Skip to content

What Happens When You Don’t Pay Timeshare Maintenance Fees?

Step 1 of 6
canceltimesharegeek

Owning a timeshare involves recurring financial obligations, with maintenance fees being one of the most significant ongoing costs. While these fees are essential for maintaining the property and its amenities, some owners may find themselves unable or unwilling to pay. But what happens when you don’t pay your timeshare maintenance fees? Let’s explore the financial and legal implications and potential solutions for timeshare owners.


At CancelTimeshareGeek, we specialize in helping timeshare owners navigate challenges like unpaid fees and provide effective strategies for resolving these issues.

Step 1 of 6

Understanding Timeshare Maintenance Fees


Timeshare maintenance fees are annual or periodic charges that cover the cost of maintaining the resort and ensuring that it remains operational and appealing.



Key Components of Maintenance Fees



  • Resort Upkeep: Covers cleaning, landscaping, and repairs to common areas and facilities.

  • Utilities: Includes electricity, water, and other utilities for shared spaces.

  • Staff Salaries: Funds the wages of resort employees, such as housekeeping and administrative staff.

  • Reserve Fund: Allocates money for unexpected repairs or future upgrades to the property.



Average Costs


Maintenance fees vary but typically range from $500 to $1,500 annually, depending on the resort, location, and size of the timeshare unit. High-end resorts or exclusive locations may charge more.



Consequences of Failing to Pay Maintenance Fees


Failure to pay maintenance fees can lead to escalating consequences that affect both your finances and timeshare ownership.



Immediate Consequences



  • Late Fees: Resorts often impose late payment penalties, increasing your overall debt.

  • Loss of Access: Non-payment can result in the suspension of your right to use the timeshare.



Long-Term Consequences



  • Collection Efforts: Unpaid fees may be sent to a collection agency.

  • Legal Action: Resorts may initiate lawsuits or foreclosures to recover unpaid amounts.


Ignoring maintenance fees is not a viable solution and can lead to severe financial and legal challenges.

Find additional info at our featured Timeshare Exit Companies.

Will Your Credit Score Be Affected?


Yes, failing to pay maintenance fees can negatively impact your credit score if the debt is reported to credit bureaus.



Credit-Related Impacts



  • Negative Reporting: Resorts or collection agencies may report delinquent accounts to credit bureaus, reducing your credit score.

  • Long-Term Effects: Delinquencies remain on your credit report for up to seven years.

  • Higher Borrowing Costs: Poor credit can result in higher interest rates on loans and other financial products.


Protecting your credit score is essential, so addressing unpaid maintenance fees promptly is critical.

Can the Resort Foreclose on Your Timeshare?


If fees remain unpaid, the resort may take legal action to foreclose on your timeshare, especially for deeded ownership.



Foreclosure Process



  • Notice of Default: The resort notifies you of missed payments and potential foreclosure.

  • Legal Filing: If unpaid, the resort may file for foreclosure in court.

  • Auction or Repossession: The timeshare is sold or repossessed to recover the debt.


Foreclosure can result in losing your timeshare and damaging your credit and financial reputation.



Legal Actions Timeshare Companies May Take


Timeshare companies have several legal avenues to recover unpaid maintenance fees.



Common Legal Actions



  • Lawsuits: Resorts may sue you for the outstanding balance, including late fees and legal costs.

  • Wage Garnishment: Courts may order wage garnishment to recover unpaid fees.

  • Asset Liens: In some cases, resorts may place liens on other assets you own.


These legal actions can be costly and stressful, making it essential to address unpaid fees proactively.

Cancel Your Timeshare. Start with a Free Consultation!

Step 1 of 6

How to Negotiate or Reduce Unpaid Maintenance Fees


If you’re unable to pay your fees, negotiation may be an effective way to manage the situation.



Tips for Negotiation



  • Contact the Resort: Reach out to the resort’s management to explain your financial difficulties and request a payment plan or fee reduction.

  • Request a Waiver: Some resorts may waive late fees or penalties in specific situations.

  • Seek Professional Help: Partner with a timeshare exit company like CancelTimeshareGeek to explore your options and negotiate on your behalf.


Negotiation can help you avoid severe financial consequences while maintaining a cooperative relationship with the resort.



Alternatives to Not Paying Timeshare Maintenance Fees


If you’re struggling to pay maintenance fees, there are alternative solutions to consider.



Viable Alternatives



  • Rent Out Your Timeshare: Generate income by renting your timeshare to offset costs.

  • Sell Your Timeshare: Use resale platforms to find a buyer and eliminate your financial obligation.

  • Deed-Back Programs: Some resorts offer programs to return your timeshare in exchange for ending your financial responsibilities.

  • Timeshare Exit Companies: Work with experts to legally cancel your timeshare contract.


These alternatives can provide relief without harming your credit or financial stability.

Picture of Ashley Ward

Ashley Ward

Ashley Ward is a knowledgeable and experienced freelance writer specializing in the timeshare industry. She has over three years of professional writing experience, and has been a contributor to CancelTimeshareGeek.com since its inception. Her expertise lies in writing about the ins and outs of the timeshare industry, and her work has been featured in many well-known publications. In her free time, Ashley enjoys spending time outdoors, exploring new places, and spending time with her pets. She is an animal lover at heart.