The short answer is “yes.” When you take out a mortgage loan for a timeshare purchase, you sign an agreement to make monthly payments on the timeshare until the debt is completely paid off (generally for a period of 10 or 15 years).
Will giving back your timeshare hurt your credit?
A timeshare foreclosure will not ruin your credit score forever, but it could have a significant impact on your ability to obtain another mortgage for up to seven years. You might also face future loan denials or high interest rates if you apply for other forms of credit, like a car loan or credit card.
What happens if I walk away from my timeshare?
Some people just stop paying on their timeshares. If you do walk away, don't be surprised to see a big hit to your credit score and to start getting regular calls from collection agencies. You might regret your purchase, but you did sign a legally binding contract.Jul 6, 2016
What happens if I stop paying my timeshare mortgage?
If you stop paying on your timeshare loan, you face foreclosure. Foreclosure is the process whereby the lender files to take possession of the property and sell it at auction to recover the money you owe. ... Your contract authorizes the trustee to sell the timeshare in the event you stop paying on it.
What happens if you just stop paying your timeshare?
If you stop paying on your timeshare loan, you face foreclosure. Foreclosure is the process whereby the lender files to take possession of the property and sell it at auction to recover the money you owe. ... Your contract authorizes the trustee to sell the timeshare in the event you stop paying on it.