Last updated 2026-07-26
TL;DR
Stopping payment on timeshare maintenance fees doesn't erase the debt. Expect late fees, collection calls, credit bureau reporting, and eventually foreclosure or a lawsuit, depending on your contract and state. It can take anywhere from a few months to a few years. It's rarely a clean exit and it can wreck your credit. Rescission (if you're still in the window), a deed-back, or a legitimate resale are safer paths.
What actually happens if I stop paying timeshare maintenance fees?
The resort or HOA doesn't just shrug and let it go. Most timeshare contracts and state HOA-type statutes give the association a lien right on the interest for unpaid assessments, similar to how a condo association handles delinquent dues [1]. That lien attaches to your deeded week or points, not to your other property, in most cases (more on the exceptions below). The first 60 to 90 days usually look like late fees, interest charges (often 12% to 18% annually, check your CC&Rs), and calls or letters from the resort's internal collections department. After that it typically gets referred to a third-party collection agency or, more often now, sold to a debt buyer. Somewhere between 6 months and 2 years, depending on the resort and the state, you'll likely see either a lien recorded against the timeshare deed or, for points-based products, cancellation of your membership and forfeiture of the interest. Many resorts prefer the forfeiture route for points because it's cheaper than foreclosing a deeded week; they just take the points back and move on. For deeded weeks, the resort may pursue a non-judicial foreclosure (fast, cheap, common in Florida, Texas, and other states with statutory timeshare foreclosure processes) or a judicial foreclosure (slower, court-supervised, used more in states without a streamlined statute). Florida's timeshare foreclosure statute, for example, allows a trustee foreclosure process specifically built for timeshare interests [2].
Will unpaid timeshare fees hurt my credit score?
Yes, if the debt gets reported. Once your maintenance fee account is turned over to a collection agency, it can show up on your credit report as a collections account, which can knock 50 to 100+ points off a FICO score depending on your starting score and credit history [3]. That mark can sit on your report for up to 7 years under the Fair Credit Reporting Act, even after you pay it off, though paying it does stop new interest and collection activity [4]. This is the part people underestimate. A $1,200 annual maintenance fee that goes unpaid for two years, plus interest and collection fees, can easily balloon into a $3,000 to $5,000 debt. If that debt gets sold to a junk debt buyer, you may also get sued in small claims or civil court, especially if the balance is large enough to clear the state's small claims cap (which ranges from $2,500 in Kentucky to $25,000 in Tennessee, depending on the state) [5]. A judgment against you is worse than a collections account. It can lead to wage garnishment or a bank levy in states that allow it, and it stays on record even longer in some jurisdictions.
Can the resort actually foreclose on my timeshare?
Yes, and in a lot of states it's faster than you'd think. Timeshare deeds are real property interests, so most states treat unpaid assessments as a lien that can be foreclosed like a mortgage lien, just on a much smaller piece of property. Florida uses a nonjudicial trustee foreclosure process under its timeshare statute that can take as little as a few months once initiated, far faster than a standard residential foreclosure [2]. Other states without a specific timeshare foreclosure statute require judicial foreclosure, which takes longer and costs the resort more, so smaller resorts sometimes just let a deed sit in default limbo for years without foreclosing, since foreclosure costs money and a deeded week with high fees isn't worth much on the open market anyway. Here's the twist: sometimes the resort doesn't want to foreclose. Foreclosing means the resort loses a paying (or non-paying, but on-the-books) owner and gains an unsellable week with maintenance fee obligations it now has to eat. So some resorts will let an account go delinquent for years, tacking on fees and interest, rather than foreclosing and closing the loop. This is not a loophole in your favor. It just means the debt keeps growing quietly instead of resolving.
Does stopping payment put my house or other assets at risk?
Usually not directly, but read your contract. In the large majority of cases, the timeshare lien only attaches to the timeshare interest itself. The resort forecloses on the week or points, not your primary residence. However, if you get sued for the deficiency (the difference between what you owed and what the resort recovers) and a court enters a money judgment against you, that judgment can, in many states, be used to garnish wages or levy bank accounts, which does reach your broader finances. This is separate from the lien on the timeshare itself. Also check whether you personally guaranteed a loan used to buy the timeshare, separate from the maintenance fee obligation. If you financed the purchase through the developer or a bank and stop paying that loan too, that's a different debt with its own collection and credit consequences, on top of the maintenance fee delinquency.
