About Timeshare Foreclosure

How to handle a timeshare foreclosure

Time shares are where you own a property for a specific time along with others who own it at different times. Time shares were first developed in the 1960’s when real estate prices made it hard for families to afford to buy a vacation home. Time shares are seen by many as a bad investment. Rarely do time shares go up in value. Most often once you invest in a timeshare the value goes down. They can be difficult to sell and not worth the time and effort you put into them. You may also be stuck with a timeshare that isn’t of much value. For instance if you get the timeshare during a cold season when you would much rather be some place warm it will never satisfy your needs. Time shares can easily slip into foreclosure because they are not as important to someone as their home and they can easily be forgotten.

With any foreclosure the idea is to try to stop the foreclosure as soon as possible. For a home owner when all options have failed they can sell their home and get the majority of their money back to satisfy their mortgage. With a timeshare, however, it is almost impossible to get a fair amount from a sale. This leaves timeshare owners who have went into foreclosure with many problems.

If you own a timeshare and you go into foreclosure your best bet is to try and negotiate a payment plan with your lender. You should also recheck your paperwork to see if you used anything, like your home, as collateral for the timeshare. In this case your home is now at risk too. The lender can make you give them your timeshare and your home to satisfy the debt. You can try selling the timeshare if you know you can make up the difference out of your own finances. Selling may be difficult and it is usually best to seek the help of a realtor who specializes in selling time shares. The realtor will add on their fees for helping you sell it so it may slow down the process. You should stay on top of all the proceedings during the foreclosure to make sure you do not end up having to resort to selling the collateral you put up. If you own a timeshare that is in a popular location during a good time of year it will be easier to sell, but if you own one in a less desirable area it may be next to impossible to sell it. Another idea is approaching another owner you know in your time share and getting them to purchase it. This may work if you know the other owners. You may end up having to get a loan to cover the timeshare and then work on selling it later if you choose. This will keep you out of foreclosure.

While sometimes time shares work out for the owners other do not and end up in foreclosure. When this happens an owner is limited in options. Hopefully some conclusion can be reached to avoid foreclosure because not only will you lose the time share, but you can put your other property at risk and damage your credit.