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Informed Timeshare Decisions,

What Happens if I Stop Paying My Timeshare Maintenance Fees?

At first glance, timeshare ownership seems like an amazing opportunity. You get to own a portion of a vacation property at a luxury resort, giving you access to a fantastic vacation every year during your allotted week. During the sales presentation, you’ll be told how this model makes a luxury vacation more affordable and accessible to your family. At first, this may be true. However, the fees associated with timeshare ownership will likely continue to rise over time, and you may come to find that you can no longer afford this financial burden.

In addition to your monthly timeshare mortgage payments, you’re responsible for paying annual maintenance fees. While the exact cost of your maintenance fees will vary based on a variety of factors, you’re likely to find that these fees aren’t cheap. According to the American Resort Development Association (ARDA), the average cost of timeshare maintenance fees is approximately $1,000.

In addition, they increase by approximately 4% on average each year. As a result, your maintenance fees will be roughly $1,480 in ten years. This equates to a 48% increase over the next decade! If you think this represents a rather excessive cost, you’re not alone. Thousands of timeshare owners struggle to meet the financial obligations associated with their annual maintenance fees.

What Do My Maintenance Fees Cover?

A luxury resort will fall into a state of disrepair if it isn’t properly maintained. No one wants to stay in a dilapidated condo, use gym equipment that is broken down or sit at a dirty pool. It can be expensive to keep a resort in good shape, and these costs are passed along to the timeshare owners in the form of maintenance fees.

Your timeshare maintenance fees are used to cover a variety of expenses associated with running and maintaining the resort, including:

Timeshare Maintenance Fees Are Mandatory

Most timeshare contracts contain a perpetuity clause which states that you’re responsible for all fees associated with your property for the rest of your life. This includes your annual maintenance fees. As a result, you’re legally required to pay your maintenance fees even if you don’t use the timeshare in a particular year.

Unfortunately, you don’t have any control over the rate at which these fees increase. While they may have initially fit into your budget, it’s likely that over time, you may come to find that you can no longer afford to pay them. While it may be tempting to simply refuse to pay them, this isn’t a good idea. If you stop paying your timeshare maintenance fees, it can result in a variety of negative consequences that can take years to recover from.

Consequences for Not Paying Timeshare Maintenance Fees

Letter blocks spelling the word "penalty" - penalties for not paying timeshare maintenance feesYou’re likely to face a variety of negative consequences if you stop paying your maintenance fees. One of the immediate actions taken against you will be a revocation of your timeshare privileges:

These consequences are relatively minor compared with the damage to your credit and finances that may occur when you stop paying your timeshare maintenance fees.

Additional Fees and Penalties

The resort will often charge you late fees and other penalties when you stop paying your maintenance fees. This will only increase the financial burden associated with these expenses. The longer you withhold payment, the more expensive these penalties will be. Over time, it can significantly increase the total amount you owe.

Collection Agencies

Eventually, the timeshare developer will enlist a collection agency to try and recover your unpaid maintenance fees. This can result in constant harassment in the form of phone calls, letters and other actions from the collection agency. In addition, it’s possible that you’ll face the following legal actions:

Foreclosure and Damage to Your Credit Score

By far, the most devastating consequence is a potential foreclosure on your timeshare property and massive damage to your credit score. It’s common for your credit rating to drop 130-170 points when you stop paying your maintenance fees. In addition, if the resort forecloses on your timeshare, the foreclosure will stay on your credit report for seven years. This can make it difficult for you to secure a home mortgage or car loan. In addition, it may result in significantly higher interest rates on credit cards.

These actions are most common when the resort is located in the state where you reside since the process is much simpler when only one state is involved. However, we’ve seen timeshares pursue these legal remedies in some situations where the timeshare is located in a different state from where you live. This most commonly occurs when the amount you owe in past maintenance fees is very large, or when you’re also in default on your timeshare mortgage.

Due to the serious damage you may face to your credit, we always recommend that you continue to pay your maintenance fees until you’re able to get out of your timeshare.

Legally Cancel Your Timeshare

"cancelled" written in the sand - legally cancel your timeshareIf the costs associated with your timeshare have risen to the point where you can no longer afford them, you have options. The best solution is to legally cancel your timeshare. At Timeshare Termination Team, we’ve helped thousands of families just like you break free of the financial burdens associated with timeshare ownership.

We understand that every timeshare contract is unique and as a result, there can’t be a “one size fits all” approach to getting out of your timeshare. Our expert advisors will work with you to design a customized exit strategy that legally, safely and permanently cancels your timeshare. We work with a team of attorneys who will carefully examine the terms of your agreement in order to recommend the right plan for your unique situation.

Timeshare Termination Team is the only consumer advocacy firm in the country that offers an exclusive You First Approach™ focused on prioritizing your needs every step of the way. We’ll work closely with you to educate you on your options. Once we decide on the proper strategy, our team will handle all communications with the resort on your behalf.

As part of our You First Approach™, you’ll experience the following benefits:

We will always put your needs first and provide complete transparency throughout the timeshare cancellation process. Our approach has delivered a 100% success rate, allowing thousands of families to begin living life on their own terms once again.

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Get started on the path towards freedom from your unwanted timeshare. Please contact us today to schedule a free consultation.



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