Is it ever a reasonable strategy to just stop paying and let it foreclose?
Some people do this on purpose, treating a lien foreclosure as an unofficial, informal exit. It's not something we can recommend, because the FTC and state attorneys general have flagged that walking away from payments you contractually owe carries real risk: credit damage, potential lawsuits, and no guarantee the resort forecloses quickly, or ever. The FTC's guidance on timeshares is direct: 'Before you stop paying maintenance fees, understand that timeshare associations may pursue collections, report the debt to credit bureaus, or foreclose'. That's not a scare tactic, it's just what the contract and state lien law actually allow them to do. If you're deep in a fee spiral and truly cannot pay, talk to a consumer law attorney or a HUD-approved housing counselor about your specific state's foreclosure and collections process before deciding anything. Nonpayment is a last-resort outcome, not a strategy, and it should be a decision made with full knowledge of your state's timeline, not a passive default.
How to get out of a timeshare the right way
There's no single button that works for everyone, but there's a real order of operations. First, check if you're still inside your state's rescission window. Every state has one, and it's short, often measured in single-digit days from the date you signed. Florida gives buyers a statutory right to cancel within a specific window under its timeshare act; other states set their own number of days . If you're still inside it, sending a proper written rescission notice (certified mail, return receipt) is by far the cheapest and cleanest exit. Confirm your state's rescission window before doing anything else; the rescission-by-state guide walks through how to find your state's specific deadline and notice requirements. Second, if you're past rescission, ask the resort directly about a deed-back (also called a deedback or surrender) program. Many major operators, including Marriott Vacation Club, Wyndham, and Hilton Grand Vacations, run some form of voluntary surrender program for owners current on their fees. It's usually free or low-cost, and it's the single best move for anyone who missed rescission and doesn't need to recover money from the purchase. Third, consider a legitimate resale, understanding upfront that timeshares resell for pennies on the dollar, if they sell at all. Fourth, if none of that works and you're getting pressured by expensive exit companies, do your homework before paying anyone a large upfront fee. Read up on timeshare exit companies and how to vet them before signing anything.
How to sell a timeshare (and what it's really worth)
Selling is legal and sometimes possible, but the resale market for timeshares is brutal. Most deeded weeks and points packages resell for a fraction of what the original buyer paid, often 10% or less of the purchase price, and plenty list for $1 on resale sites just to get out from under the maintenance fees. If you want to try, list on a reputable timeshare resale marketplace, price it realistically (check completed sales, not asking prices), and disclose the annual maintenance fee clearly, because that's what buyers actually care about. Never pay an upfront fee to a company claiming they have a 'buyer waiting' for your unit; that's one of the oldest scripts in timeshare resale fraud, flagged repeatedly by state attorneys general and the FTC. A legitimate broker or marketplace typically takes a commission after the sale closes, not before. If someone wants money up front to 'process' your listing or guarantee a buyer, walk away.
Are timeshares scams?
The product itself usually isn't a scam in the legal sense; it's a real, disclosed contract, even if it's a bad deal for most buyers. What's often scammy is the sales process (high-pressure presentations, understated fee increases, verbal promises that don't make it into the contract) and the secondary market around exiting (upfront-fee exit companies that take your money and do nothing). The FTC has brought enforcement actions against companies that charged consumers thousands of dollars upfront promising to get them out of timeshare contracts and then failed to deliver . State attorneys general in Florida, Missouri, and elsewhere have pursued similar cases against exit companies and, in some instances, against resorts' sales practices . So the honest answer: the ownership itself is a legal, if often regrettable, financial product. The scam risk clusters heavily around the sales pitch and the exit industry, not the underlying deed.
How much do timeshares cost?
