What happens if you stop paying your timeshare

Last updated 2026-07-26

what actually happens if you stop paying your timeshare

If you stop paying, the resort or lender treats it like any other defaulted debt. First comes a late fee, usually assessed within 10 to 30 days of the missed due date, based on whatever your contract specifies. Then comes a series of collection calls and letters, often escalating from the resort's own billing department to a third-party collection agency within 60 to 90 days. After that, most timeshare agreements allow the developer to report the delinquency to credit bureaus. The Consumer Financial Protection Bureau notes that timeshare loans and fees are debts like any other, and unpaid amounts can be furnished to credit reporting agencies under the Fair Credit Reporting Act ^[1]. A ding on your credit report can sit there for up to seven years. Eventually, if the account stays delinquent, the resort can pursue foreclosure. Timeshares are real property interests in most states (or, in a few states, structured as "right to use" contracts), and foreclosure procedures vary by whether your deed is recorded and whether the state allows nonjudicial foreclosure. Florida, for example, has a specific nonjudicial foreclosure process for timeshare interests under its statutes, which can move faster than a judicial foreclosure on a house ^[2]. None of this happens instantly. But it also doesn't disappear on its own. Owners sometimes assume a maintenance fee is optional if they stop using the unit. It isn't. The obligation runs with the deed or contract until the resort releases you, someone else takes over the interest, or a court process ends it.

how long before a timeshare goes into foreclosure for nonpayment

There's no single national number, because foreclosure timelines depend on state law and on the resort's internal collection policy. Some resorts start foreclosure paperwork after 90 days of delinquency. Others wait 6 months to a year, especially if they're still trying to collect through calls and settlement offers first. Florida's nonjudicial timeshare foreclosure statute lays out a notice and objection process specifically for timeshare interests, distinct from the judicial foreclosure used for most home mortgages ^[2]. That process can run faster than judicial foreclosure, sometimes wrapping up within a few months once initiated, though the resort has to send required notices and honor any owner objection that shifts it into judicial foreclosure. In states without a special timeshare foreclosure statute, expect the standard judicial foreclosure timeline, which the Congressional Research Service and various state court data sources have put at anywhere from several months to over a year, depending on court backlog ^[3]. Here's the honest range, pulled from published state foreclosure timelines and industry reporting rather than one clean source: expect first serious collection contact around 60 to 90 days delinquent, a foreclosure filing or notice sometime between 4 months and a year, and completion of that process anywhere from 2 months (fast nonjudicial states) to well over a year (judicial states with backlogs).

does stopping payment hurt your credit score

Yes, if the debt is tied to a loan or the resort reports the account to credit bureaus. A timeshare purchase loan works like any installment loan: miss payments, and it shows up as delinquent on your credit report, then charged-off if it goes unresolved long enough. Maintenance fees are a little different. Not every resort reports maintenance fee delinquency to credit bureaus directly, but many send unpaid fees to third-party debt collectors, who often do report to the bureaus. Under the Fair Debt Collection Practices Act, those collectors have to follow specific rules about how they contact you and what they can claim, and the CFPB's consumer complaint database includes numerous timeshare debt collection complaints each year ^[4]. A foreclosure itself is also reportable and can stay on a credit report for up to seven years, per standard Fair Credit Reporting Act retention rules ^[1]. That's on top of whatever damage the missed payments already did leading up to it. If your credit is already fragile, or you're planning a mortgage refinance or a car loan in the next few years, deliberately letting a timeshare default is a genuinely bad idea for reasons well outside the timeshare itself.

can a timeshare company sue you for unpaid fees or come after your other assets

Yes, and this surprises a lot of owners. If the resort forecloses and the sale doesn't cover what you owe, some states allow a deficiency judgment, meaning the resort can sue for the remaining balance even after taking the property back. Whether that's possible depends heavily on state law and on how the loan or contract is structured. Some states restrict deficiency judgments on certain kinds of foreclosures; others don't. This is exactly the kind of state-specific legal question where a consumer should talk to a real estate attorney in their state rather than guess based on a forum post. Even without a lawsuit, a resort or its debt collector can pursue you through standard collections: wage garnishment (where state law allows it after a judgment), bank levies, or simply relentless collection calls governed by the FDCPA ^[4]. Bankruptcy is sometimes used by owners with a mountain of consumer debt, and a timeshare obligation can potentially be discharged in Chapter 7, but that's a serious step with its own costs and consequences, not a first-line timeshare exit strategy. The bottom line: stopping payment does not automatically make the debt vanish, and depending on your state, it doesn't automatically limit the resort to just taking the deed back. Treat it as a real financial and legal exposure, not a shortcut.

