What happens if you stop paying timeshare fees

Last updated 2026-07-25

What actually happens if you stop paying timeshare maintenance fees?

The short version: nothing good happens fast, but something bad happens eventually. Most resorts don't sue you the month you miss a payment. What they do is pile on late fees and interest, usually somewhere between 12% and 18% annually depending on your contract and state usury limits, then hand your account to an internal collections department or a third-party agency within 60 to 120 days. After that, the timeline depends heavily on whether your timeshare is deeded real property or a right-to-use (RTU) contract, and which state or country it's in. Deeded timeshares in states like Florida can go through a foreclosure process similar to a home mortgage, just faster and cheaper for the resort because most timeshare deeds allow non-judicial foreclosure. Florida's timeshare foreclosure statute lays out a streamlined trustee foreclosure process specifically because lawmakers recognized regular judicial foreclosure was too slow and costly for small-dollar timeshare debts ^[1]. Right-to-use contracts are different. There's no deed to foreclose on, so some resorts just cancel your contract and report the debt to collections instead. Either way, the fees keep accruing until the resort resolves the account, and your name stays attached to that debt the entire time.

How long before a timeshare company sends me to collections?

Most resorts start internal collection calls within 30 to 60 days of a missed payment. If you haven't paid by 90 to 120 days, expect the account to move to a third-party collection agency or the resort's in-house legal department. Some larger resort systems, especially ones tied to major hotel brands, have automated the escalation so it happens almost exactly on schedule every quarter. Once a collection agency owns the file, they can call, send letters, and eventually report the delinquency to the credit bureaus. The Fair Debt Collection Practices Act limits what they can say and how often they can contact you, and the Consumer Financial Protection Bureau's debt collection rule spells out those limits in detail ^[2]. If a collector threatens things they can't legally do (garnishing wages without a judgment, arresting you, seizing property without a court order), that's a violation you can report. Don't assume silence from the resort means they forgot. Some smaller, independently-run resorts are slower to escalate simply because they're understaffed. That's not protection, it's just a longer fuse before the same outcome.

Can a timeshare company foreclose on you for unpaid fees?

Yes, and for deeded weeks it's often easier for them than you'd think. Florida, which hosts an enormous share of the country's timeshare inventory, allows a non-judicial trustee foreclosure process for timeshare interests when the developer includes a power of sale clause and follows the notice procedures in Chapter 721 of the Florida Statutes ^[1]. That means the resort doesn't need to sue you in court and get a judge's order first, a licensed trustee can foreclose after sending the required notices. Other states handle it differently. Some require judicial foreclosure through the courts, which takes longer and costs the resort more, so they may be more willing to negotiate or simply write off small balances. South Carolina, for example, has its own timeshare-specific statutory scheme under Title 27, Chapter 32 covering association liens and foreclosure procedures ^[3]. Foreclosure wipes out your ownership interest, but it does not automatically wipe out the debt. Depending on the state and your contract, the resort's association can still pursue you for a deficiency judgment, meaning the difference between what you owed and what the foreclosed interest was worth at resale (which, for timeshares, is usually close to nothing). That deficiency can end up as a collections account or a lawsuit judgment against you personally.

Will stopping timeshare payments hurt my credit score?

Yes, and it can hurt for years. Once an account goes to collections or the resort reports a charge-off to the credit bureaus, that mark can stay on your credit report for up to seven years under the Fair Credit Reporting Act, even after you pay it off later ^[4]. A collections account or judgment can drop a good credit score by anywhere from 50 to over 100 points depending on your starting score and overall credit file, based on general FICO scoring behavior around derogatory marks. This matters more than people expect going into a mortgage refinance, an auto loan, or even some job applications and apartment rentals that pull credit. If you're weighing 'just stop paying and let them deal with it' against a legitimate exit path, the credit damage alone is usually reason enough to try the legitimate path first.

Does stopping payment actually get you out of the timeshare?

Sometimes, eventually, but not cleanly. If the resort forecloses, you do lose the deeded interest, which technically 'gets you out' of ownership. But you're out via a damaged credit report, possible deficiency debt, and zero control over the timeline. Some owners wait two or three years in limbo, still technically on the hook for fees and special assessments, before a foreclosure or write-off actually closes the account. Compare that to a deed-back program, where the resort's developer agrees to take the property back, sometimes for a small fee, sometimes for free, and closes it out on a known schedule. Not every resort offers one, and not every owner qualifies (paid-off deeds with no big liens are the easiest cases), but where it's available it's a far more controlled exit than default. Read up on how to get out of a timeshare for a fuller breakdown of the legitimate exit paths, including deed-backs, resale, and rescission.