The average price of a timeshare interval, according to the American Resort Development Association's (ARDA) most recent owner survey data, sits in the neighborhood of $22,000 to $24,000 for a purchase, though prices range from a few thousand dollars for a resale unit up to $50,000+ for a new points package at a high-end resort . Annual maintenance fees averaged around $1,120 per interval in ARDA's most recent published owner data, and they climb almost every year, often by more than general inflation, since they're tied to resort operating costs, insurance, and reserve funding . Special assessments (one-time charges for a new roof, storm damage, or a renovation) come on top of that and can run anywhere from a few hundred dollars to several thousand in a bad year. Here's the real math problem: maintenance fees never stop and almost never go down. A $1,100 fee today at 5% average annual growth becomes roughly $1,790 in 10 years and about $2,900 in 20 years, just from compounding, before any special assessments. That's the number that eventually pushes owners toward stopping payment, which is exactly the situation this article is trying to help you avoid making worse.
How do you get out of a timeshare if the resort won't take it back?
This is the situation more owners find themselves in than the marketing ever mentions. Not every resort offers a deed-back program, and some only accept surrenders if your fees are current, your unit is a certain type (weeks, not points), and you cover a transfer or administrative fee. If deed-back is unavailable, your remaining honest options are: continuing to pay while you shop it on the resale market (slow, but keeps your credit clean), gifting or transferring it to someone willing to take it (rare, and the recipient inherits the fee obligation), or working through a licensed attorney to negotiate a settlement or release with the resort or lender directly. What you should not do is sign a quitclaim deed to a random LLC that promises to 'take the timeshare off your hands' for a fee, without verifying that LLC is actually registered, solvent, and has a track record. This is one of the most common scam structures: you pay $2,000 to $5,000, the company deeds the property to a shell entity, that entity never pays the fees, and a year later you're still on record as owner (or worse, facing new collection issues) because the transfer wasn't properly recorded or the LLC dissolved. Check our timeshare cancellation and timeshare exit companies guides before signing anything that transfers your deed.
What if I inherited a timeshare and don't want it?
Inherited timeshares are one of the most common reasons people end up asking whether they can just stop paying. Legally, you're not automatically obligated to accept an inheritance, including a timeshare interest. An executor or heir can disclaim (formally refuse) the inheritance under state probate law, which, if done properly and within the deadline your state's probate code sets, keeps the obligation from ever attaching to you. If you've already accepted the property (for example, by using it or paying a fee after the original owner's death), disclaiming becomes much harder or impossible. Talk to the estate's probate attorney before you pay a single maintenance fee bill on an inherited timeshare, because that first payment can be treated as acceptance. If disclaiming isn't available anymore, you're back to the same menu: deed-back program, resale, or, if truly stuck, understanding the collections and lien consequences of nonpayment before deciding anything.
How much should I expect to pay for legitimate help exiting a timeshare?
This varies enormously and it's where scams thrive, so treat any number with suspicion until you've verified who's charging it and why. Some resorts' voluntary deed-back or surrender programs are free or charge a modest administrative fee, often $200 to $500. Attorneys who handle timeshare rescission or contract disputes typically bill hourly or a flat fee for a specific service, and a reputable one will explain exactly what that fee covers before you pay anything. The exit-company industry that charges $3,000 to $10,000+ upfront, with vague promises to 'get you out no matter what,' is where most of the FTC and state AG enforcement action has concentrated . A large upfront fee combined with a guarantee of success is the single biggest red flag in this entire space; no legitimate service can guarantee a resort will release you, because the resort controls that decision, not the company you're paying. If you want a structured, lower-cost starting point rather than paying thousands upfront to a company promising results, ExitHonest built a $149 one-time Exit Kit Builder that walks you through your state's rescission rules, deed-back eligibility, and the document templates for contacting the resort yourself, without charging a percentage or a five-figure retainer.
What should I do right now if I'm behind on maintenance fees?
Stop and check three things before you do anything else. First, are you still inside your state's rescission window? If yes, that's your fastest, cheapest way out, full stop. Second, call the resort's owner services line directly and ask, in plain language, whether they have a deed-back or surrender program for owners in your situation, and what it costs. Get the answer in writing. Third, if you're already delinquent, ask what the current balance is including interest and fees, and ask directly whether the account has been sent to collections or whether a lien has been recorded, so you know exactly where you stand instead of guessing. Don't sign anything from a company that cold-called you claiming they can get you out 'immediately' for an upfront fee, don't wire money to anyone you haven't independently verified, and don't ignore mail from the resort assuming it will go away. It won't. For a full walkthrough of the options in order, start with how to get out of a timeshare and how to get out of timeshare.
