What happens if you stop paying timeshare maintenance fees

Last updated 2026-07-26

What actually happens if you stop paying timeshare maintenance fees?

Most timeshare contracts treat maintenance fees as a debt tied to real property, not a subscription you can just cancel. Skip a payment and you'll typically see a late fee added within 30 days, then a formal notice, then referral to an internal or third-party collections unit somewhere between 60 and 90 days out. The exact timeline depends on your contract and your state, but the pattern is consistent across most resorts. After collections, the resort has two main paths: sue you for the debt, or foreclose on the timeshare interest itself, similar to how a mortgage lender forecloses on a house. Many timeshare deeds include a lien clause that lets the HOA or resort record a lien against the property interest for unpaid assessments, the same mechanism condo associations use. The Consumer Financial Protection Bureau confirms that timeshare owners can remain on the hook for the debt even after they stop using the property, since the obligation runs with the fee agreement, not the usage ^[1]. Some deeded timeshares get resolved through non-judicial foreclosure, which is faster and cheaper for the resort than a lawsuit. Others go through judicial foreclosure, which takes longer but creates a court record and a deficiency judgment risk in some states. Either way, you generally lose the timeshare, but you may still owe money if the resort's judgment covers fees, interest, and legal costs beyond what the foreclosure sale recovers. The worst outcome isn't losing the timeshare. Plenty of owners want out anyway. The worst outcome is losing it AND owing a deficiency judgment AND wrecking your credit score in the process, when a deed-back or structured exit might have avoided all three.

Will not paying maintenance fees hurt my credit score?

Yes, usually. If the resort or its collections agency reports the delinquency to Equifax, Experian, or TransUnion, it shows up as a collections account, which can stay on your credit report for up to seven years under the Fair Credit Reporting Act ^[2]. A single collections account can drop a credit score by anywhere from 50 to 100+ points depending on your starting score, according to CFPB guidance on how long collections accounts stay on a credit report and affect it ^[2]. Not every resort reports to the credit bureaus. Smaller developers and some HOA-managed resorts skip credit reporting and go straight to internal collections or lien filing instead. But you can't count on that. If the resort assigns your account to a third-party debt collector, federal law under the Fair Debt Collection Practices Act still applies, meaning collectors can't harass you, lie about the debt, or call before 8am or after 9pm ^[3]. If you're already behind, get the collector's contact information in writing and confirm the exact amount owed before paying anything. Debt collection files sometimes include old late fees, interest, or amounts that don't match your original contract.

Can a timeshare company foreclose on you for unpaid fees?

Yes. Deeded timeshares (the majority of US timeshare interests) are real property, and most contracts give the HOA or resort a lien right for unpaid assessments, similar to a condo association's lien rights. Right-to-use timeshares work differently since you don't hold title, but the contract usually still allows termination of your usage rights and referral to collections. Foreclosure timelines vary heavily by state. Florida, for example, allows a non-judicial foreclosure process for timeshare interests when the trust agreement includes a power of sale, governed under Florida Statutes Chapter 721 ^[4]. That process can move in a matter of months rather than the year-plus a judicial foreclosure might take. A foreclosure removes you from the ownership rolls, which some owners actually want. But it isn't free. You may owe deficiency judgments, and depending on your state, the foreclosure itself gets reported on your credit file as a serious derogatory mark, sometimes worse than a plain collections account. If your goal is simply to stop owning the thing, a deliberate deed-back or resale gets you there without the credit hit. If you're leaning toward walking away and letting foreclosure happen, at minimum call your state attorney general's consumer protection office first to understand what happens in your specific state, since Chapter 721 protections in Florida don't apply the same way in, say, California or Missouri.

Is it better to stop paying or try to get out through rescission?

If you're still inside your rescission window, that's almost always the better move; it costs nothing and it's clean. Every state that regulates timeshares gives buyers a right to cancel within a set number of days after signing, no reason required. The exact window differs by state (some are as short as 3 days, others run longer), so confirm your state's rescission window with your state attorney general's consumer protection page before assuming a number. Rescission requires you to follow the exact method your contract specifies, usually written notice sent by certified mail to a specific address, within the exact day count. Miss the window or the method and you've lost the right, full stop. If you're inside the window, don't call an exit company and don't stop paying anything: just send the rescission letter correctly and keep proof of mailing. If your rescission window has already closed, stopping payment isn't your only alternative and it's rarely the best one. How to get out of a timeshare walks through the realistic paths: deed-back programs, resale, or negotiated exit, roughly in that order of cost and reliability.

