Problems with owning a timeshare property include required payment of additional expenses in addition to mortgage payments, potential scheduling conflicts, and difficulty in renting or selling the timeshare. Purchasing a timeshare typically requires a large initial monetary payment, and up to 50 percent of the purchase cost goes towards sales commissions, marketing and organizational fees. Financing a timeshare purchase is difficult to arrange, and they typically depreciate in value after the purchase.Continue Reading
Timeshares are alluring due to the convenience of sharing ownership of a vacation home without taking on the entire financial burden of property ownership. However, some timeshare owners experience difficulties in scheduling dates to stay at the property, which is contrary to the easy scheduling often promised during the sales presentation. Some states have laws that prevent sellers from making deceptive statements regarding scheduling. Deeded timeshares lock owners into specific usage time periods, while non-deeded timeshares give purchasers the right to use a given property for specified times or flexible time periods.
Potential timeshare owners should read and fully understand the usage agreements before committing to purchases. Timeshare owners who default on mortgage payments, maintenance fees, taxes and special assessments risk foreclosure if loans were used to make the purchase. Some timeshare mortgage lenders can win court judgements to collect the outstanding debts owed after sales of defaulted timeshares.Learn more about Real Estate