Can't pay timeshare maintenance fees? here's what to do

Last updated 2026-07-26

What actually happens if you stop paying timeshare maintenance fees?

The timeline depends on your contract and your state, but the general pattern is consistent across resorts. First you get late notices and interest charges, often 12% to 18% annually plus late fees tacked on by the HOA. Somewhere between 60 and 180 days, the account usually goes to an internal collections department or gets sold to a third-party collector. If the balance stays unpaid, the resort or its HOA can foreclose on a deeded week, the same way a mortgage lender forecloses on a house, except timeshare foreclosures are often nonjudicial and move fast. Many timeshare declarations include a lien clause that lets the HOA record a lien against the deed for unpaid assessments. For points-based or right-to-use timeshares, the company usually just terminates your membership and reports the debt to collections, since there's no deed to foreclose on. Either way, expect the delinquency to show up on your credit report if it's sold to a collection agency, which can knock your score down and stay on your report for up to seven years under the Fair Credit Reporting Act ^[1]. The Consumer Financial Protection Bureau treats timeshare debt in collections like any other consumer debt, meaning collectors have to follow standard rules on contact and disclosure ^[2]. None of this means you should just stop paying and hope it goes away. If you already owe money, that debt is real and collectible. What you can control is how you respond next.

Will the resort take my house or garnish my wages over unpaid fees?

Almost never, and this is one of the most common fears owners have. A timeshare lien attaches to the timeshare deed itself, not your primary residence, in the overwhelming majority of contracts. The resort can foreclose on the timeshare interest, but it generally can't reach your house, car, or bank account just because you stopped paying HOA dues on a week in Orlando. Wage garnishment is a different story and depends on whether the resort or a debt collector sues you in court and wins a judgment. That's rare for maintenance fee debt specifically because the amounts (often $800 to $2,000 a year) usually don't justify litigation costs for the company. It's far more common for the resort to simply foreclose on the deed and write off the balance, or send it to a collection agency that reports it and calls repeatedly rather than sues. That said, rules vary by state and by contract, so don't assume you're immune from a lawsuit. If you get served with a summons, that's not something to ignore. Check your state attorney general's consumer protection page for guidance on debt collection lawsuits in your state.

Can I just walk away from a timeshare I can't afford?

You can stop paying, but 'walking away' has consequences that vary depending on whether you have a deed or a right-to-use contract. With a deeded week, walking away typically triggers a foreclosure process that clears you of future maintenance fee obligations, but tanks your credit in the meantime and shows up as a foreclosure or collections account. With some points-based clubs, especially ones sold as 'right to use' rather than real property, the company may pursue the debt more aggressively since there's no asset to reclaim through foreclosure. Read your contract's default and termination clauses closely, or have someone who understands timeshare law read them for you. Simply stopping payment is not a shortcut to a clean exit. Owners need to understand the specific consequences in their own contract and state before deciding to default. If your goal is to legitimately exit rather than just stop paying and take the credit hit, look into your resort's deed-back program first. Many major operators, including Marriott Vacation Club, Wyndham, and Hilton Grand Vacations, run some version of a voluntary surrender program for owners in good standing, meaning fees are current and the deed is free of other liens.

What should I do first if I'm behind on maintenance fees?

Call the resort's owner services or financial services department before you do anything else, including before contacting an exit company. Ask directly: does the resort offer a hardship payment plan, a temporary fee reduction, or a deed-back option for owners who are current or nearly current on payments? Many HOAs would rather work out a payment plan than go through the cost and hassle of foreclosure, especially on weeks that are hard to resell. Some resorts have written hardship policies; others handle it case by case, so ask specifically and get any agreement in writing. If you're still inside your state's rescission window (sometimes called a cooling-off period), that changes everything, because you may be able to cancel the purchase entirely rather than negotiate around fees you already regret owing. Confirm your state's rescission window and the exact cancellation procedure with your state attorney general's office or the contract disclosure documents you signed at closing ^[3]. For a full state-by-state breakdown, see how to get out of a timeshare.