How do you actually get rid of a timeshare you no longer want?

There's no single button. The paths that actually work, roughly ranked by cost and reliability: 1. Rescission, if you're still inside the window. Free, fast, guaranteed if done correctly and on time. 2. Developer deed-back or surrender program. Many major timeshare companies (Marriott Vacation Club, Wyndham, Hilton Grand Vacations, Bluegreen) run their own deed-back or "exit" programs for owners current on fees, sometimes for a modest transfer fee, sometimes free. These aren't required by law, and eligibility rules vary (often you must be current on payments and own the deed outright), but they're generally the safest paid or free exit path outside rescission. 3. Resale. Timeshares resell for a fraction of what owners paid, often 0 to a few thousand dollars, because supply massively outstrips demand. Selling won't make you money but it does transfer the fee obligation to a real, willing buyer, which is the legally clean version of getting rid of it. 4. Licensed attorney-negotiated exit or documented hardship transfer, used case by case, usually costing real legal fees. 5. Letting it go to collections or foreclosure. Last resort, and the one with the most collateral damage to your credit and finances. How to get out of timeshare and how do you get out of a timeshare both cover documentation you'll want on hand (deed, most recent maintenance fee statement, original purchase contract) before contacting any resort or program.

How do you sell a timeshare, and can you actually get money for it?

You can sell a timeshare, but expect a low sale price, sometimes literally $1, sometimes $0 with the buyer just assuming future fees. The resale market is flooded: many owners list points-based or deeded weeks for a token amount just to transfer the fee obligation off their own name. Use a licensed real estate broker in the state where the timeshare is located, or a marketplace with escrow protection. Never pay a large upfront fee to a company that promises a buyer is "waiting" for your unit; that's one of the most common patterns in timeshare resale scams, something the FTC has warned about in guidance covering how collectors and sellers must deal with consumers honestly ^[3]. Before listing, get a copy of your HOA's transfer or closing fee schedule. Many resorts charge a transfer fee ($100 to $500+ is common, though it varies by resort) for putting a new owner on the deed, and some contracts require the resort's approval before a resale can close. How to sell a timeshare and general deed transfer questions belong in that same conversation with the resort's owner services department, in writing, so you have a paper trail.

Are timeshares scams, or is it more complicated than that?

Timeshares themselves aren't illegal and the industry is real. Legitimate resorts, legitimate contracts, legitimate vacation product. But the sales process has a long, well-documented history of high-pressure tactics, and the exit side of the industry has an even worse one. The FTC has brought enforcement actions against timeshare exit companies for charging large upfront fees, sometimes $2,000 to $10,000+, and never delivering the promised cancellation. In one case, the FTC and the state of Florida obtained a court order halting a timeshare transfer scheme, alleging the operation bilked consumers out of millions of dollars in upfront fees under false promises of a completed exit ^[5]. The FTC's rules on debt collection make clear that collectors and related businesses can't misrepresent what they'll do for you or the status of your debt ^[3]. So the honest answer: the original timeshare purchase usually isn't a scam in the legal sense, it's an expensive, illiquid product sold aggressively. The scam risk concentrates heavily in the exit industry, where companies prey on owners desperate to stop paying fees. If a company guarantees an exit, asks for the full fee upfront before doing any work, or tells you to stop paying your maintenance fees and stop communicating with the resort, that's a major red flag. Timeshare exit companies covers how to vet one before paying anything, and timeshare call list has a running list of complaint patterns reported to state regulators.

How much does a timeshare actually cost, upfront and every year?

Purchase price (developer, new)	$10,000 to $40,000+	Average: $23,940
Resale price (secondary market)	$0 to $3,000	Massive oversupply drives price near zero
Annual maintenance fee	$800 to $1,500+	Average: $1,120
Special assessment (as needed)	$500 to $5,000+	Storm damage, renovations, litigation costs
Transfer/closing fee (resale)	$100 to $500+	Set by individual resort HOA	Special assessments are the wild card. They're not annual, but when a resort needs a new roof or storm repair, owners can get billed hundreds or thousands of dollars on short notice, on top of the regular fee.

