Can Timeshare Maintenance Fees Affect Your Credit Score?

If you stop paying your timeshare maintenance fees or mortgage, you will default on your ownership.

If you default on your timeshare, it will hurt your credit score and stay on your credit report forever

. This means that when you borrow money in the future, the default will always show on your credit report.

What happens if I stop paying maintenance fees on my 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 mess up your credit?

A timeshare foreclosure won’t ruin your credit scores forever

, but it could possibly have an impact on your ability to obtain another mortgage for, perhaps, up to seven years. You might also face future loan denials or high interest rates if you apply for other forms of credit, like a car loan or credit card.

How do I get timeshare off my credit report?

If the bureaus learn about a timeshare foreclosure, the foreclosure ends up on your credit reports. Unfortunately, if there was no agreement in writing, then you can only

dispute the charge-off or contact the company to request a goodwill deletion of the charge-off

due to the pressure tactics.

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

1. Is There a Rescission Period? …
2. Work with a Timeshare Exit Company. …
3. Rent Your Timeshare.
4. Sell Your Timeshare.
5. File Complaints with Regulators and Law Enforcement.
6. Give or Sell It Back to the Timeshare Developer. …
7. Ask your Developer for Help.

Can a timeshare company put a lien on your house?

If a repayment plan isn’t negotiated, the timeshare company might go the route of taking you to court for breach of contract to get a judgment against you and place a lien against the property. Ultimately, they will foreclose on the property.

What happens if I walk away from my timeshare?

Some people just stop paying on their timeshares. If you do walk away,

don’t be surprised to see a big hit to your credit score and to start getting regular calls from collection agencies

. You might regret your purchase, but you did sign a legally binding contract.

What happens if timeshare goes to collections?

When you don’t pay your timeshare maintenance fees and fall seriously delinquent,

the timeshare finance company can foreclose on the property

. This will usually compound collection fees, missed payment fees, accumulated interest expense and damage to your credit score and profile.

What happens if my timeshare is foreclosed?

A timeshare foreclosure

could lead to a reduction in credit lines (or in extreme cases even to your lender choosing to close your account altogether), as well as an increase in insurance premiums

, due to receiving a poor credit rating that results from the timeshare foreclosure process.

How can I get out of my timeshare for free?

1. Check Your Timeshare Contract. Many timeshare contracts contain a retraction or rescission period. …
2. See if the Company Will Buy it Back. …
3. See if the Company Will Take it Back for Free. …
4. Sell Your Timeshare. …
5. Give Your Timeshare Away. …
6. You’re Stuck With One Company. …
7. You May Not Use It. …
8. They Cost a LOT.

Can I sell my timeshare back to the resort?

A deed back clause or program allows you to give your timeshare back to the resort

. Until then, you remain responsible for paying the maintenance and special assessment fees along with your mortgage payments.

Can you refuse to inherit a timeshare?

In short,

yes, you can refuse to inherit a timeshare

. While the laws for rejecting an inherited timeshare can vary from state to state, the actual process will generally be the same and is known as “Renunciation of Property.”

Do timeshare companies take legal action?

The short answer?

Yes. Resort developers can and do take financial and legal action against timeshare owners attempting to leave their interest

. However, they may not pursue these strategies as aggressively as some consumers may think.

What is the average cost to get out of a timeshare?

Costs to Get Out of a Timeshare

On average, it costs about

$5,000 to $6,000

and takes 12–18 months to get out of your timeshare contract using a timeshare exit company. But the cost and the timeframe can vary depending on a number of factors including, how many contracts are attached to your timeshare.

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

Canceling your timeshare can also be difficult due to

financial reasons

. Resorts are notorious for encouraging people to make a down payment on a credit card. Putting a substantial investment on your credit card is never a wise idea. Your interest rates will skyrocket, and it’ll take you a while to pay it down.

Can I donate my timeshare to charity?

Get Out of Your Timeshare for Good

DonateMyTimeshare.org makes it easy to donate your timeshare to a worthwhile 501c(3) charity and to feel good about getting rid of your timeshare, because it benefits a good cause. Best of all, in most cases,

you can donate a timeshare at no cost to you

.

How do I write a letter to cancel my timeshare contract?

1. Get your cancellation request in writing. …
2. Include a clear request to cancel your timeshare. …
3. List all the important details. …
4. Set expectations. …
5. Send all correspondence by certified mail. …
6. Don’t get emotional or long-winded. …
7. Don’t use passive or hesitant language.

Can timeshare garnish wages?

If the judge issues a judgment against you, the management company may garnish your wages

or levy your bank account to get the money you owe.