How to get out of a timeshare when fees are too high

There are really four honest paths out, and none of them is a magic button. Rescission works only if you're inside the statutory cancellation window, which most states set somewhere between 3 and 15 calendar days from signing or receipt of disclosure documents, depending on the state. Florida gives 10 days ^[4]; check your own state because the number really does vary. Deed-back or surrender programs let you return a deed to the resort, usually only if your account is current, there are no other liens (like a mortgage on the timeshare itself), and the resort is willing to take it back. Many big-brand resorts run these; some independent resorts don't. Call and ask directly, it costs you nothing to ask. Selling on the resale market is legally possible but financially rough. Timeshare resale values are famously low, often selling for $1 or a few hundred dollars on sites like the Licensed Timeshare Resale Brokers Association marketplace or eBay, because supply massively outweighs demand. Industry-reported data has shown resale prices for timeshare interests are typically a small fraction of the original purchase price ^[4]. Hiring a timeshare exit company is the fourth path, and it's the one where you need the most skepticism. Read our breakdown of timeshare exit companies before signing anything or paying anyone a large upfront fee.

How to sell a timeshare fast (and why 'fast' rarely means profitable)

Selling a timeshare quickly usually means accepting close to zero dollars, sometimes literally giving it away, because the resale market is flooded with owners trying to exit. Search completed listings on a resale marketplace for your specific resort and week type before you list anything, so you know what similar units actually sold for, more than what people are asking. If you want to try selling it yourself: get current on maintenance fees first (most resorts won't approve a transfer with a balance owed), gather your deed and closing documents, and list through a licensed timeshare resale broker rather than paying an upfront 'marketing fee' company that promises a buyer is waiting. Legitimate resale brokers get paid a commission after the sale closes, not before, and the FTC has repeatedly warned buyers to be skeptical of any company that asks for money up front to find a buyer . A realistic number to sit with: industry-reported data and resale marketplace listings both show most weeks and points resell for a small fraction of retail price, and many list for $1 just to get the maintenance fee obligation off the original owner's hands. If you're mentally budgeting for a payout, budget for zero and be pleasantly surprised if you get anything.

How to get rid of a timeshare when nobody wants to buy it

If resale isn't realistic, your remaining legitimate options are deed-back, donation (rare, and usually only accepted for fully paid-off, fee-current, desirable weeks), or working with a licensed attorney or verified exit process to formally transfer or terminate the contract. Some owners try to give the timeshare to a family member or a charity instead of selling it. This can work, but understand the recipient inherits the same maintenance fee obligation, so 'giving it away' to someone who can't afford it either just moves the problem, it doesn't solve it. A few charities do accept timeshare donations, but most are selective and will only take deeded weeks that are paid off, fee-current, and in decent resale demand, which is a small slice of all timeshares. Whatever path you pick, confirm the transfer is actually recorded with the county and the resort, more than informally agreed to. An unrecorded transfer can leave the original owner on the hook for fees years later. See our guide on timeshare cancellation for the paperwork side of this.

Are timeshares scams?

The timeshare industry itself is legal and regulated at the state level, not an outright scam, but the sales tactics used at many presentations are aggressive enough that state attorneys general and the FTC field a steady stream of complaints every year. High-pressure closing rooms, exaggerated resale value claims, and 'today only' pricing are common enough that the FTC maintains consumer guidance warning buyers to be skeptical of unsolicited resale or exit offers . What's a genuine scam is the secondary industry of companies that call owners promising a guaranteed buyer or a government rebate program, then demand thousands of dollars upfront. The FTC has brought enforcement actions against timeshare resale and exit scam operators, including a 2021 case in which the agency alleged a company collected more than $9 million in upfront fees from consumers for cancellation services it never delivered . If you get a call like this, that's the scam, not your original timeshare purchase. So the honest answer is: the timeshare product is a legitimate, if often overpriced, vacation ownership structure, and the exit and resale industry around it is where most of the real fraud lives. Read our timeshare call list piece before returning any unsolicited call about your timeshare.

