Costs To Get Out Of A Timeshare
On average, it costs about $5,000 to $6,000 and takes 1218 months to get out of your timeshare contract using a timeshare exit company. But the cost and the timeframe can vary depending on a number of factors including, how many contracts are attached to your timeshare.
Believe it or not, your one timeshare can have multiple contracts on it. Each time you upgraded your timeshare, or made changes to your vacation dates, the timeshare company slapped another new contract on top of the old one. Those contracts add up over time. And to get you out, your timeshare exit service has to cancel each one. Lots of contracts on your timeshare mean more work for them and a potentially higher cost.
But even if youve been in your timeshare for years and years, it might still be worth it to hire a timeshare exit company. Doing it yourself can feel like trying to run through a brick wall, and a professional exit team can actually save you money in the long run¾more on the cost to benefit ratio later.
How To Get Out Of A Timeshare Without Ruining Credit
While timeshares can provide you with a lot of great memories and act as a home away from home, there can be many reasons for you to explore options on how to get out of your timeshare. Some families facing financial hardship may not be able to keep up with the annual fees, or a health concern is keeping you from vacationing the same way you used to. So what do you do? If you want to get out of a timeshare there are a few options you should be aware of.
Can You Refuse To Inherit A Timeshare
When heirs are named as co-trustees on a timeshare, they are given the option to keep the timeshare, sell it, or abandon it altogether. However, even in the absence of being named as co-trustees, heirs can refuse to inherit a timeshare by filing a refusal to accept through a Disclaimer of Interest letter written to the probate court handling the estate.
Contact United Debt Settlement to learn more about timeshare debt. Give us a call at or fill out our online contact form.
About the Author: Steven Brachman
Steven Brachman is the lead content provider for UnitedSettlement.com. A graduate of the University of Michigan with a B.A. in Economics, Steven spent several years as a registered representative in the securities industry before moving on to equity research and trading. He is also an experienced test-prep professional and admissions consultant to aspiring graduate business school students. In his spare time, Steven enjoys writing, reading, travel, music and fantasy sports.
Don’t Miss: How Much Do You Owe On Your Mortgage
Does Timeshare Affect Your Credit
Yes. If youve ever wondered about the effect of timeshare on your credit, youre not alone. Just like any mortgage payment, its key to maintain your payment schedule and to not fall behind on timeshare mortgage payments and assessments. And while foreclosure is rare , timeshare foreclosures do show up on credit history reports and have a potentially significant impact on credit scores.
Renting Out Your Timeshare
Some peoplelike those self-proclaimed timeshare experts you meet online or your know-it-all Uncle Lousay its smart to rent out your timeshare. Their logic is that at least youll get some money for your trouble.
But this option stinks like a dead possum under the porch for several reasons. First, most resorts dont allow it. Second, it only takes one bad renter to trash the place and leave you with a massive repair project that costs you more money and gets you in trouble with the resort. What a headache!
And even if you do find good renters, the money you make probably wont cover your costs. Timeshare rentals are a Band-Aid at bestand they widen the cut at worst. Youre trying to stop the bleeding, so steer clear.
You May Like: Is Phh A Good Mortgage Company
Get Help From An Expert Timeshare Exit Team
The timeshare industry has a major bias against timeshare exit companies and often tries to steer owners away from seeking third-party cancellation services. Doing an online search of exit company scams on forums like Timeshare Users Group will only confirm the distrust surrounding them. There are so many articles about exit companies caught running off with timeshare owners money without getting them out of their contracts like they had promised to do. Yes, there are reasons to believe that plenty of timeshare exit companies are not legit, but Centerstone Group is not one of them.
Centerstone Group is a full-service advocacy group that specializes in resolving timeshare contracts for clients seeking cancellation. Our exit team not only helps clients whove been victims of fraud, high-pressure sales tactics, and misrepresentation during the timeshare sales process. We also specialize in getting clients with paid-off timeshares out of their contracts with our transfer services. So if your timeshare developer is not allowing you to sell your timeshare back to them, enter the resale market, give your property away, or rent it out, we may be your best bet for exiting ownership.
Know Your Loan: Is The Mortgage Loan On Your Timeshare Secured By The Property
Many timeshare buyers finance their purchases through the resort. Timeshare sales presentations almost always include a financing option. In this case, your mortgage is secured by your timeshare ownership. Your timeshare is considered to be encumbered. You will not be able to sell the timeshare unless you find a buyer willing to assume the mortgage, which is unlikely.
If you want to get rid of a timeshare with a mortgage balance, you need to know who you owe the balance to, how much you still owe and whether your loan is secured by the timeshare you own.
Read Also: How Many Months Bank Statements For Mortgage
How To Get Rid Of A Timeshare
11 Min Read | Apr 14, 2022
Youve come to dread watching the money drain out of your bank account when your timeshare payments and maintenance fees are due. At this point, the resort is like a rude guest eating all the food at a partyand they never get the hint that youre sick of them. Maybe it wasnt always like this. Maybe you used to enjoy your timeshare before the kids grew up, your spouse got sick or your finances changed. Or maybe you realized it was a horrible mistake the day after you signed the papers.
