You may have heard that buying timeshares is a viable option for people and families who often travel, especially those who frequent the same vacation spots. For the most part, this is true but that’s not all there is to it. Buying timeshares is usually an emotional decision. Your gut might have told you that it was the right choice since you go to the same vacation spot every year anyway. However, miscalculating the financial side of the deal can put you in a difficult situation. Falling behind with your mortgage payments or assessments can result in foreclosure. That’s the last thing you’d want, as it can put you in a less than an ideal financial situation.
In every state, the process of foreclosure varies. Although the process of timeshare foreclosure in Florida can be different from that of in other states, financial experts share their insights and ways to generally avoid it:
Disposing of your timeshare by selling it to someone else before your lender or developer threatens you with foreclosure is perhaps the best route to take. The more popular the location of your timeshare is, the more viable this strategy becomes. Although timeshares often have little resale value, it’s not impossible to even make a profit from the transaction. At the very least, you can break even or avoid debt.
If you didn’t borrow money to buy your timeshare and are only delinquent on assessments, donating it to charity may be an option. Doing so can earn you a tax deduction, and free you from future liability. However, you’ll need to bring your assessments up to date first. Plus, you might find it challenging to find charities that accept timeshares. It’s not that there aren’t any, it’s just that it’s not practical for some charities to accept timeshares.
If you don’t want to lose your timeshare but like to avoid the impact of a foreclosure on your credit, negotiate with the other party. Believe it or not, many mortgage lenders and developers are motivated to play ball since foreclosure can be disadvantageous to them too. This process is called a timeshare in lieu of foreclosure, or a deed back.
A deed back is the practice of voluntarily giving the title to the other party in exchange for erasing your obligations. You can also ask for a forbearance, which allows you to stop making payments for a while until you recover financially. Or, you might be able to convince the other party to work with you and create an affordable repayment plan. This could be your best option.
Before you make any decision, do your due diligence and research. Weigh the pros and the cons of each option. Aside from that, don’t try to do everything on your own. While you can employ these strategies on your own, it’s advisable to consult an attorney to determine the most suitable path to take. After all, the timeshare laws in your area could provide you legal remedies you wouldn’t have thought were available.