A timeshare is a kind of shared property ownership, in which several owners are permitted to use the property for a specific time every year. Timeshares are usually resort condominiums and they can serve as opportunities to enjoy a vacation property.
However, if one has fallen behind on mortgage payments for their timeshare, a foreclosure may be in the near future. There are options where one could get rid of the timeshare in order to avoid a foreclosure. Our Miami foreclosure defense attorneys are providing information to help those wanting to avoid a timeshare foreclosure.
There are two types of timeshares. The first is is a deeded interest, where one has actual ownership in the property. The second is a right-to-use interest, which is similar to a lease interest where one is allowed to use the property but has no actual ownership stake.
If one purchases a deeded timeshare and fails to make the monthly mortgage payments or falls behind on assessments, the timeshare may be lost due to foreclosure. When a foreclosure takes place, the company that owns the loan may take the property. If a foreclosure proceeds, the delinquent homeowner’s credit score will be damaged.
Avoiding a Timeshare Foreclosure
Depending on whether the goal is to dispose of the timeshare or not, there are options to avoid a foreclosure:
- Sell the timeshare – If the timeshare sits at a desirable location, it could be sold. Unfortunately, timeshares have a low resale value.
- Donate the timeshare to a charity or non-profit organization – If one owns the timeshare and has fallen behind on assessments, they are able to donate the timeshare to charity or a non-profit organization and take a tax deduction. The assessment will need to be caught up on prior to donation, but one will be able to avoid foreclosure and future obligations for the assessments.
- Negotiate with the resort to reduce the owed amount – If one has fallen behind on payments or assessments and they would like to keep the timeshare, they could negotiate with the lender or resort to reduce the amount owed or arrange a payment plan.
- Offer the deed of the timeshare in lieu of foreclosure – A deed in lieu of foreclosure may be accepted by the timeshare company as an option to obtain the title instead of foreclosing. This process is voluntary on behalf of the bank or timeshare resort.
Timeshare Rescue Scams
Timeshare rescue scams are unfortunately very common. Timeshare owners are targeted in order to receive money with fake promises of getting a timeshare owner out of debt. If one is considering using a timeshare rescue company to dispose of a timeshare, first check the Better Business Bureau to verify the company’s legitimacy.
Talk to an Expert
If one is facing a foreclosure of a timeshare, it is imperative to consult with one of our qualified Miami foreclosure defense attorneys to be accurately informed about your rights and the best options to avoid a timeshare foreclosure. Contact us today for a free consultation!