Help get out of Timeshare

[Fido Chuckwagon]

So, in your view, a developer selling a timeshare contract for say, $10,000, that can be bought on eBay for $1.00 constitutes consumer fraud?

Yeah, I'm not seeing it go that way either. There's always potentially been some possibilities of actions somewhere based upon some of the ridiculous misrepresentations made by timeshare salespeople to their marks, however that would take a lot of litigation against deep pocket corporations, which is why we haven't seen it come to fruition. Selling a timeshare for $10,000 that resells for $1 on ebay is not, by itself, going to be actionable.

 

[ScoopKona]

I don’t know how exactly works but I definitely will try to learn how to get the best out this.

You have precisely two options.

1) Learn to use what you own and try to make the best of it.
2) Walk away. Take the credit hit. Move on with your life.

You should move on either choice just as soon as possible. If you're going to learn how to use your timeshare, do so now and start using it. You saw value in taking vacations. So take them. At the very least, you should use whatever is available to you because you have already paid into the system. No point defaulting on the timeshare while there are vacation days still on the table. Use them first. You paid for them.

If you're going to walk, then walk. You haven't said how much you owe on the loan. If that number keeps you up at night, stop paying. Let them foreclose. And move on. Paying the loan off just so you can give the week away is ridiculous. Paying the week off just so you can default on the maintenance fee is also ridiculous. Lots of people have walked away from a timeshare. You're not the first person with this problem and you certainly won't be the last. If the amount you owe isn't a big deal, then learn to use your timeshare and take some vacations.

A timeshare is nothing but a toy. It's not an investment opportunity. It's not even a particularly big deal. If you think about it like a toy, you'll have less stress. I'd rather have a timeshare than a boat or an RV. Much less effort that way.

 

[stmartinfan]

VaTh
I hope you can realize that you’re not the only person who has been taken in by timeshare sales people. While it can be frustrating, you can make better decisions if you stop beating yourself up about it. And stop watching internet videos because it sounds like you’ve found ones that are scare tactics from scammers.

There are lots of scammers out there eager to take more of your money with fake promises about getting you out of your timeshare. Most claim no money upfront but then invent bogus things like “appraisal fees” or “ad costs” to take your money before disappearing and leaving you still with the timeshare. Some of them even advertise on shows that make them seem legitimate.

There are lots of people on this site who bought like you did. Some have decided to make the most of their purchase and figure out the timeshare system. We enjoy our annual beach vacations even though it might not have been our smartest purchase.

Others have defaulted and took the credit hit, although we don’t often hear back once that happens. It does appear that the impact isn’t nearly what the scammers pretend.

Good luck whatever your path forward.

 

[T_R_Oglodyte]

10's of thousands of TUGgers and many others have TSs and make lasting memories with their families. Yes, there is a bit of a learning curve. You DO have to plan ahead. Unlike hotels that always keep a few vacant rooms for last minute bookings, timeshares- being owned by the occupants- keep costs down by NOT having vacant units. Those 'Can't EVER make reservation' writings are from people unable- or unwilling- to decide 6-9 months (or longer) when/where they want to go. YES, there are some coveted weeks/units (like ocean front in Hawaii) that if you want to vacation in them, you have to call at exactly midnight on the exact earliest day reservations open for them.

Nicely said Jim. Bolded for emphasis.

If you are in a position to be able to pay cash for what you saw value in at your December presentation, write the check.

This is also good advice. Take a look at what the APR is for that loan. That's probably a personal loan, so it will have a higher interest rate - let's say it's 10%. If you pay that loan off, that is a guaranteed 10% annual rate of return on the money you use to pay off that loan balance. For almost anybody that has enough cash on hand, paying off a high interest rate personal loan will be a wise investment decision for that money.

 

[riverdrinker]

You have precisely two options.

1) Learn to use what you own and try to make the best of it.
2) Walk away. Take the credit hit. Move on with your life.

You should move on either choice just as soon as possible. If you're going to learn how to use your timeshare, do so now and start using it. You saw value in taking vacations. So take them. At the very least, you should use whatever is available to you because you have already paid into the system. No point defaulting on the timeshare while there are vacation days still on the table. Use them first. You paid for them.

If you're going to walk, then walk. You haven't said how much you owe on the loan. If that number keeps you up at night, stop paying. Let them foreclose. And move on. Paying the loan off just so you can give the week away is ridiculous. Paying the week off just so you can default on the maintenance fee is also ridiculous. Lots of people have walked away from a timeshare. You're not the first person with this problem and you certainly won't be the last. If the amount you owe isn't a big deal, then learn to use your timeshare and take some vacations.

