When you first sit for the spiel, a timeshare sounds like a great investment. You get a certain number of weeks each year guaranteed at your favorite getaway destination. You can even go in with your friends and loved ones to book it for longer! However, that honeymoon period doesn’t usually last too long. Studies show that a whopping 85% of buyers end up regretting their timeshare purchase. Does that include you? Thankfully, you’re not stuck with it forever. There are exit strategies you can use, and you can even find legitimate companies that buy timeshares! Today, we’re sharing a few steps to take when you’re ready to get this burden off your back once and for all.
Leverage the Recession Period
Already ready to cancel a timeshare you just purchased? If so, you might be able to use the recession period to your advantage. States have recession laws that allow buyers to get out of their timeshare ownership as long as they act within a given timeframe.
While the specifics vary by location, you should have anywhere between a few days to a few weeks to reverse your decision. Check with your state’s Department of Justice (DOJ) website to learn your guidelines.
Contact the Developer
Developers have their own rules and processes for allowing buyers to sell or relinquish ownership of their timeshare contracts. If you’re regretting your decision, you can always contact them directly.
They may be able to offer you a few options, such as releasing your deed through a surrender or deed-back program. The main disadvantage to going this route is that you won’t make a profit from the sale. Some developers may even require payment from you before they’ll buy back your timeshare.
If you’re hoping to make some of your investment back, it’s best to sell to a private buyer. However, if the financial aspect isn’t the most important element to you, then a deed-back exchange could be an easy way out of your situation.
Despite the growing number of people avoiding these purchases, timeshares do appeal to a certain audience. There’s still a viable resale market for them, though it’s rapidly shrinking and returns aren’t impressive.
Several factors will affect how much you can get out of your timeshare. These include:
- Where it’s located
- How long you’ve had it
- The amount left on your mortgage
You can work with a local real estate agent to make sure you’re listing yours at an appropriate price. If you shoot too high, it might sit there for months or even years while you continue to rack up fees.
Work With a Timeshare Exit Company
When you express interest in canceling your investment, you might be contacted by several timeshare exit companies offering to work with you. While many are legitimate, others are not.
It’s important to research the company before committing to a transition. Check reviews, learn their history, and make sure you understand all of the terms and conditions before signing on the dotted line. When you’re ready to cancel a timeshare, you can’t afford to take any more risks!
Give It as a Gift
You know what they say about one man’s trash! If you don’t want your timeshare anymore, think about someone who <em>would</em> enjoy it. Do you have an aunt who loves to travel or a friend who’s always looking for the best hotel deals?
While you don’t want to saddle anyone with a mortgage payment they aren’t expecting, this might be a perfect idea if you’ve already paid off your timeshare. This way, they’ll only be responsible for paying the annual maintenance fees.
Before signing anything over, remind your loved one that they’ll eventually have to get out of the timeshare themselves unless they plan to pass it down to someone else.
All of the things that drew you to a timeshare in the first place might be what attracts others to rent it from you for a short period! Today, you can even find digital platforms that help you find and connect with interested renters.
However, before you make a new listing, check with your timeshare company to make sure you’re allowed to rent it. Some resorts or developers don’t allow this option. In addition, keep in mind you can also rack up considerable fees by renting out your property.
In addition to the time it takes you to find renters, you’ll also be responsible for covering any property damage that occurs when you’re away. While this might not be a big concern if you’re renting to someone you know, it’s a big risk to take when you rent to a stranger on the internet.
Stop Paying on It
Finally, you’ve grown especially fed up with your timeshare, you could just stop paying for it. However, don’t expect to get off scot-free if you do so. If you default on your contract, as well as your associated fees and your mortgage, it could negatively affect your credit score.
Eventually, it could lead to foreclosure, also giving your credit (and future borrowing power) a major hit. While this isn’t the most ideal solution, it can be a last resort for those who don’t have any other options. Make sure you’ve exhausted all of your other solutions before deciding to quit paying altogether.
Choose Legitimate Companies That Buy Timeshares
Now that you know a few of the best ways to shake yourself free of that nagging timeshare, are you ready to try a few of these options? If you decide to enlist the help of a third party, make sure to do your due diligence. Only partner with legitimate companies that buy timeshares, and you can be confident your information and money will be secure.
Once you’ve taken care of this burden, you’ll feel free to live life on your terms again. Be sure to check out our Lifestyle section for more articles on how to live, work, and play!