Truth: Timeshares are one of the biggest scams on the market today. And you have to pay extra ongoing "maintenance fees. And it's basically just an expensive, ongoing headache. How much does it cost to use timeshare exit team? What is the average cost of a timeshare? Understand this: there are ways to make timeshares work. Can I forfeit my timeshare? If you can't sell your timeshare on the open market, one option is to offer it back to the resort.
As long as the unit is paid off and you are an owner in good standing, there's a chance that the resort will take the unit back from you. What happens if your timeshare goes into foreclosure? If you own a deeded timeshare, the developer the party from whom you likely got the timeshare loan will probably foreclose. A timeshare foreclosure, much like a residential foreclosure, could potentially result in serious consequences, like a lower credit score, a deficiency judgment, or tax ramifications.
Will not paying timeshare affect my credit? A timeshare foreclosure will not ruin your credit score forever, but it could have a significant impact on your ability to obtain another mortgage for up to seven years.
You might also face future loan denials or high interest rates if you apply for other forms of credit, like a car loan or credit card. Are Timeshares Really Worth It? Do you need good credit for a timeshare? Some timeshare organizations, like the Hyatt Residence Club, require that the applicant already be a homeowner with good credit.
Generally, lenders want credit scores over , with a credit score over being ideal. Is it hard to get out of a timeshare? A University of Central Florida UCF study found that 85 percent of timeshare owners who go to contract regret their purchase. How can I get out of my timeshare without damaging my credit? Call your resort and make your case.
Ask for their exit program. The Federal Trade Commission issued a recent warning against timeshare resellers , noting that some of them prey on seniors by taking money up front and then failing to sell the timeshare.
Many of these companies have no experience in the timeshare exit business and there is no regulation to stop anyone from opening a timeshare exit company. How do you know if a timeshare exit company is legit? You should ask three questions about any company you're thinking of hiring:.
Lisa Ann Schreier, a timeshare expert who publishes the site The Timeshare Crusader , says you're better off avoiding timeshare exit companies entirely. Some owners just stop paying their fees, hoping they can get rid of their timeshare. Experts are sharply divided on this strategy. Timeshare companies will report you to a credit bureau for failing to pay your fees. That can damage your credit. But if you don't care about your credit rating, walking away from a timeshare may be a viable exit strategy.
That's what Kathie Asaro did. A retired sales manager from Foster City, Calif. She started calling her timeshare company every month, asking for a voluntary surrender, essentially offering to give up the timeshare. A representative always declined, explaining that her timeshare was her responsibility for the rest of her life.
Failing to pay the maintenance fee meant the timeshare would eventually foreclose, which meant paying a lawyer. She ignored the timeshare company's threats to "ruin" her credit rating and simply stopped paying her maintenance fees. A month later, her timeshare company relented, agreeing to release her from the contract.
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. What if you're falling behind on your mortgage payments or maintenance fees? This coalition is designed for timeshare owners to seek help and guidance during uncertain times.
So, now that we know what happens if you stop paying your timeshare, you might be interested in posting it for sale. Not to mention, we help owners post their timeshares for sale every day. Not sure you want to sell? Not to worry. We offer other options such as our To Go Program as well as timeshare rentals. Ready to post your timeshare for sale? Fill out the form below to get started, or call us now at She manages the social profiles at Timeshares Only as well as publishes weekly blogs about the timeshare and travel industry.
Hannah loves spending time with her friends, cats and family. Her favorite places to travel are Washington D. Save my name, email, and website in this browser for the next time I comment. In Selling. By Hannah O'Brien July 29, Call Your Developer If you have fallen behind on your timeshare dues, your last thought may be to call your developer. Learn More About To Go. Write A Comment Cancel Reply.
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