A timeshare is nothing but a toy. It's not an investment opportunity. It's not even a particularly big deal. If you think about it like a toy, you'll have less stress. I'd rather have a timeshare than a boat or an RV. Much less effort that way.

Hey everyone! Quick question - if you've defaulted on a timeshare, how likely is it that the company sues for the mortgage amount? Also, curious if putting a property that I own in a trust could safeguard against potential repercussions. I've been considering a few attorneys, has anyone ever got out of a timeshare company due to the efforts of an attorney? Any advice or experiences shared would be super appreciated. Thanks in advance for the help!

 

[dioxide45]

Hey everyone! Quick question - if you've defaulted on a timeshare, how likely is it that the company sues for the mortgage amount? Also, curious if putting a property that I own in a trust could safeguard against potential repercussions. I've been considering a few attorneys, has anyone ever got out of a timeshare company due to the efforts of an attorney? Any advice or experiences shared would be super appreciated. Thanks in advance for the help!

I think chances are better that, if you are in a recourse state, the timeshare company may issue a 1099-C when they write off the outstanding debt.

 

[LannyPC]

I've been considering a few attorneys, has anyone ever got out of a timeshare company due to the efforts of an attorney?

Yes, but as is usually emphasized here on TUG, these attorneys are going to charge you thousands of dollars to do something you can do yourself for a lot less money.

 

[4TimeAway]

My vote would be to keep it and learn to use it. When you really can’t afford it, you tend to not buy things in the first place.

I apologize for not knowing the specifics of your situation, but I assume you heard the payment amount, maintenance fees and dues when you all signed the contract. I’m pretty sure I know how this logic worked, if we all pay 25%, its no big deal. Then someone wants out and the dominos fall to one person who no longer finds it a fun game or affordable. That ship sailed. Everyone ponies up some cash to pay it off and then one or two of you can own it from there.

My logic is:

1. You’re having second thoughts based on assumptions that are triggering fear and not facts.
2. Maintenance fees should be under $2,000/year and I wouldn’t be surprised if you said they were under $1,500.
3. Most people spend money on travel. Once the initial overpayment price is done, the maintenance fees tend to make sense to “keep” the timeshare.
4. Last minute deals, bonus weeks, RCI, Interval International, etc. once you learn what you can unlock with the timeshare. Your cost per week of vacation will go down to less than a descent hotel room.
5. Whoever ends up with the timeshare after is pays off will get the rewards for all this drama. Doesn’t matter is its one of the 4 of you, all 4 of you or whoever gets it from you.
6. You must use the Timeshare to get value from it.

That said, only the 4 of you know if this is an annoyance or a real financial issue. My guess is it was probably not the best financial decision and not the worst that you’ll make.

 

[ScoopKona]

Hey everyone! Quick question - 1) if you've defaulted on a timeshare, how likely is it that the company sues for the mortgage amount? 2) Also, curious if putting a property that I own in a trust could safeguard against potential repercussions. 3) I've been considering a few attorneys, has anyone ever got out of a timeshare company due to the efforts of an attorney? Any advice or experiences shared would be super appreciated. Thanks in advance for the help!

[Numbers added for clarity because this is three quick questions.]

1) It's possible. But I've never heard of this happening. There are fewer moving parts to having a timeshare repossessed than there are to having a car repossessed. (quite literally fewer moving parts).

2) Your primary residence? I wouldn't worry about that either. Remember that OJ was allowed to keep his house in Florida. And he did something a bit worse than defaulting on a loan.

3) Adding an attorney to the mix will most certainly make this more expensive. That's about all it is likely to accomplish.

EDIT -- It's important to note that I'm in the minority about defaulting. Most of the other users believe in making the best of a bad situation, paying off the timeshare (as fast as possible), and using it. I 100% disagree. If it's a millstone around your neck, get rid of it. If it's a financial burden, excise it like it's a freaking tumor. Don't beat yourself up about it. Your credit score will bounce back. Why pay tens of thousands to acquire something which can often be had for free? Or even "paid to take it off my hands?"

Everyone seems to be on the same page about rescission -- get out of the contract before it becomes a credit problem. I go a step further -- the credit problem isn't as bad as spending $30,000, $40,000, $50,000 on something you don't actually want. I also wouldn't continue paying that much for a car which doesn't work as advertised and depreciates to $0 the minute it leaves the dealership.