a foreclosure. Same people told me that if i make a foreclosure, they can take many from may paycheck. I try to find the answer of this question online.
Hi Everyone, this is an update regarding my case with Westgate Resorts in Orlando. I stopped paying on Dec 09, since then I got a couple of emails as threats and two letters already from the collection company ICA.
Nevertheless, I just informed them that I can not afford it anymore, but will be in the best disposition to set a warranty deed in lieu of foreclosure.
I'll keep you posted on their response.
HI every one,
just yesterday i found out they hit my credit it went down from last friday. I stopped my payment Feb 2010.. wht can i do I cant afford anymore..I was able to pay some of my credit cards instead i just have to choose, but of course TS is not priority.
Thanks Erick for giving us update, how is Erica and Stacy any updates?
Are really somebody do to foreclosure?
I check my credit score today and it is still good, but TS purchase never showed in the report even from the beginning, Im not paying for almost 3 months now and they stop calling.
That's to update ..thanks.
Hi Melham,
I haven't checked my credit score yet, but I'm sure it went down. They have been calling me twice a week and I finally decided to answer. They said I'm past due…duh! They asked will I be making a payment and I told them no, that I can't afford it and I've already told you guys that. She said ok…with no hassle about making a payment. Days later I recieved a letter that if I don't pay it will get sent to the collection agency and will affect my credit score. I stopped paying since November I believe. I still pay everything else on time, credit cards, car payment, mortgage, etc. I just stopped paying them.
have a timeshare in florida about to foreclosure, i am not a us citizen and i dont live in the us, i dont care about credit score, but i have a bank account in the us. ? can they collect the money from there?
thanks
what happened to some inputs they're gone?
Melham, scroll to bottom of posts and click on "older comments", they are all there.
This site is still one of the best resources on the net for folks stuck with these worthless pieces of crapola.
I own a timeshare in Maui. Bought in 1996 and due were 250/mo. Now are 800.00+/mo. Can no longer go there every year and can't handle dues increasing. I too have emailed a couple people looking for ideas at the management company with no answer. Have now received 2 letters since not paying dues in Jan, 2010. It is paid off. I need to let it go, but am not educated as to all consequences. Bad credit doesn't worry me, but legal and IRS ramifications do.. anyone know about this? Please comment, I will check back. Thanks Karen
Hi Susan – unfortunately, you are not alone. I owned at Cape Code in Mass. for many years and the maintenance there was well over $600 and then this year they hit us with a special assessment of $2,100 so they can upgrade their property. I tried same thing, donating it, selling it, giving it back to them with no luck whatsoever. I just sent them a letter stating that I am relinquishing rights because I can no longer pay the maintenance. This site has given me the courage to go ahead and do it and deal with the consequences. I've received one letter from them stating that I cannot just walk away from the property and have imposed ridiculous late fees already. I'm hoping that the worse that is going to happen is my credit will get messed up. I have another timeshare in Big Bear that I'm probably going to end up walking away from also and that unfortunately I paid too much for but I just can't do this anymore. I always check this site and will keep posting anything negative or positive so it might help others.
Good Morning.. anyone have any dealings with Oak Plantation in Kissimmee Florida? We bought a deeded timeshare there about 10 years back. It's paid off but maintenance fees are about $675 a year for now. We are upto date but I have called them the last two years and explained things were getting harder and harder. We have tried to sell it and to give it away and no one wants it, we even tried to donate it and was told things are too bad out there right now. We offered to deed it back to them and they won't do it. They won't tell me who their attorney is or who I can contact other than management at the property. They are very hateful people. We have a 42 year old son that has had three heart attacks and now suffers from Congestive heartfailure. He is trying to get SS but at this point we are going to have to take
over and support him and that means we can't afford to pay the maintenance fee. I guess I will just have to stop paying. It's nice to know I'm not alone out here. Thanks
Linda – thanks for the tip and I think I will try it. Right now I have it on Craig's list and will see if anyone …. will just take it over. If not, I think I will try calling Lagonita Lodge. I'll post anything worthwhile.
Hi Lorraine,
Did you ever get a taker on your Lagonita TS?
