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Defaulting on a loan (...any loan, timeshare loans included) will usually (at least 70% of the time) result in a negative credit report, which will then remain in place for 7 years. However, for a fully paid off timeshare (i.e., no unpaid loan balance), failing to pay maintenance fees will inevitably result in foreclosure, but no other consequence in at least 85% of reported instances. So, to answer the question "What do you stand to lose?", if there is no unpaid loan involved, it's a high probability that the answer is NOTHING. If you send a letter, make it abundantly clear to the HOA that they really have only two choices --- willingly accept a deedback, or expect to see [b]not another penny[/b] --- and just go right ahead and foreclose. Give them those two crystal clear choices. No need to grovel; you have leverage here --- so exercise it!