So you have tried to sell your timeshare and have had no luck. You may be facing yet another yearof maintenance fees or worse you are still making payments on the timeshare. Foreclosing on thetimeshare is one option. If you go this route you could still be sued by the timeshare company for anybalance owed after they resell the timeshare. Many people wonder if it is possible to set up a deed inlieu of foreclosure with the timeshare company.
A deed in lieu of foreclosure DOES have a negative effect on your credit, just not as badly as aforeclosure. Your FICO score will be affected. A deed in lieu will be a 100-200 point hit, where aforeclosure is 200-300 at least. If your lender is offering you this option on a timeshare, take it. It willtake a lot less time to repair your credit from a deed in lieu mark than a foreclosure.
Timeshares are notoriously bad investments and you will continue to have difficulty selling it. If you askthe timeshare company for a deed in lieu, don’t get your hopes up. Timeshare companies are notoriousfor their fees. This is how they make money on the units. The longer they can keep you on the line forfees the more money in their pocket.
Another thing to note is that many times they will not offer you a deed in lieu until you are at least 90-120 delinquent on your payments. Meanwhile, they are adding extra late fees etc. If you do get offereda deed in lieu, be sure to make it clear that they cannot come after you for any money after the fact.
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