What if I inherited a timeshare and don't want the fees?

Inheriting a timeshare doesn't automatically make you liable, but ignoring it doesn't make the debt disappear either. When someone dies owning a timeshare, that interest becomes part of their estate. If you're the executor, you generally have the option to disclaim the inheritance (formally refuse it) before accepting any benefit from it, which under most state probate laws prevents you from becoming personally responsible for future fees. The catch: disclaimers usually have to happen within a specific window and follow formal procedures, and once you've used the timeshare or paid a fee on it, you may have already accepted it. If the estate has already been distributed and you're now the deeded owner, you're in the same position as anyone else: the fees are compounding, and stopping payment risks the same collections and credit consequences described above. Talk to a probate attorney in the decedent's state before assuming you're stuck, and before assuming you're free. This is genuinely state-specific and not something a blog article can resolve for you.

Are timeshares scams?

The core product isn't automatically a scam, but the industry has a long, well-documented history of high-pressure sales tactics and misleading fee promises, and a completely separate scam problem has grown up around people trying to exit. The Federal Trade Commission has brought enforcement actions against timeshare exit companies for taking large upfront fees and delivering nothing, including a case that led to a permanent ban on one exit company owner for lying to consumers ^[5]. The original purchase itself is a real, legal contract, just one with poor resale value, fees that reliably rise faster than inflation, and sales presentations that are, by any honest account, aggressive. That's different from illegal. The scam risk mostly shows up on the back end, in the exit industry, where companies promise a cancellation with no risk, ask for thousands of dollars upfront, and then vanish or stall for years. Never pay large upfront fees to a company that won't put its refund terms in plain writing, and check any exit company against your state attorney general's consumer complaint database before signing anything. See our timeshare exit companies breakdown for how to vet one.

How much do timeshares cost, and how much are the maintenance fees?

Average purchase price (new interval)	$23,940	ARDA 2023 [6]
Average annual maintenance fee	$1,120	ARDA 2023 [6]
Typical annual fee increase	3%-5%/year	ARDA 2023 [6]
Resale value	Often near $0-$1 on secondary market	Common resale-site listings, not a formal study	That last line isn't an official statistic, it reflects the widely observed pattern of timeshare resale listings sitting at $1 or 'best offer' on sites like the Timeshare Users Group and eBay, because there's almost no organized resale market and supply badly outstrips demand.

The upfront purchase price for a new timeshare interval averaged $23,940 in 2023, according to the American Resort Development Association's annual State of the Vacation Timeshare Industry report ^[6]. That's for a one-time purchase of an interval or points package, not annual dues. Annual maintenance fees are the recurring cost that catches people off guard. ARDA's data put average annual maintenance fees at $1,120 in 2023, and these fees typically rise 3% to 5% a year, sometimes more when a resort needs a major renovation and issues a special assessment on top of the regular bill ^[6]. Over a 20-year ownership period, that steady climb adds up to tens of thousands of dollars beyond the original purchase price, which is exactly why so many owners eventually want out regardless of how much they enjoyed the vacations. | Cost item | Typical range | Source |

Can I use my rescission period to cancel before any of this becomes an issue?

If you just bought the timeshare, this is your best and cleanest option, and it costs nothing. Every state that regulates timeshares gives buyers a rescission period, a short window (commonly falling somewhere between 3 and 15 calendar days depending on the state) during which you can cancel the contract for any reason and get your money back, no justification required. Florida's rescission period runs 10 calendar days from the date you sign the contract or receive the last document required by law, whichever is later, under Florida Statutes section 721.10 ^[1]. Other states set different windows, so confirm your state's rescission window through your state attorney general's office or the specific statute governing timeshares where the resort is located, not where you live. Miss that window and rescission is off the table; you're into resale, deed-back, or default territory, which are all slower and less certain. If you're inside the window right now, stop reading article summaries and go send your written cancellation notice today, by the method your contract specifies (usually certified mail), and keep proof of mailing. See timeshare cancellation for the notice requirements state by state.

How do you get out of a timeshare that's already past the rescission window?

