Recently Fitch Ratings released a report concerning the timeshare industry. They found timeshare mortgage defaults were up sharply during the third quarter of 2008. During September of 2007 the default rate was 3.1 percent, compared to 4.1% during the same time period of 2008. The timeshare industry has been fairly resilient to the recent economic downturn that the United States and rest world have experienced. The state of the economy and the strain it has placed on the citizens of the United States seems to be catching up with the timeshare industry.

Fitch Managing Directory John Bella had this to say about the timeshare industry and the effect of the economy on it, “Delinquencies and defaults will likely continue to trend upward as the winter performance deterioration typical of timeshare ABS takes hold and the unemployment level increases. Negative rating actions, however, are expected to be limited due to the significant growth in credit enhancement that has occurred in most transactions.”

One option for timeshare owners finding themselves in over their heads is to refinance their timeshare loan. Many times owners will find they can apply for a new loan at a lower rate than they received from the resort developer. Another option that many people are not aware of is giving the timeshare back to the resort. This will not cancel out your timeshare loan, this option is best if you do not owe anything to the developer or other loan company. Not every resort will allow owners to give back their timeshare, for more information owners should contact their resort.

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