It is nearly impossible to sell many timeshares. So what do you do if you can’t pay the timeshare payments and/or the timeshare maintenance fees? First, try to sell it. Even if you loose money, getting out from under the loan payments and fees may be wise.
If you can’t find a buyer, you can ask the timeshare company if they will take back the title/deed to the timeshare and release you from your obligation. This is called a “deed in lieu” of foreclosure. The timeshare company is in a better position to resell the property, and may be willing to take the deed. You will get off the debt and away from the monthly obligations – although you loose any investment that you have put in.
The problem comes when they don’t want to take the property back but choose to pursue payment on the contract instead. If you can’t pay, and you can’t sell, and you can’t give it back, you might need to speak to an experienced bankruptcy lawyer to talk about filing bankruptcy to discharge your loan. While it doesn’t usually makes sense to file for bankruptcy just for a timeshare debt, if you have other issues, you might be able to deal with this and other debts in a Chapter 7 or Chapter 13 bankruptcy case. Your attorney can look at your situation and give you guidance.
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