timeshare foreclosure

Hi tblank!

If you suddenly quit paying, your property will go into foreclosure. The lender will sell your property and try to recover his debts. Moreover your credit score will be affected and the foreclosure will remain in your credit report for next 5-7 years. Within this period the lenders will avoid giving you loans.

If you have problems in paying your loans, why don't you speak to your lender? You may get loan modifications if the lender finds your case genuine. In case the loan modification does not work for you, you can go in for either deed-in-lieu foreclosure or short sale.

Thanks.

hi tblank!

if you stop paying the mortgage, the lender will send you a pre-foreclosure notice and then foreclose the property. in case you want to save the property, you will have to clear off the dues immediately. you may also file a chapter 13 bankruptcy to save the property. if you do not want to save the property, you may go in for a short sale or a deed-in-lieu foreclosure. however, this depends on the discretion of the lender if he will accept it or not.

thanks,

jerry

I was in the same boat. First off...find out what type of timeshare you own. I have WorldMark that are point based. After spending time on the internet...I spent months freaking out thinking that my vacation mistake would foreclose and keep me from getting a home in the future.

I found out that my timeshare is not a DEEDED property. It can't be foreclosed. It will be treated like any other bill and go to charge off/collections. Damaging to the credit, but not as bad as a foreclosure. Could still keep me from getting the home I want, but just due to bad credit. Might just have to pay higher interest rates.

Call your timeshare and find out from them (get names etc of who you talk to) what will happen if you can't make payments. I had to ask them if it would go into foreclosure before they told be what would actually happen. They first told me that I wasn't currently late, then they said after it is 60 days late they would offer a deferment. After I asked what would happen if I just can't pay anymore when it gets there and if it would go into foreclosure they gave me the scoop.

Please contact them and don't go off only what everyone says on the internet. Once you know exactly what will happen, then start looking for answers.

Good luck!

Kimberly, thank you so much. I too have been searching and searching the net and could not find anyting. What you say makes sense, I too have a point timeshare and it is not deeded (which I confirmed) Do you know how much it hurt your credit? I'm sure other lenders will understand.

Hi Cindy,

When a mortgage is transferred to a collection agency, it will affect your credit by at least 100 points.

Thanks.

We are already in the process of foreclosing on our house, so at this point we could care less about how our credit will be affected if we were to foreclose on our timeshare. Other than our credit going bad, what other consequences could we face?

Hi Deep in the Red!

A foreclosure will badly affect your credit and will lower it by around 250 points. Apart from this, a foreclosure will remain on your credit report for 7 years. During this time you will not be able to qualify for home loans within a few years or if you qualify, the lenders will charge high interest rates of interest. However, foreclosure will help you to wipe out all subordinate liens. To know more about foreclosure and its effects, check out the following link:
http://www.mortgagefit.com/foreclosure.html

Thanks.

Although my timeshare is a "Points membership" and not deeded, the time share company still stated non-payment would put me in foreclosure. They also put it in writing when I asked. Is this true?

Hi Cindy

As they have put it in writing that if you do not pay, your property will be foreclosed, then I think this is the company's rule. You can speak to the timeshare company and seek a clarification from them.

Thanks

If we live in Canada and foreclose on our timeshare unit in florida what happens to us? The timeshare mortgage does not appear on our Canadian credit ratings so would this just affect us from purchasing in the states again? We have tried to sell the unit but to no avail and cant afford to keep making payments. Any help is appreciated thanks

Hi,

If the timeshare unit in Florida goes into foreclosure, your credit in Canada will not be affected. But in case you want to purchase another home in the States again, it will be a bit difficult as the foreclosure will show on your US credit report. You will have to wait for at least 2 years after the foreclosure to qualify for a new mortgage.

i too want to stop payment on my timeshare and it is a deeded timeshare. so which is it, stop paying, find out what they will do, but i still will not be able to pay no matter what is said.

how can i stop this madness of getting the timeshare out of both my husband and i hands.

have you spoken with the lender/owner of the complex et al?

I bought and paid for a TS years ago, receiving a deed. Since that time my TS has been sold twice resulting in me now being a member of a club. The costs have doubled and doubled and I now do not want to be a member of this club but cannot sell or rent my time. I want to stop paying club fees but I hear that other than ruin my credit the TS can also place a lien on my home. Is this true? I can live with 7 yrs of bad credit but would like to avoid a lien. I don't care about recouping the original cost of the TS, I just want to quit paying the ever increasing yearly fees.

any creditor who you stop making payments to could choose to take action; and that action could result in a lien on property that you own. it might be constructive to have a discussion with the "club" and see what they can do with your time.