Can You Sell a Timeshare You Still Owe A Mortgage On?

Sell a Timeshare You Still Owe A Mortgage

So, you’re trying to sell your timeshare, but you still have an outstanding mortgage balance. What do you do? The truth of the matter is, selling a timeshare that you still owe a mortgage on isn’t an easy process. While it is possible to do, it can come with some complications. Here we’ll discuss some problems you could run into when selling a timeshare with a mortgage. We will also offer some advice on how to manage this situation. Luckily, our Licensed Real Estate Agents at Fidelity are experts in the timeshare resale process and are here with you every step of the way.

What To Expect When Selling Your Timeshare You Owe A Mortgage On

When you take out a loan to pay for a timeshare, it is considered a mortgage. Although it is not a home mortgage, it is still a way to pay for your timeshare in installments. This is great if you really want to buy a timeshare, but don’t have the funds to pay the full cost outright. Unfortunately, if you need to sell your timeshare and you still owe on your mortgage, you may run into some trouble.

Sell a Timeshare You Still Owe A Mortgage On

If you’re looking to say goodbye to timeshare maintenance fees and annual dues, especially if you don’t use your ownership, selling may be the best way to go. Remember that very rarely do timeshares hold their value. So, it’s important that when you’re selling your timeshare, you should expect to get back less than what you paid for it. Keep in mind that timeshares are not an investment, so you likely won’t get much for your timeshare. This is especially true if you owe a mortgage on your timeshare. If your mortgage balance outweighs the selling price of your ownership, you may end up owing money to get rid of it. This can be a negative factor when selling. However, not having to pay your timeshare fees year after year may outweigh the cons.

Sometimes brokerages won’t list timeshares if a mortgage is owed. That’s because that timeshare might not sell for more than the mortgage balance. Many factors come into play when selling, such as how much you owe and the terms of your mortgage.

When you contact a Fidelity Real Estate Agent to assist, we’ll give you a free one-on-one consultation to go over your unique situation. There’s no obligation to list your timeshare for sale with us, and our experts can give you advice for safely selling your ownership.

What Happens If I Stop Paying My Timeshare Mortgage?

If you are seriously struggling to pay off your timeshare mortgage, you might consider simply walking away. We recommend that you never stop paying your timeshare mortgage payments. If you stop paying off your timeshare loan, there will be consequences you need to know of.

First, your mortgage lender will report you to the credit bureau and your credit score will go down. You may then face foreclosure, which can negatively impact your credit score drastically. If your timeshare goes into foreclosure, it will be taken back by the developer and sold. If it is sold for less than what you owed on it, you may be responsible for paying the difference. Then, if you don’t pay, the developer can sell your account to a collection agency. This could lead to them putting a collection account on your credit report or even suing you. So, if you stop paying for the timeshare mortgage that you owe, it could lead to even bigger financial problems. We suggest that you find other means to pay off your timeshare loans.

Options When Selling a Timeshare You Still Owe a Mortgage On

There are options out there for selling your timeshare with a mortgage. Contacting your developer (i.e., Wyndham, Westgate, Hilton, etc.) for advice is a great place to start. They may have in-house programs to relieve you of your ownership or help you out with annual fees, even if you have a mortgage. Getting in touch with your lender can help you through the financial aspects of selling.

Alternatively, you can visit to find resources on exiting your ownership safely with trusted resale solutions. The Coalition for Responsible Exit is ARDA‘s solution to help owners in need. They have up-to-date resale news, direct contact with top developers, as well as resale referrals to help you immediately.

Can You Refinance A Timeshare Mortgage?

Refinancing a timeshare mortgage can make it easier to pay off your loan. Owners may be able to get a better interest rate on their mortgage when they refinance. Some companies, like our friends at Vacation Club Loans, allow timeshare owners to refinance their mortgages. There are terms that apply when refinancing a timeshare loan that are up to the discretion of each company. These terms include owners needing a certain credit score, a maximum refinancing term, amongst others. For example, at Vacation Club Loans, loans of less than $10,000 have a maximum term of 5 years. Of course, refinancing your mortgage does not equate to getting rid of your timeshare. However, it can make it easier on your wallet and can bring you one step closer to getting out of your timeshare.

Common Timeshare Resale Scams To Avoid

Sell a Timeshare You Still Owe A Mortgage On

It’s important to be aware of common timeshare exit scams. Oftentimes, scammers target owners that owe a mortgage on their timeshare or are behind on payments. If you receive a call out of the blue saying they can help you exit your timeshare, be wary. They may claim to be a brokerage and could even sound legitimate, however, it is illegal for a resale company to call you unsolicited. You should also be aware of companies that claim they can “cancel your timeshare.” They may suggest that going into foreclosure can help rid you of your ownership, but this would permanently damage your credit. Some may even advise you to stop paying your maintenance fees, which you should never do. This could also result in you defaulting on your ownership, and it will stay on your credit report forever.

Sell Your Timeshare With Fidelity

If you’re looking to sell a timeshare you still owe a mortgage on, contact Fidelity today. At Fidelity Real Estate, we’ve been Leading With Pride for over 20 years. Contact a licensed agent today to discuss your unique situation and figure out what options you have. Our focus is on helping owners reach their goals, so call us at 1-800-410-8326 or fill out a form on our website to get started.

If you’d like to know more about how to sell your timeshare, be sure to check out our video down below.

Get Started Selling Your Timeshare Now by Filling Out the Form Below! One of our Licensed Real Estate agents will contact you as soon as possible.

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