Timeshare Default Rates – Impact on Owners

Here on the Timeshare Relief 360 Blog, we’ve written about how the poor economy has negatively affected the timeshare industry (Part 1 / Part 2).  In addition to some incredible special assessment fees timeshare owners have received, they should also be set to see a significant jump in maintenance fees.

Because some current owners are now unable to pay their maintenance fees, timeshare resorts must raise fees for all owners to cover the difference.  This certainly covers the resorts, but who takes care of the owners who are contractually obligated to pay?  Not the timeshare.  Do the owners get a benefit when the economy improves?  It won’t happen.  Will the owners be able to recoup some of the cost when equity grows in the resort?  Most likely not.  Do you think maintenance fees will decrease after the economic crisis is over?

Friends don’t let friends buy timeshares…

One Response

  1. My mother has a timeshare with an annual maintenance fee of about $300. She owns it free and clear and wants to get rid of it. There doesn’t appear to be any market for them. She is in her mid-80’s and doesn’t plan on buying anything where she would require financing. She pays off her credit card every month.

    My sister and I don’t want the timeshare.

    What is the practical risk to her if she discontinues to pay her annual fee? I know any kind of a default reflects negatively on her credit score, but this seems a moot point at this stage in her life.

    There must be other people out there who have confronted this situatuation before. I am interested in their experience.

    Thank you.

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