What happens if you don't pay your timeshare bill

Last updated 2026-07-26

what actually happens if you stop paying your timeshare maintenance fees

The short version: late fees pile on first, usually within 30 to 60 days, then the account goes to internal collections, then to a third-party collection agency, then, if the developer wants to bother, to foreclosure or a lien on the deed. None of this happens overnight, but none of it disappears either. Most timeshare contracts charge a late fee (often a flat amount or a percentage of the fee owed) plus interest that keeps compounding. Some contracts specify interest rates as high as 18% annually on unpaid balances, similar to a credit card. Check your specific contract, because these numbers vary by resort and by state usury limits. After 90 to 180 days of nonpayment, many timeshare companies refer the account to a collection agency. That agency will call, send letters, and report the delinquency to the credit bureaus. A timeshare deed is real property in most cases (deeded weeks, not points-based right-to-use products), so nonpayment can lead to a lien and eventually foreclosure, just like a mortgage delinquency, though the process and timeline differ by state. The Consumer Financial Protection Bureau's debt collection resource explains that debt collectors, including those hired by timeshare companies, must follow the Fair Debt Collection Practices Act, which limits how and when they can contact you and bars harassment or false threats ^[1]. That protection matters because timeshare collection calls get aggressive, and some callers exaggerate what they can legally do. We're not going to tell you to stop paying as a strategy. That's not legal advice we can responsibly give, and it usually backfires financially. If you're behind already, the honest move is to understand the real consequences below, then look at legitimate ways out: deed-back, resale, or rescission if you're still inside your window.

does a timeshare foreclosure work like a house foreclosure

Yes and no. If your timeshare is a deeded interest in real property, the resort or an HOA-style association can foreclose on it for nonpayment of fees or the loan, similar to a house. If it's a right-to-use or points product with no deed, the company usually just cancels your contract and reports the debt, since there's no real property interest to foreclose on. Deeded timeshare foreclosures are often done through a streamlined, non-judicial process because timeshare interests are smaller in value than a home. Florida, for example, allows an expedited non-judicial (trustee) foreclosure process for timeshare interests under Florida Statutes section 721.855, which sets out the procedure for foreclosing a lien through a trustee rather than the courts ^[2]. That means it can move faster than you'd expect, sometimes in a matter of months rather than the year-plus a house foreclosure can take. A timeshare foreclosure still shows up on your credit report and can stay there for up to seven years, per standard credit reporting rules enforced under the Fair Credit Reporting Act ^[3]. It won't destroy your ability to get a mortgage forever. But it will hurt your score noticeably, especially if you're already carrying other debt. One genuinely useful nuance: because timeshare interests are worth so little on paper (often close to $0 on the resale market), some companies decide it's cheaper to write off the debt and report it to collections than to go through a formal foreclosure. That doesn't mean it won't happen to you, just that it's not certain in every case.

how much does a timeshare cost in the first place

Timeshare purchase prices vary a lot depending on brand, location, and points versus fixed-week structure. Data from the American Resort Development Association (ARDA), the timeshare industry's trade group, put the average price of a timeshare interval at roughly $24,140 in its 2023 state of the industry data ^[4]. That's before financing costs, which can add thousands more in interest if you took out a developer loan (these often carry rates in the 12% to 18% range). On top of the purchase price, owners pay annual maintenance fees. ARDA's data has put average annual maintenance fees at roughly $1,205 per interval ^[4], and those fees climb most years, sometimes by 3% to 5%, sometimes more if a special assessment hits for a roof replacement or storm damage. Special assessments are the wild card. They're one-time charges beyond the regular maintenance fee, billed when the resort needs a large repair or the reserve fund falls short. These can run from a few hundred dollars to several thousand, and owners usually get very little say in the amount or timing. So when someone asks how much timeshares cost, the honest answer has three layers: the upfront purchase price (often $20,000 or more), the annual maintenance fee (often $1,000 to $1,500 and rising), and the occasional special assessment that can blow up your budget for that year. Add financing interest and the real lifetime cost of a timeshare purchased for $20,000 can easily exceed $50,000 over 10 to 15 years.

