Despite the growing awareness of the difficulties of exiting a timeshare agreement, not to mention the many timeshare exit scams out there, the industry itself remains steadfast. In fact, timeshare sales have increased over the past couple of years, showing us that buyers might know the risks, but are still keen on the annual vacation.
Timeshare gets a bad rep, but it is a worthwhile investment if you’re smart about where and how you invest. It’s also important to understand your timeshare relief options should you want to move on.
If you feel like you’re stuck in a timeshare agreement and can’t get out, here are some options to consider.
1. Stop Paying Your Annual Fees
This might sound daunting, especially if you’re the conscientious type who cannot stand to miss your payments. But a good way to find relief from a timeshare agreement is to simply stop paying your annual timeshare fees.
It’s important to tread lightly here. You can’t stop paying off your timeshare loan (if you borrowed money to buy the property) as this will have a negative impact on your credit. You have to keep your creditor happy.
But, you can skip paying your annual fees as it’s entirely possible that a timeshare company will not report this to the credit bureaus. This creates a loophole that forces the timeshare company to allow you to surrender the property.
The win-win here is that accepting your surrender costs less than foreclosing on the property. In short, it’s not worth their while to pursue legal action because it’s too expensive. This often leads to timeshare companies releasing you from the contract and remarketing the property.
If this sounds too risky to you, check out this guide to canceling a timeshare for more.
2. Consider the Timeshare Resale Market
If you’re looking to sell your timeshare, don’t expect to make a profit. However, this is a good way to get out of a timeshare contract you just can’t afford any longer.
The reality is that timeshares do not appreciate, so you can expect to make little to no profit on a resale. Unless you own a high-end timeshare from a chain such as Hilton, Marriott, or Disney. The location, and amount left on your loan will impact its resale value.
Sites such as tug2.com and redweek.com are super helpful for listing your timeshare for resale.
3. Enlist the Help of a Timeshare Exit Company
Now, this might not be the recommendation you want to hear, but not all timeshare exit companies are con artists. If you’re considering this option, it’s important that you’re on high alert as to what type of company you choose. You have to be very measured and considered when making this decision.
Some red flags to look out for include hard-selling and fear-mongering tactics, cases that drag on for too long, and companies that ask you for a large payment upfront. In all honesty, enlisting the help of a timeshare exit company is somewhat of a last resort.
Bear in mind that prices between companies vary. But the average amount that most legitimate firms charge is around $4,500. It’s important to choose a company that’s been in business for at least 5 years. Do your research on the Better Business Bureau site to get a feel for how they handle cases and complaints.
Timeshare Relief Options That Work
These are just three common timeshare relief options for you to consider. Remember to always do your research on any consequences that could follow after you begin your timeshare exit process.
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