What happens if you stop paying timeshare fees

Last updated 2026-07-25

what actually happens if you stop paying a timeshare

The short version: nothing happens the first week, a lot happens over the following year. Timeshare contracts are legal, enforceable real estate or contract obligations in almost every state, and missing payments puts you into default under the terms you signed at closing. Most developers follow a predictable sequence. First comes a late fee, usually 30 to 60 days after the missed maintenance fee or loan payment, often 10 to 25 percent of the amount owed or a flat fee in the $50 to $150 range depending on the resort's governing documents. Then comes a certified letter noting default, then referral to an internal or third-party collections department, typically within 90 to 180 days of the first missed payment. If you keep ignoring it, the resort has two main paths depending on whether your timeshare is deeded (real property) or right-to-use (a contract for years of use). Deeded timeshares can go through foreclosure, either judicial (through court) or non-judicial (via a trustee, faster and cheaper for the resort), similar to a home mortgage default. Right-to-use timeshares are usually terminated as a contract breach, with the developer suing for the balance owed instead of foreclosing on property you don't technically own outright. Either way, the resort can report the delinquency to credit bureaus and, if it wins a court judgment, can pursue wage garnishment or bank levies in states that allow it. The Consumer Financial Protection Bureau notes that debt collectors, including timeshare collectors, must follow the Fair Debt Collection Practices Act, which limits harassment and false threats but does not erase your obligation to pay ^[1].

will stopping payments hurt my credit score

Yes, if the timeshare loan or a maintenance fee delinquency gets reported. Timeshare loans (the note you signed to finance the purchase price) are consumer debts and lenders report them to Equifax, Experian, and TransUnion just like a car loan. Maintenance fees are a little different. Many resorts don't report routine maintenance fee delinquency to credit bureaus directly, they handle it internally through late fees and collections. But once an account goes to a third-party collection agency, that agency can and often does report the debt, which shows up as a collections account on your credit file and can stay there up to seven years under the Fair Credit Reporting Act ^[2]. A collections account, even a small one, can knock 50 to 100+ points off a credit score depending on your starting score and credit history, according to general FICO scoring behavior described by the Consumer Financial Protection Bureau ^[3]. If the resort sues you and wins a judgment, that's a separate public record that can also affect your ability to get a mortgage, refinance, or in some states, a rental application, for years. So the credit hit isn't hypothetical. It's one of the most common real consequences owners report to attorneys general and consumer complaint databases when they stop paying and just wait to see what happens.

can a timeshare company foreclose or sue me

Yes, and this is the part people underestimate. Deeded timeshare interests are real property in the eyes of the law, and most state foreclosure statutes that apply to homes and land also apply to timeshare weeks or points. Many resorts use non-judicial foreclosure, which is faster and cheaper than going to court, in states that permit it for timeshares. Florida, for example, has a specific expedited timeshare foreclosure process under its statutes that lets the trustee foreclose without a full court case if the owner doesn't object ^[4]. Other states require judicial foreclosure, which takes longer and gives the owner more procedural steps, but usually ends the same way if the debt goes unpaid. After foreclosure, some states allow the resort to pursue a deficiency judgment, meaning if the foreclosure sale (or the resort's internal accounting) doesn't cover what you owed plus fees and costs, they can sue you for the difference. Whether that's realistic depends on the state and how aggressive the specific resort is; plenty of smaller or older resorts don't bother chasing a few thousand dollars through court, but publicly traded developers with legal departments sometimes do, especially on larger loan balances. Right-to-use contracts, common with some club and points systems, typically don't go through property foreclosure since there's no deed to foreclose on. Instead the developer terminates your membership and can sue for the contract balance, similar to defaulting on any installment contract.

does the debt just go away if I ignore it

Sometimes, but you can't count on it, and 'sometimes' isn't a plan. Older or financially weak resorts occasionally stop pursuing small delinquent accounts because collection costs exceed what they'd recover. That does happen, especially with tiny annual maintenance fee balances at struggling properties. But plenty of resorts, especially larger branded ones, are persistent. They sell delinquent debt to collection agencies who buy it cheap and pursue it for years. Statutes of limitations on debt collection lawsuits vary by state, typically 3 to 10 years for written contracts, and the clock can reset if you make a partial payment or even acknowledge the debt in writing, depending on state law. The Federal Trade Commission warns that even old, time-barred debt can still be reported and pursued in some circumstances, and that consumers should know their state's specific rules before assuming a debt has expired ^[5]. Ignoring it doesn't stop calls, letters, or credit reporting, and it doesn't protect you if the resort decides your account is worth pursuing legally two or three years down the road.