is it ever okay to just walk away from a timeshare

We're not going to tell you to stop paying money you owe. That's a decision with real legal consequences, and this article isn't legal advice for your specific contract. What we can tell you is what the honest alternatives look like, so "just stop paying and see what happens" isn't your only option. If you're still inside your rescission period (sometimes called a cooling-off period), you may be able to cancel the purchase outright with no penalty, no continuing payment obligation, and a full refund in many states. Rescission windows are short, often just a matter of days, and the exact number of days and required method (certified mail, specific language) varies by state. Confirm your state's rescission window through your state attorney general's consumer protection page before assuming you've missed it. See how to get out of a timeshare for how that process typically works. If you're past rescission, deed-back programs (sometimes run directly by the resort developer) let you surrender the deed, sometimes for a fee, sometimes free, in exchange for the resort taking the property and its obligations off your hands. Not every resort offers one, and not every owner qualifies, but it's worth asking directly. Resale is another legitimate path, though timeshares resell for a small fraction of what they cost new, and plenty of units on resale sites list for one dollar because the maintenance fee obligation, not the "asset," is the real cost. For more structured options, see timeshare cancellation and how do you get out of a timeshare.

how do you get out of a timeshare without ruining your credit

Start with the cheapest, fastest legitimate option first, then work down the list only if it doesn't apply to you. First, check your rescission rights. If you bought recently, most states give new timeshare buyers a right to cancel within a defined window regardless of what the salesperson told you. The Federal Trade Commission's guidance on timeshares specifically flags this as the first thing to check: "many states have laws that allow you to cancel, or 'rescind,' a timeshare contract within a certain number of days" ^[5]. Miss it, and you're dealing with a binding contract. Second, contact the resort directly and ask about a deed-back, surrender, or exit program. Many major developers now run these, sometimes under names like "ovation" style voluntary surrender programs. It costs nothing to ask, and it's often the single fastest legitimate exit if you own outright with no loan balance. Third, consider resale, but go in with real expectations. Timeshare resale values are famously low; the American Resort Development Association (ARDA), the industry's own trade group, has acknowledged the secondary market is thin and prices are far below developer prices . If you owe a loan balance still, most resorts won't remove you from the deed until it's paid off, which limits resale as an option for financed owners. Fourth, if none of the above work and you're being pressured by upfront-fee "exit companies," stop and read the scam warning below before signing anything or wiring money.

how do you sell a timeshare, and what's it actually worth

Selling a timeshare is legal and sometimes works, but the resale market is brutal compared to what people paid at the sales presentation. ARDA and various consumer surveys have long noted that timeshares generally do not appreciate and often resell for a small percentage of the original purchase price . Realistic steps: get your deed and current maintenance fee statement in hand, verify you have no outstanding loan balance (lenders generally won't let you transfer a deed with an unpaid loan attached), and list through a licensed timeshare resale broker or a reputable marketplace rather than an unsolicited caller who promises a buyer is already lined up. Watch for resale scams specifically: a caller claims they have a buyer lined up, but you need to pay a "transfer fee" or "tax processing fee" upfront. The FTC has repeatedly warned that legitimate buyers do not pay you to take a property off their hands, and reputable resale processes don't require large upfront payments from the seller before a sale closes ^[5]. If resale isn't realistic (many weeks-based deeded timeshares simply have no buyer at any price above zero), a deed-back or developer surrender program is usually the more realistic path. See timeshare exit companies for how to evaluate whether a paid exit service is worth using versus doing it yourself.

are timeshares scams, or is the problem how they're sold

Timeshares themselves aren't illegal or inherently a scam; they're a real, legally enforceable form of shared ownership or right-to-use contract, regulated at the state level. The scam risk shows up in two specific places: the original sales pitch, and the exit industry that's grown up around unhappy owners. On the sales side, state attorneys general have brought numerous enforcement actions against timeshare developers and marketers over high-pressure tactics and misleading claims about investment value or resale guarantees. The FTC's consumer guidance is blunt about this: timeshares are "not an investment" in the traditional sense, and buyers should be skeptical of any pitch that frames them as one, since resale value is typically far below purchase price ^[5]. On the exit side, the scam risk is arguably worse today. The FTC has pursued multiple timeshare exit and resale scam cases, including actions against companies that charged large upfront fees and then did little or nothing to actually cancel the timeshare . A common pattern: a company cold-calls an owner, promises the contract will be canceled with no risk to the owner, demands thousands of dollars upfront, then goes silent or provides paperwork that doesn't actually release the owner from the contract. So the honest answer: the ownership structure is legitimate, if usually a bad financial deal for the buyer. The scam risk concentrates in aggressive sales tactics at the front end and upfront-fee exit fraud at the back end. Treat both stages with the same skepticism.

