Your timeshare will have to go through foreclosure if you fail to pay your mortgage or assessments on time. A foreclosure on your record could potentially lead to serious consequences, mainly a lower credit score, which means a hard strike on your credit history. When you fail to make your monthly mortgage payments, the timeshare developer/owner would inform credit reporting bureaus of your failure to make good on your payments and turn your account over to collections.
When this happens, your credit score would have no way to go but down, and once it’s down, you would have difficulty qualifying for loans, such as an auto loan, mortgage, or line of credit. Fortunately, you have options for avoiding a timeshare foreclosure.
What Can You Do?
Timeshare owners and developers are notorious for making it difficult for people to get out of their timeshare responsibilities, but you have several options to help relinquish your timeshare or negotiate a deal so you could keep your timeshare and therefore, avoid a foreclosure. These options include the following:
- Sell your timeshare,
- Negotiate a more manageable repayment plan with the timeshare developer/owner,
- Donate to charity,
- Negotiate a reduced payment amount, and
- Deedback or deed in lieu of foreclosure, which is to deed your timeshare back to the developer/owner.
Essentially these options could help safeguard your timeshare interest and your credit. You just need to determine the most suitable option for your circumstances.
Other Things to Remember
When trying to figure out what you want to do with your timeshare, it’s immensely crucial that you beware of malicious individuals who run rescue scams. Basically, these scammers target timeshare owners who need to dispose of their timeshare interests as soon as possible.
Bearing this in mind, if you’re looking for a timeshare firm to help you sell your timeshare, do your due diligence and research the company very thoroughly. It’s also in your best interest to get legal advice from a lawyer experienced in timeshare foreclosures so you could learn about the laws that apply to your case and help you figure out how to best move forward.