How much do timeshares cost, really?

Purchase price (deeded week)	$10,000 to $40,000+	Highly variable by resort and season
Average annual maintenance fee	~$1,000 to $1,100	Industry average, rises most years
Special assessment	$200 to $3,000+	One-time, tied to repairs or disasters
Resale value	$0 to a few hundred dollars	Most weeks resell for a fraction of retail [4]	The gap between what you pay going in and what it's worth coming out is the core financial problem for most owners trying to exit.

The upfront purchase price and the ongoing fees are two different budgets, and both matter more than most buyers realize at the sales table. Industry-reported data has put the average timeshare purchase price in the $20,000 to $24,000 range in recent years, though prices for individual weeks range from a few thousand dollars to well over $40,000 for larger units at premium resorts . Then there's the annual maintenance fee, which industry data has put at averages around $1,000 to $1,100 a year, though this varies a lot by resort size, amenities, and location, and it climbs almost every year . On top of that, special assessments (one-time charges for major repairs, storm damage, or renovations) can add hundreds or thousands more in a single year with little warning. Here's a rough side-by-side to keep in mind: | Cost type | Typical range | Notes |

Should I hire a timeshare exit company if I can't afford my fees?

Maybe, but only after you've tried the resort directly and understand exactly what you're paying for. Legitimate exit assistance can include document review, help identifying whether your contract has a viable termination clause, or step-by-step guidance through a deed-back application. What's not legitimate is a company demanding $3,000 to $8,000 upfront with a verbal promise of a fast, no-fail exit and no escrow or refund terms in writing. Check any company with your state attorney general and the Better Business Bureau before paying anything, and be wary of high-pressure upfront payment demands . Ask for the refund policy in writing, ask how long the process typically takes, and ask what happens if they don't succeed. A company that won't answer those three questions clearly is a red flag. This is where a self-directed toolkit can make sense instead of an expensive full-service exit contract. ExitHonest's $149 one-time Exit Kit Builder walks owners through the documents, letters, and research steps for their specific situation (rescission, deed-back, or resale) without charging thousands of dollars for services you can often do yourself with the right paperwork and checklist. No honest company can promise a specific outcome, but this is a fraction of the cost of a full-service exit contract.

What if I inherited a timeshare I can't afford?

Heirs are not automatically obligated to keep a timeshare, but the estate and probate process determines what happens to it. If you're named as the executor, you generally have the option to disclaim (formally refuse) an inherited interest before accepting it, which can prevent the debt and fee obligation from ever transferring to you personally, though the exact procedure and deadline depend on your state's probate law. If you've already accepted the deed or started paying fees, you've likely accepted the ownership along with its obligations, and disclaiming becomes harder or impossible. Talk to a probate attorney in the decedent's state before paying a single maintenance fee bill on an inherited timeshare you don't want, because payment can be treated as acceptance. Some resorts have an inheritance or transfer department that handles these cases regularly and may offer a deed-back option specifically for heirs who don't want the property. It's worth a call before assuming you're stuck.

How do you avoid a timeshare exit scam while you're desperate to get out?

Desperation is exactly what scam operators are counting on, so slow down before you sign anything or wire money. Real warning signs include unsolicited phone calls claiming 'a buyer is already lined up,' requests for payment by wire transfer or gift card, and pressure to sign within 24 hours. Check the company's name plus the word 'complaints' against your state attorney general's consumer complaint database and the FTC's fraud reporting system before paying anyone . Ask for a written contract with a specific refund clause, not a verbal promise. Never pay an upfront fee to a company that cold-called you. If you're not sure where to start, our how do you get out of a timeshare guide walks through the legitimate options in order, cheapest and lowest-risk first.

Frequently asked questions

What happens if I just stop paying my timeshare maintenance fees?

The resort or HOA typically sends late notices, then turns the account over to collections, and may eventually foreclose on a deeded week. The debt can be reported to credit bureaus and hurt your score for years under the Fair Credit Reporting Act ^[1]. It's rarely a clean or cost-free exit, so understand your contract's default terms first.

