Dec. 9 – It isn’t uncommon this time of year for there to be a rise in timeshare delinquencies, but it appears the once lax approach many resort developers and managers have taken on this issue is becoming more rigid, which affects nearly everyone who owns in any given property, including other owners.
Even though timeshares only cost a fraction of what a normal vacation property would, they are subject to the same laws as a property that costs significantly more. Each year, timeshare bill owners for the cost of the property upkeep in the form of an annual maintenance fees, which on average ranges between $300 and $800. If an owner falls on hard times and can no longer pay these fees, the property can be foreclosed on. For many years a resort could simply take possession of the property to give the owner an opportunity to become current on past due bills. Another option was that they simply resold the property without forcing expensive foreclosure proceedings on the delinquent owner.
However, in recent months much new legislation has made this more difficult to do. Now, many mangers and developers are being forced to begin lengthy and costly foreclosure proceedings on delinquent properties. A timeshare foreclosure costs around $1,000 and is paid for by the other owners of the property as well as the foreclosure going on the delinquent owners credit report. This means everyone pays, and even a $3,000 timeshare foreclosure affects credit the same as a $500,000 vacation home would.
Many managers and developers feel there must be a better way to handle these types of issues, but with new laws regarding timeshare being drafted all the time, it can be difficult to keep up with and change.
The easiest way to avoid timeshare foreclosure is by getting rid of your timeshare before it becomes an issue. Seeking professional advice if you are facing timeshare foreclosure can not only save your credit, but avoid a problem before it gets out of hand for many other people as well.