6 Timeshare Exit Strategy: How to Get Out of a Timeshare
Have you ever been stuck in a timeshare? It’s not the best feeling in the world. Luckily, there are ways out. In this post, we’re going to explore some of those ways. Keep reading for tips on how to get rid of a timeshare contract without ruining your credit—no matter what it takes!
We will also provide some tips for avoiding timeshare scams. Let’s go!
What is a timeshare?
A timeshare is a property with specific units of time that are owned or rented by an individual. Timeshares usually come in the form of vacation properties, such as condos, villas, and apartments.
These properties are typically located in tourist destinations, such as Florida, Hawaii, and Mexico.
Why are timeshares a bad investment?
When it comes to investing in property, there are a lot of different options out there. You can buy a house, an apartment, a condo, or even a timeshare. But when it comes to choosing the right investment for you, timeshares might not be the best way to go.
Here’s why:
1. You’re stuck with one company and can’t change it
Once you buy a timeshare, you’re pretty much stuck with that company for the rest of your life. And if you’re not happy with the service or the location, tough luck. You’re stuck.
A timeshare agreement is a binding contract. When you sign a timeshare agreement, you’re signing a binding contract. That means that if you decide to cancel your timeshare, you’re going to have to pay a hefty fee. And if you don’t have the money to pay that fee, your credit score will take a hit.
2. Timeshares are expensive
The timeshare’s average cost timeshare is about $19,000. And that’s just for the initial purchase. You also have to pay annual maintenance fees, which can range from $600 to $1000. And if you want to sell your timeshare, you’re going to have to pay broker fees, which is usually about 20%.
3. Timeshares are not profitable
If you’re looking to make a profit off of your investment, timeshares are not the way to go. In fact, most people who own timeshares end up losing money. In fact, the average resale value of a timeshare is only about 50% of the original purchase price.
4. They don’t qualify as a liquid asset
Timeshares are not liquid assets, which means that you can’t sell them quickly for cash. If you need to get rid of your timeshare, you’re going to have a hard time finding a buyer. And even if you do find a buyer, you’re not going to make much money off of the sale.
5. Timeshares lose value over time
The value of timeshares goes down over time, not up. So, if you’re thinking about selling your timeshare in the future, you’re not going to make much money off of it.
Now that we’ve gone over some of the reasons why timeshares are a bad investment, let’s know if it is possible to get out of a timeshare.
Is it possible to get rid of a timeshare?
The short answer is: yes, it is possible to get rid of a timeshare. But it’s not going to be easy, and it’s not going to be cheap. If you’re looking for a way out of your timeshare, you are in the right place!
Let’s talk about some of the ways you can get rid of your timeshare.
6 Ways how to get out of a timeshare
If you’re stuck in a timeshare that you no longer want, don’t despair! There are ways to get out of it. We’ll share 6 methods for getting rid of your timeshare so you can finally be free from it.
Read on to learn more!
1. Use the recession period
If you bought your timeshare during the recession, you might be able to get out of your timeshare contract. This is because most timeshare contracts have a clause that allows the timeshare owner to cancel their contract if they can’t make their payments. Meaning the recession period is the timeshare cancellation period.
So, if you’re timeshare is causing you financial hardship, you may be able to cancel your contract and get out of your timeshare.
But, if you’re timeshare is not causing you financial hardship, you’re not going to be able to cancel your contract.
Recission laws
In some states, there are recission laws that allow you to cancel your timeshare purchase within a certain period of time. For example, in California, you have five days to cancel your timeshare contract.
So, if you’re within the recission period, you may be able to cancel your timeshare contract and get out of your timeshare.
But, if you’re outside of the recission period, you’re not going to be able to cancel your contract.
Timeshare cancellation letter
You can also try to cancel your timeshare contract by sending a timeshare cancellation letter. In the letter, you’ll need to state your reasons for wanting to cancel your timeshare contract.
Some timeshare companies will accept your cancellation letter and let you out of your timeshare contract. But, most timeshare companies will not accept your cancellation letter and you’ll be stuck with your timeshare.
2. Sell your timeshare
If you want to get rid of your timeshare, you can try to sell it. You can sell by listing it on websites or hiring a resale agent.
Resale agent
If you’re looking to sell your timeshare, you can use a resale agent. A resale agent is a company that specializes in selling timeshares. They will list your timeshare for sale and try to find a buyer.
The downside of using a resale agent is that you’re going to have to pay a commission, which is usually about 20%.
So, if you’re looking to sell your timeshare, you can use a resale agent. But, you’re going to have to pay a commission.
List your timeshare to a resale market
If you’re looking to get rid of your timeshare, you can try to sell it on the resale market. There are a few different ways you can go about doing this. You can list your timeshares on a timeshare resale market, such as Red Week or Timeshare Users Group.