how much does a timeshare cost, really

Purchase price (new, developer)	$20,000 to $24,000+	one-time
Annual maintenance fee	$1,000 to $1,200+	yearly, rising
Special assessment	Hundreds to several thousand dollars	occasional, unpredictable
Resale value	Often near $0 to a few thousand dollars	one-time, if sold	That resale row is the one that shocks people most. A timeshare that cost $22,000 new can list for $1 on a resale site, because the buyer is really taking on the maintenance fee obligation, not acquiring a valuable asset.

Purchase price and ongoing costs are two very different numbers, and both matter. ARDA's own industry data, cited widely in trade and consumer press, has put the average timeshare purchase price in the range of roughly $20,000 to $24,000 in recent years, though prices for larger or luxury-brand weeks run well higher . That's the number the sales presentation focuses on. The number that actually causes owners pain years later is the annual maintenance fee, which ARDA data has placed at an average of roughly $1,000 to $1,200 per year across the industry, and which typically rises faster than general inflation because it covers renovation reserves, insurance, and resort operating costs . On top of the annual fee, special assessments (one-time charges for a new roof, storm damage, or major renovation) can add hundreds or thousands of dollars in a single year with little warning. | Cost type | Typical range | Frequency |

what if you inherited a timeshare you never wanted

Inherited timeshares are one of the most common reasons people end up delinquent without meaning to. The deed transfers through probate along with the rest of the estate, and heirs often don't realize they're now on the hook for maintenance fees until a bill (or a collections letter) shows up. You generally are not required to keep an inherited timeshare. Estates can disclaim an inheritance, meaning the heir formally refuses it, which under federal tax law (Internal Revenue Code Section 2518) has to happen within 9 months of the decedent's death and follow specific written requirements to be valid . Miss that window, and disclaiming gets more complicated, though it's not necessarily impossible depending on state probate rules. If the estate is still in probate, talk to the estate's attorney before assuming you're stuck. If probate already closed and the deed is in your name, you're in the same position as any other current owner: check for a deed-back program, check resale, and don't ignore fee statements while you figure it out. Many resorts have specific inherited-property surrender processes, since they deal with this constantly. It's worth calling and asking directly, in writing, rather than letting an inherited account drift into delinquency by default.

how upfront-fee timeshare exit scams work, and how to avoid them

This is the single biggest financial risk in the entire timeshare-exit space, arguably bigger than the maintenance fees themselves. The pattern the FTC has documented in multiple enforcement actions: a company calls or emails an owner, claims to specialize in timeshare cancellation, promises the owner will be released from the contract, and demands an upfront fee, often several thousand dollars, before doing any work . Some of these companies do nothing at all. Others send a letter to the resort that has no legal effect. By the time the owner realizes it didn't work, the company is unreachable or has closed and reopened under a new name. Red flags worth memorizing: promises that cancellation is certain or risk-free, pressure to decide same-day, requests for payment by wire transfer or gift card, refusal to put fee terms in writing, and any claim that a government program or lawsuit settlement will get you out for free if you just pay a processing fee first. Before paying anyone, check your state attorney general's consumer protection page and the Better Business Bureau for complaints against the company by exact name, and verify through your state bar association if the company claims to involve attorneys. The FTC's timeshare resale scam guidance specifically recommends independently verifying any company before sending money , and it's smart to check the timeshare call list for known problem companies before you commit to anyone. If you want a structured, flat-fee way to organize your own exit paperwork and options without paying a company thousands upfront for vague promises, ExitHonest's $149 one-time Exit Kit Builder at /exit-kit-builder walks through the same rescission, deed-back, and resale steps this article covers, without charging a percentage or promising an outcome no company can honestly promise.

what should you do right now if you're behind on payments

Don't go silent, and don't wire money to a stranger who cold-called you promising a quick fix. Both reactions make things worse. First, call the resort or loan servicer directly and ask what your options are. Some developers offer hardship programs, temporary payment plans, or deed-back surrender specifically for owners who are behind, and asking costs nothing. Second, pull your contract and figure out exactly what you signed: is there still a loan balance, what does the maintenance fee statement actually say you owe, and does your state's foreclosure process apply. If you're unsure how to read it, a real estate attorney consultation (many offer a flat-fee initial consultation) is money well spent before a foreclosure notice arrives. Third, check your state attorney general's consumer protection division for timeshare-specific guidance, since some states (Florida among them) have detailed statutory processes owners can actually use ^[2]. The FTC's consumer.ftc.gov timeshare page is a good baseline for the national picture ^[5]. Fourth, if you're already past rescission and past a deed-back offer, get informed on your realistic options rather than defaulting by inertia. Read through how to get out of timeshare for a fuller walk-through of the legitimate paths, in order of speed and cost.

