Fannie Mae timeshare maintenance fees: what owners should know

Last updated 2026-07-26

Does Fannie Mae have anything to do with timeshare maintenance fees?

No, not directly. Fannie Mae is a government-sponsored mortgage enterprise that buys conventional home loans from lenders so those lenders can make more loans. It does not buy, service, or guarantee the loans timeshare developers issue to buyers, and it does not set, collect, or cap maintenance fees at any resort. ^[1] The confusion is understandable. Owners searching for relief from a rising fee bill sometimes land on "Fannie Mae" because the name shows up in mortgage underwriting guidance about timeshare debt, or because a scam caller invokes it to sound official. If someone tells you Fannie Mae is "forgiving" your maintenance fees or buying out your contract, that is not how this works and it's a signal to hang up. What Fannie Mae actually does touch is your ability to get a separate mortgage or refinance while you carry a timeshare loan. Its Selling Guide instructs lenders on how to treat timeshare debt when calculating your debt-to-income ratio for a new mortgage application. That's the extent of the relationship. ^[1]

Who actually sets and enforces timeshare maintenance fees?

Your resort's homeowners association or the management company the developer hired sets the fee, usually through an annual budget vote or a board decision, governed by the state law where the resort sits and by your CC&Rs (covenants, conditions, and restrictions). Florida, for example, regulates timeshare assessments and fee disclosures under its Vacation and Timeshare Plans statute. ^[2] Maintenance fees pay for the things you'd expect: housekeeping, utilities, insurance, staff, landscaping, and a reserve fund for big repairs like roofs or pools. They also often include a management fee paid to the operating company, which is where owners lose visibility into where the money goes. Special assessments are separate line items billed on top of your regular fee, usually after storm damage, an elevator failure, or a reserve shortfall. There's no federal cap on either maintenance fees or special assessments. Some state laws require advance notice or a vote threshold before a board can impose a large assessment, but the specifics vary a lot by state, so check your state's timeshare or condominium statute and your own governing documents rather than assuming a national rule applies. ^[2] Industry surveys have long put average annual U.S. timeshare maintenance fees above $1,000, and that figure has trended upward for years as older resorts age and repair costs climb. Treat any specific average you see as a snapshot in time, since fees vary enormously by resort size, location, and unit type, and no government agency tracks a single official national average.

How much does a timeshare cost, total, more than the maintenance fee?

Retail purchase price	$15,000 to $40,000
Resale purchase price (same unit)	$0 to $3,000
Annual maintenance fee	$900 to $2,500+
Special assessment (when it hits)	$500 to $5,000+ one-time
Annual fee growth	Often 3% to 8% per year, resort-dependent	The resale price gap is the number that surprises new owners most. Timeshares are not an appreciating asset and most resale marketplaces show weeks and points packages selling for a small fraction of what buyers originally paid, sometimes literally $1, because the seller mainly wants out of future maintenance fee obligations.

Three cost buckets matter: the purchase price, the annual maintenance fee, and periodic special assessments. Purchase prices for a one-week fixed or floating interval commonly range from a few thousand dollars on the resale market to $20,000 to $40,000+ at retail from the developer, depending on brand, location, season, and unit size. Points-based systems (the more common sales model today) price similarly per equivalent week, often bundled with a larger upfront points package. The maintenance fee is the recurring cost that actually erodes value over time. Industry-reported averages put U.S. maintenance fees above $1,000 a year in recent surveys, and fees at luxury or high-amenity resorts run well past $2,000. That fee typically rises every year, often faster than general inflation, because labor, insurance, and reserve contributions all climb. Here's a rough total-cost table for a hypothetical one-week fixed unit, using ranges rather than one number since resorts vary this much: | Cost item | Typical range |

Are timeshares scams?

