What happens if you don't pay your timeshare fees

Last updated 2026-07-26

What actually happens the first time you miss a timeshare payment?

Most resorts give you a grace period, often 10 to 30 days, before a late fee hits. The fee itself is usually a flat charge ($25 to $100 is common) plus interest that starts accruing on the unpaid balance. Check your specific contract; the terms live in your Public Offering Statement or the association's Declaration of Covenants, Conditions and Restrictions (CC&Rs), not in some generic timeshare rulebook. After one missed payment, you'll typically get a letter, then a phone call from the HOA's billing department. Nothing dramatic happens yet. The real trouble starts if you miss two or three cycles in a row, because that's when most contracts allow the association to accelerate the debt (demand the whole year's fees at once) or refer the account to a third-party collection agency. Some states regulate how timeshare associations can pursue delinquent owners. Florida, for example, requires specific notice procedures before a lien can be filed under its Vacation and Timeshare Plans Act ^[1]. If your resort is in Florida, Texas, or another high-volume timeshare state, the association almost certainly has a template process it follows on every delinquent account, because they've done this thousands of times before with you specifically in mind as just another file number.

How long before a timeshare goes to collections or foreclosure?

There's no single national timeline, but a rough pattern shows up across large HOA-managed resorts: 60 to 90 days delinquent triggers a formal notice of default, 90 to 180 days often triggers referral to collections or an attorney, and anywhere from 6 months to 2 years of nonpayment can lead to foreclosure, depending on the state and the resort's internal policy. Most timeshare interests are foreclosed nonjudicially, meaning the association doesn't need a judge's approval to take the property back, similar to how many states handle mortgage foreclosures on real property. This is faster and cheaper for the resort than judicial foreclosure, which is part of why some resorts actually prefer to foreclose rather than chase you for a $900 annual fee forever. A foreclosure wipes out your ownership, but it does not automatically wipe out your debt. Depending on the state and the size of the unpaid balance versus what the timeshare is worth, the resort can pursue a deficiency judgment for the difference. Given that resale values for timeshares are often near zero, this deficiency can sometimes exceed what you'd expect.

Will unpaid timeshare fees hurt my credit score?

Yes, if the account is reported to the credit bureaus or sold to a debt collector. The Fair Credit Reporting Act governs how collection accounts, charge-offs, and judgments get reported, and a timeshare debt in collections behaves like any other consumer debt on your credit file ^[2]. A collections account can stay on your credit report for up to 7 years from the original delinquency date under the FCRA's reporting limits ^[2]. Not every timeshare developer reports to the bureaus directly, but once an account goes to a third-party collection agency, that agency almost always does, because that's how they get paid on aging debt portfolios. If the resort obtains a judgment against you, that becomes a matter of public record even though judgments were removed from most credit reports around 2017 under changes the major bureaus made voluntarily. The practical effect: a $1,200 unpaid maintenance fee balance can turn into a collections tradeline that knocks 50 to 100+ points off your score depending on your existing credit profile, and it can sit there hurting you for years even after you've moved on and forgotten about the timeshare entirely.

Can a timeshare company sue me for unpaid fees?

Yes. Foreclosure is the more common remedy, but nothing stops a resort or its collection agency from filing a straightforward breach of contract lawsuit for the unpaid fees, especially in states where nonjudicial foreclosure doesn't fully satisfy the debt or where the resort wants a judgment it can enforce through wage garnishment or bank levies. The Federal Trade Commission's general debt collection guidance applies here just like it would for a credit card or medical bill: collectors must follow the Fair Debt Collection Practices Act, which limits when and how they can contact you and prohibits threats, harassment, or misrepresentation ^[3]. If a collector calls repeatedly, threatens you with jail, or misstates the amount owed, that's a real complaint you can file with the FTC or your state attorney general. Whether a lawsuit is worth it for the resort depends on the size of your balance and how collectible you look on paper. A retiree with a paid-off house in a state with weak homestead protections is a more attractive lawsuit target than someone who's judgment-proof. That's a cynical way to put it, but it's how collection agencies actually triage files.