Frequently asked questions

What happens if you just stop paying your timeshare maintenance fees?

You'll typically see a late fee within 10 to 30 days, collection calls or letters within 60 to 90 days, and possible credit bureau reporting if the account goes to a third-party collector. If the delinquency continues, the resort can move toward foreclosure, with timelines and deficiency-judgment risk varying significantly by state law.

How long does it take for a timeshare to go into foreclosure?

There's no single national timeline. Some resorts start collection escalation around 90 days delinquent and can complete nonjudicial foreclosure (where state law allows it, as in Florida) within a few months of filing. States requiring judicial foreclosure typically take longer, sometimes well over a year depending on court backlog.

Can a timeshare company garnish your wages or sue you for unpaid fees?

Potentially, yes. If foreclosure doesn't cover the full debt, some states allow a deficiency judgment, letting the resort sue for the remainder. Whether wage garnishment or bank levies follow depends on state law and whether a court judgment is obtained. This varies enough by state that a local real estate attorney is the right resource.

How do you get out of a timeshare legally?

Check your rescission window first (it's short and state-specific, so confirm it with your state attorney general's office). Past that, ask the resort about a deed-back or surrender program, consider a licensed resale broker, and avoid upfront-fee exit companies promising an outcome no one can actually promise.

How much does a timeshare typically cost to buy and maintain?

Industry data from ARDA puts average purchase prices around $20,000 to $24,000, with average annual maintenance fees around $1,000 to $1,200, often rising over time. Special assessments for repairs or renovations can add hundreds to thousands more in a single year.

Are timeshares a scam?

The ownership structure itself is legal and regulated at the state level, but it's usually a poor financial deal given resale values near zero. The bigger scam risk is in high-pressure sales tactics at purchase and upfront-fee exit companies that promise the contract will disappear and then do little or nothing.

How do you sell a timeshare if no one wants to buy it?

Many timeshares, especially older weeks-based deeds, have essentially no resale market and list for $1 because buyers only want it if maintenance fees are current and low. If resale genuinely isn't viable, ask the resort about a deed-back or surrender program instead of assuming a sale is your only path.

What is a deed-back program and how does it work?

A deed-back (or surrender) program lets you transfer your deed back to the resort developer, sometimes for a fee and sometimes free, so the resort takes over ownership and its associated obligations. Not every resort offers one and eligibility often requires the account to be current, so ask directly and get terms in writing.

Can you get out of a timeshare within a few days of buying it?

Many states give new buyers a rescission or cooling-off period to cancel without penalty, but the exact number of days and required cancellation method vary by state. Confirm your state's specific rescission window through your state attorney general's consumer protection page rather than assuming a standard number.

What happens to an inherited timeshare if the heirs don't want it?

Heirs aren't automatically required to keep an unwanted timeshare. An estate can formally disclaim the inheritance under IRS rules (generally within 9 months of death, per Internal Revenue Code Section 2518), or the current owner can pursue deed-back or resale options after probate closes.

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

Red flags include promises that cancellation is certain or risk-free, demands for upfront payment before any work is done, pressure to pay by wire transfer or gift card, and refusal to provide fee terms in writing. Check the company's name against your state attorney general's complaint database and the Better Business Bureau before paying anything.

Will stopping timeshare payments show up on your credit report?

Yes, if the debt is a loan or the account gets sent to a collection agency that reports to credit bureaus, which is common. A resulting foreclosure can also appear on your credit report and generally stays reportable for up to seven years under standard Fair Credit Reporting Act rules.

Sources

1. Consumer Financial Protection Bureau, Fair Credit Reporting Act overview: Unpaid timeshare debts can be furnished to credit reporting agencies like other consumer debts
2. Florida Statutes, Chapter 721 (Timeshare): Florida has a specific statutory nonjudicial foreclosure process for timeshare interests distinct from standard judicial foreclosure
3. Congressional Research Service, foreclosure process overview: Judicial foreclosure timelines vary widely by state and court backlog
4. Federal Trade Commission, Fair Debt Collection Practices Act: Debt collectors pursuing timeshare debt must follow FDCPA rules on contact and claims
5. Internal Revenue Code Section 2518, Disclaimers: A qualified disclaimer of an inheritance generally must be made within 9 months of the decedent's death