What happens if you stop paying timeshare maintenance fees

Last updated 2026-07-25

What actually happens if you stop paying timeshare maintenance fees?

Nothing happens the first week. That's the trap. People stop paying, nothing seems to occur for a month or two, and they start thinking the whole thing quietly went away. It didn't. Most timeshare contracts spell out a default process: a late fee and interest charge hit your account within 30 to 60 days of a missed payment, based on typical HOA-style assessment terms found in resort governing documents. After that, the resort's HOA (most timeshares are run through a homeowners association, even if it doesn't feel like one) refers the account to internal collections or a third-party agency. If you keep ignoring it, the resort has two main paths depending on your state and how your interest is titled: foreclosure on the deeded interest, or contract cancellation plus a debt referred to collections if you hold a right-to-use interest instead of a deed. Either way, your credit can take a hit. Timeshare associations that report to credit bureaus will show missed payments as delinquent, and a completed foreclosure shows up as a foreclosure, the same as it would for a house. The Consumer Financial Protection Bureau notes that any account reported late, in collections, or foreclosed can stay on a credit report for up to seven years ^[1]. We are not a law firm and don't contact resorts on anyone's behalf, and we're not telling you to stop paying money you legally owe. If you're already behind, the smart move is to find out exactly where you stand, not to guess.

How long before a timeshare company starts foreclosure?

There's no single national number. Foreclosure timing depends on state law and whether your interest is deeded or a right-to-use contract. For deeded timeshares, most states allow non-judicial foreclosure, which is faster than the judicial process used for a typical mortgage foreclosure on a primary home. Some resorts start the process within 90 to 180 days of consistent non-payment, but plenty let accounts sit delinquent for a year or more before acting, especially at smaller resorts with thin collections staff. Florida, home to a huge share of the country's timeshare inventory, allows a trustee foreclosure process for timeshare interests that is meant to move faster than court foreclosure, governed under Florida Statutes Chapter 721 ^[2]. That statute lays out the trustee foreclosure procedure specifically for timeshare estates, separate from the regular judicial foreclosure track used for houses. If your interest is a right-to-use or club points product rather than a recorded deed, there's often no real property to foreclose on at all. In that case the company's main hold over you is the debt itself: sending it to collections, suing you in small claims or civil court for the balance owed, or (rarely, but it happens) getting a judgment against you. Don't count on "they never actually foreclose." Some resorts absolutely do, especially at large branded properties with active HOAs that don't want unpaid interests sitting on their books.

Can a timeshare company sue me for unpaid maintenance fees?

Yes. A timeshare HOA or management company can sue you personally for unpaid fees, more than take back the property. This is one of the most misunderstood parts of walking away. Foreclosure lets the resort take the timeshare interest back. But if what you owe (fees, late charges, interest, collection costs) is more than the interest is worth, and the resort forecloses non-judicially without pursuing you further, they may not chase a deficiency. Some states and some contracts, though, allow the association to pursue a deficiency judgment for the difference between what you owed and what the foreclosed interest was worth at resale, similar to how a mortgage deficiency judgment works after a home foreclosure. Separately, and more commonly for right-to-use products with no deed to foreclose, the company can just sue for breach of contract and go after the unpaid balance directly, then send a judgment to collections or attempt wage garnishment depending on state law. Realistically, most timeshare debts under a few thousand dollars aren't worth an individual lawsuit to a big management company; it's not economical for them either. But that changes for higher-value weeks, multiple years of unpaid special assessments, or companies known for aggressive collections. There isn't good public data on how often timeshare companies actually sue individual owners versus just foreclosing and writing off the loss; that's a real gap in what's publicly tracked.

Will not paying maintenance fees hurt my credit?

It can, and often does, once an account goes to a debt collector or through foreclosure. Timeshare loans and some HOA-style fee accounts get reported to the three major credit bureaus, and once an account is 30, 60, or 90 days past due, that status gets reported and stays visible. Under the Fair Credit Reporting Act, most negative information, including collections accounts and foreclosures, can remain on a credit report for seven years from the date of the original delinquency that led to the collection or foreclosure ^[1]. That's a long shadow for a decision made in one bad year. If your timeshare purchase was financed through the developer (very common, and often at high interest, sometimes 12% to 18% or more), missing loan payments is separate from missing HOA maintenance fee payments, and both can be reported independently. So you could see two different negative marks: one for the loan default, one for the fee delinquency, if both go unpaid. If your credit is already fragile, or you're planning to buy a house or car soon, this is the single biggest reason not to just stop paying and hope. The math on a $149 exit kit or a deed-back program often looks a lot better than years of credit damage plus collections calls.

