Timeshare Industry Veteran Tells All

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Original Message:

Deedbacks, foreclosure (by KC):

danielc496 wrote:
My unit is deeded and fully paid for......what if I do a quit claim deed back to the resort? My next question is do foreclosures on time shares effect your credit, or do creditors "get it".

A requirement of any valid deed transfer is "acceptance". In other words, the resort HOA must overtly AGREE to accept a "deedback"; it's not a "one sided" deal. Whether by QC or Warranty Deed does not matter one bit; ACCEPTANCE is still a legal requirement.

Your foreclosure question / issue has a less clear answer. Some resorts won't report a foreclosure, some will. A loan default will ALWAYS be reported, but you indicate your ownership is paid in full. Short answer is "there is no way to really know for sure".

How a timeshare foreclosure is perceived by a lender also varies. None ever regard it favorably of course, but it might not be "fatal" if it's the ONE AND ONLY ding in a long credit history. If you're young, a foreclosure in early adulthood will not be regarded positively.