What happens if I stop paying for my timeshare?
If you own a timeshare and you’re really frustrated about it, it’s certain that the thought of not paying your maintenance fees must have crossed your mind. As good as this might sound, it is neither the best nor cheapest way to get rid of your timeshare. In this article, we’ll consider why backing out of your timeshare obligation is never the best option for you.
Deciding to stop your timeshare payment can result in a court case. Imagine how messy that would be.
When you stop paying for your timeshare, you’d get collection letters to remind you about your payment. After the fourth letter, the case becomes way more complex than you’d be comfortable with. It is important to remember that most timeshares come with a perpetuity clause. This means that just because you stop paying does not bring an end to fulfilling your timeshare obligations. When your account is delinquent, you cannot sell, rent, donate, gift or get rid of the timeshare in any way. You would be stuck with the timeshare and all its responsibilities until you clear and settle the financial delinquency with your timeshare management company.
What exactly happens when you stop paying for your timeshare?
Different things can actually occur.
If you reach some sort of legal agreement with the resort, the timeshare developer may opt to auction your timeshare. The problem with this is that there are no buyers to bid in the auction. Timeshares auctioned on eBay go for as low as $1 and less, with the seller paying transfer costs and future maintenance fees. It is for this reason, that most resorts do not even bother with this option. They just continue collection efforts.
If the timeshare development is a ‘high end’ resort (Only a few resorts fit into this category. Most timeshares are not ‘high-end.’), then the resort management may be successful auctioning off the deficient unit. The previous owner would then be responsible for the deficiency, having to pay what is left of the debt on the timeshare. This, however, does not happen without the involvement of lawyers. These lawyers all charge fees, which gets added into the deficiency judgement. This option is not as easy as it seems on the surface. Often, you are left owing more than the original debt.
The ugliest path this decision can take is when the court gets involved. Depending on where your resort is located, the management may pursue the action of foreclosure. This can be expensive as you would end up paying the funds you owe, attorney fees, court costs, document filing costs and every other cost that may be attached to it.
Your best bet is to get rid of the timeshare in a less stressful and less expensive way. Getting involved with the court can get really ugly and even affect future financial decisions. There are many ways to get rid of your timeshare without getting in trouble with the law, and TS Elimination is one of your most credible options.
TS Elimination helps timeshare owners get out of their timeshare with easier and more cost-effective solutions. Contact TS Elimination LLC on 888-559-5660 or www.tselimination.com to get out of your timeshare today.