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HOW TO GET RID OF A TIMESHARE WITHOUT RUINING CREDIT SCORE?
After an impulse buy, you want to know how to get rid of a timeshare without ruining a credit score. Call the Timeshare Defense Attorneys for more info.
Ways to Get Out of a Timeshare Without Ruining Your Credit Vacation Ownership Score
A few years ago, a sales representative convinced you to buy a part of a vacation property at a fancy resort. Many years later, you realize you have used it only once or twice, and the timeshare is now an unpluggable leak in your wallet. Or perhaps, you have used it for a while and are now bored. Either way, you want out of your contract but need help figuring out how to do it.
While many timeshare exit companies offer guaranteed exits and cancellations, consulting with an attorney might help you with your sales process.
You are not alone if you feel this way. Dr. Amy Gregory, who works as an assistant professor at the University of Central Florida, found that a whopping 85% of timeshare owners regret their decision to buy. Furthermore, there is a 15% rescission rate among buyers within a few days of purchasing a timeshare.
The good news is you can rest easy about getting out of a timeshare legally because there are many ways to get rid of your timeshare. Furthermore, you can do so without ruining your credit score. But first, let’s see how getting rid of your timeshare can affect your credit.
How Can Getting Rid of Timeshare Affect Your Credit Score?
In most cases, people who want to get rid of their timeshare are tired of paying maintenance and other associated fees. And if, after contacting the company and sending the timeshare cancellation letter, they relent to accept a deed back or surrender the property, they stop paying the timeshare property fees.
Owners typically do this to force the hand of the developer to accept the return of ownership of the timeshare property. However, if you took out a loan or mortgage payments to finance the timeshare purchase, doing this could affect your credit score because the timeshare company would likely report you to major credit bureaus and foreclose the property.
Therefore, there may be better tactics to exit your timeshare than stopping payments. Furthermore, having outstanding payments on the property will make it harder to explore other options like reselling or renting it out.
How Can You Get Rid of Timeshare Without Impacting Credit Scores?
Stopping payments may push a timeshare company to allow a deed back. But it may also lead to foreclosure, so you cannot be too sure. So instead of risking your credit score, it is advisable to look into the following alternatives:
Utilize the Rescission Period
This is the quickest and easiest way to get rid of your timeshare if you recently bought it. Perhaps, after sleeping on it, you realized it was a bad idea the next day and that you only bought it due to pressure from the salesperson.
Usually, the rescission period is within 3 – 15 days after you enter the contract depending on the jurisdiction and laws of the state where you bought the timeshare. You can legally retract your agreement and get your money back during this time. The exact time you have depends on the fine print of the contract you signed. If you need help to understand the terms of the contract clearly, contact a timeshare attorney immediately.
If you are still within the limits of your rescission period, all you have to do is draft a timeshare cancellation letter and mail it to the resort’s cancellation office. Ensure you get the location information from them and use postal services that will ensure they sign upon receipt. Otherwise, some shady resorts may deny ever having received your letter.
Contact the Timeshare Developer
Getting rid of your timeshare may be easier than you think. Before coming to conclusions, contact the company and ask about their deed back clause or surrender program. Not all timeshare companies have this, but a good number do. Even if they do not have an official program, they may have a recommended option for owners looking to get out of their timeshare contracts. Explain to them why you don’t want your timeshare and see if you can agree on something.
There may be fees attached to a deed back, and you typically need to be up-to-date on your timeshare payments. Also, the company may only allow a deed back in the event of financial hardship or significant permanent life changes. See if their terms work for you, and you can get rid of the timeshare without ruining your credit significantly.
Put Your Timeshare on the Resale Market
Selling your timeshare may be an easier way out if you are well past your rescission period, and the company does not have a deed back program and is refusing to come to any agreement.
The moment you sell it, the responsibilities relating to the property are passed on to the new owner. Unfortunately, it is a well-known fact in the timeshare industry that the resale value of timeshares is notoriously low. Timeshares typically resell for less than half of their value. However, things like the desirability of the property and its location may significantly affect the resale price.
At the same time, if the property is not competitively priced on the market, you may not get a buyer since there are usually many similar options that may be cheaper. You can list the property on Craigslist, eBay, and other sites, to see if someone bites.
Rent Your Timeshare
If you want to get rid of your timeshare because you rarely use it, you can make some money from renting it out. However, this may not help you recuperate your annual maintenance fees. In fact, it may cost you more in the long run if you rent the place out to someone who trashes it. So, beware.
Understanding Your Timeshare Contract
To proceed with the process of getting rid of timeshare ownership, it is crucial to understand it in detail. Understanding the timeshare contract between you and the timeshare company outlining the terms and conditions of your ownership, usage rights, and responsibilities is the first step. Here are some key aspects to consider including
Terms and Conditions
Understanding the terms and conditions of the contract includes specific rules and provisions outlined in the contract, details about ownership type, usage rights, maintenance fees, and other obligations. It will help you identify any potential issues or breaches by the timeshare company that could provide leverage during the exit process.
Cancellation Clauses
The contract might have a specific clause outlining the circumstances under which you can cancel or exit the timeshare agreement. Before proceeding, it is best to familiarize yourself with these details to determine if you have a viable exit strategy within the terms of the contract.
A thorough review of your contract will help you uncover irregularities, misrepresentations, and any other issues that could serve as grounds for terminating the contract legally.
How Can a Timeshare Law Firm Help You?
Finally, you can hardly ever go wrong with hiring a law firm that exclusively deals with timeshare cancellation. This is almost always a better alternative to hiring a timeshare exit company, many of which are scams out to extort you. Many timeshare exit companies claim to have successfully helped their clients with timeshare cancellations. In reality, most do nothing but write futile letters to your developer asking for a deed back – an action you could easily take yourself.
On the other hand, with dedicated timeshare attorneys, you have a chance of legally getting out of an unfair timeshare contract. You may be able to file a lawsuit against the developer, exploit a term in the contract that you hadn’t realized was there, and so much more.
At the very least, experienced timeshare defense lawyers can offer more insight on safe and legal ways to get rid of your timeshare ownership without affecting your credit score. So don’t hesitate to reach out for a free consultation today and find out how you can regain your financial power from the timeshare resort.
Whether you are considering purchasing a timeshare or are currently embroiled in a legal battle with your resort, Timeshare Defense Attorneys can help you. We have the experience and knowledge necessary to help you get out of your timeshare and preserve your credit score in the process. Find out how we can help you with your Sapphire timeshare cancellation today by contacting us.