How to Invest in Timeshare Foreclosures

If you want a vacation home but don't want to pay a lot of money, consider investing in a timeshare foreclosure. Timeshares are attractive because they let you travel to locations around the globe, stay in a fabulous resort and pay a fraction of the cost. And since timeshare owners occasionally default on their payments, you can get a good deal on a foreclosure.

Difficulty: Moderate

Instructions

1. Attend a timeshare presentation. Timeshare companies regularly invite guests to preview their properties and enjoy a free weekend on the premises. If you're serious about buying a timeshare, wait until the end of the presentation, and then ask about a foreclosure.

2. Contact a realtor who specializes in timeshare sales. Certain real estate agents handle timeshare transactions. If you want to buy a foreclosed timeshare, get in contact with an agent and ask to see their available listings.

3. Buy the right type of timeshare since there are different types. With some, you have to visit the same location every year. On the other hand, other timeshares feature exchange programs in which you can travel to any resort worldwide.

4. Be prepared to pay a down-payment and settlement fees. While foreclosed timeshares offer an excellent deal, you're still responsible for the down payment, closing cost and maintenance fees. If you don't have the available cash, negotiate and wrap the cost into the loan balance.

5. Carefully review the contract. Once you sign your name and agree to buy a foreclosed timeshare, you have three business days to change your mind. During this time, mull over the contract. If possible, have an attorney review the agreement.