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How You Could Lose Your Timeshare to Foreclosure

Solicitor Mortgage Lawyer

Solicitor Mortgage LawyerThose who take out a mortgage to purchase a timeshare fully intend to make good on their payments. However, in difficult times, such as losing your job or unexpected healthcare expenses, making good on your timeshare payments could become a low priority. Do note, though, that failing to pay your monthly payments could result in you losing your timeshare to foreclosure.

Could I Lose My Timeshare Due to Foreclosure?

If you own a deeded timeshare, the interest you own in that property could be foreclosed if you fail to keep up with monthly mortgage payments. Likewise, if you fail to pay the utilities, maintenance fees, taxes, and other related costs, you stand to lose your timeshare to foreclosure. While it’s state law that governs timeshares, the specific process for foreclosure would differ from one state to another.

Depending on the laws in your state, the foreclosure process could be judicial. This means that your lender would go through the state court and make their case against you, or non-judicial, meaning that the foreclosure process won’t go through the court.

In addition, the timeshare foreclosure procedure might differ from the usual procedure for residential property foreclosures. In some states, for instance, residential property foreclosures always go through court, but state law might enable lenders to go through non-judicial means for timeshare foreclosures.

Deficiency Judgments After Foreclosing on a Timeshare

During a foreclosure, your total debt might be higher than the sale price of your foreclosed timeshare. The difference between your foreclosed timeshare’s sale price and your total debt is known as a deficiency. For instance, your debt is $12,000, but your timeshare only sold for $8,000, then your deficiency is $4,000. Fortunately, it’s up to state law to determine if you would be facing a deficiency judgment following foreclosure.

It’s crucial to note that once the foreclosure procedure for your timeshare has started, it would move fairly quickly. That being said, if your timeshare is up for foreclosure, get help from a lawyer experienced in timeshare cases to learn about the options and laws that would apply to your foreclosure case.