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"we have come to an agreement with our lender, however, in order to fulfill that agreement and keep our home we have to let the timeshares GO. We pay $460.00 per month." You are restructuring your home loan - very common these days in California - and your lender is requiring you to "let the timeshares GO" as part of the restructuring agreement so you in effect have no choice concerning the timeshares. Having mortgages on the timeshares does further complicate matters. There is a significant difference between a maintenance fee and a loan to purchase the timeshares. The timeshare loan is a personal obligation meaning you signed a contract (note) promising to repay the loan just as you would a credit card debt or a car loan. The loan on the timeshares is probably secured by the timeshares and the mortgagee (the lender who financed your purchase of the timeshares) will probably foreclose and take title to the timeshares. That is not all bad because it will free you of the maintenance fee issue. The downside is that you will have the foreclosure on your credit record as well as the possibility of the mortgagee going after you personally for the difference between what is obtained at the foreclosure sale and the amount you owe for the timeshares. The difference could be huge. Some states (Colorado, for example) do not allow a mortgagee to look to the mortgagor (you) for the difference between the amount recovered at the foreclosure sale and the amount owed. Very complicated issues are involved here including a conflict of state laws issue (Hawaii and California) and I agree - again with Ken - that you definitely need legal advice. You should keep written proof that your home lender is requiring you to default on the timeshare loans. That could be helpful to you on down the road when explaining to a future credit grantor why you defaulted on the timeshare loans.