However, timeshare owners should expect to sell it for a lower price than what you initially paid. This is because timeshares lose value over time, and the resale market is flooded with timeshares.
3. Hire an attorney
An attorney can help you cancel your timeshare contract and get out of your timeshare. But, you’re going to have to pay legal fees or lawyer fees.
Make sure that you hire an experienced timeshare attorney. This is because the timeshare industry is complicated, and you’re going to need someone who knows what they’re doing.
4. Find timeshare exit company
A timeshare exit company is a company that specializes in helping people get out of their timeshare contracts.
The downside of using a timeshare exit company is that you’re going to have to pay an upfront fee. The fee is usually cost around $2000. Just like with anything, you’re going to need to do your research and make sure that the timeshare exit company wil work for you honestly.
The American Resort Development Association (ARDA) is an organization that represents the timeshare industry. They have a website that has a list of timeshare exit companies. You can use this list to find legitimate companies that can help you get out of your timeshare contract.
You can also contact us at Timeshare Ninjas, and we’ll examine your case for free and put you in touch for free with a reputable timeshare exit company that will work for you.
5. Ask the timeshare company to take it back
In some cases, you may be able to get the timeshare company or the timeshare developer to take your timeshare back. This is usually only possible if you bought your timeshare within the past few years.
If you’re able to get the timeshare company to take your timeshare back, they will either cancel your contract or give you a deed in lieu of foreclosure.
A deed in lieu of foreclosure is when the timeshare company takes ownership of your timeshare and cancels your contract. This option is usually only available if you’re behind on your payments.
6. Make a deal or negotiate to get out
If you’re looking to get out of your timeshare, you can try to make a deal with the timeshare company or negotiate with them.
In some cases, the timeshare company may be willing to let you out of your contract if you pay a certain amount of money. This is usually a small percentage of what you originally paid for the timeshare.
Another option is to try to negotiate with the timeshare company. You can try to get them to lower your maintenance fees or give you a break on your payments.
Some people have had success with this method, while others have not. It really depends on the person and the situation.
Is it worth it to cancel your timeshare?
This is a difficult question to answer because it depends on the person’s situation.
If you’re someone who is struggling to make your timeshare payments or you’re behind on your payments, then cancelling your timeshare may be the best option for you.
However, if you’re someone who is current on their payments and doesn’t have any problems with their timeshare, then it may not be worth it to cancel your timeshare.
Again, contact us at timeshare ninjas and we will give you a free timeshare exit consultation
What does it cost on average to get out of a timeshare?
The closing costs of getting out of a timeshare can vary depending on how you go about it. If you hire an attorney or a timeshare exit service from a timeshare exit company, you can expect to pay around $2000 in fees.
However, if you’re able to get the timeshare company to take your timeshare back, you may not have to pay anything. It really depends on the situation. In some cases, people have had to pay annual maintenance fees or timeshare mortgage payments in order to get out of their timeshare contract. The average cost of getting out of a timeshare is difficult to determine because it varies so much from case to case.
If you’re considering getting out of your timeshare, you should first consider all of your options. There are a variety of ways to get out of a timeshare contract, and the best way for you will depend on your individual situation. Be sure to do your research and talk to a professional before making any decisions. Getting out of a timeshare is not always easy or cheap, but it is possible.
3 Mistakes that timeshare owners should avoid
If you’re one of the millions of people who own a timeshare, chances are you’re well-versed in the inherent risks that come with the investment. But even if you know what to watch out for, it’s easy to make mistakes that can cost you big time.
Here are three all-too-common mistakes to avoid if you don’t want to end up regretting your decision to buy a timeshare.
1. Renting it to someone else:
Timeshare rentals are not a good idea. Not only is it illegal in some states, but it’s also very difficult to find someone who is willing to rent your timeshare.
Plus, It could damage your credit if the renter doesn’t pay their bill on time or damages the timeshare property.
2. Giving it away:
Giving your timeshare ownership away may seem like a good idea, but it’s actually not. The reason why is because the recipient will still be responsible for paying the maintenance fees and other associated costs.
Plus, giving your timeshare away and the recipient doesn’t make the payments will damage your credit.
So, if you’re considering giving your timeshare away, you should think twice about it.
3. Forget about it and stop paying:
This is a bad idea for several reasons. First, if you stop paying your timeshare fees, it will damage your credit. Second, you will still be responsible for the maintenance fees and other associated costs.
And third, the timeshare company may foreclose on your timeshare, which will also damage your credit. So, if you’re thinking about just forgetting about your timeshare and stopping payments, you should think twice about it.
Final takeaway
So there you have it! Your complete guide to getting out of a timeshare. Whether you’re looking for a way to get out of your contract or want to try and sell your timeshare on your own, we hope this article has given you the information you need.
If you have any questions or run into any problems along the way, don’t hesitate to reach out to us for help. We wish you the best of luck in getting yourself free and clear of that pesky timeshare!