Thanks Danny
Thank you Lorraine. I suggest you call your resort and be very matter of fact and tell them you are transferring your ts to transfer smart, but that you have 5 days to cancel the transaction if your ts wants to take it back for free instead. Tell them you would rather give it back free rather than spend the $2500 transfer smart is charging you. (transfer smart charges about $2500 for a two bedroom unit). my unit was 3 bedrooms. This worked for both myself and my friend, and 2 out of 2 times is pretty good odds. What can you lose? all they can do is say no!
Hi Linda – that is interesting and I wish I knew what the answer was. But I still don't trust these companies that want money up front to get rid of your timeshare. however, I do find it very interesting that your ts agreed to take it back for $85 [which is probably just the cost of transferring title] in lieu of Transfer Smart getting a hold of it. I want to get rid of my ts at Lagonita Lodge in Big Bear and advertising on Craig's list but if I don't have any luck I just might see what they say about Transfer Smart. Congrulations to you – sounds like you were successful in your efforts.
hi, Transfer Smart was going to make $3700 from me. My ts agreed to take it back for $85. My ts obviously didn't want Transfer Smart getting ahold of their property. If they were connected, why didn't they just keep my $3700?
Interesting theory. I personally will not trust any company that says they will sell, transfer or help me out for a fee. I've tried listing my units which I thought was a reliable company only to be have taken in and they did nothing except take my money. I do agree, that within the TS networks they all work together. I've already started getting threatening letters for my TS in Cape Code and expect that to continue, but I'm just ignorning them …. like they did to me when I wrote them about reliniquishing my ownership rights. Hope everyone keeps posting on postive as well as negative results. Talking about it and getting advice does really help.
I just wrote a letter to Wyndham address to their Financial Services explaining that I cant afford anymore. I am receiving now a lot of brochures from "Time Share relief companies" Im sure they are all connected, now I realized within TS itself has a lot of money making ,bill comment is right, they have many ways to have business, we should be wise and not be easily persuaded by them they are all one" .
This is something that I noticed when we gave up our Wyndham TS in RI. After lots of letters for about 3 years, we finally got a settlement offer which was that we could sign over the TS or they would foreclose. They actually do the foreclosure paper and if you send back the deed and fee they drop you from the foreclosure.
What was interesting was the number of weeks belonging to "timeshare companies" that were being foreclosed. My guess from the long list was that these companies take your paid off week, take a fee to transfer ownership and then let the property go to foreclosure and probably liquidate their "timeshare company". It sound s like an interesting business proposition since it would just require opening an inc., accepting fees and transferring title and then liquidating the inc. after some period of time.
Hello,
I read for people which find a way to read out of their TS, but all of them have it paid. My case is different, I just buy it before 6 mounts and realized my mistake. I make a contract for 20,000.00 for 5 years. I just can't firs pay it. If someone can give me an advice I will really appreciate.
If my posting is confusing at all, see my first posts of march 4 and march 17.
Hi, up-date on my progress with returning my timeshare. My timeshare is in orlando 1 mile from disney. I received my refund from Transfer Smart as they promised, and received my paperwork from Grand Beach collection dept to return my timeshare to them. I have had the paperwork notarized and will mail tomorrow. Transfer Smart seems to be very up and up–returned my money when I found out my timeshare company would rather take back my timeshare than let me sell it to Transfer Smart. I think this could work for those of you who have paid up timeshares. Call your resort billing dept and tell them you are selling your timeshare through this timeshare transfer company and ask if they would rather just take it back. if they say "no", get rid of it through Transfer Smart. your timeshare has to be paid off and fees up to date. It will cost $2000 to $3700 depending on the size of your unit.Now I just have to wait to make sure they actually file the courthouse papers. will let you know when all is done.
Well mine hasn't begun yet but preparing myself – I certainly will post whatever the outcome is going to be. Cape Cod just told me that I couldn't just walk away and if I didn't pay they would ssend me to collections and I would be responsible for legal fees. I'm hoping for the best. Helps to share experiences with others that are dealing with the same mess.
lorraine,
I heared some , its just they do not post anymore, bec that's one of the deal in the settlement"I heared", they said they parted both happy, I was also waiting for that..I notice those long time ago that posted their complain never came back to post what had happened to them,Im sure they are now free.
Has anyone that goes on this site had any positive experience walking away from their timeshare? I wish more people would post experiences that they have dealt with. Thanks