Timeshare exits are happening at incredible rates, largely thanks to companies helping people break free of their overpriced timeshares. Timeshares are not only a bad investment; if you don’t pay up, your credit can take a huge ding. Many timeshare investors ask if their timeshare can be foreclosed on. If you own a timeshare, you need to read this.
The Short Answer
If you’re wondering if not paying your timeshare would put you in foreclosure, the short answer is yes, it can. If you’re thinking about timeshare exits and considering simply not paying for your timeshare anymore, don’t take that route. The consequences could be dire. You may be thinking, “How bad could foreclosure be? I don’t want my timeshare anyway.” However, the truth is that foreclosure can have long-term repercussions on your financial life.
You may pay every one of your bills on time. You may keep your credit utilization low. You may do everything you should do to maintain a good credit score, but that timeshare foreclosure will drop your score way down. If you try to buy a car or a house or take a personal loan, that foreclosure will be on your credit report, and lenders will see it. It won’t appear as a timeshare foreclosure. It will just look like any other foreclosure to lenders.
You Don’t Hurt Anyone But Yourself
You’re not hurting the developer by letting your timeshare go into foreclosure. You’re helping them out by enabling them to resell your timeshare to the next person. In fact, according to a recent study by Ernst & Young, 56% of reclaimed timeshares resulted from foreclosures. The developer was able to collect your money for however long you paid, and now they get to collect more.
There Is a Better Way
There are better ways to exit your timeshare than letting it get foreclosed on. You don’t have to do anything drastic to be free of the timeshare nightmare — timeshare exits can be worked out when you have the right support. Don’t make any desperate moves to get rid of your timeshare before speaking to a professional. Contact Lonestar Transfer today to learn more about how our team of experts can help you exit your timeshare.