Timeshare Attorney Las Vegas
AS SEEN IN
Non-Judicial Enforcement of Timeshare Contracts
Is your timeshare fee too expensive for you to afford? Get more information about non-judicial enforcement of timeshare contracts by contacting the Timeshare Defense Attorneys. Call us!
Timeshare Contracts and Non-Judicial Enforcement
A timeshare agreement is a binding contract in law. This means that the timeshare obligation binds you once you sign it.
Many timeshare owners default on their payments or try to extricate themselves from their timeshare contracts. You would expect that in such a situation, the courts would be swamped with timeshare litigation. However, this is not the case since litigation is an expensive endeavor for all parties involved (the timeshare developer and the timeshare purchasers). Instead, the large timeshare developers use non-judicial measures to enforce their one-sided contracts.
At Timeshare Defense Attorneys, we often see clients who can no longer afford the exorbitant fees relating to their timeshare. They rarely, if ever, use their allotted vacation, yet are still obligated to pay significant amounts of money to the timeshare company.
Our clients often ask us, “What happens if I stop paying my timeshare?” or “How can I legally get out of my timeshare?“
Let’s look at some non-judicial tactics developers use and see if there are any ways around them.
Timeshare Obligations
Obligations and the legal right of both parties to a timeshare agreement are spelled out in the agreement.
The legal obligations of the timeshare owner are:
-
To pay off the mortgage payments of the timeshare as per the agreed terms.
-
To pay annual maintenance fees, which are highly likely to escalate by at least 5 percent per year and generally continue for the entirety of your life.
-
To pay special assessment costs whenever required. Special assessments refer to costs shared between vacation property owners for upgrades or maintenance of the entire resort.
-
Pay fees if the developer rents your property out for you when you cannot use it.
-
Pay fees if the timeshare is listed on the resale market.
-
Pay additional amounts when upgrading your vacation or swapping it for another location.
Timeshare Compliance
Timeshare compliance refers to the adherence to rules, regulations, and laws governing the timeshare industry. Compliance is essential to protect consumers’ and timeshare companies’ reputations and success.
There is very little consumer protection for timeshare buyers, and the regulation of the timeshare industry appears to be heavily influenced by timeshare lobbyists who have successfully ensured that legislation has remained very weak from a consumer’s perspective.
An example is that most timeshare contracts’ cooling-off period is between 3 business days and 14 days, depending on the state. The National Association of Attorneys General (NAAG) points out that this is a remarkably short period, especially considering the amount of money the buyer is committing to and the lifelong obligation that the timeshare buyer is taking on.
Another example also highlighted by the NAAG is the lack of disclosure rules for timeshare interest in most states which means that there is no regulation requiring timeshare developers to disclose in a clear and certain language that the timeshare buyer is committing to a lifelong obligation to pay.
This contrasts with other long-term financial obligations, like auto loans and mortgages, which must provide transparent and easy-to-read disclosure statements under the federal Truth in Lending Act (TILA).
Defaulting on Timeshares
The timeshare industry is well known for its underhanded sales presentation tactics and somewhat unethical sales practices. It is common knowledge that timeshare sales are typically high-pressure affairs. Questionable sales tactics entice buyers to sign the sales contract quickly in a snap decision.
Many timeshare contracts tie you into a life-long uncancellable obligation to pay monthly or annual maintenance fees. Even once timeshare owners have paid off the agreed purchase price, they usually remain obligated to pay annual maintenance and other fees perpetually.
At this point, owners start to consider defaulting on their timeshares. This is arguably not a good idea, as the timeshare developers will likely foreclose your timeshare, and you will be probably left with no timeshare. To make matters worse, your credit rating will be adversely affected, and you will have difficulty raising money in the future.
Timeshare Foreclosure as a Non-Judicial Enforcement Measure
Typically, to succeed in a claim against a timeshare owner, the developer would sue in court, obtain a judgment and have it executed. But this is both time-consuming and expensive.
This is why timeshare developers rarely utilize the courts to sue timeshare owners when they default on their timeshare obligations.
Instead, developers use a non-judicial enforcement measure to foreclose the property. They do this by issuing a default notice. Inevitably the notice needs to be complied with by the timeshare owner. In the event that payments are not resumed, the developer usually recoups the money by foreclosing the timeshare and putting out a notice of sale.
This is the cheapest and most convenient method for the developer to reclaim the property without exchanging money. Although it may be a good outcome for the developer, it may not be so for the timeshare owner. Here is why.
Timeshare Foreclosure Consequences
Timeshare foreclosure is the legal process by which the lender takes over the timeshare owner’s interest in the property due to non-payment of the mortgage. The consequences of timeshare foreclosure can be significant and long-lasting for the owner.
-
The owner loses their investment, and the lender takes possession of the property.
-
The owner may still be liable for any monetary shortfall between the foreclosure sale price and the amount still owed.
-
The owner’s credit score will be affected, making it difficult for them to obtain financial assistance in the future.
-
If the timeshare owner or seller fails to comply with the timeshare agreement or the foreclosure process, they can be in for legal expenses, additional fees, and penalties.
Ways to Avoid a Timeshare Foreclosure
There are several things you can do to prevent your timeshare from being foreclosed:
- Pay timeshare fees and dues on time to avoid defaulting.
- Contact your timeshare company immediately if you are unable to make a payment or are facing financial difficulties.
- Negotiate with your timeshare company to draw up a feasible repayment plan by lowering interest rates or waiving late fees.
- Consider selling your timeshare on the secondary market or renting it out to cover your costs and avoid foreclosure.
- Seek legal advice if your timeshare company engages in fraudulent or deceptive practices.
- Explore options to cancel or exit your timeshare by working with a reputable timeshare law firm. If you need help filling out your timeshare exit form or are considering a legal strategy to terminate your timeshare contract, consider contacting Timeshare Defense Attorneys.
How Can Timeshare Defense Attorneys Help?
Timeshare Defense Attorneys are single-minded in their pursuit of justice in an industry that is tainted and one-sided in favor of the timeshare developers.
If you are looking to exit your timeshare contract, don’t hesitate and call us today for a free consultation and case evaluation.
If you want to enter a timeshare contract, consider getting the agreement reviewed by an experienced timeshare attorney before you sign to take ownership. Prevention is definitely better than cure in this case.
Our empathic hard-working lawyers know firsthand how timeshare defense works and how timeshare agreements can rob you of your hard-earned money- especially for elderly consumers who cannot afford the rising maintenance fees. Call us today to meet at our office and let us handle your timeshare issues.
