Owning a timeshare requires monthly maintenance fees, and failure to pay can lead to foreclosure and damage to credit. Selling or giving away the timeshare, contacting owners for help, and donating to a nonprofit are ways to avoid foreclosure.
Owning a timeshare means making monthly maintenance fees and paying homeowners association dues and property appraisals. However, if you’re having trouble making monthly payments for whatever reason, it may seem tempting to let it slide, especially if the majority of the loan has already been paid off. This is not recommended, as letting a timeshare go into foreclosure status can be very damaging to a credit rating.
There are ways to avoid timeshare foreclosure and keep your credit in good standing. One of the best methods is to get rid of the timeshare all together by selling it to another investor or back to the HOA. This is made easier if you own a timeshare in a desirable location or with a famous resort. In this case, it shouldn’t take long to download the timeshare.
When trying to avoid having your timeshare foreclosed on by the homeowners association or home developer, sometimes the best approach is to contact the owners directly and let them know that you are having difficulty making the payments. In many cases, the owners may have discussed this before with other investors and can suggest ways you can handle this problem to avoid timeshare foreclosure, which is undesirable for both parties. Sometimes they are even willing to help you sell the timeshare to another investor who has been inquiring about buying one.
If you are dealing with a timeshare in a less than desirable location, consider listing it for a lower price than what you paid for it. Advertise your timeshare with low-cost or free online sources and offer to cover some of the transfer costs to get a better response from investors. If you have a timeshare in a warm climate, be sure to post ads in the fall and winter months, when investors are likely looking for a vacation spot.
Timeshare foreclosure can be avoided by giving it away to someone. Set up an agreement with a friend, colleague or family member to give them the timeshare and someone else can take over the payments. Your responsibility will be to obtain a contract for the transfer of the timeshare and to ensure that all fees and dues are paid in advance. This can be a great way to avoid timeshare foreclosure.
If you can’t sell your timeshare and want to avoid foreclosure proceedings, consider donating it to a nonprofit organization and then deducting taxes. There are a number of non-profit organizations that accept timeshares to raise revenue to support their causes. However, you must ensure that all payments, taxes and HOA fees are up to date before donating.
Smart Asset.
Protect your devices with Threat Protection by NordVPN
