Individuals who fail to pay their timeshare mortgage payments are likely to face foreclosure. A foreclosure may have a negative impact on credit rating, future loan sanctions or in obtaining better employment opportunities. Listed here are four ways to avoid foreclosure and its consequences.
A short sale refers to selling of the timeshare property for an amount lesser than the liable loan. The seller must however get the lender to waive off the resulting deficiency. This option applies to only those states that do not allow deficiency after a short sale.
Donating the Property
If an individual owns the timeshare property completely but is behind in paying assessments, then the person can donate the property to charity and avail a tax deduction. Post the donation, the seller is no longer responsible for the assessments and those pending from the past must be paid within a stipulated time. Finding a charity organization that can agree to the terms of the contract is the real challenge in this case.
Deedback (Deed in Lieu of Foreclosure)
A deedback refers to handing over the timeshare property to the lender in exchange for cancelling any deficiencies in loan payments. Timeshare owners must however initiate the sales process before letting the bank take over the responsibility.
Negotiating the Terms
The last option left to avoid foreclosure is negotiation with the lender. Timeshare owners may take the advice of a timeshare lawyer in Florida before starting the negotiation talks with the lender. Adjustments can be made in terms on payment time, amount or payment plan to avoid foreclosure.