what if i inherited a timeshare and don't want to pay

This is one of the most common ways people end up owing on a timeshare they never chose. When the original owner dies, the timeshare usually becomes part of their estate, and heirs can inherit more than the deed but the ongoing maintenance fee obligation attached to it. You generally are not personally liable for a deceased relative's timeshare debt just because you're an heir, unless you accept the inheritance (for example, by using the property or formally taking title) or you co-signed the original loan. Many state probate processes allow an executor to disclaim (formally refuse) an inherited timeshare interest, similar to disclaiming any other unwanted asset, though the exact procedure and deadline depend on state probate law. If the estate doesn't disclaim it and title passes to you, you're then in the same position as any other deeded owner: subject to maintenance fees, subject to foreclosure if you stop paying, and subject to collections. Talk to a probate attorney in the deceased owner's state before assuming you're stuck, and before assuming you're automatically free. Both assumptions are common and both are sometimes wrong.

is stopping payment the same as an exit strategy

No, and this confusion causes a lot of damage. Stopping payment is a default, not an exit. An exit means your name comes off the deed or contract permanently, through a deed-back, resale, or legal cancellation, with paperwork proving it. Defaulting just means you stopped paying while your name may still be on the deed, which means the maintenance fees, special assessments, and any related HOA obligations may keep accruing in your name, even if you never set foot on the property again. Some states also allow homeowners' association-style liens for unpaid timeshare fees, which attach to the deeded interest and can complicate refinancing or selling any other real estate you own if the resort records a judgment. If you're inside your rescission window, meaning the short cancellation period every state grants after you sign a timeshare purchase contract, that's the cleanest, cheapest, fastest way out and it costs you nothing but a certified letter. Confirm your state's rescission window because the length varies by state, sometimes 3 days, sometimes 10 or more, and the notice requirements (certified mail, specific language, deadline calculated from signing or from receiving disclosure documents) are exact and unforgiving.

how do you actually get out of a timeshare

There are really only a handful of legitimate paths, and none of them involve just stopping payment and hoping. 1. Rescission, if you're still inside your state's cancellation window after signing. This is the fastest and cheapest option, sometimes free, and it needs to be done in writing, following your contract's exact instructions. 2. Deed-back or surrender programs, where the resort takes the deed back, sometimes for a fee, sometimes free if you're current on payments and the resort wants the inventory back. Many major developers (Marriott Vacation Club, Hilton Grand Vacations, Wyndham) have run some version of these programs; terms and eligibility change, so you'd contact the specific resort or its owner services department directly to ask. 3. Resale, which is legal but rarely profitable. The American Resort Development Association and various state consumer pages note that resale prices for timeshares are often a small fraction of the original purchase price, sometimes selling for $1 or even given away, because resale demand is thin and maintenance fees make them unattractive to buyers. 4. A licensed real estate attorney reviewing your contract for legitimate cancellation grounds, such as misrepresentation during the sales presentation, which some state consumer protection statutes address directly. What doesn't work reliably: paying an upfront fee to a company that promises a sure-thing outcome before ever reviewing your contract. See the scam section below before you pay anyone a retainer.

how to sell a timeshare (and why it's harder than people expect)

Selling is legal and sometimes works, but the resale market is weak, and sellers routinely get less than they hope, sometimes nothing. Start with your resort's own resale or transfer program if it has one; some developers keep right of first refusal or run their own resale marketplace with more legitimate buyer traffic than open listing sites. If you list independently, use only companies that don't charge large upfront fees for 'guaranteed buyers,' since that's a common scam pattern the FTC has specifically warned about . Realistic pricing matters. If comparable units at your resort are selling for a few hundred dollars or less on licensed timeshare resale marketplaces, listing yours for thousands because that's what you paid won't produce a sale. Buyers also inherit the maintenance fee obligation, which is exactly what makes most timeshares hard to sell at any price above the fees owed. If you can't sell it, ask whether the resort will take a deed-back instead, sometimes framed as a 'deedback,' 'surrender,' or 'exit' program. That's often a faster, cleaner outcome than an endless resale listing that never gets a serious offer.

