A timeshare, or sometimes often called as vacation ownership, refers to an arrangement that allows multiple joint owners to have rights in using a vacation property during a fixed allotted period. For example, a specific week of the year every year. This could be a luxury condominium unit or a villa located on a resort property. It also has two types, deeded and non-deeded, with the former being the most common.
A timeshare is great, but not until you start struggling to pay for it. There are instances when financial problems arise, which leaves you struggling to pay for mortgage or assessments. If you wind up in this situation, you might be heading to foreclosure. The good news is there are ways to get rid of your timeshare without taking the path to foreclosure. Here is a quick guide to your options when avoiding foreclosure:
Sell your timeshare
You may be able to put your timeshare for sale and possibly gain some profit from it. This is especially true if it’s a desirable property located in a prime location, such as a high-end resort complex.
Keep in mind, however, that most timeshares have very little resale value. You might as well settle on a reasonable price. Consider removing closing fees to attract buyers. If you plan to sell it for less than your debt, you will need to work out an agreement to shoulder the difference to the development company.
If you still plan to keep your timeshare, but you are behind on payments, you have the option to negotiate. Talk to your lender or developer and see if they can lower the amount you owe. Also, ask them if you can create a new payment plan that can work for you.
Keep in mind that you may have a good chance with this option because the lender or the developer also loses time and money when foreclosure happens. There might be a chance that they lower your debt, give you a forbearance period, or agree with your repayment plan.
Just a heads up: This may not be a wise choice if you have been behind your payments or delinquent on your assessments. In deed of lieu, however, may help prevent foreclosure. In deed in lieu of foreclosure is when the lender accepts a deed to the property rather than foreclosing to obtain title. Deed back is the term used to refer to the voluntary submission of title back to the developer.
Many developers don’t readily accept a deed back, but it is worth trying. Try to convince them that accepting a deed back is the more favorable option than a timeshare foreclosure.
These are only some of your options when facing timeshare foreclosure. If you are new to these things, it will be helpful to seek the help of the professionals on this matter. Consult with firms that offer solutions to timeshare issues. They will be more than willing to guide you through the way and create a strategy for you to succeed.