What Happens When You Foreclose on a Timeshare?
by Leigh Thompson
Timeshare management companies foreclose on homeowners who do not pay the bill.
After sending numerous payment demands and receiving nothing in return, the management company of your timeshare can file for foreclosure with the county in which the property is located. In California, the management company files for a Notice of Default, which gives you 90 days to pay your past-due bill. Failure to do so results in a Notice of Sale. You get three weeks to pay the balance due on the property before the trustee sells the property at auction.
The timeshare foreclosure process will affect your credit score. A foreclosure entry appears on your credit report for seven years in the Public Records section. You also might have past-due entries and collection agency entries on your report from previous collection efforts. The foreclosure entry alone
drops your credit score up to 160 points. With a foreclosure on your report, you may find it difficult to obtain future credit, including another mortgage loan. You may face increased insurance premiums and a slash in credit lines.
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