The timeshare product itself is legal in every state, and plenty of owners genuinely enjoy the vacations for decades. But the sales process has a well-documented history of high-pressure tactics, and a large secondary industry of exit scams has grown up around owners trying to leave. State attorneys general and consumer protection agencies have brought numerous enforcement actions against timeshare exit companies for taking upfront fees and delivering nothing. ^[3] So the honest answer is: the timeshare contract is not inherently a scam, but a meaningful share of the industry around it, both sales and exit, operates in ways regulators consider deceptive. Watch for these patterns, which regulators and state attorneys general consistently flag as scam indicators: a company that promises it can get you out of any contract, demands payment in full before doing any work, tells you to stop paying your maintenance fees or mortgage while they "process" your exit, or claims a nonexistent government program (including "Fannie Mae buyback" pitches) will erase your obligation. ^{[3] [4]} Never stop making payments you legally owe based on a promise from a third party. Missed maintenance fee payments can trigger late fees, collections, and damage to your credit even while an exit process is pending, and no exit company, honest or not, can undo that harm after the fact.

How do you get out of a timeshare?

There's no single button. The path depends on how recently you bought, what state governs your contract, and whether the resort offers a deed-back option. Work through these in order. First, check whether you're still inside your rescission window. Every state gives new timeshare buyers a right to cancel within a set number of days after signing, sometimes called a "cooling-off period," and this is by far the cleanest exit if you qualify. The rule and deadline come from your specific state's timeshare statute, so confirm your state's rescission window and follow its exact notice procedure (usually written notice, sometimes certified mail, sent to the address specified in your contract) rather than assuming a generic day count applies. ^[2] For a walkthrough of this process, see how to get out of a timeshare and timeshare cancellation. Second, if the rescission window has passed, ask the resort directly whether it runs a deed-back or surrender program. A growing number of developers and HOAs will take a paid-off, fee-current timeshare back for free or a modest processing fee, because an owner in default costs them more in collections than a clean deed-back. This is often the fastest legitimate exit for owners past their rescission period. Third, consider resale, understanding you'll likely net very little or nothing after closing costs and transfer fees. Fourth, consult a licensed real estate attorney in the state where the resort sits if the contract seems to have been misrepresented at the point of sale; some owners have valid claims for rescission based on fraud even outside the standard window, but that's a legal determination, not a DIY project. [rescission-by-state/how-do-you-get-out-of-a-timeshare] What you should never do: pay a large upfront fee to a company that contacts you unsolicited, stop paying your maintenance fees as a strategy, or sign a "transfer" to a shell company that just takes over the deed without HOA approval and dumps the debt on someone else.

How to sell a timeshare (and what it actually nets you)

List it honestly, price it near zero to a few hundred dollars for most non-luxury weeks, and expect to pay closing and transfer costs yourself in many cases. The most reputable path is a licensed timeshare resale broker who is a member of the Licensed Timeshare Resale Broker Association, since that group requires members to avoid upfront fee models. Avoid any "we have a buyer waiting" cold call that asks for money before a sale closes; that's one of the exit scam patterns regulators have repeatedly targeted in enforcement actions. ^[3] Before listing, check your contract for a right of first refusal (ROFR), which lets the resort match any sale price and take the unit back itself; many developers exercise this, especially at desirable resorts, which can kill a private sale you thought was done. For higher-value fixed weeks at strong brands (some Marriott, Disney, and Hilton properties, for instance), resale marketplaces sometimes show real transaction value, occasionally a few thousand dollars. For most points-based or off-brand deeded weeks, realistic expectations matter: many sellers list for $1 and still struggle to find a taker, because the buyer inherits the maintenance fee obligation forever.

How to get rid of a timeshare when nobody wants to buy it

If resale isn't working, deed-back is your next best legitimate move. Call the resort's owner services line (not a third-party "transfer" company) and ask specifically whether they have a deed-back, surrender, or exit program, and what conditions apply (fees paid current, no outstanding loan balance, sometimes a processing fee of a few hundred dollars). Some states also allow you to simply stop renewing and let the HOA foreclose or pursue a deed-in-lieu process, though this can affect your credit and doesn't happen quickly or predictably; talk to a real estate attorney in the resort's state before choosing this path over a negotiated deed-back. Inherited timeshares deserve a specific mention. If you inherited an ownership you never wanted, you are not automatically obligated to keep it; an estate's personal representative can typically disclaim or decline to accept an inherited timeshare interest as part of probate, though the exact procedure depends on state probate law and the terms of the will or intestacy rules. Talk to the estate's attorney early, before fees start accruing in your name. For step-by-step comparisons of these approaches, see how to get out of timeshare and how do you get out of a timeshare.