Purchase price and annual fees are two separate costs, and both matter. According to the American Resort Development Association's State of the Vacation Ownership Industry report, the average price of a timeshare interval purchased in 2022 was about $23,940, and the average annual maintenance fee was about $1,120 . Those are averages across a market that ranges widely: a used studio week at a budget resort might resell for under $1,000, while a large new-construction points package can run $40,000 or more at retail. Maintenance fees climb almost every year. Owner surveys and industry reporting commonly cite annual fee increases in the 3% to 5%+ range, sometimes spiking further after a special assessment for storm damage or major repairs. A $1,120 average fee compounding at 4% a year roughly doubles in 18 years, without a single special assessment. | Cost component | Typical range | Notes |

What if I inherited a timeshare and don't want the fees?

You generally have the right to disclaim (formally refuse) an inheritance, including a timeshare, under most state probate codes, as long as you do it within the timeframe your state's law requires and before you've accepted any benefit of ownership. A qualified disclaimer under federal tax law must generally be made within nine months of the decedent's death under Internal Revenue Code Section 2518, though your state's probate disclaimer rules may have their own procedural steps too . If you already accepted the deed transfer (signed paperwork, started using the unit, or paid a fee on it), disclaiming gets harder or impossible, and the debt becomes yours. Talk to the estate's probate attorney before doing anything with the deed. Executors sometimes assume the estate must keep paying fees indefinitely; that's not automatically true, but the disclaimer has to be done correctly and on time, similar to how a rescission window works for a fresh purchase. If the disclaimer window has passed and you're stuck with a deed you inherited and don't want, deed-back programs and resale are still your best paths, same as for original buyers.

What should you do instead of just stopping payments?

Start by getting your numbers straight: current balance, next payment due date, and whether you're inside a rescission window (check your original contract's cancellation clause first). If you're inside the window, send the rescission notice exactly as your contract specifies, keep a mailed copy with tracking, and don't pay another cent toward the timeshare while it processes. If you're outside the window, contact the resort's owner services department directly and ask about their deed-back or surrender program in writing. Marriott Vacation Club, Wyndham Destinations, Hilton Grand Vacations, and several other major operators run some version of this. Terms change, so don't take a verbal promise; get the program's eligibility rules in an email or letter. If a deed-back isn't available, look at licensed resale. Even a $0 sale that transfers the deed and fee obligation to a documented, willing buyer is better for your credit and your legal exposure than letting the account go to collections. At no point does any of this mean you should simply stop paying and hope it works out. Doing that risks a foreclosure, a lien, a possible deficiency judgment, and years of credit damage, and it does not guarantee the resort will release you from the contract any faster than a documented exit would. If your finances genuinely can't sustain the payments right now, call the resort and ask for a hardship plan before you miss a due date, not after. We built the $149 Timeshare Exit Kit at ExitHonest for owners trying to organize this process themselves: a structured way to pull your contract terms, check your state's rescission and disclaimer rules, and draft the right letters to the resort or deed-back program, all without paying a $3,000 to $10,000 upfront fee to an exit company. It doesn't guarantee an outcome (nobody honestly can), but it gives you the paperwork and sequence right the first time. Details at exit-kit-builder.

How do you know if a timeshare exit company is a scam?

Watch for these patterns, all flagged repeatedly in FTC enforcement actions and state attorney general consumer alerts. A company that asks for full payment upfront before doing any work. Legitimate legal services in most states use some form of escrow or milestone billing; a request for the entire fee on day one, especially by wire transfer or gift card, is a serious red flag. A guarantee that they will cancel your timeshare, no matter what. No one can legally guarantee that outcome; contract terms, your state's law, and the resort's own policies all affect what's actually possible. Advice to stop paying maintenance fees and stop talking to the resort. This is a common scam tactic. It runs up your debt and damages your credit while the exit company either does nothing or stalls. A "transfer" that just re-deeds your timeshare to a shell LLC that later goes bankrupt or disappears, leaving you still legally on the hook or facing a new mess entirely; this pattern is exactly what the FTC and Florida alleged in the court order halting one timeshare transfer scheme ^[5]. Check any company against your state attorney general's consumer complaint database and the Better Business Bureau before paying anything. Timeshare exit companies has a longer checklist.

