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While timeshare owners are looking for financial and timeshare relief during these tough economic times, they need to prepare for special assessment fees courtesy of timeshare developers. The current economic climate has created a troubling trickle-down effect. With timeshare corporations no longer able to easily access credit, they are eyeing another source of revenue — all their timeshare owners.

While some timeshare owners know of the special assessment fee, few know that timeshare resorts can call for nearly any amount they deem necessary. The financial impact for these economic extenuating circumstances can add up to high dollar amounts for owners.

Reports of $500 to $3,000 special assessment fees being doled out have recently surfaced. These outrageous amounts are hitting owner pocketbooks at the same time personal incomes are stagnant or falling, and as retirement funds drop like rocks thrown into a pond. The financial blow has opened some eyes as to the fragility and milk-them-for-everything mentality of the timeshare industry.

Even with the bad economy, why are the special assessments so large? In good times, developers can leverage the upfront fees that owners pay or finance to get new commercial loans to build more timeshares. As timeshare sales drop, there may be no income to pay the interest and principal on the loans. The maintenance fees are not enough to cover everything.

So, what if owners decide not to pay the special assessments (or maintenance fees)? Many timeshare contracts allow default judgments that impose severe monetary penalties and court fees on top of the original fees owed. Continued non-payment results in liens placed on real property like the timeshare owner’s home or garnished wages.

With the timeshare resales market already saturated, there is little left to do but to pay the bills and keep the timeshare. Many charities don’t even want the liabilities. For some timeshare relief, owners can try to rent their units to recoup some cost. But, they need to realize that their resorts are probably doing the same thing, yet at lower rental rates.