are timeshares scams

Most timeshares aren't scams in the legal sense; they're legally structured products that turned out to be a bad financial deal for a large share of buyers. The scam risk shows up more in the sales pitch and, even more, in the exit industry that preys on people trying to get out. The Federal Trade Commission has brought enforcement actions against timeshare resale and exit companies for deceptive practices, including charging large upfront fees and promising to sell or cancel timeshares they never delivered on ^[5]. The FTC's guidance on selling a timeshare tells owners to be wary of any company that wants money upfront before doing any actual work ^[6]. The sales pressure at the original purchase point is where things get closest to genuinely deceptive: high-pressure presentations, misrepresented resale value, and vague statements about investment potential. Timeshares are not an investment. They don't appreciate, and the resale market is famously weak; many timeshare interests resell for $1 or less on secondary marketplaces because supply massively outstrips demand. So the fair answer: the original purchase is usually legal but often oversold as valuable. The bigger scam risk today is in the exit and resale industry, where upfront-fee operators take your money and disappear. If a company promises a guaranteed way out of your contract or claims it can cancel it outright, and wants payment before doing anything, treat that as a red flag. See our guide on timeshare exit companies for how to vet one before paying anyone.

how do you get out of a timeshare legally

There are basically four legitimate paths: rescission during your state's cancellation window, a deed-back program offered by the resort, resale (usually for little or nothing), or working with a licensed attorney to negotiate an exit or defend against collection. Rescission is the fastest and cleanest option, but only if you're still inside the window. Every state sets its own rescission period for timeshare purchases, and the clock usually starts the day you sign or the day you receive the required disclosure documents, whichever is later. These windows are short, often measured in days, not weeks. Florida, for instance, gives buyers a 10-day right to cancel under Florida Statutes section 721.10, which requires that written notice of cancellation be sent to the seller within that period ^[7]. Confirm your own state's rescission window with your state attorney general's consumer protection office or the statute governing timeshare sales in your state before you assume you've missed it or still qualify. If your window has closed, ask the resort directly about a deed-back or surrender program. Many larger operators (some Marriott Vacation Club, Hilton Grand Vacations, and Wyndham properties, among others) have created formal deed-back programs in recent years, sometimes for a modest processing fee, sometimes free if your account is current. These aren't automatic and eligibility rules vary, but they cost nothing to ask about. Resale is legal but often disappointing. Because the secondary market is flooded, many owners list for $1 just to escape the annual fees, and some give the interest away for free through licensed timeshare transfer services or a very small number of nonprofit acceptance programs. Never pay a large upfront fee to a company promising a fast sale; verify any resale company with your state real estate licensing board first. For genuinely difficult cases, especially where a deed-back was refused and fees are piling up, a licensed attorney who handles timeshare or consumer protection law in your state is the safer route than an exit company promising results. Read our overview on how to get out of a timeshare for the full process broken down by option.

how to sell a timeshare if you don't want to just walk away

Selling is possible, but set expectations low. The resale market values most timeshare interests near zero because supply vastly exceeds demand and buyers know maintenance fees will keep climbing regardless of who owns the deed. Start by checking whether your resort has a right of first refusal (many deeds include this clause) before you can transfer to a third party. Then list through a licensed timeshare resale broker or a reputable transfer marketplace, never a company that demands a large fee before doing any work. The FTC's guidance on selling your timeshare specifically warns to be skeptical of any company that claims to have a buyer already lined up before you've even signed anything ^[6]. Realistic pricing means accepting that a unit you paid $20,000 for a decade ago might sell for a few hundred dollars, or nothing, on today's market. Some owners get lucky with high-demand weeks in peak season at popular resorts, but that's the exception. If selling goes nowhere after a real effort, a deed-back or licensed transfer service that takes the deed off your hands (sometimes for a fee, since they're absorbing future maintenance costs) is often more realistic than waiting for a buyer who may never show up.

how much do timeshares cost to get out of, roughly

Rescission (in-window)	$0, sometimes a small processing fee	Days to a few weeks	Very low, if truly in window
Resort deed-back program	$0 to a few hundred dollars	1 to 6 months	Low, but not automatic
Resale via licensed broker	Listing/commission fees, often modest	Months to years	Moderate, market is weak
Attorney-negotiated exit	Hourly or flat fee, often $1,500 to $5,000+	Months	Moderate, depends on attorney
Upfront-fee exit company	$2,000 to $10,000+ claimed upfront	Unclear, often stalls	High, common source of complaints
Doing nothing / nonpayment	Late fees, collections, possible foreclosure, credit damage	90 days to 2+ years	High, damages credit and finances	The FTC's case against Timeshare Exit Team and Resort Release LLC is a specific example of a company charging large upfront fees without delivering the cancellation it promised [5]. That's the exact profile to avoid: big upfront ask, vague timeline, no verifiable track record.