Frequently asked questions

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

Expect late fees within 30 days, collections contact within 60 to 90 days, and possible credit reporting or a lien after that. Eventually the resort can pursue foreclosure or a lawsuit for the debt. It can end your ownership, but usually with real credit damage and possible deficiency judgment exposure along the way.

Can not paying maintenance fees hurt my credit score?

Yes, if the resort or a collections agency reports the delinquency to the credit bureaus. A collections account can drop your score significantly and stay on your report for up to seven years under the Fair Credit Reporting Act ^[2]. Not every resort reports, but you can't assume yours won't.

How to get out of a timeshare without ruining my credit?

Check your rescission window first (free and fast if you're still inside it), then ask the resort about a deed-back or surrender program, then consider a licensed resale. Stopping payment and letting it go to collections should be your last option, not your first, since it typically damages your credit.

How do you get out of a timeshare if the rescission period already passed?

Contact the resort's owner services department and ask about deed-back or surrender programs in writing. Major operators like Marriott Vacation Club, Wyndham, and Hilton Grand Vacations run some version of this for owners current on fees. If that's unavailable, licensed resale is the next step; avoid any company demanding a large upfront exit fee.

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

Use a licensed real estate broker in the timeshare's state or a marketplace with escrow protection, and expect a low sale price, sometimes near $0, since resale supply far outstrips demand. Confirm the HOA's transfer fee first. Never pay a large upfront fee to a company claiming a buyer is already lined up; that's a common resale scam pattern the FTC has pursued in court ^[7].

How to get rid of a timeshare I inherited?

If you haven't accepted the deed or any benefit of ownership, you may be able to formally disclaim the inheritance under your state's probate law and, for tax purposes, within nine months under IRC Section 2518 ^[9]. If you've already accepted it, deed-back programs or resale are your realistic options.

Are timeshares scams?

The core product usually isn't illegal, it's an expensive, hard-to-resell vacation contract sold with aggressive tactics. The scam risk concentrates in the exit industry: the FTC and Florida obtained a court order against a timeshare transfer scheme accused of taking upfront fees under false promises ^[7]. Vet any exit company against your state attorney general's complaint database before paying anything.

How much is a timeshare, on average?

ARDA's State of the Vacation Ownership Industry report puts the average purchase price at about $23,940 and the average annual maintenance fee at about $1,120 for 2022 ^[8]. Resale prices are typically far lower, sometimes near $0, because of oversupply in the secondary market.

How much do timeshares cost every year after purchase?

Beyond the purchase price, expect an annual maintenance fee averaging around $1,120 as of the 2022 industry data ^[8], usually rising 3% to 5% a year, plus occasional special assessments of $500 to $5,000+ for repairs or storm damage. Fees rarely go down.

Can a timeshare company foreclose on you for unpaid fees?

Yes. Deeded timeshares typically carry lien rights similar to a condo HOA, and states like Florida allow a non-judicial foreclosure process under Florida Statutes Chapter 721 when the trust document includes a power of sale ^[4]. You could still owe a deficiency judgment after foreclosure, depending on your state and contract.

Will stopping payment get me out of the contract faster than other options?

Not necessarily, and it carries the most collateral damage. Foreclosure or collections can take months to over a year, during which your credit takes a hit and you may still owe fees, interest, and legal costs. A deed-back or resale can sometimes resolve faster and without the credit damage.

What's the difference between a deed-back program and just defaulting?

A deed-back is a voluntary, documented transfer of your ownership interest back to the resort, usually while you're current on fees, and it typically avoids credit damage. Defaulting means missing payments and letting the resort pursue collections or foreclosure, which usually does show up on your credit report and can leave you owing a deficiency judgment.

Sources

1. Consumer Financial Protection Bureau, timeshare debt guidance: Owners may remain responsible for timeshare fee debt even after they stop using the timeshare
2. Consumer Financial Protection Bureau, credit reports and collections: Collections accounts can remain on a credit report for up to seven years and affect credit scores
3. Federal Trade Commission, Fair Debt Collection Practices Act: Debt collectors are restricted from harassment and misrepresentation, and from calling before 8am or after 9pm
4. Florida Legislature, Florida Statutes Chapter 721 (Vacation Plans and Timesharing): Florida law governs timeshare trust foreclosure procedures including non-judicial foreclosure with a power of sale
5. Internal Revenue Code Section 2518, qualified disclaimers: A qualified disclaimer of an inheritance generally must be made within nine months of the decedent's death