How does Fannie Mae's Selling Guide actually treat timeshare loans?

Lenders selling loans to Fannie Mae must follow its Selling Guide, and timeshare interests show up there mainly as a debt obligation to disclose, not as an asset a lender will finance. Fannie Mae's guide directs lenders to count a borrower's timeshare loan payment (principal and interest owed to the timeshare lender) as part of the debt-to-income calculation when the borrower applies for a Fannie Mae-eligible mortgage. ^[1] This matters practically: if you're behind on timeshare payments or carrying a large timeshare loan balance, it can reduce how much home you qualify to buy or refinance, separate from anything to do with your maintenance fee. Maintenance fees themselves are typically not treated as a debt for DTI purposes the way loan payments are, since they're an ongoing obligation tied to ownership rather than a scheduled loan repayment, though a lender may still ask about them. Fannie Mae does not originate, buy, or insure loans secured by timeshare interests as the underlying collateral; its core mortgage eligibility framework is built around one-to-four unit residential properties, not timeshare intervals. ^[1] Any pitch that claims otherwise, that Fannie Mae will "buy your timeshare loan" or "forgive" it, is not describing anything in Fannie Mae's actual guide.

What should I do about rising maintenance fees right now?

Start by asking your HOA for the current year's budget and reserve study; you're generally entitled to see how the fee breaks down, and a legitimate board should provide it. Compare year-over-year increases against your state's timeshare statute, since some states cap the percentage increase a board can impose without a supermajority owner vote. ^[2] If the increases are driven by a genuine special assessment (storm repair, structural issue), ask whether a payment plan is available; many management companies will spread a large assessment over several months rather than requiring a lump sum. If you've concluded the ownership no longer pencils out (which is common once fees cross a few thousand dollars a year on a property you rarely use), start the exit process described above: check rescission eligibility first, then deed-back, then resale, in that order of speed and cost. Avoid signing anything with a company that cold-called you promising an easy exit for an upfront fee; verify any company against your state attorney general's consumer complaint database before paying anyone. ^{[3] [4]} ExitHonest built a self-guided $149 Timeshare Exit Kit for owners who want a structured, DIY approach to the rescission-check, deed-back-request, and documentation steps described above, without paying a percentage-based exit company thousands of dollars upfront; you can start at /exit-kit-builder if you'd rather work from a checklist than piece it together from scratch.

Where do I check my state's specific rescission window and rules?

Each state's timeshare statute sets its own cancellation period and notice rules, and there is no single federal rescission law covering timeshares the way there is for some other credit transactions. Florida's timeshare act, Chapter 721 of the Florida Statutes, is one of the most detailed and often cited because so many resorts are Florida-domiciled; it states that a purchaser "has the right to cancel the contract until midnight of the tenth calendar day following the date of execution of the contract" or the date the purchaser received the last document required to be furnished, whichever is later. ^[2] Because the window is often short (commonly measured in days, not weeks, across most states) and the notice method matters (many states require written notice by a specific delivery method), the safest move is to pull your actual purchase contract, find the cancellation clause, and cross-check it against your state's timeshare statute directly, rather than relying on a generic number from an unrelated state. If your rescission window has already closed, that doesn't mean you're stuck forever, it just means your remaining paths are deed-back, resale, or, in cases of demonstrated fraud at sale, a legal claim through a licensed attorney. See timeshare call list for a rundown of who to actually contact at each stage, and timeshare exit companies before hiring anyone.

Frequently asked questions

Does Fannie Mae buy or forgive timeshare maintenance fees?

No. Fannie Mae doesn't buy timeshare loans, set maintenance fees, or forgive them. It's a mortgage investor whose Selling Guide only tells lenders how to count your existing timeshare debt when you apply for a separate home mortgage. Any claim that Fannie Mae will erase or buy out your timeshare obligation is not based on anything in its actual guidelines and is a common scam pitch. ^[1]

How much do timeshares cost on average?

Retail purchase prices commonly run $15,000 to $40,000 for a one-week interval, while resale prices for the same unit often fall to a few hundred dollars or less. Industry surveys report average annual maintenance fees above $1,000 nationally, and fees can exceed $2,500 at luxury resorts, typically rising a few percent each year.

How do I get out of a timeshare I no longer want?

