Just as you could buy a foreclosed house at a low price, it is also possible that you could get a great deal on a foreclosed timeshare. But just like buying a foreclosed home, you need to do your due diligence to make sure that you get the most of your hard earned money. So before committing to purchasing a timeshare, whether in the mountains or on the beach, you have to understand the most crucial legal aspects that come with the buying process.
Top Things to What Out For When Buying a Foreclosed Timeshare
When times are tough, among the most common things that people tend to offload from their budget is their timeshare, specifically, payments for its mortgage and yearly maintenance fees. Attorneys at The Law Offices of Susan M Budowski, LLC note that generally speaking, the timeshare foreclosure process would either be non-judicial or judicial depending the state rules where the timeshare is located. Either way, however, the interest on the timeshare would be sold at a bargain price in an auction to repay the debt on it.
Let’s say that after doing your due diligence—researching the timeshare seller, inspecting the property, etc.—you decided to buy the timeshare; the chances are that you might still be liable for debts on the timeshare. For instance, it’s quite common for foreclosed timeshares to come with unresolved liens due to foreclosure. This means that it’s crucial you conduct a title search to avoid being blindsided by unknown debts.
It’s likewise vital to note that one you bought the timeshare, you’d also be responsible for its yearly assessments. In general, the assessment rate would be calculated from the timeshare’s original price and not the reduced price you purchased it at. Also, while you could try to challenge the rate, it’s most likely to go higher each year.
Getting Professional Help
Conducting a title search and figuring out whether or not the timeshare you purchased has debts on it could be tricky. With this in mind, it’s in your best interest to consult an attorney experienced with timeshare transactions to help you determine whether or not the timeshare you purchased is a great investment. More importantly, having an attorney on your side could help you avoid being a victim of timeshare fraud or resale scam.