It says 85 percent of timeshare owners who go to contract regret their purchase. Gamel says the research isn't relevant because it is not specifically about timeshares. Sell it or give it back. You can list your timeshare on a website like the Timeshare Users Group. Or you can also contact a timeshare reseller, although that can be complicated. The market does not empathize with what you paid for your timeshare.
The true resale market is typically much much lower than what someone has paid. Negotiate your way out. Most timeshare companies don't want unhappy owners. You can engage with your timeshare company and ask about exit options. Note: Exiting may cost you money, though. For example, when Dan Bailey tried to get rid of his timeshare in Orlando, the company let him off the hook — for a price. Bailey, who runs a lawn care site in Texas, accepted the offer. Hire an attorney. That may be necessary if you're outside the rescission period — a cooling-off period that allows you to cancel the purchase without penalty — and believe you have a legal cause of action against your developer.
But make sure you consult with the attorney and understand exactly what you're getting. Is the firm going to fight for you, or just have paralegals send form letters on your behalf? If you're within the rescission period, you probably won't need a lawyer. Now Reading:. Membership My Account. Rewards for Good. Share with facebook. Share with twitter. Share with linkedin. Share using email. The Advice The very first move, experts agree, is to check with the resort itself.
Also of Interest Timeshare resale scams How timeshares work 6 financial decisions you may regret once you retire. Leaving AARP. Got it! Please don't show me this again for 90 days. Cancel Continue. Thank You. Your email address is now confirmed.
Continue to AARP. Offer Details. The past-due entries for missing your payments, assuming that the lender who loaned you money to buy the timeshare reports them, will also drop your score. The hit is more severe if you had a very high credit score before the foreclosure action. But if you already have a low credit score, there's less of an impact. A timeshare foreclosure might create problems for you when it comes to getting credit in the future.
Getting a mortgage loan after a timeshare foreclosure. In some cases, though not all, it could take as many as seven years from the completion date of the foreclosure before you can get another mortgage. Getting a credit card or car loan after a timeshare foreclosure.
It's difficult to forecast how a foreclosure will affect the availability or cost of obtaining other forms of credit, like a car loan or credit card. Because a timeshare foreclosure might substantially lower your credit score, this can result in a higher interest rate than the prevailing market rates and can also result in you being denied credit in some circumstances.
Also, credit card companies for your existing cards might cut your credit line or close your account. Not all lenders look at a bad credit score in the same way. A notation on your credit report that will result in a credit denial from one lender might not preclude you from obtaining credit from another.
In fact, some car loan and credit card companies specifically target individuals with poor credit histories. But you'll probably be subject to a high interest rate, and the terms could be less than favorable. Following a timeshare foreclosure, you could face a deficiency judgment—though most timeshare lenders only go after the property. Still, your case might be the exception. What is a deficiency judgment? In a foreclosure, the borrower's total debt sometimes exceeds the foreclosure sale price.
The difference between the sale price and the total debt is called a "deficiency. Some states allow the foreclosing bank to seek a personal judgment, which is called a "deficiency judgment," against the borrower for this amount. Check your contract to see exactly when they are due.
Failing to pay your maintenance fees can result in some unpleasant situations as an owner. Many timeshare owners wonder what exactly their maintenance fees go towards. As a few examples, they cover upgrades to the resort and units, emergency funds and more. Just like owning a car or a house, a timeshare requires maintenance. Every year you have costs associated with caring for your home and automobile. This concept also applies to timeshares. Maintenance fees cover the cost of upgrades to your unit, for example: new appliances, new beds, lighting fixture and air conditioning servicing just to name a few.
Not to mention, they also cover the cost of maintaining the grounds of your resort. Additionally, the annual fees you pay make sure your family is safe on vacation, since the resort invests money into making the grounds safe and secure. This can include the labor and supplies needed to maintain pools, spas, gyms and parks that are associated with your resort. This also enables the resort to bring you new and improved attractions and on-site amenities year after year.
In addition to these factors, maintenance fees are also used during emergency situations. Paying these fees is a normal part of owning a timeshare and should be expected when deciding to own your vacations. Curious what happens if you just stop paying your annual dues?
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