Last updated 2026-07-26
TL;DR
Stopping maintenance fee payments almost always leads to late fees, collections calls, credit score damage, and eventually foreclosure on the timeshare interest. In some states the resort can pursue a deficiency judgment for the balance owed. It rarely gets you out cleanly and it can cost more than the fees themselves. Rescission during your legal cancellation window is the only guaranteed clean exit.
What actually happens if you stop paying timeshare maintenance fees?
Nothing happens overnight, and that's part of why people try it. The first missed payment usually just triggers a late fee, often $25 to $100 or a percentage of the balance, plus interest that can run 12% to 18% a year depending on your contract. After 60 to 90 days of nonpayment, most resorts turn the account over to an internal collections department or a third-party collection agency. Collections calls start. Then letters threatening legal action. Somewhere between 6 months and 2 years of nonpayment (it varies a lot by resort and by state), many timeshare associations move to foreclose on the interest, similar to how a lender forecloses on a house, except the timeshare is often worth far less than what's owed. The Federal Trade Commission's guidance on timeshares warns that owners who stop paying may face damage to their credit rating, and that some contracts allow the resort to pursue owners for the amount owed even after foreclosure, depending on state law [1]. The outcome depends heavily on whether your timeshare is a deeded real estate interest or a "right to use" contract, and on your state's foreclosure and deficiency judgment rules. Deeded interests in states with non-judicial foreclosure processes (common in states like South Carolina and Missouri) can move fast, sometimes in under a year. Judicial foreclosure states take longer and cost the resort more, which sometimes makes them more willing to negotiate a deed-back instead. Either way, stopping payment is not a strategy we'd tell you to plan around. It's a consequence people end up living with after they've run out of other options, and it needs to be a deliberate, informed decision, not a first move.
Will stopping payment hurt my credit score?
Yes, almost always, once the account is reported to a collection agency or goes to foreclosure. The timeshare loan or maintenance fee account itself doesn't always report to the credit bureaus the way a mortgage does. But once it's charged off and sold to a debt collector, that collection account shows up on your credit report and can stay there for up to 7 years, per the Consumer Financial Protection Bureau's guidance on debt collection and reporting time limits [2]. A charged-off account and a subsequent collection listing can drop a credit score by anywhere from 50 to over 100 points, depending on your starting score and the rest of your credit file. Collections and derogatory marks tend to hit people who otherwise had strong credit hardest, worse than the same mark on someone who already had a thin or troubled file. If the resort later gets a deficiency judgment against you (more on that below), that judgment itself can become a matter of public record and show up in some credit and background checks, compounding the damage.
Can the resort or HOA foreclose on my timeshare?
Yes. Most timeshare declarations and state statutes give the homeowners association or resort the right to place a lien on the interest for unpaid assessments, then foreclose on that lien if the debt isn't paid. This works structurally like an HOA foreclosing on a condo for unpaid dues. Florida, home to a huge share of the U.S. timeshare industry, allows timeshare associations to foreclose through a trustee foreclosure process under its vacation and timeshare plan statute, Florida Statutes Chapter 721, which is faster and cheaper for the resort than a full judicial foreclosure [3]. Other states, including many judicial foreclosure states, require the resort to file a lawsuit and get a court judgment first, which takes longer but is still very doable for the resort. Once foreclosure completes, you lose the timeshare interest. That might sound like the goal if you wanted out anyway, but it comes bundled with the credit damage above, potential deficiency exposure, and in some cases the resort billing you for the foreclosure's legal costs before the lien is even satisfied.
Can a timeshare company sue me for unpaid fees or come after other assets?
They can, and in judicial foreclosure states this is a real risk, not a scare tactic. A deficiency judgment happens when the foreclosure sale (or the resort's internal valuation of the reclaimed interest) doesn't cover what you owed, and the resort sues for the difference. If they win, that judgment can potentially be enforced against your wages or bank accounts depending on your state's judgment enforcement and garnishment exemption rules. The Consumer Financial Protection Bureau notes that whether a debt collector can garnish your wages or bank account after winning a judgment depends heavily on your state's specific exemption laws . Many states protect a certain amount of wages and specific asset types from garnishment (homestead exemptions, retirement accounts, and portions of wages under state and federal law), but the exact protections vary enormously by state. This is exactly the kind of fact pattern where you want a consumer attorney in your state looking at your specific contract and your specific state's exemption statute, not a general answer. The FTC's consumer guidance is direct about this: it advises owners to contact their timeshare company to find out about their options and understand the contract's default terms before stopping payment [1]. That's not the same as us telling you to keep paying money you can't afford. It just means going in with eyes open.