Once rescission has passed, there's no single fastest way out, and anyone promising a sure-thing cancellation is either wrong or lying. Realistic paths, roughly in order of what to try first: First, contact the resort or developer directly and ask about a deed-back or surrender program. Many major systems (some Marriott Vacation Club, Hilton Grand Vacations, and Wyndham resorts among them) have run internal deed-back or 'Ovation'-style programs at different points, though availability, eligibility, and fees change over time, so ask the resort what's currently offered rather than assuming a program still exists. Second, try resale, understanding upfront that the resale value is usually low to nonexistent and you may need to pay closing costs just to transfer it, or even pay someone to take it. Third, if you're carrying real hardship, some resorts will negotiate a reduced payoff or short sale-style release rather than go through foreclosure, since foreclosure costs them money too. Fourth, consult a licensed real estate attorney in the state where the timeshare sits, particularly if there's a deficiency judgment risk or if you suspect the original sale involved fraud or misrepresentation, which can open a legal cancellation path outside the rescission window. What you should not do: pay a large upfront fee to a company that promises a sure result, and don't stop paying fees as a strategy hoping the resort just gives up (see the foreclosure and collections sections above). For a full walkthrough of these paths, see how do you get out of a timeshare and how to get out of timeshare.

How do you sell a timeshare, and is it worth trying?

You can sell a timeshare, but go in with correct expectations: most resale listings sit for months or years, and a large share sell for $1 to a few hundred dollars, sometimes with the seller covering closing costs and even paying the buyer's first year of fees to make the deal attractive. List through a licensed timeshare resale broker or a reputable marketplace, never through a company that asks for a large upfront 'marketing fee' before finding a buyer, which is one of the most common timeshare resale scam patterns state attorneys general warn about. Before listing, get a payoff statement from the resort confirming your account is current, check whether the resort has a right of first refusal (many deeds include one, meaning the resort can match any sale offer and take the unit back instead), and be honest in your listing about the annual fees, since a buyer researching maintenance costs will find out anyway. If a buyer never materializes within a reasonable window, a deed-back or surrender request to the resort is usually a faster resolution than continuing to pay a broker to relist.

What's the honest bottom line if you're behind on fees right now?

Contact the resort before they contact you. Ask specifically about hardship payment plans, deed-back or surrender programs, and what happens on their internal timeline if the account stays delinquent. Get any agreement in writing, and don't rely on a verbal promise from a call center rep. Resorts would generally rather work out a reduced payoff or take the deed back than pay legal and trustee fees to foreclose on a unit worth almost nothing on resale, so you often have more room to negotiate than it feels like. If you decide to build your own exit case, organize your documents first: original purchase contract, current maintenance fee statements, any special assessment notices, and correspondence with the resort. Having that file in order is what separates a real self-directed exit from paying someone else thousands of dollars to do the same paperwork. ExitHonest's $149 one-time Exit Kit is built for exactly that: a structured document and letter-template package so you can pursue deed-back, resale disclosure, or documented hardship negotiation yourself, without paying a $3,000-$8,000 exit company retainer. Check the exit kit builder if you want that structure without the referral-service price tag.

What should you avoid if you're trying to exit or stop paying?

Avoid any exit company that promises a sure cancellation, asks for a large payment before doing any work, or tells you to stop making your mortgage or fee payments as part of their process. Be wary of guarantees on outcomes, and verify a company's standing with your state attorney general and Better Business Bureau before paying anything. Several state attorneys general, including Florida's and others with large timeshare resort concentrations, publish consumer alerts specifically about upfront-fee exit scams. Also avoid transferring your timeshare into a shell LLC that a 'transfer company' sets up for you and then abandons, which leaves you still legally liable when the LLC stops paying fees and the resort comes looking for the responsible party of record. And don't sign a quitclaim deed to a company you haven't verified is real and currently in good standing in its state of formation; a fake or dissolved recipient entity can leave the deed transfer legally void, meaning you're still the owner of record. Check our timeshare exit companies guide and timeshare call list before contacting anyone.

Frequently asked questions

What happens if you just stop paying timeshare maintenance fees?

You'll accrue late fees and interest within 30-60 days, then face collections calls within 60-120 days. Deeded timeshares can go through foreclosure, sometimes non-judicial and fast under state law like Florida's Chapter 721. Your credit takes a real hit and some resorts pursue deficiency judgments for the leftover balance after foreclosure.