how much do timeshares actually cost (purchase price and fees)

The average purchase price of a newly bought timeshare interval was about $23,940 in 2023, according to the American Resort Development Association's owner survey data . That's the sticker price developers quote, often financed at high interest rates, sometimes 12 to 18 percent APR through the developer's in-house financing. But the purchase price isn't the real ongoing cost. Annual maintenance fees average around $1,170 per year according to the same ARDA data , and those fees climb most years, sometimes faster than general inflation, plus periodic special assessments for renovations or storm damage that can run into the thousands with little notice. Over a 20 or 30 year ownership period, maintenance fees alone can exceed the original purchase price several times over, which is exactly why so many owners eventually want out and why resale value is often near zero: a buyer would be taking on decades of rising fees for a deed that costs nothing to walk away from voluntarily through a deed-back.

are timeshares scams

The timeshare product itself is legal in all 50 states and regulated at the state level, it's not inherently a scam, but the sales process and secondary market around it are full of genuinely predatory practices, and regulators say so directly. High-pressure sales presentations, exaggerated resale value claims, and vague disclosure of rising maintenance fees are common enough complaints that the FTC maintains consumer guidance specifically warning buyers to slow down, read the contract, and use their rescission right if they feel pressured . State attorneys general in Florida and elsewhere have brought enforcement actions against both timeshare developers and, separately, exit companies for deceptive practices . The bigger scam risk for existing owners isn't the original timeshare, it's the exit industry that sprang up around unhappy owners. Companies that demand large upfront fees, promise an outcome they can't control, or tell you to stop paying your resort and pay them instead are a well documented pattern of fraud that state AGs and the FTC actively pursue . Being a timeshare owner who wants out is legitimate. Paying a stranger $5,000 upfront on a promise is the actual scam most owners need to watch for.

what upfront-fee exit scams look like and how to avoid them

The pattern is consistent enough that you can spot it before you sign anything. A company cold-calls or advertises heavily, claims to have 'a buyer already lined up' or 'a legal team that always wins,' and asks for a large payment upfront, often $2,000 to $10,000, before doing any actual work. Red flags worth memorizing: promises of a specific outcome (no legitimate attorney promises a cancellation before reviewing your contract), pressure to pay by wire transfer or gift card, instructions to stop paying your resort or stop paying your mortgage as part of the 'strategy,' and refusal to put fee structure or refund terms in a clear written contract. The FTC's guidance on timeshare resale and exit scams specifically warns that some companies charging upfront fees never deliver the promised sale or cancellation, and that a legitimate business practice red flag is any company asking for full payment before services are rendered . Check any company against your state attorney general's consumer complaint database and the Better Business Bureau before paying anything, and never wire money to an entity you found through an unsolicited call. A reasonable rule: legitimate help costs a known, flat, disclosed amount and doesn't promise results it can't control. That's part of why we built the Timeshare Exit Kit at ExitHonest as a flat $149 one-time toolkit, document templates, and step-by-step guidance you use yourself, instead of an open-ended retainer with a promise nobody can actually back up.

what should you do instead of just stopping payment

Start by figuring out exactly where you are in the timeline. If you're still inside your state's rescission window, send your cancellation letter today, by certified mail, following your contract's instructions exactly; this is the cheapest and most reliable exit that exists. If you're past rescission, call your resort's owner services department and ask directly whether they have a deed-back or surrender program, many do, and it costs far less in stress and legal risk than a foreclosure. Get any offer in writing before you agree to anything or send any money. If you're already behind on payments, don't just keep ignoring statements. Call and ask about a payment plan, a hardship program, or a deed-back for delinquent owners, some resorts will take a property back even if you're behind rather than pay for foreclosure costs themselves. Document every call, get names and dates, and keep copies of everything you send. If you suspect fraud in how the timeshare was originally sold to you, contact your state attorney general's consumer protection division, many states have specific timeshare complaint units given how common these disputes are . And before paying any exit company a dime, compare what you're being asked to pay against a flat-fee, do-it-yourself option; read timeshare exit companies and timeshare cancellation for the specific steps and paperwork most legitimate exits require.

Frequently asked questions

What happens if I just stop paying my timeshare maintenance fees?