What if I just stop paying and let the resort take it back?

Some owners do this on purpose: stop paying, let the foreclosure happen, accept the credit hit, and move on. It's not a strategy we can recommend, but it is a real thing people choose, usually because the timeshare is worth less than the debt and less than the emotional cost of dealing with it further. The honest tradeoffs: you avoid paying more maintenance fees and avoid the ongoing relationship with the resort. In exchange, you risk a foreclosure or collections mark on your credit report for up to seven years ^[1], you may still get sued for a deficiency depending on your state and contract, and if you have an estate consideration (see below), stopping payment doesn't necessarily protect your heirs from a similar mess. If you're weighing this path, look first at whether your resort has a deed-back program or a similar voluntary surrender option, since a documented deed-back avoids the credit damage of a foreclosure and gets the interest off your name cleanly, if the resort accepts it. Not every resort offers one, and some only offer it to owners current on fees, which is an odd twist: you may need to keep paying a little longer just to qualify for a clean exit.

Are timeshares scams, or is it the exit industry that's the scam?

Timeshares themselves aren't illegal and aren't scams in the legal sense. They're a real, regulated ownership or usage product, and the Federal Trade Commission has published consumer guidance explaining how timeshare and vacation plans work and what to watch for before you buy, not a warning that they're inherently fraudulent ^[3]. The problem is usually the sales pressure, the resale value collapsing to near zero, and fees that climb faster than most owners expect. Where real scams cluster is the exit side. The FTC's guidance on timeshares tells consumers to "research the company thoroughly" before paying anyone to help you exit or resell, and warns against guarantees that sound too good to be true ^[3]. State attorneys general in Florida, Missouri, and elsewhere have also sued timeshare exit companies for deceptive practices; check your own state attorney general's consumer protection page before hiring anyone. Red flags worth memorizing: a company that asks for thousands of dollars upfront before doing anything, guarantees a specific outcome or timeline, tells you to stop paying maintenance fees as part of their process, or pressures you to sign something during a cold call. Legitimate rescission rights, deed-back programs, and even resale all exist without needing to pay a stranger $5,000 upfront.

How much does a timeshare cost, including the fees nobody mentions?

Purchase price (deeded week)	$3,000 to $30,000+	One-time
Annual maintenance fee	~$1,000 to $1,100 average	Every year, usually rising		Special assessment	$200 to $3,000+	Occasional, unpredictable
Financing interest (if financed)	12% to 18%+ APR common	Life of the loan	Maintenance fees tend to rise faster than general inflation because they're tied to aging building costs, insurance, and reserve funding, not to a national index. That's the core reason so many owners eventually look for an exit instead of just budgeting around it.

The upfront price varies enormously, from a few thousand dollars for an off-season week at a smaller resort to $20,000, $30,000, or more for a fixed week at a branded resort in a desirable location. The American Resort Development Association (ARDA), the industry's own trade group, has reported average timeshare purchase prices in roughly the $20,000-plus range in past consumer surveys, though prices vary a lot by brand and location ^[4]. The part that surprises people isn't the purchase price. It's the annual maintenance fee. ARDA industry data has put average annual maintenance fees at roughly $1,000 to $1,100 in recent surveys, and that number climbs almost every year ^[4]. On top of the base fee, special assessments (one-time charges for a new roof, storm damage, renovation) can add hundreds or thousands more with little warning. Here's a rough comparison of what owners typically face over time: | Cost type | Typical range | Frequency |

How do you get out of a timeshare legally?

There are really only a handful of legitimate paths, and none of them involve a company that promises to "cancel" your contract by phone for an upfront fee. First, check your rescission window. Every state that allows timeshare sales gives buyers a short right to cancel after signing, no questions asked, but the exact number of days and the required method (certified mail, specific language, etc.) varies by state, so confirm your state's rescission window before assuming you've missed it. If you're still inside that window, this is by far the cleanest and cheapest exit. Second, ask the resort about a deed-back or surrender program. Many major resort brands now have some form of voluntary deed-back, sometimes free, sometimes for a processing fee, sometimes only for owners current on fees. It's worth a direct call or written request even if you plan to also research other options. Third, try resale, understanding that resale value for most timeshares is very low, often near zero, because supply massively outweighs demand; ARDA data and consumer resale sites have long noted that most timeshares resell for a small fraction of purchase price. Fourth, some owners hire a licensed attorney to review the contract for legitimate exit grounds like misrepresentation. Fifth, some owners use a self-directed kit or checklist to organize the paperwork, deadlines, and documentation themselves instead of paying a company thousands to do it. For a full state-by-state breakdown of these options, see how to get out of a timeshare and how to get out of timeshare.

