If times get tough and you find yourself falling behind on your payments and unable to keep your timeshare, you may be in a position to file a deed in lieu of foreclosure. If the company agrees, you may then surrender the property back to the timeshare company and also cease any financial responsibility for the timeshare…
Timeshare Deed in Lieu of Foreclosure
The ongoing problems with the economy have made affording luxuries a lot more difficult. If you have gotten into a financially desperate position and are falling behind in either payments or maintenance of your timeshare you might be able to convince your timeshare company to accept a deed in lieu of foreclosure to relieve yourself of the burdensome property and fees and payments going forward.
A deed in lieu of foreclosure is a legal process that allows the property owner to return the timeshare to the timeshare company and avoid having to go through the foreclosure process. If the timeshare company agrees to engage in a deed in lieu of foreclosure transaction they take possession of the timeshare and your financial responsibilities cease.
You give the deed back to the timeshare company and they can resell it to someone else. Your financial responsibilities cease and fees do not continue to accumulate. If you have fallen behind on your payments and cannot catch them up or continue to pay for the property, the timeshare company may offer you the deed in lieu or you can broach the subject with them.
The primary advantage of a deed in lieu of foreclosure is, it grants the timeshare owner immediate release from the timeshare debt. Whether that debt is a payment or maintenance fees, once the timeshare company agrees to a deed in lieu, the owner’s obligations cease. The owner signs over the deed and walks away.
If offered by the developer and signed by the owners, the deed in lieu of foreclosure is binding between the timeshare owner and the timeshare company. A Warranty Deed in Lieu of Foreclosure will be recorded in county records where the timeshare is located. Like all legal transactions, it should be examined by a knowledgeable attorney prior to you signing it. Involving an attorney can also help if you and the timeshare company cannot come to an agreement. If the timeshare company refuses to accept a deed in lieu of foreclosure, having an attorney for the foreclosure process can be a major asset while you are up against the timeshare company. If you are interested in trying to obtain a deed in lieu of foreclosure with the timeshare company you own with, the first step you need to take is to contact an attorney who is familiar with timeshare law and each of the timeshare companies. There are specific terms and conditions that must be met prior to offering the deed in lieu of foreclosure and the timeshare company does not have to accept it or offer one to you.If your timeshare company does not do a deed in lieu of foreclosure for you, they have the option of filing a foreclosure on the property. In either case you will take a hit on your credit score. Compared to the debt of keeping and maintaining the timeshare, it will usually be a good tradeoff for you. A timeshare attorney can make sure that the paperwork is filled out correctly, that your interests are protected and that the timeshare company does everything they are supposed to do.
Are you interested in selling your timeshare and currently experiencing financial hardship? Find out more here.