Getting out costs money too, and it helps to know the rough range before you commit to anything. Here's a comparison of the common paths: | Exit path | Typical cost to you | Typical timeline | Risk level |

what happens to timeshare debt after you die, or if you inherit one

Timeshares don't just disappear when the owner dies; they become part of the estate, and heirs can inherit the debt along with the property interest unless the estate formally rejects it (called disclaiming the inheritance) or the executor negotiates a release with the resort. If you're an heir and don't want the timeshare, you generally have the legal right to disclaim it, similar to disclaiming any other unwanted inheritance, though the exact procedure and deadlines are set by your state's probate law. Check with a probate attorney in the state where the estate is being settled. Disclaiming has to happen properly and often within a set time after the decedent's death; do this wrong and you may be treated as having accepted the interest anyway. Some resorts have specific inherited-timeshare surrender or deed-back options because they'd rather take the deed back than pursue an estate with no assets left to collect from. It's worth asking directly, in writing, before assuming you're stuck. If the estate does nothing and stops paying maintenance fees, the same consequences apply as with any nonpayment: late fees, collections, possible lien or foreclosure against the timeshare interest itself, though the estate's other assets and the heirs personally are generally not on the hook beyond the value of the inherited interest, unless an heir signed something separately (like taking over the loan) that created personal liability.

how to avoid a timeshare exit scam while you're trying to get out

The pattern is consistent across FTC enforcement actions: a company cold-calls or advertises promising a fast, no-risk cancellation, asks for a large payment upfront (often thousands of dollars), gives vague or shifting timelines, and then goes quiet or stops responding once you've paid. The FTC's consumer guidance on selling a timeshare warns owners against paying anyone a large fee upfront for the promise of a future sale or cancellation ^[6]. That's a good general filter: legitimate attorneys usually bill by the hour or a modest flat fee tied to actual work performed, not a lump sum tied to an outcome no one can actually promise you. Before paying anyone, check the company's standing with your state attorney general's consumer protection division and the Better Business Bureau, and search the company name plus "complaint" or "lawsuit." A pile of unresolved complaints is a real signal, not noise. Our timeshare cancellation guide and timeshare call list page walk through which contacts and companies are worth your time. We built the $149 Timeshare Exit Kit at ExitHonest specifically because most owners don't need to pay $3,000 to $10,000 to a company that may or may not follow through; a clear, self-directed process (know your state's rules, contact the resort about deed-back, understand your realistic options) gets most owners further than a high-pressure sales pitch promising results no company can actually control. It's a one-time cost, not a retainer, and it doesn't promise an outcome we can't control. You can start with the exit-kit-builder if you want a structured starting point.

what should you do right now if you're behind on payments

First, read your contract's default and late-payment clauses so you know your actual grace period and fee structure; these differ by resort and are usually in the section labeled something like "assessments" or "delinquency." Second, call the resort's owner services line and ask directly about a deed-back, surrender, or hardship program before the account goes further into collections. Get any agreement in writing; verbal promises from a call center rep mean nothing later. Third, if you're getting collection calls, know your rights under the Fair Debt Collection Practices Act: collectors can't threaten you with actions they can't legally take, can't call before 8am or after 9pm, and must stop contacting you at work if you tell them to in writing ^[1]. The CFPB's debt collection resource explains how to file a complaint if a collector crosses a line ^[1]. Fourth, don't sign anything from a company that calls you out of the blue promising a guaranteed way out for an upfront fee. That's the single most common pattern behind timeshare exit scam complaints. Finally, if your rescission window might still be open (you bought recently), stop and check that first, since it's the cleanest, cheapest way out and doesn't require anyone's permission but your own timely paperwork. See how do you get out of a timeshare for a state-by-state starting point, and how to get out of timeshare for the general roadmap if the window has closed.

Frequently asked questions

How to get out of a timeshare if the rescission period already passed?

Contact the resort directly and ask about a deed-back or surrender program; many major brands offer one, sometimes for a small fee. If that's refused, resale through a licensed broker or consulting a consumer protection attorney in your state are the next options. Avoid any company demanding a large upfront fee for a promised cancellation.

