Repercussions of a timeshare foreclosure

What happens to your home, that you live in, if your timeshare is foreclosed on?

Timeshares are financed by mortgage loans and are thus foreclosed on for non-payment. Once it has been foreclosed on it will be put up for auction. The timeshare will not sell for the amount owed, and they can then come after you for the difference. This can cause many problems like, ruining your credit and even cause a lien to be put on your current home if you own. Once your credit is dropped it can take seven years for it to recover. This can inhibit you from getting any other loans, like home, auto and even credit cards. Another problem with bad credit is it can affect things you may not think of like insurance rates and finding new employment.

Tags: collections, foreclosure