Annual timeshare maintenance fees are due in January, and for many owners, this time of year serves as a painful reminder of the financial burdens associated with their timeshare. During the initial sales presentation, you were probably dazzled with pictures of a beautiful, luxurious resort and promised a lifetime of magical memories. However, the salesperson most likely failed to mention that the annual maintenance fees increase by approximately 4% every year, resulting in rapidly rising costs that can eventually make the property hard to fit into your budget.
Currently, the average timeshare maintenance fee is $1,000, and this figure is estimated to rise to roughly $1,500 within a decade. It is completely understandable if you’ve reached a point where you can no longer afford these yearly costs and want to get out of your timeshare. However, it’s important to do your research before choosing a timeshare cancellation company. There are many scams out there, and it’s crucial that you work with a reputable firm that offers attorney-based solutions that will legally cancel your timeshare without damaging your credit.
Since timeshare contracts are legally binding documents, they operate just like a car payment agreement, mortgage or credit card contract. If you fail to make your payments on time, the timeshare resort can file reports with the major credit bureaus which can negatively impact your credit rating.
The only guaranteed way to protect your credit while getting out of your contract is to continue paying for your timeshare until the exit process is complete. This includes:
While not all timeshare resorts will spend the resources to report on your credit, there’s no possible way to know for sure whether it will happen. In addition, resorts must pay to file a negative report on your credit, so it is common to only see negative reporting on one or two of the major credit bureaus.
Keep in mind that you may face other negative consequences if you fail to keep making all payments until the timeshare exit process is complete. These may include:
For these reasons, it’s crucial that you keep making all your payments. Be wary of any timeshare cancellation firm or resale company that tells you it’s safe to stop making payments once the process is initiated. This is a warning sign that you may be working with a disreputable company, and it’s a surefire way to trigger damage to your credit that may follow you for years.
There are several potential solutions that will allow you to get out of your timeshare without damaging your credit. However, it’s important to understand that not every option may be available to you based on your unique situation.
Some timeshare resorts may offer a deed-back option where they’ll allow you to give back the property, which they will then attempt to resell to another buyer. Keep in mind that many resorts will not provide this option. In addition, in order to qualify for a deed-back program, you generally must have your timeshare mortgage fully paid off and be current on all maintenance fees.
The American Resort Development Association (ARDA) provides an online resource to help you determine whether your resort offers a deed-back program.
If you’re able to find a friend or family member willing to take the timeshare off your hands, you can gift the property to them. Once this person takes ownership of your timeshare, they will be responsible for all maintenance fees. However, if you owe money on your timeshare mortgage, this may not be a viable option. In addition, due to the excessive annual costs associated with timeshare ownership, you may have trouble finding someone interested in taking over your property.
You can try to sell your timeshare. However, there are several important caveats to keep in mind before attempting this solution:
Always beware of companies promising to sell your timeshare, offering vastly better success rates than what you can achieve trying to sell the property on your own. If you’re unable to find a buyer, chances are they won’t have much better luck. These companies will often charge you a fee for continuing to list your timeshare without delivering your desired outcome. While selling your timeshare is a way to potentially get rid of your timeshare without damaging your credit, it’s rarely a viable solution worth pursuing.
In most instances, your best option is to legally cancel your timeshare. If you still owe money on your timeshare mortgage, this is most likely the only option available to you. As with companies offering to sell your timeshare, it’s important to be on the lookout for scams with this option. Make sure you work with a reputable timeshare exit company that uses attorney-based solutions, has a proven track record of success and offers a money-back guarantee.
At Timeshare Termination Team, we understand the high stakes involved in making sure your timeshare cancellation delivers legal, permanent results. We know that any damage to your credit score can have a devastating impact on your life, and our attorneys will advise you every step of the way to ensure you take the proper steps to protect your credit rating while we’re cancelling your timeshare.
Every timeshare contract is unique and as a result, no two exit strategies should be exactly alike. Our expert advisors will carefully review the terms of your agreement and evaluate other factors such as the presence of a mortgage and the cost of your annual maintenance fees in order to present you with options that will safely get rid of your timeshare without damaging your credit.
When you work with our team, you’ll benefit from our You First Approach™ which ensures your needs are always our top priority. A primary component of this approach involves providing you with the information you need to understand your options. You’ll receive:
Start your journey toward timeshare freedom and get back to living life on your terms. Please contact us today to schedule a free consultation.
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