Making a Graceful Exit
As part of a 2016 settlement with the state of Arizona on behalf of disgruntled timeshare owners, Diamond Resorts, a timeshare company with 380 affiliated resorts in 33 states and 32 countries, established a program that allows certain consumers to relinquish fully paid but unwanted timeshares with no further obligations. Marriott Vacations Worldwide, Club Wyndham, and other timeshare companies have also made it easier for owners to do the same thing, which has created a guide to legitimate exit strategies But for consumers who feel chained to their timeshare by a contract they can’t break, there are strategies to help you part ways.
Ask the corporate owner about a deed-back program. As noted, some operators will now help owners unload their shares, but you may be on the hook for maintenance fees while they seek to resell the unit.
Sell it or give it away on an open forum. Numerous online forums and websites exist for owners seeking buyers for their shares. Among the most active is eBay, where the keyword “timeshare” will turn up hundreds of listings. You can also find them on Craigslist, the Timeshare Users Group, and RedWeek. Be sure to hire an attorney to prepare (or at least review) all paperwork related to the transaction and, given the weakness of the secondary market, be prepared to take a significant loss. But at the very least, you’ll get closure.
Suspend maintenance payments. Though it’s not a recommended strategy, you could stop making these payments as a last resort. Doing so could lead to foreclosure, damaging your credit score for up to seven years, and possible legal action, but some owners may find this approach to be the lesser of two evils.
Barbara Prideaux, 80, of St. Louis says she and her late husband let their timeshare go into foreclosure after a Missouri relief company they hired failed to get them released from their deed. “Our children never used the timeshare, and the fees just got to be too much,” Prideaux says. “I wasn’t happy about doing it this way, but we are moving on with our lives.”
What to Know Before Buying a Timeshare
Timeshares, also known as “vacation ownership plans,” have evolved since they were first marketed in the 1960s and ’70s, commonly as a fixed week at a specific resort. Today there are also “floating week” timeshares that let you pick different weeks each year and points-based plans that let you book stays of varying lengths at different resorts, among other types. Established names, including Disney, Hilton, Marriott, and Wyndham, sell timeshares, but all vacation ownership plans come with a unique set of concerns. Keep these things in mind.
Weigh the Costs
The average price of a new timeshare is $21,455, which buys you the use of a property for one week each year, according to a recent survey by the American Resort Development Association (ARDA). You can pay a fraction of the purchase price of a new timeshare by buying one secondhand on websites like eBay or on dedicated timeshare sites such as RedWeek and the Timeshare Users Group. Annual maintenance fees average $1,000, according to ARDA, but can climb to more than $3,000. Timeshares don’t appreciate in value, but if you hold on to one long enough—at least 13 years, according to a 2016 Consumer Reports estimate—you can begin to save on what you would have spent taking similar vacations on your own.
Consider the Hassle Factor
If you buy a floating week timeshare, you may have to reserve your vacation nine to 12 months in advance to get a desirable location. Points-only plans offer the most flexibility; you can vary both the length of the stay and the locale. But planning is essential to getting your money’s worth. And if you bought a timeshare because it was cheap in the hope of swapping it for stays at nicer properties (via membership platforms like RCI), you may be out of luck. If you’re not thrilled about staying there, you probably won’t get many takers.
Avoid an Impulse Buy
Many timeshares are bought by people on vacation. There may be a brief window of as many as 15 days to back out, depending on the state. Arizona recently increased its window to 10 days while also requiring sellers to more clearly disclose the nature of the purchase. Always insist on time to think it over, away from the piña colada parties.
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