What Can I Do If I Quit Paying On My Nevada Timeshare And It Is Now Reporting To My Credit?

If you have quit paying on your timeshare and it is reporting to your credit – or you are considered in "foreclosure" – you should contact a timeshare attorney immediately. They can review your case and determine if your "foreclosure" can be disputed. And they can also help you improve your credit after a timeshare foreclosure.

In addition, there could be possible tax consequences following a timeshare “foreclosure.” In this case, an attorney can review your situation and, if needed, refer you to a tax professional who specializes in situations of this nature. Often, the timeshare company does not take a loss on the “foreclosure,” and their calculations are inaccurate.

Late Or Missed Payments

Your timeshare developer will report to your credit if you make late payments or miss them altogether. They may try contacting you to fix this situation but often just want to sell you more points. Your debt may be sent to a third-party collection agency if it remains unpaid. If this has happened to you, do not delay in speaking with an attorney, since you want to avoid collection agencies obtaining a judgment against you.

Timeshare Foreclosure

If you fail to pay your timeshare mortgage, maintenance fees or assessment fees, your timeshare developer will start the “foreclosure” process. Depending on the state, it will be either a judicial or nonjudicial process. If you receive a letter from a law firm stating they are foreclosing on your timeshare, call an attorney right away, as this issue is time-sensitive.

Consequences Of A Timeshare Foreclosure

A timeshare "foreclosure" may be reported to your credit in several ways, including just like a residential foreclosure. This needs to be addressed as it could create problems when buying or refinancing a home, a vehicle or any other purchase involving credit. It could even lower your limits on existing credit cards.

Timeshare Foreclosure Can Hurt Your Credit

When you apply for a loan or another form of credit, one of the first things a potential lender considers when deciding to lend to you is your credit score. A timeshare “foreclosure” will lower your credit scores significantly. However, the timeshare company may be incorrectly reporting to your credit. Contacting a lawyer, then, is crucial, and they will review your case to determine if the reporting is accurate. If they determine the reporting to be incorrect, they can fight to have it corrected.

A timeshare “foreclosure” might also make it difficult for you to get credit in the future. A lawyer can help you understand how this will affect you. Do not let your emotions allow you to make a decision that will affect your credit for years to come or sit back and hope that the problem goes away. Seeking help can allow you to rectify the situation now.

The Types Of Timeshares

There are two main types of timeshares. These are:

·   Deeded timeshares: With deeded timeshares, as the name implies, you receive a deed for ownership of real property. You are then typically allocated annual points based on your ownership interest in a property.

·   Right-to-use timeshares: “Right-to-use” timeshares do not include ownership of real property. Instead, you typically own shares of a trust, which owns multiple properties. Your annual points are then allocated based on the number of shares you have in the trust. This type of ownership has become more common in the last twenty-five years.

The type of “ownership” you have may be very confusing as you may have been told or led to believe you have deeded ownership in a property, but this may not be entirely accurate.  The type of ownership you have is critically important in “foreclosure” cases as it will affect the rights and remedies of the timeshare developer as well as your own.

Monitoring Your Credit Report After A Timeshare Foreclosure

After a timeshare “foreclosure,” monitoring your credit in the future is essential. It may be helpful to use a real-time service that monitors all three of your credit bureaus. Should your timeshare developer or any credit report, you should receive instant notification. If this happens, do not panic. Call an experienced timeshare attorney, who will help you take the necessary steps to solve the problem.