Is it ever the right call to stop paying?
Sometimes, but it should be the last option on the list, made with full knowledge of your state's foreclosure and deficiency rules, not a first reaction to a maintenance fee hike. People land here after they've tried a deed-back, tried selling, and the resort won't take it back and nobody will buy it, even for one dollar. A few honest data points on why people get to this point. Timeshare maintenance fees average around $1,240 a year according to industry owner survey data compiled by the American Resort Development Association (ARDA), and they tend to rise faster than general inflation, especially after a special assessment for storm damage or a major renovation [1]. When an owner is elderly, on a fixed income, or holding an inherited timeshare they never wanted, the math on continuing to pay can just stop working. If you're in that spot, the responsible sequence is: check your original purchase date for a still-open rescission window, explore whether the resort has a deed-back or surrender program (see our guide on deed-back programs), and talk to a real estate or consumer attorney in your state about foreclosure and deficiency exposure before you let payments lapse on purpose. We're not a law firm and we don't contact resorts on anyone's behalf, so this isn't legal advice, it's a map of the terrain.
How do you get out of a timeshare the right way?
There are basically four legitimate paths, in order of how clean and cheap they are. First, rescission. Every state gives timeshare buyers a legal right to cancel within a set number of days after signing, no reason needed. The catch is the window is short, often measured in single-digit to low double-digit days, and it starts from either the contract signing or receipt of required disclosure documents depending on the state. Confirm your state's rescission window with your state attorney general's consumer protection office or the specific statute your contract cites, because the count and the trigger date genuinely differ state to state [1]. If you're still inside that window, this is the fastest and cheapest exit that exists, full stop. Second, a deed-back or surrender program run directly by the resort or management company. Many major timeshare brands now offer some version of this for owners current on their fees, sometimes for a small transfer fee, sometimes free. It's worth calling and asking directly, even if a website makes it sound unavailable. Third, selling on the resale market. This is realistic for some weeks at desirable resorts and essentially impossible for others; a huge share of timeshares resell for very little because supply massively outstrips demand [1]. Fourth, a paid exit service, which should only ever be considered after you've ruled out the free and cheap options, and only with heavy scam screening (more below). We put together a step-by-step Timeshare Exit Kit ($149, one-time) that walks through the rescission letter, deed-back request scripts, and a state-by-state checklist, because most owners waste weeks not knowing which of these four lanes actually applies to them.
How do you sell a timeshare, and how much is it actually worth?
Selling is legal and sometimes works, but go in with realistic price expectations. The resale market for timeshares is brutal. Industry owner survey data and independent resale marketplace listings consistently show most timeshare interests reselling for a small fraction of the original purchase price, and a large share list for very little just to get rid of the ongoing fee obligation [1]. List only through reputable resale marketplaces or licensed real estate brokers in the resort's state; never pay a large upfront "listing fee" or "guaranteed buyer" fee to a company that cold-calls you, that's one of the most common scam structures in this industry (see the section below). Legitimate resale brokers typically earn a commission on a completed sale, not a big fee before any sale happens. Before you list, check whether your specific resort or brand has a first-right-of-refusal clause requiring you to offer it back to the resort first, and check whether transfer requires the resort's approval and a transfer fee, both of which affect how you price and market it.
How much do timeshares actually cost, all in?
| Purchase price (new, developer) | roughly $10,000 to $40,000+ | Average around $24,140 per ARDA-affiliated owner research [1] | |
|---|---|---|---|
| Resale price | $0 to a few thousand | Many resell for very little; oversupply of sellers | |
| Annual maintenance fee | roughly $1,000 to $1,500+ | Average around $1,240 per ARDA-affiliated owner research [1] | |
| Special assessments | $0 to several thousand, irregular | Storm damage, renovations, litigation costs | |
| Financing interest (if financed) | often 12% to 18%+ | Developer in-house financing rates run high | Over a 20 or 30 year ownership horizon, fees alone can exceed the original purchase price several times over, which is exactly why so many owners eventually look for an exit. |
The sticker price is only the start. ARDA-affiliated owner research puts the average timeshare purchase price at roughly $24,140 as of the most recently published owner survey data, though prices for fixed weeks at high-end resorts can run well into six figures, and prices for older or less desirable weeks on the resale market can be near zero [1]. On top of the purchase price, the average annual maintenance fee is around $1,240 and rises most years, plus special assessments that can add hundreds or thousands more after a hurricane, a fire code upgrade, or a major refurbishment. Financed purchases add interest, often in the double digits, since many developers arrange in-house financing at higher rates than a typical mortgage or personal loan. | Cost component | Typical range | Notes |
Are timeshares scams?
