Did you know there are around 1582 timeshare resorts in the US? The timeshare industry is huge and can offer a great opportunity to have a holiday home for yourself. However, when it comes to investment potential it can be a burden, but do you know how to get out?
It is not easy, though it can be done. Read on as we discuss how to get out of a timeshare legally.
Offer It for Resale
It is no secret that timeshares are not the easiest investment to sell. When you want to get out of a timeshare, you must understand that they have very little liquidity. If you can manage to sell it at all, then don’t expect to make a profit.
You will only really sell it on if you have a timeshare in a high-end resort, like Disneyworld. The problem is that once your timeshare is sold, you then have to decide who will pay the fees. Look at these things to consider before you sell or consider canceling a timeshare altogether.
Stopping payments is a riskier way to get out of a timeshare, though it may work in some instances. Firstly, if you took out a loan for the timeshare you are still bound to your creditor. They don’t care that you bought a timeshare with the money, they just want it paid back, and not doing so will damage your credit score.
As such, your loan must always be paid. What you can do is stop paying the fees on the timeshare itself.
Doing this impacts the timeshare company. They have to foot the bill. Very often, they will not report it to credit agencies so it should not damage your credit score.
Their only option is to then enter into a costly legal battle, or put the timeshare on the market. It is obvious which of these costs the least money, and so any intelligent company will cut their losses.
Use a Timeshare Exit Company
Unfortunately, the many scams around timeshares have given legitimate companies a bad reputation. Good timeshare exits companies do exist, you just have to be very careful when finding them and deciding who to do business with.
The first red flag is any payments that are asked for upfront. Very often, companies may say they have buyers waiting, take this fee, then the buyers never materialize. In fact, many states have introduced laws to combat these rampant tactics.
If you do find a good company with references and recommendations, then they will begin the process on your behalf. This will involve beginning the deed back process and informing the timeshare company of your exit from fee-paying.
How to Get Out of a Timeshare Legally
In summary, start by trying to sell the timeshare. If you have no luck, then how to get out of a timeshare legally is tricky. Make sure you do not fall prey to scams.
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