Despite the challenges faced by the global economy, one thing that remains consistent is the dissatisfaction experienced by owners of timeshares and vacation club memberships. Despite being marketed as a “vacation ownership” and a stress-free way to travel, these properties are often a financial burden. Maintenance fees alone can surpass $1,000 annually.
It’s likely that you were not informed of these drawbacks before signing the purchase agreement, leaving you wondering how to dispose of your timeshare. Fortunately, there are several options available, but not all of them are beneficial or legitimate. Unfortunately, there are scams, dead ends, and other traps for the unwary.
This article will discuss various methods for disposing of your timeshare, including contractual cancellations, deed-backs, and timeshare resales/rentals. While donating timeshares won’t be explored in detail, it’s important to note that most charities do not accept them due to the associated annual fees and burdens.
How to Get Rid of Your Timeshare Just After Signing the Contract: Cancellation
Benefits:
- If successful, you can exit your timeshare without any further payments for maintenance fees or assessments.
Drawbacks:
- This option is only available if the resort agrees to it, which is unlikely.
- You won’t receive any financial compensation.
- The resort may charge additional fees for the transfer process.
Timeshare companies often deceive potential buyers by assuring them that they can easily give their timeshare back to the resort if they no longer want it. However, the deed-back process is typically complicated and not as simple as they make it seem.
Like cancellations, timeshare companies have no incentive to make the deed-back process easy since they rely on annual maintenance fees and other payments from timeshare owners. They may only consider a deed-back program and may not follow through. Even if they do, they have the final decision on whether to take back the timeshare, resulting in wasted time and continued fee payments.
Be cautious of companies that suggest stopping payments and mortgage payments to start foreclosure proceedings. This option can have long-term negative consequences, such as a deficiency judgment and legal issues lasting up to seven years.
Timeshare Resales and Rentals
Owning a timeshare can offer the opportunity to earn money through renting it out or using it to generate revenue and offset the cost of ownership. However, selling a timeshare is often a challenging endeavor, with almost no resale market for any brand, including Disney. Even if a resale is successful, it usually results in a loss due to closing costs and fees charged by the timeshare company. Some companies specialize in selling timeshares, but their offers usually fall far below the original purchase price. Many owners have even attempted to sell their units for as little as $1 on sites like eBay or Craigslist, with little success. Additionally, resale scams are rampant, often requesting upfront fees for a nonexistent buyer.
Renting out a timeshare may seem like a good option, but most resorts have strict policies that prohibit owners from renting units that compete with their own rental program. Moreover, timeshare companies prefer to rent out their own units and may impose additional fees or undercut pricing to deter owners from renting their units. Lastly, since many units are available for rent in desirable locations, owners may not make a significant income by renting out their timeshare.
Get Rid of Your Timeshare and Get On With Your Life
If left unaddressed, the financial strain of owning a timeshare can snowball over time and become overwhelming. Maintenance fees, special assessments, and other small expenses can easily accumulate, resulting in a significant financial burden. Although figuring out how to dispose of a timeshare may seem challenging, ignoring the issue will only exacerbate the problem in the long run. Taking action now to address the issue is essential to avoid the financial stress from becoming unmanageable.