Can a timeshare company sue you for unpaid maintenance fees?

Yes. Beyond foreclosing on a deeded interest, resort associations can sue for unpaid fees and any deficiency balance left after foreclosure. Whether it's worth it to them depends on the amount owed and state process costs; small balances are often written off or sent to collections instead of litigated.

How to get out of a timeshare without ruining your credit?

Use your rescission period if you're still in it (confirm your state's exact window), or pursue a resort deed-back/surrender program, or sell through a licensed resale broker. Keep paying fees while you pursue any of these, since stopping payment is what triggers the credit damage and foreclosure risk in the first place.

How to sell a timeshare if nobody wants it?

List with a licensed resale broker or reputable marketplace, price realistically (many resales go for $1-$500), and check for a right of first refusal in your deed, since the resort may reclaim it instead of allowing a third-party sale. If resale stalls after a reasonable effort, ask the resort about a deed-back program instead.

Are timeshares scams?

The purchase contract itself is legal, though sales tactics are widely criticized as high-pressure. The bigger scam risk sits in the exit industry: federal and state consumer protection agencies warn against exit companies charging large upfront fees while promising a certain cancellation, a pattern tied to multiple enforcement actions.

How much is a timeshare and how much do the fees run?

The average purchase price for a new timeshare interval was $23,940 in 2023, per ARDA's State of the Vacation Timeshare Industry report. Average annual maintenance fees ran $1,120 in 2023 and typically rise 3%-5% a year, plus occasional special assessments for renovations.

Will stopping timeshare payments hurt my credit score?

Yes. A collections account or charge-off can stay on your credit report for up to seven years under the Fair Credit Reporting Act, and derogatory marks like this typically drop a credit score by 50 to over 100 points depending on your starting profile.

What happens to timeshare debt after foreclosure?

Foreclosure ends your ownership interest but doesn't automatically erase debt. Depending on state law and your contract, the resort's association can pursue a deficiency judgment for the gap between what you owed and the (usually minimal) resale value of the foreclosed interest.

How do you get out of a timeshare you inherited?

If you're the estate executor, you may be able to formally disclaim the inheritance before accepting any benefit, which under most state probate law prevents personal liability for future fees. If you've already accepted or the estate already transferred the deed to you, you're treated like any other owner, so consult a probate attorney promptly.

How to get rid of a timeshare fast?

There's no fast option outside the rescission window that's certain to work. Realistic fastest paths are a resort deed-back/surrender program (when offered) or a negotiated hardship release. Resale can take months to years, and anyone promising an instant, sure-thing cancellation for an upfront fee is a red flag.

Do all states let timeshare companies foreclose non-judicially?

No. It varies by state. Florida permits non-judicial trustee foreclosure for timeshare interests under Chapter 721 when the deed includes a power of sale clause and required notices are followed. Other states require judicial foreclosure through the courts, which is slower and costs the resort more.

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

A deed-back is a negotiated, voluntary surrender the resort agrees to, often closing your account on a known timeline without a foreclosure mark. Defaulting means you stop paying and let the resort's collections or foreclosure process run its course, which is slower, damages credit, and can leave you owing a deficiency balance.

Sources

1. Florida Legislature, Florida Statutes Chapter 721 (Vacation and Timeshare Plans): Florida allows non-judicial trustee foreclosure for timeshare interests and sets a 10-day rescission period under section 721.10
2. Consumer Financial Protection Bureau, Debt Collection Rule (Regulation F): Federal rules under the FDCPA/Regulation F govern what debt collectors can and cannot do when pursuing consumers
3. South Carolina Legislature, South Carolina Code Title 27, Chapter 32 (Vacation Time Sharing Plans): South Carolina has a timeshare-specific statutory scheme covering association liens and foreclosure procedures
4. Consumer Financial Protection Bureau, Fair Credit Reporting Act regulations (Regulation V): Negative credit information such as collections accounts can generally remain on a credit report for up to seven years
5. Federal Trade Commission, press release: FTC Action Leads to Permanent Ban on Timeshare Exit Company Owner for Lying to Consumers: FTC has brought enforcement actions against timeshare exit companies for taking large upfront fees and delivering nothing
6. American Resort Development Association (ARDA), State of the Vacation Timeshare Industry 2023: Average timeshare purchase price was $23,940 and average annual maintenance fee was $1,120 in 2023