The Short Answer: It Gets Worse Before It Gets Better
Simply stopping payment does not end your obligation. The contract you signed remains binding, and developers have well-established processes for dealing with non-paying owners.
Month 1–3: Late Fees and Collection Calls
Most developers begin charging late fees immediately — typically 1.5% to 2% per month. Collection calls will begin within 30–60 days.
Month 3–6: Credit Reporting
Most major timeshare developers report delinquencies to credit bureaus after 90 days. This can hit your credit score by 100 points or more.
⚠️ Important: A timeshare delinquency can affect your ability to get a mortgage, car loan, or other credit for years.
Month 6–12: Collections and Legal Action
After six months, many developers sell the debt to collection agencies or pursue legal action. Court judgments can result in wage garnishment in some states.
Month 12+: Foreclosure Proceedings
Yes — timeshares can be foreclosed. A timeshare foreclosure can remain on your credit history for seven years.
What To Do Instead
- Ask your developer about their voluntary surrender or deed-back program
- Consult with a reputable timeshare exit company — a free consultation costs nothing
- Never pay upfront fees to any company claiming they can guarantee a fast exit