Guide
Maintenance Fees During a Timeshare Exit
Fees usually stay due until your name is off the deed or contract. Here is what that means, and how arrears affect your options.
- Published by
- Client Protection Group
- Reading time
- 5 min
While an exit is in progress
- TodayYou are still the owner of record, so the fees are still billed to you.
- The fees keep comingEvery billing cycle, until the exit is complete. How long depends on your developer, your contract and any loan.
- Written confirmationThe fee obligation ends when ownership formally changes. The developer should confirm it in writing.
The short answer
Maintenance fees stay due during an exit.
Until your name is legally off the deed or contract, you remain the owner, and the financial obligations that come with ownership continue. Stopping payment prematurely is one of the most common mistakes owners make, and it frequently damages both your credit and your exit prospects.
Why fees keep accruing
A timeshare exit is a legal process that ends with a formal change of ownership — a deed transfer back to the developer, a contract termination, or another legally recognized mechanism. Until that process is complete and the paperwork is finalized, you are still the legal owner of the timeshare interest.
Maintenance fees are billed to the owner of record. Your developer does not stop billing you because you have hired an exit company, because you are unhappy with your purchase, or because you have said you intend to exit. The fee obligation is contractual and continues until ownership formally changes.
Exit timelines vary. Cases often take many months, sometimes more than a year, depending on the developer, your contract and any loan. Fees continue to accrue for the entire period.
The consequences
What happens if you stop paying.
Credit impact
Unpaid maintenance fees and loan payments can be reported to credit bureaus, and negative items can stay on your credit report for up to seven years.
Collections activity
Developers routinely refer delinquent accounts to collection agencies. You may get collection calls and letters, and potentially be sued for the outstanding balance plus interest and fees.
Foreclosure risk
In some states, with some developers, sustained non-payment can lead to foreclosure on the timeshare interest. The process and threshold vary by developer and state.
Losing eligibility for surrender programs
Many developers require an account to be current as a condition of accepting a deed-back application. Falling behind while pursuing an exit can disqualify you from a program that would otherwise apply.
Where you stand
How arrears affect your exit options.
Whether you already have maintenance fee arrears, and how much, is one of the first things a legitimate exit company will ask about.
| Arrears tier | Situation | Effect on your options |
|---|---|---|
| Current | Current on all fees and mortgage | Best position for an exit. Most developer surrender programs are available. Widest range of options. |
| 1–3 months | 1–3 months behind on maintenance fees | Many developers will still consider a surrender request, but some require arrears to be cleared first. Depends heavily on the developer. |
| 6+ months | 6 or more months behind on maintenance fees | Formal surrender programs become harder to access. Hardship programs may still apply with documentation. Third-party exit assistance may need a different approach. |
| Collections | In active collections or legal proceedings | Requires careful evaluation. Some paths remain available, but the process is more complex, and an attorney may need to be involved alongside an exit company. |
Common questions
Fees, arrears and what they mean.
Do I have to keep paying maintenance fees while my exit is being processed?
In most cases, yes. Until the exit is formally completed and your name is removed from the deed or contract, you remain the legal owner and the fee obligation continues. Stopping payment before the exit is finalized can damage your credit and may give the developer grounds to reject an otherwise viable surrender request.
What if I stop paying maintenance fees?
The developer will typically begin collection proceedings. Depending on the amount owed and the developer, this may include credit bureau reporting, referral to a collection agency, or a lawsuit. Approaches vary by developer, and credit damage from timeshare delinquency can be significant and lasting.
Will my exit company cover my maintenance fees?
No. An exit company manages the process of exiting your contract. It does not pay your maintenance fees or mortgage. Those obligations remain yours until the exit is complete.
Do maintenance fee arrears prevent an exit?
It depends heavily on the developer. Many will not accept a deed-back from owners significantly behind on fees, and some require arrears to be cleared before processing a surrender. Others are more flexible in documented hardship situations. A case review will show where you stand with your specific developer.
If I have a timeshare mortgage, do I need to keep paying that too?
Yes. Until the mortgage is satisfied or the lender agrees otherwise, you are legally obligated to make payments. Defaulting has the same credit consequences as defaulting on any other loan, and may lead to foreclosure proceedings.
Can I stop paying to pressure my developer into an exit?
Some owners try this, but it is generally not advisable. Developers are typically not moved by payment pressure and are more likely to pursue collections than to speed up an exit. The credit damage from delinquency can outweigh any short-term advantage.
I have already stopped paying. What now?
Your options depend on how long you have been delinquent, the developer’s policies, and whether collections or legal action have already started. A case review can help you understand where things stand and what paths may still be available. The situation is not necessarily hopeless, but it does call for an honest look at your current options.
What happens to my fee obligation once the exit is complete?
Once your exit is formally complete — deed returned, contract terminated, or ownership legally transferred — your maintenance fee obligation ends. The developer should provide written confirmation. Keep that documentation permanently.
Before you decide
Our recommendations.
Stay current on maintenance fees and mortgage payments until your exit is formally complete, if you are financially able to.
Get everything in writing before working with any exit company, including what happens to your fees during the process.
If you are already behind, get a case review to understand what options remain before making any further decisions.
Consult a tax advisor if your situation involves maintenance fee debt that may be forgiven — forgiven debt can be treated as taxable income.
Consult a licensed attorney if you are already in collections or legal proceedings related to your timeshare.
Sources
Check it yourself.
These are independent sources, not CPG. Use them to check anything on this page.
- FTC: Timeshares, vacation clubs, and related scams
consumer.ftc.gov · Scam warnings and consumer rights specific to timeshares.
- CFPB: Submit a complaint
consumerfinance.gov · For a financed timeshare whose terms you believe were deceptive.
- NAAG: Find your state attorney general
naag.org · Find your state attorney general’s complaint process.
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