The timeshare product itself is legal in every U.S. state; it's a real, regulated form of vacation real estate or right-to-use contract, and plenty of owners genuinely enjoy the vacations they get from it. So no, timeshares as a category aren't a scam in the legal sense. But the sales process has a documented, long-running reputation for high pressure tactics, and the exit side of the industry is thick with actual fraud. The FTC has brought enforcement actions against timeshare exit companies that it says charged consumers thousands of dollars in upfront fees and delivered little or nothing in return. A 2021 FTC action against Timeshare Exit Team and Resort Advisory Group alleged the companies collected upfront fees, in some cases while telling consumers to stop paying their timeshare bills, and misrepresented their services, as described in the FTC's press release announcing the case [4]. The pattern to watch for: a company cold-calls you claiming a buyer is 'waiting' for your specific timeshare, demands a large fee upfront (sometimes $2,000 to $10,000+), asks you to stop paying maintenance fees or mortgage payments, and gets vague or evasive when you ask for its state business license number or a written contract with a specific refund policy. Any one of those should stop you cold. Our exit scam awareness coverage goes deeper on how to vet a company before you sign anything or send a dollar.
What is the safest first step if I'm inside my rescission window right now?
Stop, don't call the salesperson back, and put your cancellation in writing today. Every day inside a rescission window matters because these windows are short and count from a specific trigger date defined by your state's statute or your contract's disclosure statement. Send your cancellation letter by a method that gives you proof of delivery, certified mail with return receipt is the standard approach, to the exact address listed in your contract's rescission clause, more than the sales office. Keep a copy of everything: the letter, the mailing receipt, and the contract itself. Do this even if you're not fully sure you want out; you can always keep the timeshare, but you generally cannot un-ring the bell once the window closes. Check your state attorney general's consumer protection page or your state's specific timeshare statute for the exact day count and required delivery method, because a defective cancellation notice can get challenged by the resort [1]. Our guide on rescission by state walks through how to find your state's specific rule.
What if my rescission window already closed, do I have any options left?
Yes, several, just none as fast or as free as rescission. Start with the resort's own deed-back or surrender program; call and ask specifically, using that phrase, since many resorts don't advertise it prominently but will discuss it with owners current on fees. Some major timeshare brands have formalized these programs in the last several years partly in response to owner complaints and regulatory pressure. If a deed-back isn't offered or you're denied, try the resale market with realistic pricing, understanding many interests sell for very little. If neither works and the fees have become genuinely unaffordable, talk with a consumer law attorney licensed in the state where the resort sits about your options, including the practical consequences of nonpayment covered earlier in this article. What we'd avoid: any company that wants a large fee paid upfront before doing any work, and any company that tells you to stop paying your maintenance fees as part of its 'strategy.' That advice appears repeatedly in FTC enforcement actions against exit scam operators, and it's a red flag regardless of how confident the salesperson sounds [4].
How do I get rid of a timeshare I inherited and never wanted?
Inherited timeshares come with the same fee obligations as one you bought yourself, sometimes to your surprise, since the deed transfers with the estate unless it's formally disclaimed. If you haven't yet accepted the inheritance, an estate attorney can advise on a qualified disclaimer, which under many state probate laws lets you refuse the inherited interest before it legally transfers to you, so it passes to the next heir or reverts to the estate instead. If you've already inherited and the deed is in your name, you're in the same position as any other owner: check for a deed-back program, try the resale market, or work with the resort directly. Some resorts have specific reduced-fee or waived-transfer processes for heirs, so it's worth asking explicitly when you call. Don't assume you're stuck just because a relative signed the original contract decades ago. And don't let a random exit company convince you that inherited timeshares have some special legal loophole; they don't, they follow the same state foreclosure and deficiency rules as any other timeshare interest.
Frequently asked questions
What happens if I just stop paying my timeshare maintenance fees?
You'll typically see late fees and interest first, then collections calls, then in many cases foreclosure on the timeshare interest within 6 months to 2 years. Your credit score can drop once the account is charged off and reported to a collection agency. In some states, the resort can also sue for a deficiency judgment covering any shortfall after foreclosure.
