In 2018, 7.1% of households in the United States owned one or more timeshare weeks. That is about 9.6 million timeshare owners. While this industry is still growing, it can be easy to get trapped in a timeshare that you don’t really want.
This can waste thousands of dollars and cause many other problems for timeshare owners. Do you want help getting rid of your timeshare without ruining your credit?
Keep reading this timeshare guide for everything you need to know to learn how to get rid of your timeshare.
Understand the Timeshare Cancellation Period
One of the easiest ways to get out of a timeshare is to do it within the timeshare cancellation period. When you buy a timeshare, the company is legally required to grant you a rescission period. This is the amount of time where you can cancel your timeshare without any repercussions.
Because timeshare companies do not want you to cancel your timeshare, these cancellation periods are typically quite short. They can range anywhere from a few days to a few weeks after the day that you bought the timeshare.
The laws for timeshare cancellation will depend on the timeshare company and where your timeshare is located. Make sure you research the cancellation laws in a specific area before buying a timeshare!
Write a Timeshare Cancellation Letter
If you decide to cancel your timeshare within the cancellation period, you cannot rely on a verbal agreement with the developer. Instead, you need to write a cancellation letter to the resort or developer that sold you the timeshare.
In your timeshare cancellation letter, you must be very clear that you want to cancel your timeshare. If there is any ambiguity, they may not count it as a cancellation request. To be safe, you can make the subject line of your letter something about “timeshare cancellation request.”
Then, you must include other important information about your timeshare. This includes your contract number, the date you purchased your timeshare, the name of the contract holder, and more.
At the end of your letter, you must give your expectations. Tell the company that you expect your timeshare to be canceled, not transferred. Make it clear that you are not interested in a timeshare resale!
Most often, timeshare companies will have a specific address for you to send this letter. Make sure you send it through certified mail so that you can be completely sure that the letter was mailed and received on time.
Contact the Developer
If your timeshare cancellation period has passed, it can be a bit more difficult to get out of your timeshare contract. One of the next options you may want to consider is asking the developer to buy back the contract.
Some timeshare companies will allow you to sell your unit back to their company for a discounted amount. While you will not get all of your money back, you will save money in the long run on maintenance costs, annual charges, and other fees.
You can check your timeshare contract for a deed-back clause. This will allow you to relinquish your ownership of the timeshare. While you will lose any equity that you may have built up, you will also be free of the burden that a timeshare can be.
Ask for Temporary Relief
Even if your timeshare company doesn’t offer a deed-back program, you may still be able to get temporary relief from your timeshare commitments. You can reach out to your developer to see if they offer relief packages for those struggling financially.
Sometimes, you can arrange a loan deferral program or other types of financial assistance until you get back on your feet. This is a great option for people who may want a timeshare in the future but cannot currently afford all of the fees.
If you want to get out of your timeshare permanently, you can still use this tactic to buy yourself some time. This way, you will not have to pay the maintenance fees and other costs associated with a timeshare until you have found a permanent way to get out of your contract.
Return Your Timeshare to the Developer
If your timeshare developer will not allow you to sell your timeshare back to them, you may be able to give it back to them. This is often known as a surrender program and you will not be able to receive any proceeds from your timeshare.
While this may seem like a bad option, it is often better than paying for a timeshare that you never use. It is becoming an increasingly common option for timeshare owners and is a safe and effective way out of a timeshare.
One reason why businesses will allow you to return your timeshare is that it is safer for them. If you are not able to afford your timeshare and you stop making payments, it can result in foreclosure.
Timeshare companies would much rather that you return the property to them, as it will cost less than foreclosing on the property.
Still, you may end up having to pay the resort or timeshare company a fee for them to take back the timeshare. Because of this, you should always be completely aware of the details listed within your timeshare contract!
Sell Your Timeshare
You can also try to sell your timeshare if you need to get out of the contract. Still, you will often get less money than what you paid for the timeshare.
When you are selling your timeshare, it is important that you understand retail vs. resale markets. In a resale market, you will typically get much less money for your timeshare. A retail market will allow you to sell your timeshare closer to retail value.
If you choose to sell your timeshare, make sure you hire a licensed real estate agent that specializes in the timeshare resale market! This will help you get the best deal from your timeshare and can help you end your timeshare ownership for good.
Give Your Timeshare Away
Another tactic that can help you get out of your timeshare is to gift it to a friend, family member, or anyone else that is interested in buying a timeshare! This is especially easy to do if your timeshare is paid off.
If you give your timeshare away, the individual who takes responsibility will have to pay the annual maintenance fees for the property and will be the legal owner of the timeshare.
While you will lose money on the deal, you will save money in the future and will not have to pay taxes or other fees on the timeshare.
Giving your timeshare to someone else provides a mutually beneficial deal. Not only will you be free of your timeshare contract, but they will have years of enjoyment in their new timeshare.
If you are struggling to get out of your contract, you can reach out to family and friends that have expressed interest in traveling and buying a timeshare.
Hire a Timeshare Exit Company
Finally, you can hire a timeshare exit company to help you get out of your timeshare! Similar to hiring a timeshare attorney, a timeshare exit company will have the experience and knowledge of the industry to help you get out of your timeshare ownership.
These companies are timeshare specialists and may be able to identify loopholes in your timeshare contract. This way, you can legally terminate your timeshare contract without any repercussions. They may even be able to help you find a reliable buyer for your timeshare so you can get the most money out of your sale.
When you are looking for a timeshare exit company, make sure you are familiar with the common scams to watch out for. Make sure you don’t choose a company that uses high-pressure sales tactics or requires credit card information before you sign a contract.
You can avoid these unreliable companies by looking up businesses on the Better Business Bureau and by checking other online reviews.
Learning How to Get Rid of Your Timeshare?
What is a timeshare? It’s a jointly owned property that allows you to share a vacation home. However, people often get trapped in timeshare scams or timeshares that they cannot afford.
By following each of these timeshare tips, you can learn how to get rid of your timeshare legally and without damaging your credit! If you want to learn more about timeshares, we can help!
Our website features articles on finance, travel, and more and can help you with all of your travel needs. Check out our blogs today for more travel tips!
