Timeshare or vacation ownership is an excellent choice for people who enjoy vacations. However, changes in financial status and other factors that restrict travel can make it impractical to commit to a vacation spot annually.
Timeshare ownership can quickly become a financial disaster when keeping up with the high maintenance fees and monthly timeshare payments is challenging. Eventually, most people start to wonder whether it’s possible to exit the timeshare and how to go about it.
Timeshare companies often make the process even more challenging. Although it may be frustrating, defaulting the on your timeshare payments is never a great idea.
Defaulting can significantly affect your credit score and increase the risk of foreclosure or dealing with collection agencies. If you feel that it’s time to exit your timeshare, it’s essential to ensure you use the proper procedures.
This article discusses everything you need to know about exiting your timeshare and some of the best strategies you can use.
Do I Qualify to Exit My Timeshare?
Whether you’re tired of the expensive maintenance fees or can no longer take vacations as planned, you’ll be happy to know that there are safe, legal options for exiting your timeshare.
The challenge is that most options available may not be as financially beneficial as you hope. The most common strategies include the following:
- Leveraging the rescission period
- Giving Back the timeshare to the resort
- Reselling the timeshare
- Renting out the timeshare
- Using a timeshare exit company
Let’s discuss these strategies in detail to help you determine your best option.
Leveraging the Rescission Period
If you acquired your timeshare recently and now have second thoughts, you can leverage the rescission laws. These laws allow buyers to void the timeshare ownership within a certain period.
Once this period lapses, the process becomes more expensive and challenging. Canceling your timeshare purchase within the rescission period allows you to recover a full refund, but there’s a catch.
Generally, the grace period ranges from three to fifteen days. If you want to cancel the agreement, you must act swiftly. Rescission laws differ by state, so ensure you confirm the allowed duration of your timeshare.
The laws apply to the location of your timeshare, not your residence. For instance, if your timeshare is in Indiana, you have a grace period of three days. You have fifteen days to void the contract if it’s in Alaska.
Canceling a timeshare also requires more than a verbal agreement. You’ll need to send the resort or developer a timeshare cancellation letter. Ensure that you mail the letter via certified mail and that it reaches the intended destination.
Giving Back the Timeshare to the Resort
You can still exit your contract safely if your agreement is past the rescission period. You can use the resort’s deed-back program to hand over your deed. The first step is checking your contract to confirm whether the deed-back program is available.
Returning your deed to the resort makes it possible for them to take back the property and sell it to someone else. This strategy works best if you’re seeking a fast but low-price way to exit your timeshare.
However, it’s essential to be cautious during negotiations with the resort’s timeshare representatives. Some owners reach out for help but end up upgrading when the representatives claim the upgrade will resolve all the problems.
Reselling the Timeshare
If you’re considering reselling your timeshare, expect little help from the resort. Once the rescission period expires, the resort won’t accept the timeshare back, so all the heavy lifting is on you.
Reselling a timeshare is more complex than you’d expect. The first step is determining whether you can sell your timeshare.
This ability depends on whether your timeshare mortgage payments are complete. You’ll only qualify to resell your timeshare if you have no outstanding loan payments.
If it’s possible to sell the timeshare, keep in mind that the property value may be low on the timeshare resale market. Talking to a real estate agent or comparing timeshare values online can help you estimate the listing price on your timeshare.
Unfortunately, secondary timeshare markets are often full. Many owners are looking for ways to exit their timeshares, so ensure you prepare for low profits from the resale.
Although you’ll likely not recover your initial investment, selling your timeshare will eliminate future expenses such as maintenance fees.
Renting Out the Timeshare
Most timeshare companies offer clients the option of renting out their properties for a profit. The idea is to generate enough income to cover the mortgage payments and maintenance fees.
In reality, renting the timeshare relieves some financial pressure, but there are more long-term solutions. This strategy works best if you want to retain the timeshare ownership but require help with the expenses.
Using a Timeshare Exit Company
So far, the exit strategies we’ve discussed are not financially reassuring. Canceling your timeshare or returning the deed to the resort is only sometimes an option, and reselling or renting out the property could be better.
The only safe and trustworthy way to exit a timeshare is by legally canceling the contract. Timeshare exit companies exist to help you bypass challenges along the process.
These companies consist of experienced timeshare experts who create exit strategies based on a client’s circumstances. The result is a customized strategy that fulfills the unique needs of every client.
I Don’t Want My Timeshare; Experience the Difference
I Don’t Want My Timeshare is the leading timeshare exit company, and here’s why. We strive to ensure you have a better quality of life by relieving you of the financial burden of an unwanted timeshare contract.
We only work with experienced attorneys to ensure a smooth timeshare cancellation process and prevent any harassment from developers.
Our team comprises former executives in the timeshare industry, so we understand all the legal procedures to ensure successful contract termination. Once you enlist our services, we’ll collaborate to develop an effective strategy based on your situation. We’ll start with a detailed investigation of your liabilities and debts to determine the best way forward.
We’ll represent you during negotiations with developers to terminate your current contract. You can count on exceptional customer service as we fight to protect your best interests.
Schedule a Free Consultation today and experience our difference.