Did you know that almost ten million American households own at least one timeshare?
The pitch sounds good on paper: have guaranteed access to a resort or condo for one week each year without shouldering the cost of year-round property maintenance on your own.
However, there comes a time in most timeshare owners’ lives when they want to move on from their investment. Maybe they don’t travel anymore or use the timeshare as much as they thought they would. Perhaps they’re helping an elderly parent sell their timeshare or simply can’t afford the fees anymore.
There are several exit strategies an unwilling timeshare owner can employ, but some are more advantageous than others. Keep reading to learn your options for getting rid of your timeshare and decide which course of action is best for you.
Leave During the Rescission Period
Were you talked into buying a timeshare that you don’t actually want? In the moment, it seems like an incredible investment. After all, who wouldn’t want the unique, once-in-a-lifetime opportunity you’ve been presented with?
Once the luster wears off, though, the reality of the situation starts to sink in. How often do you actually want to vacation in the same place, and will you actually make enough use of the timeshare to justify the investment?
If you’re feeling buyer’s remorse in the immediate aftermath of your purchase, don’t fret. Many timeshare contracts come with a rescission clause. This means that you can cancel your purchase without added fees or any impact on your credit score.
However, you’ll need to act quickly! Many rescission clauses are only in effect for a few days after the official purchase date. To enact the clause, you’ll need to write a letter to the company stating your intent to cancel the purchase.
For your protection, include both the date and your official signature on the cancellation letter. Send it to the company as soon as you can, and keep a copy for your own records.
The company is likely to push back; after all, they make money when you keep your timeshare. Stand strong, and know that if your contract has a rescission clause, it’s your legal right to cancel your purchase within the stated time frame.
Put it Up for Sale
If you’re trying to get rid of a timeshare that was bought years or even decades ago, your exit strategy will likely be a bit more complicated than simply canceling your contract.
If you’re lucky, you’ll find a willing buyer online who will be more than happy to take the timeshare off your hands. Once the deed is theirs, you’ll no longer be legally responsible for paying the mortgage and fees on the vacation property.
If you don’t know anyone in your immediate circle looking to get into the timeshare market, many websites offer the opportunity for you to sell your timeshare. You can use general selling and purchasing platforms like Craiglist and eBay. There are also a number of timeshare-specific sites, including RedWeek and SellMyTimesharesNow.
Know that you’re unlikely to recoup your costs when you resell your timeshare. There are many, many timeshares on the resell market. Not many buyers are willing to pay premium prices when low-cost options abound on the market.
The benefit to selling is not that you’ll make a profit but that you won’t have to continue paying for the property in perpetuity.
Talk With the Company
If you’re unable to sell the timeshare, you can also try talking connecting with the timeshare company itself. Some companies offer deed-back or voluntary surrender programs for owners who no longer want their shares.
While some companies are willing to work with owners in this way, some don’t offer buyback programs at all. When they do, they’ll probably charge you high exit fees for surrendering your timeshare.
Rent It Out
While this doesn’t exactly get you out of owning your timeshare, it can help defray the costs of ownership while you pursue one of the other avenues on this list. If you have friends, family members, or other close contacts who are interested in renting your timeshare from you for a short time, go for it! The timeshare will get used, and you’ll get some money to put toward the cost of your timeshare.
Stop Making Payments
This is a risky strategy, but it sometimes pays off. When you stop paying the yearly maintenance fee, you effectively send your timeshare into foreclosure. The company is then forced to do one of three things: pay the legal fees associated with your foreclosure process, allow you to surrender the property back to them before it goes into foreclosure, or send your debt to a collection agency.
It’s not unlikely that the company will send your debt to collections, which will take a toll on your credit score. That’s why this method is not for the faint of heart, and honestly, it’s not the most recommended exit strategy on this list.
Work With a Timeshare Cancellation Service
As you can see, the DIY approach to canceling a timeshare can be time-consuming and confusing, and it may not even result in your being able to get rid of your timeshare.
If all other approaches have failed, it’s time to work with a professional service to help you with canceling your timeshare contract. They’ll handle all the legal considerations, interface with the timeshare company on your behalf, and in general, support you through the process of getting rid of your timeshare.
Timeshare Exit Strategies That Work
Getting into timeshare ownership is easy, but getting out of it is a whole other story. From hidden fees to binding clauses, timeshare contracts can feel less like the freedom you were promised, and more like a burden! Thankfully, exit strategies such as working with a timeshare cancellation service can help you protect your finances and relieve the stress of timeshare ownership.
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