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

Inheriting a timeshare doesn't automatically make you liable unless you accept the inheritance, formally or through your actions (like using the unit or making a payment). If an estate includes a timeshare and the heirs disclaim the interest properly under state probate law, the debt generally stays with the estate, and the resort has to pursue whatever assets the estate has, not your personal finances. The catch: many people don't disclaim properly and instead just ignore mail from the resort while quietly assuming they're stuck. If you've inherited a timeshare and don't want it, talk to a probate attorney about a formal disclaimer before you do anything that could be read as accepting the interest. Some states have their own timeshare-specific succession quirks, so this isn't one-size-fits-all. If you're still inside any rescission period tied to the original owner's purchase, that window is almost certainly long expired by the time an inheritance happens, since rescission periods are measured from purchase, not from death. Confirm your state's rescission window applies only to the original purchaser and the original short timeframe after signing.

Is it ever okay to just stop paying and let the resort foreclose?

We're not going to tell you to stop paying money you owe under a valid contract, and you shouldn't take that step without understanding the consequences above: credit damage, possible deficiency judgment, possible lawsuit, and collections calls for years. That said, some owners with older, low-value timeshares and no other financial ties to the resort do end up going through a foreclosure as the practical end of their ownership, sometimes after every other exit option (resale, deed-back, rescission) has failed. If you're considering this path, do it with your eyes open: talk to a consumer law attorney in your state first, understand whether your state allows deficiency judgments on timeshare foreclosures, and check whether the resort has a history of pursuing them (some do, many smaller ones don't bother because it's not worth the legal cost on a $2,000 debt). This is a financial decision with real downside, not a shortcut. If you have any equity, resale value, or emotional attachment to the property, foreclosure is the wrong move. If you're already judgment-proof and the fees have become unaffordable relative to your income, it may be the least-bad option among several bad ones. That's a decision for you and a licensed attorney, not a generic article.

How do I get out of a timeshare before it gets to this point?

The cleanest exit, by far, is canceling during your rescission period. Every state that regulates timeshares gives buyers a short window, often measured in days, to cancel the purchase for a full refund, no reason required. The length and mechanics vary by state, so confirm your state's rescission window and follow the notice method spelled out in your contract exactly (usually written notice, sometimes certified mail, within a strict deadline). If that window has closed, your realistic options are a deed-back (some developers, especially larger branded ones, run authorized deed-back or surrender programs), a resale (values are usually near zero to slightly negative once you count closing costs), or working with a licensed real estate attorney in your state to negotiate an exit. See our guide on how to get out of a timeshare for the full decision tree, and timeshare cancellation if you're still inside your rescission window right now and need to move fast. If you're getting collection calls already and need a structured way to organize your documents, deadlines, and next steps, our $149 Timeshare Exit Kit at /exit-kit-builder walks you through the paperwork for rescission, deed-back requests, and dispute letters, built for people doing this themselves rather than paying a $3,000 to $10,000 upfront fee to an exit company.

How much does a timeshare actually cost, and why do fees keep rising?

Purchase prices vary wildly: a resale unit can go for a few hundred dollars (sometimes literally $1 plus closing costs) while a new developer-sold week or points package commonly runs $20,000 to $40,000 or more depending on the brand and season. The purchase price is really the smallest part of the lifetime cost. Annual maintenance fees are the recurring bill that catches people off guard. According to the American Resort Development Association's owner survey data, average annual maintenance fees have run in the $1,000 to $1,200 range in recent years, and they tend to rise faster than general inflation because they cover renovation reserves, staffing, insurance, and property taxes on the resort ^[4]. Special assessments, one-time charges for a new roof, hurricane damage, or a lobby renovation, can add another $500 to several thousand dollars in a single year with little warning. Over a 20-year ownership period, a timeshare bought for $20,000 with fees starting at $1,000 a year and rising 5% annually can cost well over $50,000 in fees alone, before you've paid for a single flight to use it. That math is why so many owners eventually go looking for an exit rather than a way to "get more value" out of the purchase.

Are timeshares scams, or is this just a bad but legal product?

