Thinking about walking away from your timeshare? Learn the financial, legal, and credit consequences before making this risky move.
Introduction
When frustration boils over, the idea of just walking away from your timeshare can be tempting. No more maintenance fees. No more special assessments. No more vacation stress. But before you stop paying, it’s important to understand exactly what happens next — and why this “quick escape” can lead to long-term trouble.
1. Immediate Consequences
Within weeks of missing your first payment, the resort will likely:
- Send reminder notices or make collection calls
- Add late fees and penalties to your balance
- Suspend your right to use the property
2. Credit Score Damage
Unpaid timeshare fees are treated like any other unpaid debt:
- They may be reported to credit bureaus after 30–90 days of nonpayment
- Your credit score can drop significantly
- Late payments and defaults stay on your report for up to seven years
This can make it harder to get loans, rent apartments, or even secure certain jobs.
3. Collections and Legal Action
If you continue not paying:
- The debt may be turned over to a collection agency
- You could be sued for the remaining balance
- A court judgment could lead to wage garnishment or liens on your assets (depending on state law)
4. Foreclosure on Financed Timeshares
If your timeshare is financed, nonpayment may trigger foreclosure — even if it’s just a vacation property. This process can be expensive and damaging to your credit.
5. Passing the Debt to Your Heirs
If you die while still owing fees, the obligation could pass to your estate or heirs unless they disclaim the inheritance through probate.
6. Safer Alternatives to Walking Away
Instead of defaulting, consider:
- Negotiating with the resort for a voluntary deed-back or surrender program
- Hiring a reputable timeshare cancellation attorney or company
- Exploring resale (though often at a loss) to legally transfer ownership
Conclusion
Walking away from a timeshare without paying might feel like the simplest option, but the financial, legal, and credit consequences can follow you for years. A legal, documented exit is almost always the safer and ultimately less costly route.