Consequences of Not Paying Timeshare Maintenance Fees

Consequences of Not Paying Timeshare Maintenance Fees

Timeshare maintenance fees can be a huge source of frustration for owners. They can feel especially irksome when they go up year after year!

These payments typically cover upgrades to the resort, emergency funds and more. Your contract will specify when your maintenance fees are due. Failing to pay them can lead to consequences such as liens and collection efforts. Learn more consequences of not paying maintenance fees for a timeshare.

1. Legal Action

Many timeshare owners are in a position where they can no longer afford their annual maintenance fees. When this occurs, there are several different ways to handle the situation. One way is to try and sell the timeshare. However, this is a complicated process and usually involves hiring a professional.

Another option is to simply stop paying the fees. However, this is not a good idea and can lead to serious legal consequences. For example, a lien can be placed on the property and the timeshare owner will not be able to access the property until the fees are paid.

Finally, the timeshare company can take the timeshare owner to court for not paying their fees. This will result in a judgment being placed on the credit report and can negatively impact the credit score. Therefore, it is best for the timeshare owner to go through proper channels in order to avoid these consequences. A negotiated cancellation through an experienced timeshare exit company is the best way to quit paying maintenance fees.

2. Collection Efforts

Timeshare companies have the right to take legal action if their fees are not paid. This means that they can withdraw funds from your bank account, deduct them from your paycheck, or place a lien on any property you own.

In addition to these legal consequences, failing to pay your maintenance fees can also damage your credit score. This is especially true if you took out a loan with 3rd party lenders to purchase your timeshare in the first place.

As you can imagine, this can make it extremely difficult to secure loans, credit cards, or mortgages in the future. While it is tempting to try and get rid of your timeshare by renting it out or selling it, the best way to completely free yourself from this obligation is to find a reliable company that offers timeshare exit services.

3. Foreclosure

If a timeshare owner fails to pay their maintenance fees, the company may place a lien on their property. A lien is a legal claim on a piece of property that is enforced by a court order. This means that the timeshare owner will not be able to access their property until they pay their maintenance fees.

In addition to being unable to access their property, a timeshare owner who fails to pay their maintenance fees will also likely experience significant financial and legal hardships. Debt collectors will be at their door, they will be sued by the timeshare company, and they may even experience foreclosure.

This process will significantly impact a person’s credit score and their ability to purchase real estate in the future. This is why it’s important to pay your maintenance fees on time. It’s the only way to avoid the consequences of not paying them. Contact us at Lonestar Transfer today for more information about exiting your timeshare and the associated maintenance fees.

4. Credit Score

As with mortgage payments on your primary home, if you stop paying the timeshare maintenance fees it may result in foreclosure. This would negatively impact your credit score and will remain on your credit report for seven years.

The contract clearly states that the timeshare owner must pay the maintenance fees, so failing to do this comes with serious consequences. Depending on the amount of fees owed, the timeshare company could put a lien on the property and deny the owner access until the fees are paid.

Many timeshare owners decide to stop paying their fees because they want to escape from ownership, but this isn’t a smart option. There are better ways to do this without ruining your credit score, including using the resale market or hiring a timeshare exit company. Taking this route also makes it more difficult to obtain future loans or mortgages. Besides, it is against the law to discriminate based on credit history.