Post Tagged with: "Foreclosure"

How to Avoid a Timeshare Foreclosure

September 10, 2018 at 9:46 am Comments are Disabled

a couple moving inTimeshares are among the few investments that assure you of an annual getaway. There are two payment options for a timeshare, including mortgages and cash. If you purchase a timeshare using a mortgage and fall behind in your payment, the timeshare might be foreclosed. Getting out of a timeshare obligation is tricky, and most resorts make it almost impossible. However, you can do many things to avoid a timeshare foreclosure. Here are some of them:

Deed in lieu of a Foreclosure

In this option, you voluntarily give your timeshare back to the resort to avoid its foreclosure. Though it sounds easy, most resorts are not willing to accept the deed, more so if you have arrears in maintenance and assessment fees. You can try to convince them to accept the deed or update your maintenance and assessment fees.

Donate Your Timeshare

To avoid a timeshare foreclosure, you can donate it to charity then take a tax deduction. Before the donation, the resort will expect you to pay any outstanding assessment fee. Most charities nowadays are reluctant to accept a timeshare donation because of the expenses associated with its ownership. However, you might find one willing to take it.

Negotiate a Repayment Plan

If you still wish to keep your timeshare, you can negotiate with the resort for favorable repayment terms. The resort may agree to reduce your arrears or give you a forbearance in which you do not need to make payments for a particular period. Failure to honor your negotiated terms generally leads to timeshare foreclosure. There are state laws governing timeshare foreclosure. It is hence imperative to get an attorney to review your situation and recommend the ideal solution. A timeshare closure significantly hurts your credit score and should be avoided at all costs.