Can a lien be placed on my home if my timeshare is foreclosed on?

I've always made on-time monthly payments on my timeshare until now...I've filed for hardship with the timeshare company but haven't received an answer from them. I am thinking of letting it go into foreclosure because I can't make payments anymore. They won't let me sign the Warranty Deed in Lieu of foreclosre and instead offered me a downgrade. I'm afraid of legal issues. What should I do?