How to Get Out of A Timeshare: Experts Share The Secrets to Exiting, Plus Common Scams to Avoid
Plus, learn what you should know if you're considering buying a timeshare in the future
Timeshares have been around the U.S. since the 1960s as a way for people to get a guaranteed vacation spot at their chosen resort. They can also be cost-effective over time for frequent travelers as they save on hotel rooms or other vacation rentals. While there is some flexibility involved after purchase, exiting a timeshare down the road is often easier said than done. Thankfully, experts say it is feasible! Keep reading to learn more about how to get out of your timeshare, plus common scams that pop up with timeshares for buyers and sellers.
Why it’s so hard to get out of a timeshare
Though timeshare properties have their perks, it’s also not uncommon to hear that this ownership arrangement can be tough to get out of when you decide it no longer suits you.
The reason? “They are difficult to end because of the staggering depreciation involved with a timeshare compared to what the owner likely paid originally,” says Brian Rogers of the Timeshare Users Group. “Combine this with far more people trying to sell or exit a timeshare than folks who both want to buy a timeshare.”
Luckily, ending your timeshare is possible, so you won’t be out of luck.
“Timeshare owners have several options if timeshare ownership no longer fits their vacation lifestyle, or if they otherwise don’t have a friend or family member who wants to take their timeshare,” assures Jason Gamel, president and CEO of the American Resort Development Association.
Your options for exiting a timeshare
Ready to get out of your timeshare? “The first thing a timeshare owner should do is contact their developer or resort to find out their exit options,” says Gamel. “ResponsibleExit.com has contact information for leading developers.”
Here are some of the most common options available:
Give ownership back to the resort.
“Many resorts have surrender programs, but it has to be paid off and not delinquent,” says Rogers.
One downside? Many of these programs cost money, so you’re essentially paying money to the timeshare company to give back your own timeshare.
Find a new owner
One of the easiest ways to get out of your timeshare is to pass it along to someone who does want it. According to Gamel, there are several online forums that exist for this reason. Sites like Tug2.net and Redweek.com can be handy when you don’t have friends or family who can take over your ownership.
The bad news: There are often far more sellers than buyers which can lead to a lot of competition. But you can boost your chances by advertising a great deal that helps you stand out.
“Offering your timeshare for free, offering to pay closing costs as a seller, and possibly prepaying an extra year’s worth of maintenance fees are tried and true ways of making your ‘free giveaway’ more appealing than everyone else’s and increasing your chance to find a new owner to take it off your hands,” suggests Rogers.
Contact outside companies
Since it can be quite time-consuming and frustrating to find a new owner, getting help can make the process easier.
“If an owner wishes to try to sell their timeshare, there are trusted resale companies listed on the ResponsibleExit.com website that they can use,” says Gamel.
Though you’ll need to pay a small fee, the companies can take the stress out of the reselling process. It’s a good option for someone busy or feeling overwhelmed.
What to consider before buying a timeshare
Because of the difficulties that usually arise when trying to exit a timeshare, experts say that anyone looking to purchase one should keep several things in mind.
“They should consider several factors including their current vacation lifestyles, how far they generally plan their vacations in advance, and if they happen to be loyal to a particular hotel brand, as there are several timeshare developers that are connected to hotel brands via their hotel loyalty programs,” suggests Gamel.
Another important aspect to remember is that timeshares can depreciate most of the time. This means that if you ever decide to exit, you may struggle to avoid taking a loss when passing it off to someone else. Rogers says researching the resale market is key to understanding any future financial implications you could encounter.
Luckily, if you’re still on the fence about whether you made the right decision after buying one, you will have a chance to change your mind.
“Timeshare consumers are all afforded a rescission period, which allows them to rescind their purchase and get back any deposit they put down on it,” adds Gamel.
Common timeshare scams
Timeshare scams certainly aren’t in short supply, and they can impact both sellers and potential buyers. Here are some of the most common:
Misleading promises
Untrustworthy companies may lure customers by promising free vacations and other prizes, but these are usually not very valuable and difficult to redeem. They most frequently pop up during a sales pitch when promoters are trying to sweeten the deal.
“Scammers may also use fake properties or other fraudulent schemes under the guise of selling real timeshares,” cautions StopFraudColorado.gov.
Easy resale scam
“The most common scam includes a telemarketer reaching out by phone or by email claiming that they can help the owner sell their timeshare for a significant profit,” shares Gamel.
These predatory companies typically prey on those who are desperate with the guarantee they can cancel the person’s timeshare for them. In some cases, they will even claim to be attorneys who can take timeshares to court on behalf of the owners to get them cancelled, adds Rogers.
Usually the scamming company will have you stop paying on your timeshare as a means of exiting it. Most people don’t know that you can do this yourself without the help of an outside company. (An important note: Simply failing to make payments could lead to collections, foreclosure and hits to your credit—so it’s best to follow one of the methods above).
Legitimate timeshare companies can also help you sell your timeshare, but the fees will be minimal.
Excited buyer
Since timeshares can be tough to sell, it’s a huge relief to find someone willing to take it off your hands. That’s why some scammers follow this approach to steal victims’ money.
“Another variation includes the telemarketer claiming they have a buyer waiting to buy their timeshare and all they must do to complete the sale is to wire money to a bank account to cover ‘taxes and fees,’” explains Gamel. “Unfortunately, there is never a buyer waiting to buy the timeshare, and the owner often will be asked to send additional funds in order to complete the sale.”
This leaves the owner not only with a huge financial loss but also still stuck with their property.
Signs of a timeshare scam
Whether you’re buying or selling a timeshare, red flags may indicate you’re being targeted in a scam. Noticeable signs include:
- Failure to provide a legitimate real estate license when offering to resell
- Promises of a quick sale or high sales price
- Asking to have services paid for via money orders, gift cards or wire transfers
- Only having a P.O. box and not a physical address
- Demanding payments for appraisals
Staying vigilant about bad actors and following the proper channels to exit your timeshare will help you avoid becoming a victim.
Conversation
All comments are subject to our Community Guidelines. Woman's World does not endorse the opinions and views shared by our readers in our comment sections. Our comments section is a place where readers can engage in healthy, productive, lively, and respectful discussions. Offensive language, hate speech, personal attacks, and/or defamatory statements are not permitted. Advertising or spam is also prohibited.
