UPDATED 6/17/20
A timeshare is a form of ownership model in real estate whereby multiple individuals buy the rights to share property but only for an allotted time frame. While it involves a lot of technicalities, a timeshare interest is an instrument that can be used to secure a mortgage. Unfortunately, however, failure to honor the mortgage loan and falling into timeshare loan default could subject your timeshare to foreclosure. Besides, timeshare could be foreclosed if you’re falling behind or default to pay the assessments and maintenance fees of your timeshare. If you stop timeshare payments for any reason you will be at risk for letting timeshare go into foreclosure. If it turns out that a timeshare is getting to expensive for you to maintain, you may need to contact a professional to learn various timeshare exit strategies.
But there are approaches you can take to get out of timeshare contract without going through the frustrating foreclosure process. Or better yet, work out a payment plan to keep your timeshare, if you don’t want to lose it altogether. If you are experiencing default on timeshare mortgage you may need a timeshare foreclosure attorney in order to protect your rights. Read further to learn how to forfeit a timeshare without going into foreclosure.
1. Deed Back
While this may not be the best option, particularly if you are delinquent on your assessments, a deed in lieu of foreclosure for timeshare can help you avoid foreclosure. This involves a transaction where the lender accepts back the deed to the property, releasing you from the future mortgage obligation. Deed in lieu of foreclosure for timeshare may be your best strategy if you are experiencing timeshare loan default.
Most timeshare property owners will not accept the title back if there are any default timeshare mortgage payments, but you can still negotiate further with the aim of overruling foreclosure. In some cases, you’ll be needed to make some payment to cover part of what you owe before the lender can agree to a deed in lieu of foreclosure for timeshare. When you want to cancel a timeshare contract, the first thing to do is to contact the loan servicer. You’ll then fill a loss mitigation application which you’ll submit alongside your financial statement. Letting timeshare go into foreclosure is never the best option if your are experiencing hardship, there are other options a timeshare foreclosure attorney can help you with.
2. Selling Your Timeshare
Another common way of avoiding foreclosure is by selling your timeshare. If your timeshare is a prime location or at a high profile resort, you may find it easy selling the timeshare and possibly make a profit out of it provided you set a reasonable price. However, this isn’t always the case, depending on the size of your outstanding timeshare mortgage. To improve the chances of selling your timeshare, consider enticing potential buyers by removing closing fees or transferring your free to them a week if you haven’t already exhausted yours.
But generally, the best way to attract buyers is to set the right price. Check various auction sites to find out the value of your week. Depending on your timeshare property, you may be forced to set your price as low as 50% to 90%.
3.Donating Your Timeshare
Selling your timeshare involves a complex administrative procedure. To avoid all this bureaucracy, then consider giving away your timeshare to a charitable organization. By doing so, you’ll avoid tax deduction, freeing yourself from future assessment while also avoiding foreclosure in the process.
However, for this option to work, you’ll have to clear up maintenance fees and bring them up-to-date. Although not every non-profitable organization will accept timeshare donations, you might still secure a charity that is willing enough to accept your donation. For some people this is the most appealing way they’ve learned how to forfeit a timeshare
4.Giving Away Your Timeshare
If you happen to have a not so lucrative timeshare that no one is willing to buy, or you’re simply unable to offset your assessments and timeshare mortgage, your best option is to give it away. Find a timeshare closing company that can help you get the timeshare off your hands as quickly as possible before next year’s bills lands.
5.Repayment Plan
Lastly, if a deed in lieu of foreclosure hasn’t materialized, and no one is willing to buy or accept your timeshare as a donation. Consider negotiating with your timeshare resort. And the way to do this is to enter into a repayment plan with your lender before you default on timeshare mortgage. Consult your timeshare foreclosure attorney as soon as you face foreclosure of your timeshare property. You may be wondering can a timeshare sue you? The simple fact is if you let timeshare go into foreclosure you run the risk of legal action. Foreclosure on timeshare deeded property is serious and can destroy your credit. Be wary of timeshare loan default and consider these ways how to forfeit a timeshare property today!