Most timeshares are legal products, heavily regulated at the state level, not scams in the criminal-fraud sense. The problem is the business model: high-pressure sales presentations, fees that rise faster than the value you get, and a resale market so weak that owners often can't give the thing away, let alone sell it. The scam risk shows up heavily on the exit side, not the sale side. The FTC has repeatedly warned consumers about upfront-fee timeshare exit companies that promise to cancel your timeshare, collect thousands of dollars before doing any work, and then disappear or do nothing at all ^[5]. The FTC's consumer guidance states plainly to be skeptical of any company that promises it can get you out of your timeshare, especially if they want money upfront ^[5]. A legitimate deed-back program, run directly by the resort developer, doesn't typically charge you a large upfront fee to take the property back, though some charge a modest transfer or administrative fee. If a company cold-calls you promising to "get you listed with buyers waiting" or promises an exit for a large upfront payment, treat that as a red flag and check them against your state attorney general's consumer protection division before paying anything. See our timeshare exit companies guide for how to vet a company before you sign anything.

How do you sell a timeshare, and is it realistic to get your money back?

You can sell through the resale market, but you should expect to receive a small fraction of what you paid, often close to nothing, and in some cases you may need to pay a buyer's closing costs just to make the transfer happen. Popular resale marketplaces exist (licensed timeshare resale brokers, owner-to-owner listing sites), but demand is thin for most weeks outside a handful of premium brands and locations. Before listing, get a realistic valuation by searching completed sales (not asking prices) for your exact resort, week, and unit type. If similar units are selling for $500 or less, or not selling at all after months on the market, that tells you the honest value of what you own, regardless of what a salesperson told you at closing. Never pay a large upfront fee to a resale company that claims to have a buyer already lined up or "already interested." That's one of the oldest patterns in timeshare resale fraud, flagged repeatedly by state attorneys general and the FTC alike ^[5]. If a deed-back program is available for your specific resort, it's usually a better bet than resale, since it transfers the deed back to the developer directly and ends your fee obligation going forward without needing to find a buyer at all.

What's the difference between a deed-back and just walking away?

A deed-back is a formal, negotiated transfer of your ownership back to the developer or resort HOA, done with paperwork, a recorded deed, and (ideally) written confirmation that your fee obligations end as of a specific date. Walking away just means you stop paying and let the consequences (late fees, collections, eventual foreclosure) run their course. The deed-back route is almost always better if it's available, because it's controlled, it's documented, and it avoids the credit damage and collections exposure of a foreclosure. The catch is that not every resort offers one, and some only offer deed-backs on units that are fully paid off with no outstanding loan balance and no delinquent fees, meaning you may need to get current before they'll even talk to you about surrendering it. If your resort has an authorized deed-back program, contact them directly (not through a third-party exit company that charges to "process" it for you unless you've separately verified that company's legitimacy) and get everything in writing, including confirmation of the exact date your maintenance fee obligation ends.

What should I do right now if I'm behind on timeshare fees?

First, find your original purchase date and check whether you're still inside any rescission period; if you are, that's your fastest and cleanest exit, full stop. Second, pull your contract and look for the specific late fee, default, and acceleration clauses so you know your actual timeline, not a generic one from the internet. Third, call the resort's owner services or collections department directly and ask about a deed-back, a hardship payment plan, or a settlement of the delinquent balance; some resorts will negotiate rather than go through the cost of foreclosure, especially if you have a documented hardship. Fourth, before paying any company money to "get you out," check them against your state attorney general's office and read the FTC's consumer alert on timeshare exit scams ^[5]. Finally, keep every piece of mail and every call log. If this ends up in collections or litigation, having your own paper trail matters more than you'd think. Our guides on how to get out of timeshare and timeshare call list can help you organize who to contact and in what order.

Frequently asked questions

What happens if I stop paying my timeshare maintenance fees?

You'll typically face late fees and interest within 30-60 days, a collections referral after a few missed cycles, and possible foreclosure within 6 months to 2 years, depending on the resort and state. The account can also be reported to credit bureaus, and some resorts pursue a deficiency judgment for the balance after foreclosure. Never stop paying without understanding your contract's specific default terms first.

Can a timeshare company take my house if I don't pay fees?

No, a timeshare association can only foreclose on the timeshare interest itself, not your primary home, unless you separately pledged your home as collateral (which is not standard). However, if the resort sues and wins a judgment, judgment enforcement tools like wage garnishment or bank levies could apply depending on your state's collection laws.