How do I sell a timeshare if I just want out?

Selling is legal and sometimes works, but go in with real expectations: most timeshares sell for far less than the original purchase price, and a meaningful share don't sell at all without the owner paying closing costs or even a small incentive to the buyer. Start by getting a realistic valuation, not from a company that cold-calls you claiming a buyer is "waiting," but from actual completed sales on licensed resale marketplaces or licensed timeshare resale brokers in your state. Compare that number to what you still owe in fees or loan balance; if the fees alone will exceed any sale price within two or three years, selling for near-zero (or even paying a small amount to get rid of it) can still be the better financial move than holding on. Never pay a large upfront fee to a company claiming they already have a buyer lined up. That's one of the most common timeshare resale scam patterns the FTC and multiple state attorneys general have warned about ^[3]. Legitimate brokers typically get paid at closing, from the sale proceeds, not before. If a sale seems impossible and the resort has no deed-back option, that's when a documented, self-managed exit process or professional help becomes worth the cost. A formal deed transfer or contract termination stops the fee clock in a way that simply stopping payment and hoping doesn't.

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

You're not alone, and this situation is genuinely different from buyer's remorse. An inherited timeshare comes with the same maintenance fees and the same foreclosure or collections risk, but the person deciding what to do wasn't the one who signed the original contract. Heirs generally aren't personally obligated to pay a deceased owner's debts, including timeshare fees, beyond what the estate itself owes, under general probate principles that vary by state; the debt is typically owed by the estate first, not automatically by individual heirs. But if you accept the deed transfer into your own name (by not formally disclaiming the inheritance) and then stop paying, the resort can pursue you the same way it would any other owner in default, and it can also affect your own credit going forward, more than the estate's. A formal disclaimer, filed properly through the probate court before you accept any benefit of the property, can let an heir walk away without ever taking on the obligation, but the timing and paperwork rules are strict and vary by state, so this is a case where talking to a probate attorney in the deceased's state is worth the cost. Simply ignoring the resort's mail after a parent's death doesn't automatically protect you if you've already treated the property as your own.

Should I use a timeshare exit company, or handle it myself?

Both can work. Both can also go badly, and the difference usually comes down to price transparency and what you're actually paying for. Before hiring anyone, check the timeshare exit companies landscape and the timeshare call list of firms with public complaints or state AG actions against them. A legitimate company should explain exactly what it will do, put its fee and refund terms in writing, and never guarantee a specific legal outcome, since no company can guarantee a resort will accept a deed-back or that a court will rule a certain way. A growing number of owners handle the process themselves: requesting the rescission or deed-back paperwork directly, tracking deadlines, and organizing documentation without paying a company thousands of dollars to make phone calls the owner could make. That's the gap our $149 one-time Exit Kit Builder is built for: a structured way to build the letters, checklists, and documentation for your specific state and situation, without the four- or five-figure upfront fees some exit companies charge. It's not a guarantee of any outcome, and it's not a substitute for an attorney if your situation involves a lawsuit already filed against you, but for a straightforward deed-back request or rescission letter, it's a much cheaper starting point than a full-service exit company.

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

Get the actual numbers first. Call or check your account portal for the exact amount owed, the late fee schedule, and whether the account has been sent to a third-party collector yet. Don't guess; assumptions are what get people into deeper trouble here. Second, read your original contract for the state and rescission terms, and separately check whether your resort publishes a deed-back or hardship program; some do this quietly and don't advertise it unless you ask. Third, if you're actually considering not paying at all, understand the realistic downside before you do it: a possible foreclosure or collections mark lasting up to seven years on your credit report ^[1], possible referral to a collection agency, and in some states and contracts, exposure to a lawsuit for the balance owed. We're not telling you to stop paying money you legally owe, and if a company ever tells you to stop paying as part of their "process," treat that as a scam warning sign, not a savings tip. Fourth, if you decide to pursue an exit, document everything in writing, keep copies of every letter and certified mail receipt, and never wire money or pay in gift cards to anyone claiming to represent an exit service. Report suspected scams to the FTC at reportfraud.ftc.gov and to your state attorney general's office.

Frequently asked questions

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

Check your rescission window first (varies by state), then contact the resort directly about a deed-back or surrender program. If neither applies, research resale through a licensed broker, or use a self-directed document kit to prepare rescission or deed-back paperwork yourself instead of paying a full-service exit company thousands of dollars.

