Timeshare Tribulation

Show Notes

What’s harder to get rid of than termites and hurts more than a toothache? According to countless callers through the years, the answer is a timeshare. So what are your options for getting out of a timeshare? We’ll talk about that on this episode of Faith & Finance. 

• In a perfect world, you’d be able to sell your timeshare for enough to get your money back. Unfortunately, that’s not going to happen. 
• Now, just why is a timeshare so difficult to sell, or get rid of at all, for that matter? For most potential buyers, it lacks a clear need. You can book a week at a similar resort any time you want without a huge upfront cost and monthly fees. So there are few customers out there to buy your timeshare.
• Also, let’s face it, timeshares have a significant public relations problem. Most people don’t like the high-pressure sales tactics typically used by the companies that sell them. So timeshares, in general, have a badly tarnished brand image.
• Before you attempt to sell your timeshare, you should get all the information you can about the process and the best source we know is the Timeshare Users Group or TUG. You can find them at Tug2.com.
• This is a community of timeshare owners who offer advice and share their experiences. The membership fee is $15 a year, and it’s probably well worth it. 
• SELLING A TIMESHARE
• If you try to sell it on your own— you need to have a realistic idea of what it’s worth— and that’s almost certainly a lot less than what you paid. Next you’ll have to advertise and TUG has an online marketplace that’s probably the most active site you’ll find for buying or selling a timeshare. You can also try eBay, Craigslist, Facebook and newspaper classified ads.
• Once you find a buyer—if you find a buyer— you’ll need to write up a contract that specifies what each party must do and what they receive from the transaction. It would be wise to get an attorney to draw up the contract.
• Okay, let’s say you’ve been unsuccessful in selling your timeshare. If you’ve given up hope for getting any return on your money, you can simply ask the resort to take it back. It’s called a timeshare deed back and if the resort agrees, it’s an inexpensive way to get rid of it. You’ll probably need to have paid the entire cost of the timeshare, which could run around $24,000, so that would have to be a last resort.
• Your next option is to use a so-called “timeshare exit company.” This one can be tricky, because there are a lot of scams out there. You’ll want to find one with a track record of helping people get out of their timeshare— and ask for referrals.
• There’s one more option for getting out from under a timeshare, and that’s to go with a contract attorney. You want to find one that’s experienced in getting folks out of a timeshare. It can happen because these companies don’t always keep their end of the bargain and are found in breach of contract.
• You’re probably wondering what some of these options might cost you. If you’re able to sell your timeshare, you’ll probably have several hundred dollars in advertising fees. 
• You’ll also lose the difference between what you paid and what you sell it for, which will likely be substantial.
• If you go with a timeshare exit company, costs often start around $5,000 and could go well over $10,000. Hiring an attorney could cost nearly as much. 
• TIMESHARE "DON’T"s
• Now, here are some “don’ts.” Don’t go with any timeshare exit company that makes extravagant claims that they can get you released from your timeshare for a low cost. If the company asks for payment upfront , head for the door. Also, don’t go with any company that suggests you do anything illegal or in our case, as believers, anything that would dishonor God.
• Here’s another “don’t.”  It might be very tempting to just stop making payments. That will result not only in being endlessly harassed by the timeshare company or some collection agency, it will ruin your credit and may result in a foreclosure.
• You’ve also signed a contract, pledged your word that you’d pay this money. The Bible is pretty clear about your obligation. Psalm 3:27 tells us,”Do not withhold good from those to whom it is due, when it is in your power to do it”
• So, as we said, you have a few options for getting rid of a timeshare, but the easiest way of all is to not buy one in the first place. You’ve heard the saying, “An ounce of prevention is worth a pound of cure.” Couldn’t be more true than with a timeshare.

On this program, Rob also answers listener questions: 

• Where can you find faith-based investing options? 
• What is the advantage to setting up a trust vs a will? 
• If the US enters a recession, what impact might that have on house prices? 
• Should a parent consider helping to pay off the mortgage of their adult child? 

RESOURCES MENTIONED:

• Eventide Funds 
• Praxis Funds
• Inspire Investing
• Guidestone Funds

Be sure to check out the rest of FaithFi.com to access our books and our many free helpful resources. You can also find us on Facebook Faith and Finance (Live) and join the conversation. Thanks for your prayerful and financial support that helps keep Faith and Finance (Live) on the air. And if you'd like to help, just click the Give button.