Whatever the case, now you feel trapped. And just like 85% of timeshare owners, youre wondering, How can I get rid of my timeshare?1 Timeshare cancellation can be a bit tricky, but there are ways to get out. Check out these options:
Take Advantage Of The Rescission Period
Another alternative is to cancel the timeshare purchase within the rescission period. This is a window of time, typically five to seven days, in which you can back out of the contract for any reason.
Rescission laws exist in every state in the United States and allow buyers who change their minds within a few days after signing to offset their timeshare ownership. After that, you must go back to the purchase date and follow the steps to cancel.
This option is worth considering if you do not wish to continue your unwanted timeshare. Remember: if you bought through a broker, read the contract carefully as brokers are not legally obligated to provide cancellation information.
Working with an attorney who focuses on helping people exit a timeshare contract legally can be helpful as you navigate the contract and deal with the broker or timeshare company.
You May Like: Are There Different Types Of Reverse Mortgages
Check If You Can Still Cancel The Contract
If you signed on a timeshare contract recently, you may still have time to cancel the contract. Most timeshare contracts come with a rescission period wherein you can back out of the agreement when you feel buyers remorse. This retraction period varies from one state to another but it can be between 3 and 15 days. It starts on the date you signed the contract. If you decide to cancel it within that time, you dont have to provide any elaborate explanation.
How to get out of timeshare legally? In Michigan, you have 9 nine days to cancel your timeshare after you signed the contract. In Alabama, the rescission period is five days, seven in California, and ten days in California. The cooling off or revocation period is different from one state to another so be sure to check your contract first.
You should also check your contract for a deed-back clause or program that allows you to return or sell your timeshare back to the resort or developer if you meet certain conditions.
Want To Get Out Don’t Take No For An Answer
So how do you get rid of your timeshare? Derek Potts, the managing partner of The Potts Law Firm, has represented several clients in matters related to timeshares. He says the best way to get out is to do so as soon as you have doubts about your purchase.
Timeshare contracts offer anywhere between 3 to 15 days to cancel a contract. You also may have some recourse under your state’s consumer protection laws. But if you’ve owned the timeshare for longer, you still have options.
“Outside of that window, state consumer protection laws usually quote a statute of limitations of less than three years to tackle misrepresentation claims and other deceptive trade practices issues involved in timeshare litigation,” he says.
What if you’re falling behind on your mortgage payments or maintenance fees? Potts and other experts say you should contact your resort’s owner or member services and ask for relief.
“In no case should you speak with anyone in the sales department,” adds Schreier. “They have one job and that job is not to help you figure out your finances.”
For some timeshare owners, there may be no way out.
Getty
Don’t Miss: What Is The Amortization Schedule For A 30 Year Mortgage
What Is The Average Cost To Get Out Of A Timeshare
The cost of getting out of a timeshare varies depending on various factors including the number of contracts attached to it. According to the data provided by the Timeshare Exit Team, the average figure is $4,000, which includes the annual maintenance fees, closing costs, broker fees, lawyer fees. Some say it could reach up to $6,000 if it comes with multiple contracts.
A new contract is added to your timeshare every time you make changes or upgrades to your current agreement such as changing the vacation dates. When you try to get out of a timeshare, each contract needs to be canceled. It means more work for the timeshare exit service, which translates to higher costs.
How Do Timeshare Cancellation Companies Work
For more than a decade, Lonestar Transfer has been dedicated to helping our clients free themselves of the financial burden of a timeshare. We offer free, no-obligation, private consultations. We are not a listing company, and we will never make promises that we cannot honor. We are committed to keeping you informed every step of the way until you are legally and permanently released from timeshare ownership.
When youre looking for timeshare cancellation help, beware of scams. Always work with a company like Lonestar Transfer that strictly follows the law and has a physical office here in the United States.
As a family-owned and operated timeshare advocacy firm, customer service is our biggest priority. Were so committed to helping our clients with their timeshare mortgage cancellations that all of our timeshare exit solutions come with a written guarantee.
For help with timeshare mortgage cancellation, dont hesitate to contact us. Schedule your free, no-obligation consultation with Lonestar Transfer today.
Recommended Reading: What Is A Jumbo Mortgage Loan Amount
Can I Give My Timeshare Back To The Resort
A few options are available if youre stuck in a timeshare you no longer want. You can try to sell it, give it back to the resort, or cancel the contract. However, getting out of a timeshare legally can be difficult and may require help from an attorney.
If you consider returning your timeshare to the resort, read your contract carefully. For example, some resorts will only accept the return of a timeshare if it was purchased within a certain time frame. For example, some might take a timeshare for any purchase made during the last ten years.
Sometimes, you can give your timeshare back to the resort and walk away. All sales are final with most resorts, but some offer 30-day returns or other policies that allow you to cancel a timeshare within a certain period after purchase.