How to get out of a timeshare without paying an exit company?

Start with your rescission period if you're still within it (confirm your state's exact window), then check whether your resort offers a direct deed-back program, and consider a licensed real estate attorney for a negotiated release. Many owners never need a paid exit company; see our guide on how to get out of a timeshare for the full options in order of cost.

How do you get out of a timeshare if you inherited it?

If you haven't accepted the inheritance (used it, paid a fee, or otherwise acted as owner), a probate attorney can help you formally disclaim the interest so the debt stays with the estate rather than becoming your personal obligation. Once you've accepted it, you're treated like any other owner and need a deed-back, resale, or negotiated exit.

How much does a timeshare cost, beyond just the purchase price?

Purchase prices commonly run $20,000 to $40,000 for developer-sold weeks, but annual maintenance fees averaging roughly $1,000 to $1,200 (ARDA owner data) plus periodic special assessments of $500 to several thousand dollars can add tens of thousands of dollars over a typical ownership period ^[4]. The fees, not the purchase price, are usually what drives owners to look for an exit.

Are timeshares a scam or just a bad investment?

Timeshares are legal, regulated products, not scams in the criminal sense, but the resale value is usually near zero and fees rise faster than typical inflation, making them a poor financial product for most buyers. The bigger scam risk is on the exit side: the FTC warns against companies that promise cancellation for a large upfront fee ^[5].

How do I sell my timeshare if nobody wants it?

Check completed sales (not asking prices) for your exact resort and unit type to get a real valuation; many resell for a few hundred dollars or less. If resale isn't realistic, ask the resort about an authorized deed-back program before paying any third party to "guarantee" a sale or buyer.

Will unpaid timeshare fees show up on my credit report?

Yes, if the account is sold to or reported by a debt collector, it can appear as a collections tradeline and remain on your credit report for up to 7 years from the original delinquency date under the Fair Credit Reporting Act's reporting limits ^[2]. This can lower your score significantly depending on your existing credit profile.

Can I be sued for unpaid timeshare maintenance fees?

Yes. Resorts and their collection agencies can file a straightforward breach of contract lawsuit for unpaid fees, separate from or in addition to foreclosure. Debt collectors must still follow the Fair Debt Collection Practices Act, which bars harassment, threats, and misrepresentation of the amount owed ^[3].

What's the fastest legitimate way to get rid of a timeshare?

Rescission during your state's cancellation window is the fastest and only sure-fire full exit; confirm your state's specific rescission window and deadline immediately since it's usually just days from signing. After that window closes, a direct deed-back program is typically the next-fastest legitimate option.

Do all states allow timeshare foreclosure without going to court?

Most states permit nonjudicial foreclosure for timeshare interests, similar to how many states handle standard real estate foreclosures, but procedures and required notices vary by state law. Check your specific state's timeshare statute or consult a local real estate attorney to understand your state's exact process and deficiency judgment rules.

Is it worth hiring a timeshare exit company to stop paying fees?

Be cautious: the FTC has repeatedly warned against exit companies that charge large upfront fees and promise cancellation, since many take payment and deliver nothing ^[5]. Vetting the company with your state attorney general first, trying a direct deed-back, or using a structured self-help resource are usually lower-risk than an upfront-fee promise.

Sources

1. Florida Legislature, Vacation and Timeshare Plans Act (Chapter 721): Florida requires specific notice procedures before a timeshare lien can be filed
2. Consumer Financial Protection Bureau / Fair Credit Reporting Act reporting limits: Collection accounts can generally be reported for up to 7 years from the original delinquency date under FCRA rules
3. Federal Trade Commission, Fair Debt Collection Practices Act guidance: Debt collectors must follow FDCPA limits on contact, threats, and misrepresentation
4. American Resort Development Association, State of the Vacation Timeshare Industry: Average annual timeshare maintenance fees run roughly $1,000 to $1,200
5. Federal Trade Commission, Consumer Alert on Timeshare Resales and Exit Companies: FTC warns consumers to be skeptical of companies promising a timeshare exit or sale for an upfront fee