You'll typically see a late fee within 30 to 60 days, then collection letters, then referral to a collections agency within a few months. If you're deeded, the resort can eventually foreclose. If it's right-to-use, they can terminate your contract and sue for the balance. Credit damage and possible legal judgments are realistic outcomes, not rare edge cases.

Can a timeshare company really foreclose on me?

Yes, if your interest is deeded real property. States like Florida allow expedited non-judicial timeshare foreclosure under specific statutes, and others require judicial foreclosure, which takes longer but ends the same way. Right-to-use contracts are usually terminated rather than foreclosed, since there's no deed involved.

Will my credit score drop if I stop paying a timeshare?

Likely yes, once the account reaches collections or if the developer financed your purchase and reports the loan. A collections account can stay on your credit report up to seven years under the Fair Credit Reporting Act and can lower your score by 50 to 100+ points depending on your credit history.

How do I get out of a timeshare without ruining my credit?

Use rescission if you're still inside the window, or contact the resort about a deed-back or surrender program if you're past it. Both avoid default and the credit damage that comes with collections or foreclosure. Avoid upfront-fee exit companies and never simply stop paying as a strategy.

How much does a timeshare cost to buy and maintain?

The average purchase price for a new timeshare interval was about $23,940 in 2023, and average annual maintenance fees were around $1,170, according to ARDA's owner survey. Fees typically rise most years and special assessments can add thousands more with little warning.

Are timeshares a scam?

The product itself is legal and regulated by states, so it's not automatically a scam, but sales practices are frequently deceptive and the exit industry around unhappy owners is full of upfront-fee fraud. The FTC and multiple state attorneys general actively warn about and prosecute both categories of abuse.

How do you sell a timeshare?

Try your resort's own resale or transfer program first, then licensed resale marketplaces if needed. Price realistically, since resale values are often a small fraction of the original purchase price. Avoid companies that demand large upfront fees for a 'guaranteed buyer,' a well documented scam pattern.

What happens to a timeshare when the owner dies and no one wants it?

It typically becomes part of the estate. Heirs generally aren't personally liable unless they formally accept the inheritance or co-signed the loan. An executor can often disclaim the interest during probate, though the exact process depends on state law, so consult a probate attorney in the deceased owner's state.

Can I go to jail for not paying a timeshare?

No. Failing to pay a timeshare debt is a civil matter, not a criminal one. You cannot be jailed for nonpayment itself. The realistic consequences are late fees, collections, credit damage, foreclosure (for deeded interests), or a civil lawsuit for the balance owed.

Is there a time limit on how long a timeshare company can pursue unpaid fees?

Yes, most states have a statute of limitations on debt collection lawsuits, typically 3 to 10 years for written contracts, but it varies by state and can reset if you make a partial payment or acknowledge the debt in writing. The FTC notes even old debt can sometimes still be reported or pursued, so check your specific state's rule.

What's the difference between a deed-back and just stopping payment?

A deed-back is a formal, negotiated transfer of the deed back to the resort, ending your ownership and fee obligation on paper. Stopping payment is a default; your name can stay on the deed while fees keep accruing and the resort pursues collections or foreclosure. Only a deed-back or legal cancellation actually ends your obligation cleanly.

Should I pay an exit company to get me out of my timeshare?

Be very cautious with any company demanding a large upfront fee or promising a specific cancellation outcome, that's a common fraud pattern the FTC and state AGs warn about. Check licensing and complaint history first, get all fees and terms in writing, and compare against flat-fee, do-it-yourself resources before paying a retainer.

Sources

1. Consumer Financial Protection Bureau, Fair Debt Collection Practices Act overview: Debt collectors, including timeshare collectors, must follow federal rules limiting harassment and false threats
2. Federal Trade Commission, Fair Credit Reporting Act summary: Collections accounts can remain on a credit report for up to seven years
3. Consumer Financial Protection Bureau, credit scores and reports: How collections accounts affect credit scoring behavior
4. Florida Legislature, Florida Statutes Section 721.855 (Trustee foreclosure procedure for assessment liens): Florida has an expedited non-judicial foreclosure process specific to timeshare interests
5. Federal Trade Commission, Consumer Advice: Debt Collection: Old or time-barred debt can still be reported or pursued depending on state law