Can You Just Walk Away From A Timeshare
With a timeshare, its unlikely youll ever be able to walk away without penalties for remaining with the timeshare. Thats because many timeshares come with an obligation to pay maintenance fees until you can eventually find a buyer. However, if youre considering walking away from your timeshare, here are a few things to note:
- First, understand that you likely wont be able to resell your timeshare for what you paid. Its common for people to lose money on their timeshare purchases because there is not much demand in the resale market.
- Second, your credit score may be affected if you default on payments.
- Finally, you may be subject to a lawsuit if you stop making payments.
Therefore, before you walk away from your timeshare, consider all the potential consequences and ensure you fully understand how these decisions will affect your present and future financial standing.
Recommended Reading: Should I Refinance My Mortgage With My Current Lender
How To Legally Cancel A Timeshare Contract
Reality often sets in after youve been dazzled by a sales pitch. Just hope it doesnt take too long.
The Federal Trade Commission has a three-day cooling off period on many purchases. So, if you bought a Mongolian dinosaur skull for $200,000 and your spouse is threatening divorce, its comforting to know you have 72 hours to save your marriage.
Buyers paid an average of $21,455 for their timeshare interval in 2018. What if your spouse is threatening to leave because you were dumb enough to buy one in Detroit?
Good news, Dumbo! You have nine days to cancel in Michigan.
Most states have fixed periods in which you can cancel. Its often called a rescission or revocation.
The beauty is you usually dont have to come up with some elaborate justification. In fact, you dont have to give any reason. Its your right to change your mind, especially if your marriage depends on it.
The cancellation period typically begins the date you sign the contract, or the date you receive a disclosure statement. Sellers are required to provide information on cancellation and place your money in an escrow account until you close the deal or cancel the purchase.
The cooling off period varies from state to state, and some states dont count Sunday as a day, so be sure to read the contract to find out when the clock starts ticking.
Ask The Resort To Take It Back
If you missed the recission period, there are still ways to get out of your timeshare. Some are surprisingly simple, like a timeshare deed-back. This is a legal, low-cost way to give the property back to the resort.
Look through your timeshares paperwork to see if this is an option for you.
You may even want to try Dave Ramseys approach and offer the resorts sales manager an incentive, since theyll have to buy your timeshare back from you and then resell it.
Just be careful! Sometimes when you call, the resort sees it as an opportunity to upgrade your timeshare. You do not want to walk away with an additional contract chaining you down.
Also Check: How To Buy Defaulted Mortgages From Banks
List Your Timeshare For $1 Or Give It Away
If you cant sell your timeshare for any appreciable amount and you are unable to do a Timeshare Deedback, you may be able to find someone to take over your timeshare for you. Obviously, youll lose money on this deal, but at least you wont have to pay taxes and fees on the timeshare going forward.
The TUGBBS Bargain Bin is a forum set up specifically for people who are looking to give their timeshares away and for people who might be willing to take them.
Option #: Hurry Use Your Recession Period
If you just bought and want to know how to get out of a timeshare contract, hopefully, youre reading this while youre still on vacation. There is a rescission period cooling off timeframe to cancel timeshare purchases AND get your money back like a mortgage agreement for your house. The length of your rescission period depends on the timeshare law in the state your timeshare is located. You have 3-15 days to contact the resort and file a rescission letter for a timeshare cancellation.
Don’t Miss: What Is The Current Mortgage Default Rate
We Will Cancel Your Timeshare Contract
Our timeshare relief experts are here to help with your timeshare exit needs.
Free Consultation
We need to have a clear understanding of your situation. Not every client qualifies for our program. We have the most comprehensive timeshare cancellation program to date.
Client Onboarding
Each client has their own online portal to track their status for live updates. It only takes minutes to setup and you will know exactly whats going on 24/7
Action And Defense.
Cancellation And Credit Clean.
How Do I Get Rid Of My Timeshare
There are three ways to get out of timeshare in normal times:
Sell it or give it back. A site like ARDA’s Responsibleexit.com can connect you with timeshare developers who have free or low-cost exit options or professional licensed real estate brokers that specialize in timeshares. You can list your timeshare on a website like the Timeshare Users Group. Or you can also contact a timeshare reseller, although that can be complicated.
“Selling a timeshare can be tricky, especially in today’s travel climate,” says Mike Kennedy, the CEO of KOALA, a vacation rental platform that specializes in timeshare rentals. “Set your expectations low. The market does not empathize with what you paid for your timeshare. The true resale market is typically much much lower than what someone has paid.”
Negotiate your way out. Most timeshare companies don’t want unhappy owners. You can engage with your timeshare company and ask about exit options. Note: Exiting may cost you money, though.
For example, when Dan Bailey tried to get rid of his timeshare in Orlando, the company let him off the hook for a price. “We were offered a one-time termination fee of $4,000 to terminate the contract,” he says. Bailey, who runs a lawn care site in Texas, accepted the offer.
But during the COVID-19 pandemic, some of these tried-and-true strategies don’t work the way they used to.
Some timeshare developers want you to buy more during the pandemic.
Getty
Read Also: How Can Self Employed Refinance Mortgage
