In timeshare ownership, one of the common questions that come up is what will happen if I stop paying my maintenance fee? This question is usually asked by timeshare owners who are having difficulty keeping up with their annual maintenance fees and later on will try to get out of their timeshares. Sometimes, the special assessment for maintenance becomes too burdensome and could be a reason why some owners are having difficulties with their timeshares.
Most of these folks are under the mistaken impression that there would be no consequences to allowing the payments to lapse. The truth is timeshare companies will foreclose on your timeshare if you fail to pay your bill and this will wind up on your credit report. This is just the same if you decided to stop paying your mortgage or a credit card bill. Another consequence is you may also wind up being pursued by a collections company for back payments and could possibly face additional penalties and fees.
For some owners, they think that the timeshare company will just take it back if the maintenance fee doesn’t get paid. But this is not how it works. If that were the case, you’d better find some properties with an abundance of vacant properties on their hands during the least desirable vacation times. Mostly, no timeshare company is going to let you out of your contract. Take note that the maintenance fee continues to be an obligation even if you have no intention of ever using your timeshare again.
So, it boils down that the best bet if you need to stop paying is to find a way to get rid of your timeshare. You can sell your timeshare and sometimes, it even makes sense to simply give it away. But for those sellers, just be cautious that when you sell your timeshare you are not being ripped off.