How to get out of a timeshare?
Check first whether you're still inside your state's rescission window; that's the fastest, cleanest exit. If it's closed, ask the resort about a deed-back or surrender program, try the resale market with realistic price expectations, or consult a consumer attorney about your options. Avoid any company demanding a large upfront fee before doing any work.
How do you get out of a timeshare after the rescission period ends?
Your main routes are a resort deed-back or surrender program, a resale listing through a legitimate broker or marketplace, or working with a vetted exit company as a last resort. Some owners eventually let the timeshare go to foreclosure, but that carries credit damage and possible deficiency judgment risk depending on your state.
How to sell a timeshare?
List through a licensed real estate broker in the resort's state or a reputable timeshare resale marketplace, and price it realistically since many interests resell for very little, sometimes just a token amount to escape the fee obligation. Never pay a large upfront fee to a company claiming it already has a buyer waiting; that's a common scam pattern the FTC has pursued enforcement against.
How much is a timeshare, and how much do timeshares cost overall?
The average developer purchase price is roughly $24,140 according to ARDA-affiliated owner research, with a wide range depending on brand and location. Add an average annual maintenance fee around $1,240, which rises most years, plus occasional special assessments and financing interest if you took a loan, often in the 12% to 18% range.
Are timeshares scams?
The product itself is legal, regulated vacation real estate, not a scam by definition. But sales tactics are frequently high-pressure, and the timeshare exit industry has a well-documented history of fraud; the FTC has sued multiple exit companies for charging large upfront fees and delivering little in return.
Can a timeshare company garnish my wages if I stop paying?
It's possible in states that allow judicial foreclosure and deficiency judgments, though wage garnishment rules and exemption amounts vary significantly by state. If a resort wins a deficiency judgment against you, it may be able to pursue collection through garnishment or asset liens depending on your state's enforcement statutes. A local consumer attorney can tell you your specific exposure.
Will stopping timeshare payments hurt my credit score?
Yes, in most cases, once the account is charged off and sent to a collection agency, or once a foreclosure or judgment becomes part of the public record. A new collection account can drop a credit score by 50 to over 100 points and can stay on your credit report for up to 7 years under federal credit reporting time limits.
How do I get rid of a timeshare I inherited?
If you haven't formally accepted the inheritance, an estate attorney can explain whether a qualified disclaimer is available in your state, which can let you refuse the interest before it transfers. If you've already inherited it, you have the same options as any owner: deed-back program, resale, or attorney consultation.
What is a timeshare deed-back program?
A deed-back (or surrender) program lets an owner transfer the timeshare interest back to the resort or management company, usually for free or a modest transfer fee, ending the ongoing maintenance fee obligation. Availability and eligibility (often requiring the account to be current) vary by resort brand, so you generally have to call and ask directly.
How long is the timeshare rescission period?
It varies by state and sometimes by contract terms, ranging from very short windows to a couple of weeks in some states. Confirm your state's exact rescission window and required cancellation method through your state attorney general's consumer protection office or the specific statute referenced in your purchase contract, since a defective cancellation can be challenged.
Can I sue a timeshare company to get out of my contract?
You can, typically on grounds like misrepresentation during the sales presentation, failure to provide required disclosures, or violation of your state's rescission statute, but litigation is slow and expensive and outcomes vary. Most owners try rescission, deed-back, or resale first and treat a lawsuit as a last resort with a licensed attorney's guidance.
Sources
- Federal Trade Commission, Consumer Advice: Timeshares, Vacation Clubs, and Related Scams: Owners who stop paying may face credit damage and some contracts allow pursuit of amounts owed after foreclosure
- Consumer Financial Protection Bureau, Fair Credit Reporting Act consumer reporting time limits: Collection accounts can generally remain on a credit report for up to 7 years
- Florida Legislature, Florida Statutes Chapter 721 (Vacation and Timeshare Plans): Florida timeshare associations may use a trustee foreclosure process for unpaid assessments
- Consumer Financial Protection Bureau, garnishment and debt collection consumer guidance: Wage and bank account garnishment for a judgment depends on state exemption laws
- Consumer Financial Protection Bureau: Explains what foreclosure is and how it can occur when a borrower fails to make required payments, relevant to timeshare foreclosure.
- Internal Revenue Service: Cancelled or forgiven timeshare debt may be considered taxable income to the former owner.