Buying a timeshare property can be the exciting culmination of a whirlwind courtship. But such unions rarely end happily. With earnest promises of enduring excitement and limitless fun, timeshare resorts lure prospective vacation owners in to commitments that frequently end up costing said owners way more than the union is worth. Unrealistic expectations coupled with rising community fees and maintenance costs make most timeshare owners question whether or not their eyes were truly open when they signed on the dotted line. Like a newlywed who might have jumped into a relationship too soon, it’s important to understand your mistake so you don’t further compound the problem. Now’s not the time to “grin and bear it” or “soldier on” or make the best of a bad situation.” Instead, make a beeline for the first available exit and get out before things get worse!
Even if you took out a loan to finance your purchase, there are ways to stop timeshare fees and get out of a timeshare mortgage. Here are our top three suggestions:
Like any contractual union, timeshare ownership is based on the assumption that both parties entering the contract are willing participants and possess all the necessary information needed to make sound decisions. There is a chance that the timeshare resort from which you purchased your property failed to disclose pertinent facts regarding the property and/or terms of the contract. If this is the case, you may be able to invalidate your contract based on terms of fraud. While it’s probably not likely, it may still be worth checking with a reputable attorney.
Like any piece of property, most timeshares can be sold. You can choose to use a realtor or try to sell it yourself, and bypass listing and commission fees. Either way, expect to sell the property for less than what you paid and (perhaps) for less than what you owe. If you can afford to take the hit and have the means to repay the lender whatever is left on the loan after your sale, this might be the best option. It will save you not only the monthly mortgage payments on a property you don’t want, but it will also keep you from having to cover yearly community and maintenance fees. And since timeshare loans are usually unsecured loans (meaning you don’t need to pay them off at the time of sale), you could also choose to carry the remaining amount owed on the loan that was not covered by the timeshare sale.
There is a possibility that the company from which you bought your timeshare loan will allow you to deed the property in lieu of going into foreclosure. This basically means that you relinquish the property, signing it over to the lending company, who in turn forgives your remaining debt. The lender’s willingness to accept this scenario depends on how much you owe, the circumstances surrounding your inability to pay, as well as your credit history and the value of the property in question. This type of transaction is similar to a short sale in the traditional real estate world.
One bad decision doesn’t have to define you, and it doesn’t have to lead to foreclosure. Our team at Step Zero can help you get out of a timeshare legally, even after the grace period has ended. If you want to get rid of your timeshare mortgage, contact us today.