Why should I cancel my contract instead of selling my timeshare?
Unless you have a ready, willing and able buyer, you are much better off canceling your contract. The average timeshare takes more than three years to sell. In addition, the final selling price is significantly less than the original asking price. Generally, people come out far ahead by paying for a legal cancellation services rather than three or more years of additional maintenance fees. Add to that advertising costs and the time you spend placing ads and the hassle of negotiating with potential buyers, most timeshare owners find that using a legal service is a much better option than trying to sell the timeshare.
What is the usual cost of exiting a timeshare legally?
Each Resort is different and the fees they charge vary so it is impossible to provide an exact figure until you speak to one of our partners. However, in most cases, you can expect to break even on the cost of canceling your Timeshare obligations by no longer paying Maintenance Fees and/or Special Assessments to the Resort. Our partners have decades of experience in this field, charge the least and work the fastest.
What if I just entered into my timeshare contract?
If you just entered into your timeshare contract, it may be possible to rescind your timeshare contract. Rescission basically pretends the contract never happened. Each state has a “cooling off” period during which you have an absolute right to rescind your timeshare contract.
Is buying a timeshare a good investment?
You should never consider a timeshare like a real estate investment. Unlike buying a vacation home, which might possibly increase in value as home prices increase, buying a timeshare doesn’t yield a great return on investment. The Federal Trade Commission indicates that only slightly more than 3 percent of timeshare owners reported reselling their property during the past two decades. Why? It is hard for a timeshare owner to persuade someone to pay more for a used timeshare unit when they often have the option to buy a brand-new one directly from a newer resort next door.
How much is my timeshare worth?
While each piece of property is unique, the general answer is probably not near as much as you paid for it. It doesn’t matter what the timeshare salesman told you, there’s just not much of a resale market for timeshares. It’s really simple economics. First, supply outpaces demand. There are lots of people looking to sell their timeshare in the secondary market, and not very many people actively looking to buy a timeshare. High supply and low demand drive the resale price down.
In addition, developers and timeshare companies continue to sell “new” products all the time. And they spend big money marketing their product. They offer free meals, great prizes, free vacations, and have glitzy sales presentations and sales professionals selling their products. Just because you were willing to spend $10,000 for your timeshare, don’t expect someone else to be willing to pay that amount. Ebay is full of timeshare owners willing to let their timeshare go for $100 or less. There are even websites where owners will transfer the timeshares if the buyer simply agrees to pay the maintenance fees. In other words, they are free!
Another problem is that owners often assume that timeshares will appreciate like typical real property. As a result, they list their timeshares at inflated prices on resale sites and publications, but they never sell at the higher price.
How long does a timeshare exit process take?
In some circumstances, you can be out in less than a month, but in other cases, it can take up to six months or even more. This all depends on your personal situation and how fast you can communicate the documents we need. Our partners have relationships in place with many of the timeshare companies and developers that allow them to fast-track timeshare cancellation.
Do I have to be current on my mortgage payments or maintenance fees to exit my timeshare?
In some circumstances you will need to pay off your most recent bill, but in many cases we can still help you even if you’re a few years behind. As long as you are still receiving some form of paperwork in the mail regarding your timeshare, we can help you. You are responsible, however, for all maintenance fees, taxes, assessments billed (whether billed annually, semi-annually, quarterly or monthly) for all weeks/points that have been used or banked related to the current year if you have any reservations coming up.
Can resorts refuse to “take back” my timeshare?
Absolutely. Timeshare developers or resorts are under no obligation to “take back” your unwanted timeshare. For many of these resorts, your annual maintenance fees are worth more than your actual property title.
Whether you use your timeshare or not, you have to pay the annual maintenance fees and any special assessments written in your contract, so your developer would rather have you keep paying these fees rather than be the one stuck trying to resell your timeshare.
Can I trust timeshare resale companies?
You should always stay vigilant and check with the local consumer protection agencies and the Better Business Bureau (BBB) before paying any fees to a timeshare exit company. There are many resale scammers, timeshare resale companies, who promise to resell your timeshare in exchange for a large upfront fee (a few thousand dollars usually). Once you pay, the promised buyer never materialized.
Can I still use my timeshare during the cancellation process?
Once you have legal representation, the timeshare developer is not allowed to communicate or interact with you, so this would make using your timeshare impossible during the cancellation process. Additionally, using your timeshare while fighting to get out of it is really a contradiction.
Can I just stop paying my timeshare maintenance fees?
You must pay your annual maintenance fees and any other associated fees as long as your contract last (and it could last for many generations depending on what you signed). If you stop paying, your HOA or condominium association may sue you to recover back dues, interest and attorney fees. This is why many timeshare members feel “trapped”.
Can I get out of my timeshare if I still owe money on it?
Possibly. Even if you have an existing mortgage on the property or owe money under a promissory note, it may be possible to cancel your timeshare.
Can I contact my timeshare developer or timeshare resort to offer them my timeshare?
Absolutely. This should be your very first step if you have decided to get rid of your timeshare. Some developers have a resale office specifically designed to assist the owners of unwanted timeshares. They will make you a deal. But we should note that this is the exception rather than the rule. Most of the developers will not not be interested in buying back your timeshare.
Can I amend my timeshare contract to reduce the number of points I have?
Yes, it’s usually possible to amend a contract and reduce the number of points as well as your maintenance fee.
Are my children really going to inherit my timeshare when I die?
In most cases, the heirs, successors or assignees of a timeshare owner can inherit the timeshare and the financial obligation that comes with its ownership, when the owner dies. What many timeshare salespeople won’t tell you upfront, and what many timeshare owners fail to realize, is that most timeshare contracts include a “perpetuity” clause. Perpetuity means “forever”. What this means is that timeshare ownership is a life-long commitment that requires you, and then your heirs, successors or assignees, to pay all timeshare fees forever.