Real estate. The terms signifies the acquisition of property, whether that property is a house, a piece of land, or a property that is shared between multiple people over a large period of time. Real estate means money, money to acquire it and money when selling it. It is a major investment, the largest some people will make in their entire lifetime.
Unfortunately, there are major hurdles to someone looking to purchase property. For one, a property is often purchased using a loan from a bank, which is steadily paid off over time. Until the loan is paid off, the person doesn’t own the property. Having the financial ability to pay off the loan is one thing. There are other hurdles.
One of the hurdles to getting a loan and paying a loan has to do with the credit history of the person. A person’s credit history is based on several factors, including the ability to take on prior loans and the ability to pay them off. This means credit card loans, car loans, loans on houses, and other loans.
A person’s credit history ranges from bad (or terrible) to great with all sorts in-between. A credit history is determined by the aforementioned things but can be skewed depending on someone’s life circumstances. For instance, they may be beset with a certain medical condition that causes them to wrack of bills that they can’t escape from.
After a person’s credit history is analyzed, the bank will then come up with a interest rate on the loan, assuming the person gets the loan at all. This is a significant part in the process. Before that, however, there are more steps a person needs to go through to secure the loan.
One of the main indicators to getting and eventually paying off a loan has to do with the financial stability of an individual. How much money they’re making, how often it comes in, what their annual income has been over the past few years all play an important role in determining the amount for the loan and the interest rate.
Other things are factored in as well. The amount of assets a person has factors against the loan, meaning that the more assets a person has (debt) can affect whether a person gets the loan or not. If a person has a large amount of credit card debt, they are unlikely to get a loan unless they’ve shown a history of paying off other loans, improving credit history.
Properties can range from the house to the land to the shared real estate. This last part goes by the dubious name of timeshare and there are statistics to support that dubiousness. They are:
- According to the 2016 U.S. Shared Vacation Ownership Consolidated Owners Report, nearly 7% of U.S. households (9.2 million) own one or more types of a shared vacation ownership product.
- In a 2016 survey, 66% of timeshare owners cited ?too high? maintenance fees as a reason for wanting to get out of their timeshare contract. Nearly half (46%) identified maintenance fees as their ?most important? reason for leaving.
- Financial hardship is one reason people want out. An industry study, by EY (Ernst and Young), revealed that 56% of reclaimed timeshares?properties that revert to the developer?stem from foreclosure.
The timeshare is a dubious piece of property than for no other reason that a person can never own it. People put thousands of dollars down on a timeshare, and the result at the end of the day is a shared piece of real estate that likely can’t be owned by any of the shared investors.
Many consider it a scam. This is in part due to the pressure sales tactics of those selling timeshares, which involves putting people in timeshare location, wining and dining them, then pressuring them to buy using sales tactics similar to selling a car. People get roped in or feel pressured. Then they spend thousands of dollars.
Getting rid of a timeshare requires a lawyer. Getting rid of a timeshare might involve a warranty deed in lieu of foreclosure form. There are timeshare lawyers that can help with getting rid of a timeshare. A timeshare lawyer will likely know all the ropes in order to start the process of getting rid of a timeshare.