One of the common questions about timeshares is “What happens if I stop paying maintenance fees?” This question is often asked by timeshare owners, who have difficulty paying for their annual maintenance due to an increase or change in their personal financial situation. Sometimes a special assessment of maintenance can become burdensome.
Many of these people mistakenly believe that there will be no consequences for allowing the payment to expire. But this is far from the truth. If you fail to pay the bill, the timeshare company will cancel the timeshare, which will show up on your credit report, just like you decide to stop paying your mortgage or credit card bill. The collection company may also recover your arrears, and may face additional fines and fees due to non-payment.
Some owners actually believe that just because they have lost interest in timeshare and no longer intend to use it, the timeshare company will take it back without paying maintenance fees. But this is not how it works. If this is the case, you will find that they have some vacant properties on their hands during the most undesirable vacation time. Therefore, in most cases, no timeshare company will let you withdraw from the contract. Even if you do not intend to use the timeshare again, the maintenance fee is still an obligation.
Therefore, if you need to stop paying, the best option is to find a way to sell timeshares. Sometimes it even makes sense to simply give it away. Unfortunately, for some sellers, you may insist on using less popular timeshares, or your weekly demand is not high. In this case, you may even engage in financial incentives. For example, you may be willing to pay this year’s maintenance fee, but allow the new owner to use this week.
Selling in this way will not save you money this year, but it will eventually make you give up your responsibility to others. This is much better than canceling timeshare.
Just be careful, when you sell timeshares, you will not be stolen. You should not pay a salesperson upfront to sell your timeshare for you. Professional real estate professionals only charge commissions after the transaction is completed, not before the transaction is completed.