Timeshare Weeks and the Law

• Many people, upon finding that they do not use their timeshare as often as they expected and that prices for resale are very low, want to find a way to get rid of their timeshare. However, they are bound by the same rules that govern all real estate ownership and must find a new buyer to purchase the timeshare. Even through the weeks or time frame is the primary asset owned, the law treats this just like owning property itself, and a proper real estate transaction is necessary to ownership.
  
  

Foreclosure

• A foreclosure should not be confused with selling a timeshare outright. A foreclosure occurs when the owner of the timeshare stops making payments, either payments on the mortgage used to buy the timeshare or the maintenance fees associated with the property. The lender or resort can then foreclosure, seizing the property (the weeks to which the owner has a right to) in return for the absence of payment.
  
  

Deed in Lieu

• A deed in lieu of foreclosure is an arrangement where the owner is threatened with a foreclosure but agrees to simply give up the timeshare and all rights to the lender in exchange for the ability to walk away without the lengthy court rulings and credit problems. A deed in lieu of foreclosure can only be used when the timeshare is actually in danger of being foreclosed, not when the owner is trying to sell it or has sold it on the real estate market. Selling the timeshare is highly preferable to using a deed in lieu option.
  
  

Various Fees

• In some cases, a deed in lieu can be used even after the mortgage is fully paid for. This is allowed in a timeshare because the maintenance fees continue after the mortgage, and if owners do not pay these fees and similar expenses, then a foreclosure is still a possibility. If there are no sellers available for the timeshare, the owner may be able to work out a deed in lieu based on not paying maintenance fees if no other option is available.