Can Timeshare Maintenance Fees Be Sent To Collections?

After consistent failure on your part to pay the bill and work out arrangements,

the timeshare management company will send the bill to collections

: either an in-house or third-party agency.

Can a timeshare send you 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 you default on timeshare maintenance fees?

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.

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.

How do I legally get out of a timeshare?

If you’re still in the recission period, great! Now all you need to do is cancel that pesky timeshare purchase. To do this, you’ll need to

write a cancellation letter that tells the resort it’s over and mail it to their cancellation address

.

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.

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.

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 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

.

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.

Is a timeshare a secured debt?

If you borrowed money to purchase a right to use timeshare, your lender will not have a mortgage on any real estate interest, and

the debt is normally considered to be unsecured

. Like other unsecured debts, you can discharge it in bankruptcy.

How long does it take to foreclose on a timeshare?

If you continue to stop paying on your loan, the timeshare company can go to court and file a foreclosure lawsuit to obtain the rights to your unit and take it back. While it mainly depends on what state you have your timeshare in, this process can take

about one year

.

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 a timeshare sue you for non payment?

In general, though, if you don’t pay the fees and assessments on a right-to-use timeshare,

the HOA may sue you for a money judgment or “repossess” your right to use the timeshare

. A repossession is a different legal process than a foreclosure.

Can you get out of a timeshare without a lawyer?

There are three ways to get out of timeshare in normal times:

Sell it or give it back

. A site like ARDA’s Responsibleexit.com can connect you with timeshare developers who have free or low-cost exit options or professional licensed real estate brokers that specialize in timeshares.

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

If an exit company does not verify your situation before, you can potentially lose thousands for hiring an unqualified exit company to work on your case. An average cost to cancel a timeshare can run you

$3,000-$15,000

.

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.