How do you get out of a timeshare without ruining your credit?

Stay current on payments while you pursue an exit, since missed payments are what actually damage credit. Pursue rescission if still eligible, or a deed-back program, while continuing to pay fees on schedule until the deed is legally transferred out of your name.

How much is a timeshare, on average, to buy?

ARDA's industry data puts the average timeshare interval purchase price at roughly $24,140, according to its 2023 state of the industry report. Prices vary widely by brand, location, and points versus fixed-week structure, and financing can add thousands more in interest.

How much do timeshares cost in annual fees?

Average annual maintenance fees run around $1,205 per interval according to ARDA industry data, and they typically rise 3% to 5% or more each year. Special assessments for major repairs can add several hundred to several thousand dollars in a single year on top of that.

Are timeshares scams, or just bad investments?

Timeshares are legal products but are not investments; they don't appreciate and resell for very little. The bigger scam risk is in the exit and resale industry, where the FTC has taken action against companies charging large upfront fees without delivering promised cancellations or sales.

How to sell a timeshare for a fair price?

Expect a low sale price, often a few hundred dollars or less, because the secondary market is oversupplied. Use a licensed resale broker, check for the resort's right of first refusal first, and never pay a large fee upfront to a company that claims to already have a buyer lined up.

What happens if you just stop paying your timeshare maintenance fees?

Late fees and interest accrue first, often within 30 to 60 days. After roughly 90 to 180 days of nonpayment, the account typically goes to collections, and the resort may eventually pursue a lien or foreclosure on the deeded interest, damaging your credit for years.

Can a timeshare company actually foreclose on you?

Yes, if it's a deeded real property interest. Florida Statutes section 721.855 specifically allows an expedited, non-judicial trustee foreclosure process for timeshare interests. Right-to-use or points-only products without a deed usually can't be foreclosed the same way, but the debt can still go to collections.

Does timeshare debt get inherited by your kids?

The debt becomes part of the estate, and heirs can inherit the obligation along with the property interest unless they formally disclaim it under their state's probate law or the resort agrees to a deed-back. Heirs are generally not personally liable beyond the estate's assets unless they separately took on the loan.

How to get rid of a timeshare that has no resale value?

Ask the resort about a deed-back or surrender program first, since many will take back a deed with no resale value rather than chase a delinquent account. If that fails, a licensed timeshare transfer service or, in narrow cases, a consumer attorney can help; never pay thousands upfront to a company promising a fast, guaranteed release.

Is it ever okay to just stop paying and let it go to foreclosure?

We can't advise that as a strategy, and it's not something to decide casually. Nonpayment leads to real consequences: collections, credit damage lasting up to seven years, and possible foreclosure, all while you may still owe fees during the process. Pursuing a deed-back or legal exit first is safer financially.

How to sell timeshare points instead of a deeded week?

Points-based products are often harder to resell than deeded weeks because transfer rules vary by developer and many restrict points transfers entirely. Check your specific program's transfer or resale policy first, then use a licensed resale service if transfer is allowed, since paying a large upfront fee for a promised points sale is a common scam pattern.

Sources

1. Consumer Financial Protection Bureau, Debt Collection consumer resource: Debt collectors, including those hired for timeshare accounts, must follow Fair Debt Collection Practices Act limits on contact and conduct
2. Florida Statutes Section 721.855, Foreclosure of Liens by Trustee: Florida allows an expedited non-judicial trustee foreclosure process for timeshare interests
3. Consumer Financial Protection Bureau, Fair Credit Reporting Act regulations (Regulation V, 12 CFR Part 1022): Negative items including foreclosure can remain on a credit report for up to seven years
4. American Resort Development Association (ARDA), State of the Vacation Timeshare Industry 2023: Average timeshare interval purchase price and average annual maintenance fee figures
5. Federal Trade Commission v. Timeshare Exit Team (Resort Release LLC), Case No. 2:19-cv-00434, W.D. Wash.: FTC has brought enforcement actions against timeshare resale and exit companies for deceptive upfront-fee practices
6. Federal Trade Commission, Consumer Advice: Selling Your Timeshare or Vacation Property: FTC guidance warning against paying large upfront fees for promised timeshare resale or exit help
7. Florida Statutes Section 721.10, Cancellation of Contract: Rescission windows and disclosure requirements vary by state and should be confirmed against the statute governing timeshare sales