Timeshare owners walk away

January 18, 2010 5:16:41 PM PST
7 On Your Side has reported that some are so bashed by the down economy they just walk away from homes they can no longer afford. Well, it is happening to timeshares too.

When timeshare owners walk away and stop paying their yearly fees, that money has to come from someone. Usually the other timeshare owners have to make up the difference.

"Like any large household, there are fixed expenses. There is expenses, insurance, employees and upkeep and it must be paid by the owners association. If there are fewer owners paying in, those coasts get passed on to those owners paying their bills," says Mark Silverman who writes about timeshares for the San Francisco Examiner.

Silverman says there has always been potential for fee increases and most timeshare contracts allow them.

Still Silverman does not see this as widespread; none the less, it is something to keep track of so as an owner, you do not get hit with a nasty surprise or as buyer don't purchase into a half empty complex.