“If You Stop Paying, They’ll Just Take It Back”: Why That Advice Can Backfire
Many timeshare owners reach a breaking point where frustration turns into resignation. Before you take a move that could permanently damage your financial future, it's vital to know the legitimate process to exit your contract safely. They stop using the timeshare, maintenance fees keep rising, and resort calls go nowhere. Eventually, someone says it—a friend, a fellow owner, or even a salesperson:
“If you stop paying, they’ll just take it back.”
For owners desperate to escape, this advice can sound like relief. Unfortunately, it is one of the most misleading and costly assumptions in timeshare ownership.
Where This Idea Comes From
The belief that nonpayment leads to a simple cancellation usually comes from informal conversations, not written policy. Owners often hear that "that's what everyone does" or that the resort will just "foreclose and it goes away."
What is rarely explained is how timeshare contracts are actually enforced and what stopping payment can trigger. Often, the advice to stop paying is given to owners who are already struggling with unpredictable maintenance fee math.
Why Resorts Do Not “Just Take It Back”
Once the rescission period has passed, a timeshare contract is a legally enforceable obligation. From the resort’s perspective, maintenance fees are predictable revenue. Resorts are not passive; they have legal, administrative, and financial systems designed to pursue unpaid balances.
Taking a timeshare back quietly does not align with their financial incentives.
What Often Happens When Owners Stop Paying
The outcome varies, but common consequences include:
- Late fees and penalties that cause balances to balloon.
- Aggressive collection activity and constant phone calls.
- Credit reporting damage that affects your future financial health.
- Foreclosure proceedings (for deeded ownerships).
- Legal notices and, in some cases, lawsuits or judgments.
In many cases, the situation becomes more complicated and more expensive than it was before. Silence from the resort is not a resolution; it is often just a delay before escalation. This delay only adds to the cost of waiting for a real solution.
[!CAUTION] Harmful to Retirees. For those on fixed incomes, credit damage can affect housing, insurance, and financing. The stress of legal uncertainty is especially damaging during retirement years.
Why Nonpayment Makes Exiting Harder
Stopping payment does not create leverage for the owner; it usually does the opposite. Once an account falls behind:
- Your options for a clean exit narrow.
- Your negotiating power decreases.
- Exit strategies become more complex.
- Resorts become adversarial and less likely to cooperate.
The Myth of “They Don’t Want It Anyway”
Some owners assume resorts don't want the inventory back, so they will eventually release them. In reality, resorts prefer ongoing fee revenue. Accepting defaults undermines the entire system and encourages other owners to stop paying. From a business standpoint, enforcing contracts is the rational move for the resort.
What Owners Should Know Instead
If you are considering stopping payment, keep these realities in mind:
- Nonpayment is not a guaranteed exit.
- Consequences are unpredictable and vary by developer.
- Default usually weakens your legal and financial position.
- Lawful, documented exits are fundamentally different from walking away.
A Clear Path Forward
At NW Advisors Group, we often work with owners who were told to stop paying and later found themselves facing collections or credit damage. Our role is to help owners exit timeshare obligations lawfully and permanently, without gambling on uncertain outcomes.
NW Advisors Group has been helping timeshare owners for over 15 years and is A+ rated and accredited with the Better Business Bureau. We guarantee a legal and permanent exit from your timeshare, or you get your money back.