Timeshare Debt Collection

What should the consumer know?, What are they not allowed to do?, Timeshare debt collection after death? One thing that most likely won’t happen is that they’ll take back your timeshare. As long as it’s attached to your name, you will continue to owe money on maintenance fees and the like.

It is possible that they can put a lien on real property and garnish wages to pay off the debt. These are extreme measures, but they are possible. Do not let it linger because it could also go to the courts where you would be assessed penalties and legal fees.

Find a way to pay it off and then get rid of the timeshare if you are not going to use it. Even bankruptcy isn’t always a way out. In the US, each debt must be called out to be included in bankruptcy – thus, if the unit was sold and there is still a balance due, you are liable for those payments.

If you know you can’t afford it, it sounds like you know you have to get rid of it. Look into trying to sell it on eBay or somewhere where you can post free or low cost classified ads on the net. Or maybe you could keep it and try at least renting it out .What happens in the event of the owner’s death? This is one of the little known problems with timeshares. If you took control of the deceased’s estate, then you are probably the person who will have to pick up the tab. The details are in the timeshare contracts. If you don’t have them, call the timeshare companies for copies.  Also, while you have them on the phone, ask them about possibly taking the timeshare back. It is doubtful that they will, but it’s worth a try. The timeshare company wants, and in some cases needs, those maintenance fees paid. Even if they agree to do, you should get a professional title company to oversee the transfer.

Other options that people try are selling or renting them. Many times these solutions do not work either as there are too many timeshares out there for sale and for rent. You can also transfer the timeshares out of your name (as the beneficiary of the deceased’s estate). This will cost money however, but the pain ends quickly rather than paying $1500 or more every year.

Tags: bankruptcy, debt, debt collection, garnish wages, lien