Among timeshare owners and their advocates, this line of thinking often leads to a question along the lines of: “If I decide to simply stop making my timeshare payments, what is the most common type of timeshare foreclosure procedure?” Many timeshare owners cite their rising fees – including maintenance fees, special assessments, and other expenses – as a major factor pushing them away from the industry.
For some, there may be a temptation to stop paying their fees altogether, in order to attempt to walk away from their interest – or, at the very least, to force their resort to the negotiating table.
Our own Michael Finn recently took on this common consumer question in a video interview, available here:
And here’s a transcript of what he had to say:
“That’s a good question, and it does vary by state by state. So it’s difficult to give you a ‘one size fits all answer.’
The best answer I think I can provide for you is many, many states offer a foreclosure that does not mean that you’re going to be personally liable for any of the deficiency, the amount that you didn’t pay afterwards. Florida is one of those states. However, the developer has the option if they want to… They typically don’t do this, but they have the option if they want to, to pursue you with a judicial foreclosure.
The other thing you have to be aware of is the fact that your credit rating will definitely be impacted by a foreclosure. If you’re planning a mortgage purchase in the future, that will have a very significant impact on your ability to do that.”
For more on this important FAQ, you may wish to peruse some of the following resources from the Finn Law Group team:
- What’s the Real Deal on Timeshare Relief Companies?
- Surveying Administrative Remedies for Timeshare Consumers Seeking Relief
- ‘Might I Be Liable for a Deficiency Judgement After a Timeshare Foreclosure?‘
- An Open Letter to the American Resort Development Association (ARDA)
Led by Attorney Michael D. Finn with 50 years of experience, the Finn Law Group is a consumer protection firm specializing in timeshare law. Our lawyers understand vacation ownership as well as the many pitfalls of the secondary market of timeshare resales. If you feel you have been victimized by a timeshare company, contact our offices for a free consultation. Know your rights as a consumer and don’t hesitate to drop us a line with any questions or concerns.