Check your rescission window first if you recently bought; every state gives a short cancellation period. If that's passed, ask the resort about a deed-back or surrender program, then consider resale through a licensed broker. Avoid upfront-fee exit companies. See how to get out of a timeshare for the full sequence.

Are timeshares a scam?

The ownership product itself is legal, and many owners are satisfied long-term. But sales tactics have a documented history of high pressure, and state and federal regulators have brought enforcement actions against multiple exit companies for taking upfront fees without delivering results. The risk is concentrated in aggressive sales pitches and predatory exit services, not in timeshare ownership existing at all. ^[4]

How do I sell my timeshare?

List through a resale broker who belongs to the Licensed Timeshare Resale Broker Association, which bars upfront-fee models. Expect a low or even zero net sale price for most non-luxury weeks. Check your contract for a right of first refusal, since the resort may match any offer and take the unit itself before your buyer can close.

What's the difference between a maintenance fee and a special assessment?

The maintenance fee is your regular annual charge covering upkeep, staff, insurance, and reserves. A special assessment is an extra, one-time charge billed on top, usually after storm damage, a major repair, or a reserve shortfall the regular fee didn't cover. Special assessments can range from a few hundred to several thousand dollars depending on the damage and resort size.

Can I just stop paying my timeshare maintenance fees?

You legally owe fees under your contract, and stopping payment risks late fees, collections, credit damage, and possibly foreclosure on the timeshare interest, even if you're mid-exit with a company. Never stop paying based on a third party's promise to get you out; pursue rescission, deed-back, or resale through documented channels instead.

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

Check the company against your state attorney general's consumer complaint database before paying anything. Legitimate help doesn't require full payment upfront, doesn't promise a certain outcome, and doesn't tell you to stop paying fees you owe. Federal and state regulators have taken enforcement action against exit companies for exactly these practices. ^[4]

What happens if I inherit a timeshare I don't want?

You're not automatically stuck with it. An estate's personal representative can typically disclaim or decline an inherited timeshare interest during probate, though the process depends on your state's probate law and the will's terms. Talk to the estate's attorney before any fees or assessments start accruing in your name.

How long is a timeshare rescission period?

It varies by state and there's no single national number; Florida, for instance, gives buyers until midnight of the tenth calendar day after signing (or after receiving required documents) under Chapter 721 of the Florida Statutes. Pull your contract's cancellation clause and confirm your own state's rescission window against its actual timeshare statute rather than relying on a generic figure. ^[2]

Will a timeshare loan hurt my chances of getting a mortgage?

It can. Fannie Mae's Selling Guide directs lenders to count your timeshare loan payment in your debt-to-income ratio when you apply for a Fannie Mae-eligible mortgage, which can reduce how much home you qualify for. Maintenance fees themselves are generally not counted the same way loan payments are, though a lender may still ask about them. ^[1]

What's a deed-back program and how do I ask for one?

A deed-back (or surrender) program lets you return a paid-off, fee-current timeshare to the resort, sometimes for free and sometimes for a modest processing fee. Call the resort's owner services line directly and ask if one exists; it's often the fastest legitimate exit once your rescission window has closed.

Sources

1. Fannie Mae Selling Guide, B3-6-05 Monthly Debt Obligations: Fannie Mae's Selling Guide directs lenders on how to count timeshare loan obligations in debt-to-income calculations
2. Florida Statutes Section 721.10, Cancellation of contract: Florida's timeshare act sets a ten-calendar-day cancellation window and governs assessments and disclosures
3. Consumer Financial Protection Bureau, Complaint Bulletin on timeshare-related complaints: Maintenance fee and timeshare debt complaints are tracked in the CFPB's public consumer complaint database
4. Federal Trade Commission v. Resort Advisory Group, Inc., Case No. 18-cv-3011 (D.N.J. 2018): The FTC has taken enforcement action against a timeshare exit company for allegedly collecting upfront fees without delivering promised cancellations
5. Federal Trade Commission, Telemarketing Sales Rule, 16 C.F.R. Part 310: Federal rules restrict advance fee collection and require specific disclosures for telemarketed recovery and exit services
6. National Association of Attorneys General, consumer protection resources: Rescission periods and required cancellation notice procedures are set by individual state statutes, not federal law