Monday, November 26, 2018

What Happens When You Foreclose on A Timeshare?

Answers To Timeshare Questions

When you buy a timeshare, what you are practically buying is the right to use the property for a specific period each year. Basically, there are two types of timeshare ownership: right of use that gives you only what the name suggests, the right to spend time in the property, and deeded ownership, which comes with ownership rights and duties, such as paying for property maintenance, taxes, insurances and you can also take out a mortgage on it.

Failing to pay the mortgage rates on a deeded property can lead to foreclosure in a way that is very similar to foreclosures on conventional properties. During the foreclosure procedure, the defaulting owner will first receive payment demands, then the timeshare management company will file for foreclosure in the area where the property is situated. The process usually results in a notice of sale, after which your timeshare property will be auctioned.

The process will inevitably have a negative impact on your credit score. The entry will stay on your reports for seven years and it can reduce your credit score with around 160 points. The foreclosure can also result in having to pay additional taxes because the forgiven debt will be added to your income.  Find out more legal advice regarding your timeshare here https://www.timeshareterminationteam.com/.

Originally Posted on: What Happens When You Foreclose on A Timeshare?

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