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What Happens if I Stop Paying My Timeshare?
Many people wonder, “What happens if I stop paying my timeshare?” The Timeshare Defense Attorneys can answer that and more. Contact us today for a consultation!
Can I Stop Paying Fees on My Timeshare?
Most of us have, at some point, been saddled with paying annual dues for a spontaneous purchase that we later regretted. A spontaneous purchase of a timeshare often results in buyer’s remorse and a contractual commitment to uphold your end of the bargain.
Sometimes the regret starts almost immediately after signing on the dotted lines. Other times the regret materializes after years of paying recurring annual timeshare maintenance fees towards a holiday that is no longer even used. At this point, it is always tempting to stop making payments toward the timeshare. Of course, this directly violates your contractual obligation. Despite your temptation to walk away from the contract because it seems one-sided or grossly unfair, please resist the temptation.
The basic principle is that when a person signs a document, they know what it contains and will be bound to it. So the answer to the above question is, “no.” Keep paying for your timeshare; otherwise, you could face several penalties, including a poor credit rating and potentially even foreclosure proceedings.
If you need to get out of your timeshare ownership, there are less risky ways to handle the matter, although you’ll likely need the assistance of a timeshare attorney. Please keep reading to learn more about how it works and how timeshare defense attorneys can help you.
Why Do People Consider Halting Their Timeshare Payments?
There are many reasons why people consider stopping payment of annual timeshare fees. The biggest reason is due to rising annual timeshare fees. At the time of the contract signing, the information about the maintenance fees is often hidden in the fine print, which means many people overlook them.
The sales pitches of timeshare companies often focus on saving you money in the long run, not on costing you money, but there are also other costs that are not disclosed. A timeshare owner becomes resentful and detests paying recurring and ever-increasing annual maintenance fees when these payments were not clearly explained to them.
ARDA reports that the average timeshare annual maintenance fee is $1000, which is more than enough to stop paying these annual fees.
Can You Be Sued for Not Paying a Timeshare?
You can be sued for not paying maintenance fees and other fees related to your timeshare. Timeshare companies can surrender you to a collection agency, you could face foreclosure, and your credit rating could be negatively affected. A good credit report is important when buying a house, a house, or anything that requires a credit check before purchasing. If you defaulted on your timeshare loan payments or failed to pay other fees, your financial standing and future investments could be seriously affected.
Timeshare Foreclosures
If you stop paying your mortgage or maintenance fees, you could face foreclosure, following which the developer would take possession of the timeshare property so they can auction it off and use the money realized to settle your outstanding debt.
There are two types of foreclosure – Judicial and Non-Judicial;
Non-Judicial Foreclosure
A non-judicial foreclosure stems from a clause in your timeshare contracts that authorizes the developer to sell your property if you default on the fee payments. The process is quite straightforward – you will be served with a notice of default, and if you continue to default, you will get a notice of sale, and the property will be sold at an auction.
Judicial Foreclosure
Here, the developer will commence a foreclosure lawsuit against you. This is a costly and drawn-out legal process that goes through the courts. If you lose, you may face a deficiency order depending on your state law, which makes you responsible for any shortfall if the property does not fetch the price on the outstanding mortgage loan.
Can You Walk Away From a Timeshare Contract?
Yes, you can, but is it wise to do so? Walking away from a timeshare contract has consequences. As these consequences are only rarely inconsequential, it is better to deal with the issue squarely and consider other options before abandoning payments. A responsible exit is more beneficial than delinquency.
Preferred Timeshare Exit Strategies
Generally, the ideal way to exit a timeshare is to completely rid yourself of the timeshare property.
You could approach the timeshare developer to explain your situation and ask them to buy the property back from you. You could also sell the property out of hand on the open market. Another option is to rent out your timeshare to get revenue to contribute to the annual costs. Some people manage to give their timeshares away to friends or family or donate them to charity.
If the developer misrepresented or misled you during the sales presentation, if you were subjected to high-pressure sales tactics or if there are issues with the contract, reservations, and promises made by the developer, timeshare defense attorneys can sometimes pressurize resorts to take back timeshares instead of facing litigation and possible negative press around their nefarious timeshare practices.
An entire industry has sprung up around disgruntled timeshare owners to cater to a strong demand to resell timeshares on the secondary market or rent them out on behalf of timeshare owners. Timeshare cancellation companies and timeshare exit companies also offer to assist with cancellations. Nevertheless, there are a significant number of frauds and scam artists in the industry, so be street-wise when dealing with people you do not know. Do not pay over money on the strength of outrageous promises to sell or guaranteed rentals.
How Timeshare Attorneys in Florida Can Help You
As an individual, you may feel that you are outweighed by the large corporations that typically own timeshare property resorts. Indeed, there is a distinct imbalance of power. However, having an experienced and skilled timeshare defense lawyer at your side goes a long way to level the playing field.
Instead of abandoning your timeshare payments and facing the accompanying penalties, consider contacting a timeshare attorney in Florida to advise you and help you create a suitable strategy to end your timeshare contract.
Contact Timeshare Defense Attorneys if you have further questions about your timeshare payments or exiting your contract. Let us assess your case during our free consultation and devise possible solutions for your unique circumstances.