Frequently asked questions
What happens if I just stop paying my timeshare maintenance fees?
You'll typically see late fees and interest first, then referral to collections within 60 to 180 days, then possibly a lien on the deed and eventual foreclosure or forfeiture of points, timelines vary by resort and state. The debt can also be reported to credit bureaus and, if sold to a debt buyer, lead to a lawsuit for the balance.
Can a timeshare company garnish my wages for unpaid fees?
Not directly from unpaid fees alone. But if the resort or a debt buyer sues you and wins a money judgment, many states allow wage garnishment or bank levies to collect that judgment. The lien on the timeshare itself is separate from a personal judgment, but both can result from the same nonpayment.
How to get out of a timeshare without ruining my credit?
Check your state's rescission window first; canceling inside it avoids any payment obligation entirely. Past that, ask the resort about a deed-back or surrender program while staying current on fees, since delinquency is what triggers collections and credit reporting, not the exit process itself.
How do you get out of a timeshare if the resort refuses a deed-back?
Try a legitimate resale (expect low or near-zero resale value), consult a consumer or real estate attorney about a negotiated release, or, for inherited timeshares, ask a probate attorney about disclaiming the inheritance before accepting it. Avoid any company demanding a large upfront fee with a guaranteed outcome.
How to sell a timeshare for actual money?
Realistically, most timeshares resell for 10% or less of the original purchase price, and many sell for $1 just to transfer the fee obligation. List on a reputable resale marketplace, price against completed sales not asking prices, and never pay an upfront fee to anyone claiming they have a buyer waiting.
Are timeshares scams?
The ownership contract itself is usually legal, if often a poor financial deal. The scam risk concentrates in high-pressure sales tactics and in upfront-fee exit companies; the FTC has taken enforcement action against firms that charged thousands upfront and failed to deliver promised cancellations.
How much do timeshares cost to buy and maintain?
ARDA's owner survey data puts average purchase price around $22,000 to $24,000 and average annual maintenance fees around $1,120 per interval, with fees rising most years and special assessments adding more on top during renovation or disaster-repair years.
Will stopping timeshare payments affect my house or other property?
Usually not directly; the lien attaches to the timeshare interest, not your home. But a court judgment for the debt, if you're sued and lose, can in many states lead to wage garnishment or bank account levies, which does reach your broader finances.
How long does it take a resort to foreclose on an unpaid timeshare?
It varies widely. States with a specific timeshare foreclosure statute, like Florida's nonjudicial trustee process, can move in a few months. States without one require standard judicial foreclosure, which can take a year or more, or the resort may simply let the account sit delinquent for years without foreclosing.
Can I get rid of an inherited timeshare I never wanted?
Possibly, if you haven't yet accepted the inheritance (used it or paid a fee), you may be able to formally disclaim it under your state's probate law, which prevents the obligation from attaching to you. Talk to the estate's probate attorney before making any payment on it.
Is it legal for a timeshare company to sue me for unpaid fees?
Yes. Maintenance fee obligations are contractual debts, and the resort or a debt buyer that purchased the delinquent account can sue for the balance owed, including accrued interest and collection costs, in small claims or civil court depending on the amount.
What's the difference between a timeshare deed-back and just stopping payment?
A deed-back is a voluntary, requested surrender, usually while you're current on fees, that formally ends your ownership with the resort's agreement. Stopping payment is an involuntary default that leads to collections, credit damage, and possible foreclosure, with no guarantee the resort ever formally releases you from the obligation.
Sources
- Cornell Legal Information Institute, Uniform Common Interest Ownership Act overview: Timeshare and HOA-style associations generally hold lien rights on the ownership interest for unpaid assessments
- Florida Legislature, Chapter 721 (Vacation and Timeshare Plans): Florida's timeshare statute provides a nonjudicial trustee foreclosure process for timeshare liens
- Consumer Financial Protection Bureau, credit score and collections information: A collections account can significantly lower a credit score depending on prior credit history
- Federal Trade Commission, Fair Credit Reporting Act summary: Negative account information, including collections, can generally remain on a credit report for up to 7 years
- Florida Legislature, Section 721.10, Florida Statutes: Florida provides a statutory cancellation period for timeshare purchase contracts