Timeshares are a prudent investment option when you get them with the right resort and under the guidance of a timeshare expert. However, there are times when the timeshare might no longer be working for you. This is generally a result of the cost of running the timeshare or a lack of time.
Getting rid of a timeshare, particularly one with a mortgage attached to it, is challenging. Other than the cost of canceling a timeshare, you might deal with some penalties for defaulting mortgage repayments, such as wage garnishment and credit consequences. Here are some of your options if your timeshare has an attached mortgage:
Review Your Contract
You can opt to review your timeshare contract if you feel that it is unfavorable toward you in any way. If you can prove that you have been a victim of deceptive timeshare practices, the contract can be canceled. The mortgage in most cases is reverted to your lender though there might be some associated penalties.
Apply for a Deed in Lieu
Most resorts offer a deed back program, which resembles a residential deed in lieu of foreclosure. You will contact your mortgage lender and discuss your deed in lieu beforehand. For a successful timeshare, you will need to show proof that you are undergoing circumstances that hinder your timeshare-paying ability.
File for Bankruptcy
This is your last resort since it affects your borrowing activity for over ten years. A bankruptcy filing will wipe out your mortgage and stop your lender from getting repayments. It will also negate your timeshare.
There are currently many timeshare “experts” available. Not all of them will successfully help you navigate the given strategies. Find a timeshare cancellation company with expertise in handling timeshares with attached mortgages.