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. However, with so many people owning a vacation timeshare, many want out of it. For most people, it was a spur of the moment decision that ended up affecting their entire financial life. If you are the owner of a vacation timeshare and you no longer want ownership, what are your options?
Sell your timeshare
You could attempt to sell your timeshare. Selling a timeshare, however, is not as easy as it might sound. You are not necessarily selling a vacation house. You are selling a piece of paper or a contract. You must find a buyer that is willing to take over the payments and legal requirements, all for a week or two at a vacation destination. When you purchased the timeshare in the first place, it probably took a pushy salesman and a ton of incentives. It will be difficult to find a buyer for your timeshare, especially when you are competing with these same pushy salesmen.
Cancel your timeshare
Timeshare cancellation can also be difficult. It is important to look over your timeshare contract. Specifically, pay attention to the cancellation policy. Many timeshares require that you hold onto the timeshare for a specific period of time, or pay an early termination fee. This cancellation fee could end up being thousands of dollars. Before cancelling your timeshare, make sure you fully understand the legalities. It can also be helpful to work with timeshare lawyers to better understand the legal terms of your timeshare contract.
Rent out your timeshare
If you are not getting enough use out of your timeshare, you could attempt to rent it. Charge friends or family for the weekly rental you are allocated. Use that money to pay for the timeshare fees. This can help with some of the costs, but it is likely that you will still have to dish out payment for the weeks that are not yours. Additionally, many timeshare owners find the payments to be troublesome. 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.
Stop paying on your timeshare
This is the perhaps, the most common solution to get rid of a timeshare. However, it can also be the worst method. Depending on your timeshare contract, the timeshare owner can come after more than the timeshare property. They can also come after your wages, personal property, and other assets. If you owe a significant amount of money to a timeshare owner, you will want to work with timeshare lawyers as soon as possible, to avoid going further into debt.
Work with timeshare lawyers
The final solution and possibly, the best solution is to work with timeshare lawyers. A timeshare lawyer can go over your timeshare contract. They can recommend the best ways to get rid of a timeshare that you no longer want. They can also work with the timeshare developer, hopefully coming to an agreement or negotiation that works for both sides. A timeshare lawyer can also look at the terms of the purchase and see if there is any legal way to get out of the contract. Approximately 85% of timeshare buyers regret their purchase, citing money, fear, confusion, intimidation, and distrust as their main reason.
If you have ever been on vacation, you have probably been approached by a timeshare salesman. Although it might seem like a great opportunity at the moment, many people actually end up regretting their timeshare purchase. You don?t have many options when it comes to getting rid of your timeshare. The best option is to work with timeshare lawyers and find a way to get out, that will not further affect your financial situation.