Of all the pain points suffered by timeshare owners, being forced to shell out for annual maintenance fees is among the biggest. This ever-growing expense is extracted for the benefit of both the developer and its timeshare management company, and it can feel like you’re powerless to do anything about it, trapped in your timeshare agreement. But, you may wonder, “What happens if you stop paying timeshare maintenance fees?”
The short answer is that there will be several negative, potentially long-term consequences if you fail to pay annual maintenance fees as stated in your timeshare purchase agreement. These consequences can include debt collection, damage to your credit score, foreclosure, and even a lawsuit by the timeshare company.
This article will take a look at some of the negative things that can happen from a failure to pay. However, we’ll also show you better ways out of the vacation ownership nightmare. For years, Centerstone Group has been helping thousands of people exactly like you to get out of their oppressive timeshare contracts without taking the misguided step of failing to pay fees. We can show you those methods of timeshare cancellation, saving you money and trouble.
Simply, timeshare maintenance fees cover anything the resort developer wants.
The term “timeshare maintenance fees” refers to a broad range of costs associated with timeshare ownership. While those costs do include things like landscaping, regular maintenance, and repair of common elements at timeshare resorts, they also pay the fees of timeshare management companies, which are themselves often run by developers. (Wyndham Destinations, for example, manages Wyndham Resort properties.)
Management companies and developers use funds as they see fit to pay themselves and “improve” the properties. (How they do so, of course, is a question left solely to them.) Keep in mind, as well, that the average timeshare maintenance fees are quite pricey — $1,260 per year on average, according to the American Resort Development Association (ARDA). And 33% of timeshares have maintenance costs that top out over $1,400.
That number is only going to increase with inflation. It’s also not the only amount you’ll be paying, as some improvements and repairs will also call for “special assessments” on top of the already outrageous fees.
Not paying annual maintenance fees is a risky move. Your obligation to pay them is listed in your timeshare contract, and developers will come after you in a variety of ways if you do not pay as scheduled. There can be both legal and financial consequences of not paying your timeshare maintenance fees. Let’s take a closer look at both.
Failure to pay annual fees as stated in your contract will prompt your timeshare company to come after you with the legal tools at its disposal. Assuming that your timeshare interest is deeded real estate, your developer will likely try to foreclose on your timeshare.
Keep in mind that timeshare foreclosure is a way for developers to get back not only their unpaid fees but also late fees and other expenses of collection. Given that timeshares are typically worth almost nothing, a foreclosure will probably not get the developer back all the money it believes it is owed. Therefore, it may sue you for a deficiency judgment to collect the rest of the fees it seeks.
Even in the event that it doesn’t sue you directly, the timeshare developer will almost certainly report you to a collection agency, leading to a series of precarious and stressful situations.
The never-ending slew of calls from a collection agency can be bad enough on their own. In addition to that, you will also have negative events on your credit report, causing damage to your credit score as well as your ability to get favorable financing or even be approved for a loan in the future.
All of these reasons should make it clear that just stopping payment of timeshare maintenance fees is a terrible idea.
No, there generally isn’t a way to negotiate for lower fees. Timeshare developers are not interested in lowering their annual maintenance fees. They only want to raise them. Plus, trying to negotiate with a timeshare company on your own isn’t recommended.
As one owner told USA Today, they were threatened by their timeshare developer with collection action for merely suggesting that she end her contract due to the high $1,300 per year maintenance fees.
That fact does not mean hope is lost, though. It just means you need an expert with knowledge and experience to get you results.
The best way to escape your maintenance fees is to escape your timeshare. But this isn’t something you can tackle on your own. You need an ally on your side, like Centerstone Group.
Centerstone Group’s team has decades of experience in the timeshare industry, and we can use that knowledge to choose a realistic alternative to non-payment. We’ll look at your specific case to pick which exit option is right for you.
Some timeshare companies have options that allow owners to give a timeshare back to the company, though their programs are often extremely limited and, as one reader of the Washington Post discovered, there are few good options.
Whether the developer accepts you into the program is entirely up to them, and you don’t even have a chance without paying off your mortgage and all outstanding fees first. Even then, the company will only let a certain number of owners out, so you are completely at their mercy.
Also, many developers (including the two largest, Wyndham and Hilton Grand Vacations) have closed their programs indefinitely, blocking owners from using them to exit.
Centerstone Group has a sharp and up-to-date understanding not only of the deed-back process but also transfers to new owners. We can help you get the developer to say “yes” to your deed-back or transfer without the stress and uncertainty that comes from trying to fight the company yourself.
When a timeshare company really digs in its heels, it’s easy for an owner to feel powerless. If you have Centerstone Group in your corner, we can help you fight back. We understand how these companies work and what gets them to move. We can turn many of their own tactics back on them in order to get them to relent and let you out of your contract.
Sometimes, when a timeshare developer does something plainly illegal, you need the help of a timeshare attorney. Not everyone needs legal advice, but if you’ve been defrauded or been the victim of illegal business scams, a lawyer can help persuade a stubborn timeshare company to do the right thing.
If that is the case, Centerstone Group will let you know and can refer you to our attorney and law firm partners who will give you discounted rates on attorney fees.
Annual maintenance fees are a burden nobody should have to afford. They are a waste of resources and will go on forever until you do something to stop them.
However, not paying the fees is a terrible decision. It can cause foreclosure, credit problems, and legal problems. Centerstone Group has helped thousands of owners just like you to get out from under their contracts in legal, ethical, and efficient ways.
As an A+ rated timeshare exit company with the Better Business Bureau (BBB), we have a 4.78-out-of-5-star rating from our clients. We would love the opportunity to show you how we earned that reputation. Contact us today for a free consultation and case evaluation.
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