How to Get Out of a Timeshare
Timeshare Defense Attorneys discuss about ways to get out of a timeshare, including important details regarding the legal process for doing so. Learn more and get answers to your questions here!
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How to Get Out of a Timeshare
Many people think that timeshares are the best way to enjoy their favorite vacation destinations on a budget, but this isn’t always the case. Timeshares are essentially renting out space at a resort, which can often be very expensive, even if you’re using all the space available in your timeshare.
When considering buying into the timeshare industry, you need to be aware of how difficult it can be to get out of one when you decide you no longer want it. Unfortunately, many people are stuck in timeshares they can’t afford, and even if they manage to sell their timeshare, they may have to give up much of the profits.
So if you find yourself over your head with monthly payments and maintenance fees, here’s how to get out of your timeshare without losing money or leaving behind severe damage to your credit score.
How to Legally Get out of a Timeshare Contract
There are a few ways to get out of your current timeshare ownership legally. If you have an unwanted timeshare, here are some options.
Reach Out to the Timeshare Developer
According to the American Resort Development Association (ARDA), there are over 1500 timeshare resorts in the United States, each of which has a different process and criteria for selling or giving up its timeshare.
Reaching out to the developer can be a good first step for timeshare owners to take in formulating an exit strategy.
Developers may offer the timeshare owner a surrender program or deed-back program. In this case, owners receive no money from their timeshare cancellation. This strategy has become more common in the last few years and may be rated as one of the easiest and safest ways out of a timeshare contract.
You may also consider offering your timeshare on the resale market if it’s eligible to sell. It’s evident you won’t be able to get the same amount of money you paid for. Don’t let that discourage you; you are not trying to recoup expenses you have already paid but to avoid future costs. You can try finding final sale prices for timeshares like yours and advertise your timeshare on popular sites for selling and buying timeshares.
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 (contract 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.
Rent Your Timeshare
Renting is an alternative means to make money off the property; however, it might require some commitment and extra work. Plus, not all resorts allow you to lease out your timeshare.
Renting your timeshare probably won’t cover your cost. However, if you decide to go down that road, bear in mind that it only takes one lousy renter to ruin the place and leave you with a huge repair project that costs a small fortune and gets you in trouble with the resort. Be sure to contact the developer or resort before renting out your property because it has costs, like potential damage to the property.
Renting out your timeshare only offers you a temporary solution to alleviate the financial burden of a timeshare. However, it may give you the time to seek better options.
Use an Attorney
An attorney can help you navigate the system and ensure everything is done correctly and legally.
When selecting an attorney to help you get out of your timeshare contracts, look for someone who has specific experience with this matter. You may want to read reviews online or get referrals from friends, family members, or coworkers.
Some people worry that paying an attorney will be too costly, but compared to the cost of being stuck in a timeshare for years, it may be worth it.
What Is the Cost to Get out of a Timeshare?
How much you need to pay to break free from a timeshare depends on various factors, such as the number of contracts involved, the location of the timeshare, and more. In general, though, the cost to get out of a timeshare contract should be less than the cost of continuing in the timeshare.
Since there is a legal process involved to exit a timeshare, it is not always a quick process. It can take a few months or more. Beware of timeshare exit companies that promise a quick fix!
How to Get Out of a Timeshare with a Mortgage Balance
If you have a mortgage balance on your timeshare, you’ll need to work with your timeshare company to have the contract canceled.
- Once done, send a certified timeshare cancellation letter to the company that financed your timeshare purchase. Include your name, address, phone number, and account number in the letter.
- Request that they close your account and send you a statement showing that the balance is zero. Also, tell them not to make any more payments on your behalf.
- Be sure to keep copies of all correspondence with the company.
Since this process involves a number of legal steps, it may be easier with the assistance of a lawyer.
Can I Give My Timeshare Back to the Resort?
A few options are available if you’re 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, it’s unlikely you’ll ever be able to walk away without penalties for remaining with the timeshare. That’s because many timeshares come with an obligation to pay maintenance fees until you can eventually find a buyer. However, if you’re considering walking away from your timeshare, here are a few things to note:
- First, understand that you likely won’t be able to resell your timeshare for what you paid. It’s 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.
What Happens If You Stop Paying Your Timeshare?
Stopping timeshare payments may be one of the worst ways to get rid of a timeshare. Although you may want to make everything as it was before, you owe someone money, and they won’t forget that.
They could turn your unpaid dues over to collection agencies. If you keep avoiding payments, your timeshare may go into foreclosure. However, certain developers won’t foreclose because they would rather keep insisting you pay. Stopping payment will impact your credit, and the court battle may last for months.
Basically, if you stop paying your timeshare, the timeshare company will do whatever it takes to collect. This could include sending collection agencies after you, taking you to court, or putting a lien on your property.
If you’re behind on your payments, one option is to contact the timeshare company and try to work out a payment plan. Timeshare companies are not incentivized to let you out of your contract. However, it can be easier to negotiate favorable terms or exit the contract if you work with a reputable attorney.
Need a Timeshare Exit Company? Call Us Today!
As you analyze your timeshare exit options, there are a few red flags to look out for that may signify an exit strategy or company is a scam.
First, the majority of scams tend to request heavy upfront fees.
These companies will promise to help you find a buyer for your unwanted timeshare, but instead, they take your money and leave you with nothing in return. The result is that they only increase your debt load and make it more difficult for you and your family member to get out of the property under it.
The good news is that there are reliable and trusted people who can guide you through the process. At Timeshare Defense Attorneys, we provide transparent and unparalleled support for timeshare owners like you hoping to get out of their contracts.
Contact us today for a free consultation.
