Timeshare is a big financial commitment, and sometimes it can be hard to get out of them, especially if you have a mortgage balance. Regardless of the reason, it can be incredibly tricky to get out of a timeshare contract when you still owe money on it.
Fortunately, there are options to help you get rid of your timeshare with a mortgage balance. Let’s talk about everything you need to know about how to get rid of a timeshare with a mortgage balance.
What it Means To Have Timeshare With Mortgage Balance
When you have a timeshare with a mortgage balance, you have taken out a loan to pay for it. This could be done through the timeshare resort or another financial institution.
For instance, if you have a mortgage with an interest rate and a repayment structure, that is considered as a loan. In this case, the timeshare would qualify as collateral for the loan. If you have a mortgage balance, you are still obligated to pay the remaining loan amount before you can get out of your timeshare.
Getting Rid of a Timeshare With Mortgage Balance
While it is not impossible to get out of a timeshare with a mortgage balance, there are several options available for you to consider. Here are some of the most common ways to rid yourself of a timeshare with a mortgage balance:
- Negotiate With The Resort: It might still be possible to negotiate with the resort to settle your remaining debt. If you can agree to a payment plan that works for both you and the resort, then you might be able to find some room for negotiation. However, resorts are typically very difficult to work with.
- Sell Your Timeshare: If you want to avoid paying the remaining balance of your loan, you can always try selling it. You might be able to find someone willing to take the timeshare off your hands for a lower price. However, this option can be risky as you may not get the full value of the timeshare and still have debt owed on the timeshare itself.
- Take Advantage Of The Recission Period: Depending on the state you live in, laws may allow consumers to cancel their timeshare purchase within a certain period. This is known as the recission period, and it may help you get out of your timeshare with a mortgage balance.
- Work With A Timeshare Exit Company: You can also work with a timeshare exit company that specializes in helping people get out of their timeshares. They will be able to help you understand the legal implications of getting out of your timeshare and may even offer options for payment plans or settlements that can help you get rid of your timeshare with a mortgage balance.
Consequences Of Not Paying Your Timeshare Mortgage
If you stop making payments on your timeshare mortgage, the lender may take legal action against you. This could include taking possession of the timeshare or putting a lien on your property.
Your credit score may also suffer due to missed payments, making it difficult to borrow money in the future. In any case, you must be aware of the possible consequences before taking such drastic measures. Therefore, it is important to explore your options before deciding to stop making payments on your timeshare.
Explore Your Options
Getting out of a timeshare with a mortgage balance may be difficult, but it’s not impossible. Options are available to those who are willing to explore them. What matters is that you research your options thoroughly and make an informed decision. With the right approach, you can get rid of a timeshare with a mortgage balance without suffering major financial repercussions.
Lonestar Transfer is always there to assist you if you need professional assistance with a timeshare exit. We have a dedicated team of experts who can advise you on all your timeshare exit options. Contact us today to learn more about how we can help.