Can a timeshare company garnish my wages for unpaid fees?

It's uncommon. Wage garnishment requires a lawsuit and a court judgment, and most resorts foreclose on the deed instead of suing over maintenance fee debt because litigation costs often exceed the balance owed. It's still possible in some states, so don't ignore a legal summons if you receive one.

How to get out of a timeshare if I'm not in a rescission window anymore?

Look into your resort's deed-back or surrender program first, since many major operators accept deeds back from owners who are current on fees. If that's not available, resale (at low or zero value) or a carefully vetted exit company are the remaining paths. Always check the company with your state attorney general first.

How do you get out of a timeshare during the rescission period?

Follow your contract's cancellation instructions exactly and send written notice by the method specified (often certified mail) before your state's deadline expires. Confirm your state's exact rescission window, since it varies by state and can be as short as 3 to 15 days from signing ^[6].

How to sell a timeshare when nobody seems to want it?

List with a licensed resale broker who charges commission on closing, not upfront, and check completed sale prices for your resort before setting expectations. Most timeshares resell for a small fraction of purchase price, and many sell for $1 just to transfer the fee obligation ^[7].

Are timeshares scams or legitimate investments?

Timeshares are a legal, regulated vacation product, not investments, and they almost never appreciate in value. The scam risk is concentrated in aggressive sales tactics and in the secondary resale/exit industry, where the FTC has pursued companies for charging upfront fees without delivering promised results ^[9].

How much do timeshares cost on average?

Industry-reported data puts average purchase prices around $20,000 to $24,000, with annual maintenance fees averaging roughly $1,000 to $1,100 and rising most years ^[10]. Actual prices range from a few thousand dollars to well over $40,000 depending on the resort and unit size.

Can I get rid of a timeshare by just giving it back?

Sometimes, through a deed-back or surrender program, but only if your resort offers one and your account is current on fees with no other liens. Not every resort has this option, so you need to call and ask directly rather than assume it's available.

What if I inherited a timeshare and can't afford the fees?

You may be able to disclaim the inheritance before accepting it, which can avoid the obligation entirely, but this depends on your state's probate rules and must happen before you accept the deed or pay any fees. Talk to a probate attorney before paying anything on an inherited timeshare.

Will unpaid timeshare fees hurt my credit score?

Yes, if the debt is sold to a collection agency or reported directly, it can appear on your credit report and stay there for up to seven years under the Fair Credit Reporting Act ^[1], which can lower your score noticeably during that time.

How much should I pay an exit company to get out of a timeshare?

Be very cautious of any company asking for thousands of dollars upfront with a verbal promise of success. Legitimate help should come with a written refund policy and clear terms. Lower-cost, self-directed options exist for owners who want to handle rescission, deed-back, or resale research themselves.

Does a timeshare foreclosure affect my house or other property?

Generally no. A timeshare lien and foreclosure typically attach only to the timeshare deed itself, not your primary residence or other assets, since the two properties are legally separate. Confirm this with your specific contract language, since terms vary.

Sources

1. Consumer Financial Protection Bureau, Fair Credit Reporting Act summary: Negative credit information, including collections, can generally stay on a credit report for up to seven years
2. Consumer Financial Protection Bureau, debt collection rules: Timeshare debt in collections is subject to the same debt collection rules as other consumer debt
3. Florida Statutes Section 721.10, Cancellation: Florida law provides a 10-day cancellation period for timeshare purchase contracts
4. Consumer Financial Protection Bureau, complaint bulletin on timeshare resale and transfer issues: Resale prices for timeshare interests are typically a small fraction of the original purchase price
5. Internal Revenue Service: Debt forgiven through timeshare foreclosure or deedback may have tax implications as cancellation of debt income.
6. U.S. Department of Justice, U.S. Trustee Program: Consumers considering bankruptcy to discharge timeshare debt must meet means-testing requirements under federal bankruptcy law.