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Foreclosure Impact?

Posted on: 05th Apr, 2010 01:19 pm
In 2001 I paid cash of $11000 for a time share in Myrtle Beach South Carolina. Since then I have paid a “maintenance fee” every year. It continues to increase each year. In a conversation this morning with a representative of the time share I was told that I have to continue to pay the maintenance fee or they would foreclose on me. My question is what will they foreclose on. I own the time share and have no balance. I have asked if they could sell the time share for what ever they can get out of it so I don’t have to pay the maintenance fee; they tell me that my credit rating will be impacted. Again my question is how and how much? Can they foreclose on a maintenance agreement? Thom Geilmann
Hi tgeilmann!

Welcome to forums!

If the property is free and clear, then the property cannot be foreclosed upon. However, if you do not pay the maintenance fee, the timeshare company can place a lien on your property. This will affect your credit score in a negative way and reduce your score by few points. Moreover, it will be considered as a negative mark and you would face issues in getting any kind of loan. I would suggest you to keep paying the maintenance fee and list the property in the market. Once you sell off the property, it would become the buyers responsibility to pay the dues.

Feel free to ask if you've further queries.

Sussane
Posted on: 05th Apr, 2010 08:29 pm
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