There are a lot of reasons to let go of a timeshare property. Some owners could no longer be interested in one. Conversely, there are properties that have a high annual maintenance fee and can drain a person’s financial resources.
The problem is that it is not easy to sell the property or to even return it to the developer. One way, though, is with a foreclosure on the timeshare property. Effectively, the owner would no longer pay any maintenance fees on the property. However, this route has its own issues and has to do with some care.
Talking to the Developer
When defaulting on a property, there would be repercussions affecting the owner’s credit score. This can be a major hit, which would limit the ability to make a loan in the future.
Instead of not paying the annual fees, it is best to discuss options with the developer. Their option is to offer a deed in lieu of timeshare foreclosure. With a standard foreclosure, the developer would wait for the terms of timeshare payment, before initiating foreclosure procedures.
The procedures include calls and letters from collection agencies asking for payment on the timeshare dues. After going through the collection process, the developer would have to file foreclosure proceedings, and the owner would still have to pay for past due fees.
Informing the developer beforehand that you are no longer interested in keeping the timeshare is a better alternative. You have to make sure that you are current with the payment of maintenance fees and other charges, though.
If the developer opts for a deed in lieu of timeshare foreclosure, the ownership of the property reverts back to the developer.
There are some legal documents and procedures involved. While your credit score will take a hit, you rid yourself the burden of paying for maintenance fees.
Due to the nature of the documents on the table, it is necessary to have a third party help you with the legal side of the transaction. Preferably, this should be a lawyer with experience in timeshare foreclosures.