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

After rescission, options narrow to deed-back or surrender programs offered by the resort, resale (often for very little money), or, in specific cases, a legal claim if the sale involved misrepresentation. There's no general legal right to cancel after the rescission window; any company promising otherwise should be treated with skepticism.

How to sell a timeshare that won't sell?

Get a real valuation from a licensed resale marketplace, not a cold caller claiming a buyer is waiting. If it truly won't sell, compare the cost of continuing to pay fees against a deed-back program or documented surrender, since holding an unwanted timeshare for years often costs more than getting rid of it for close to nothing.

Are timeshares scams?

Timeshares are a legal, regulated product, not scams by definition, according to FTC consumer guidance ^[3]. The bigger risk is aggressive sales tactics, fast-declining resale value, and rising fees. Separately, the exit and resale industry has real scam patterns, including upfront-fee companies that never deliver, so vet any exit company carefully before paying anything.

How much do timeshares cost to buy?

Purchase prices range widely, from a few thousand dollars for smaller off-brand resorts to $20,000 to $30,000 or more for fixed weeks at major branded resorts. Industry survey data from ARDA has put average purchase prices above $20,000 in recent years, though individual prices depend heavily on location, season, and brand ^[4].

How much are annual timeshare maintenance fees?

ARDA industry survey data has reported average annual maintenance fees in the range of roughly $1,000 to $1,100 in recent years, and fees typically rise faster than general inflation because they cover aging buildings, insurance, and reserve funds ^[4]. Special assessments can add hundreds or thousands more in a single bad year.

What happens if I stop paying my timeshare loan versus maintenance fees?

They're often reported separately to credit bureaus. A missed loan payment reflects default on financing, while a missed maintenance fee reflects HOA delinquency; both can independently trigger collections, credit damage, or in serious cases foreclosure, and missing both at once compounds the risk faster than missing just one.

Can a timeshare company garnish my wages for unpaid fees?

It's possible but depends on the state and whether the company sues and wins a judgment first. Wage garnishment generally requires a court judgment; a timeshare HOA can't garnish wages just because an account is delinquent. Rules on garnishment limits and procedure vary significantly by state law.

Will unpaid timeshare fees affect my ability to buy a house?

Yes, if the account is reported to credit bureaus as delinquent, sent to collections, or foreclosed, it can lower your credit score and show up in a mortgage lender's underwriting review. Negative marks like these can stay on a credit report for up to seven years from the original delinquency date ^[1].

How do I get out of a timeshare I inherited and don't want?

Ask a probate attorney in the deceased owner's state about formally disclaiming the inheritance before you accept any benefit of the property; a proper disclaimer can prevent the obligation from transferring to you. If you've already treated it as your own, you may need to pursue a deed-back or standard exit process instead.

Is it true that timeshare companies never actually foreclose?

No, that's a myth. Many resorts do complete foreclosures on deeded interests, particularly branded properties with active HOAs. Florida Statutes Chapter 721 specifically authorizes an expedited trustee foreclosure process for timeshare estates, which some resorts use routinely on delinquent accounts ^[2].

What's a deficiency judgment and can a timeshare company get one against me?

A deficiency judgment lets a creditor collect the difference between what you owed and what the foreclosed property was worth at resale. Whether a timeshare HOA can pursue one depends on state law and your contract; it's a real risk in some states, though not universal, and worth asking a local attorney about.

Sources

1. Consumer Financial Protection Bureau, credit report negative information guidance: Negative information including collections and foreclosures can stay on a credit report for up to seven years
2. Florida Statutes Chapter 721, Vacation and Timeshare Plans: Florida law authorizes a trustee foreclosure process specifically for timeshare estates
3. Federal Trade Commission Consumer Advice, "Timeshares and Vacation Plans": FTC guidance on how timeshares work and warnings about resale and exit scams, including checking companies before paying
4. American Resort Development Association (ARDA), State of the Vacation Timeshare Industry survey summary: Average timeshare purchase price and average annual maintenance fee figures
5. Consumer Financial Protection Bureau: Consumers who stop paying timeshare maintenance fees and are pursued by debt collectors have rights under debt collection rules, including protections against harassment and required validation of debts.
6. Internal Revenue Service: If a timeshare loan or fees are canceled or forgiven, the canceled debt may be considered taxable income to the former owner.
7. U.S. Department of Justice, U.S. Trustee Program: Timeshare debt can potentially be discharged through Chapter 7 bankruptcy, which involves means testing administered by the U.S. Trustee Program.
8. Florida Legislature: Florida law provides a specific rescission period during which a timeshare purchaser can cancel the contract without penalty.
9. U.S. Congress: Federal legislative proposals have addressed deceptive practices in the timeshare exit industry.