Buying a property that everyone in the family can agree on can be difficult. Experienced buyers can pull off sticking to a budget with ease. But what about beginner buyers?
Beginner buyers usually get stuck with something that they don’t want—such as expensive timeshares.
If you’ve already bought one and are interested in learning how to get rid of timeshare, we’ve got you covered. Keep reading to learn everything you need to know!
Table of Contents
What Are Timeshares
Timeshares are properties for sale that are subdivided into distinct sections of ownership. They can be purchased, used, and then traded or sold by multiple owners. This agreement is usually for a certain period of time, such as one week up to multiple years.
Reasons Not to Invest in a Timeshare
Reasons not to invest in a timeshare include high start-up costs, ongoing maintenance fees, and long-term commitments. Prior to making any financial decisions, individuals should be aware of the full scope of the investment and consider their financial obligations and lifestyle before signing a contract.
Sellers should understand their local laws about cancellations, be aware of the hidden costs and fees associated with the timeshare, and explore available options for timeshare liquidation.
How to Get Rid of Timeshare
Getting rid of a timeshare is something many people are dealing with. The best way to go about it is to first determine why you have the timeshare in the first place, and if something has changed that would make it too difficult to keep. Consider speaking with a real estate attorney or a timeshare lawyer to see what options are available.
If the timeshare is still financially feasible and the terms of the agreement make it attractive, keep the timeshare and move forward. On the other hand, if it is too financially burdensome, it may be time to get rid of the timeshare.
There are various options available depending on the timeshare company. These can include reselling the timeshare, seeking bank foreclosure, strategic default, or termination through a third party.
Reselling the Timeshare
If you’ve decided to resell your timeshare, you’ll want to create a strong offer. Set a competitive price for your timeshare and consider offering an incentive for potential buyers, like waiving closing costs or offering a few weeks at the property for free. You will also need to make sure that your timeshare contract is up to date and that all applicable taxes have been paid.
Once you have a potential buyer in place, you will need to find a reliable transfer agent who can help you navigate the process of transferring the timeshare ownership. It’s important to research transfer companies, such as timeshare closing companies, to get the best rates and avoid getting taken advantage of.
Finally, make sure all the necessary paperwork is completed and confirm that all funds are successfully transferred before you declare the sale of your timeshare complete.
Seeking Bank Foreclosure
If you wish to get rid of a timeshare through a bank foreclosure, you must first contact the bank that holds your loan. You must provide them with ample evidence of your financial distress or inability to make payments.
The bank may require documentation of your income, your monthly expenses, and any other financial information that can help prove your hardship. Be prepared to present your case clearly and be prepared for a process that can take several months.
Once approved and accepted, the bank will foreclose the timeshare. Then you will no longer have any obligations to the loan.
Additionally, you may also be able to have the loan forgiven by discussing with the bank the possibility of a loan modification. The bank may take a percentage up to 75% of the outstanding balance in exchange for forgiving the debt.
A strategic default is one of the most common ways a person can get rid of their timeshare. A strategic default is when a person decides to stop making their timeshare payments and instead walk away from the obligation.
It is important to first speak to a legal professional to understand the legal implications of a strategic default. It is likely that a person will still owe some money even after defaulting on the timeshare.
It is also vital to be aware that not all timeshares are eligible to be strategically defaulted on. Some may have strict rules on default.
Termination Through a Third Party
If you’ve been stuck with a timeshare that you regret buying, you may need to consider terminating it through a third party.
Many timeshare termination companies exist to provide consumers with the necessary resources to cancel their ownership. These companies provide their services in exchange for a fee. This can range from several hundred to a few thousand dollars, depending on the complexity of the circumstances.
Vet any potential third-party timeshare termination provider. This is to ensure they are licensed, knowledgeable of applicable laws, and have a proven success record. This will lend assurance to a successful and expedient resolution to your timeshare ownership.
If you’re in Texas, check out Lonestar Transfer!
Get Rid of Your Timeshare and Enjoy More Financial Freedom
Before attempting to get rid of timeshare, it’s best to do your due diligence and research all your options. Check the costs and benefits of these options. Choose the course of action that is most suitable for your financial plan.
Then, contact the company responsible for the timeshare. Ask about their cancellation policy. Be sure to understand all the costs associated with canceling and any potential legal ramifications.
Once you have negotiated a cancellation, the next step is to ensure that the contract has been canceled officially.
Keep reading our blog for other helpful topics!
Last Updated on January 17, 2023