You’re fed up with your timeshare—and you’re thinking about stopping payments. Maybe the maintenance fees have gotten out of control. Maybe you never use the thing. Or maybe you’re just done.
But before you pull the plug, it’s important to understand what actually happens when you stop paying. Defaulting on a timeshare isn’t like canceling a subscription. It’s a legal and financial decision with serious consequences. Here’s what you need to know.
What Does It Mean to Default on a Timeshare?
Timeshare contracts are legally binding. Whether you’re financing the property or just paying annual maintenance fees, your signature locked you in. Once you stop paying, you’re considered in default—and the timeshare company will act accordingly.
What Happens When You Stop Paying?
Expect the pressure to turn up quickly:
- Collection Calls: Some companies or third-party agencies may start calling daily.
- Threatening Letters: You may receive notices about foreclosure, legal action, or credit reporting.
- Pushback from the Developer: They might offer a “deal” that involves you buying more points or upgrading your ownership.
It’s stressful. And it’s designed to make you give in.
Credit Damage and Legal Risks
If you financed the timeshare, defaulting can hurt your credit the same way defaulting on a car loan or mortgage would. Even with just unpaid maintenance fees, some developers report delinquencies.
In more aggressive cases, companies may file lawsuits. If they win a judgment, you could face wage garnishment, bank levies, or liens on your property depending on your state.
Foreclosure and Deed Recovery
If your timeshare includes a deeded interest, foreclosure is on the table. That foreclosure may show up on your credit report and follow you for years. Some contracts without deeded ownership still allow the developer to pursue collection or repossession through other legal means.
Are There Times When It Makes Sense to Stop Paying?
Remember, this isn’t legal advice—every case is different, and you should speak to a timeshare attorney before making a decision. That said, here are a few situations where people might consider stopping payments as part of a broader legal strategy:
You’ve Already Hired a Lawyer: In many cases, once a lawyer notifies the timeshare company that you’re represented, they’re required by law to stop contacting you. Your lawyer may advise you to stop payments while they work toward cancellation.
You’re Deeply Underwater: If you owe significantly more than the timeshare is worth, continuing to pay might not make financial sense—especially if there’s a legal path to walk away.
You Were Misled or Defrauded: If your purchase involved false promises, high-pressure tactics, or bait-and-switch behavior, default may be one piece of a strategy to assert your rights.
You’ve Exhausted Internal “Exit” Options: Some companies offer owner exit programs, but they’re often ineffective or designed to upsell. If you’ve tried and gotten nowhere, legal action might be the next step.
Again, this decision comes with risk. It’s not one-size-fits-all, and you shouldn’t go it alone. Defaulting without a real plan can make things worse and drag out
Reach Out to Connor Law For Timeshare Legal Support
We work directly with you to review your timeshare contract, explain your legal options, and build a strategy to cancel the timeshare and put the stress behind you. That might involve sending legal demand letters, negotiating directly with the developer, or—if needed—playing hardball.
We charge a flat fee, so you know the cost up front. No surprises. No hidden terms. Just straightforward legal help from someone who’s done this before.
If you’re considering default—or you’re already there—don’t wait. Reach out to Connor Law, PC today. We’ll take a look at your situation and tell you whether we can help. And if we can, we’ll get to work—no middlemen, no pressure, no nonsense.
