Timeshare Tribulation

What’s harder to get rid of than termites and hurts more than a toothache? Some will tell you it’s a timeshare. It seemed like a good idea at the time, but now it’s just another budget buster. We get the question often on the Faith and Finance radio program. “How can I get out of my timeshare?” There are actually several options, although none of them is great.

In a perfect world, you would be able to sell your timeshare for enough to get your money back. That’s not going to happen. If anyone has** done it, please call us. We’d love to hear how you did it.

Why is a timeshare so difficult to sell or get rid of at all? For most potential buyers, it lacks a clear need. Anyone can book a week at a similar resort anytime without a huge upfront cost and monthly fees. There are few customers out there who want to buy your timeshare.

Also, timeshares have a significant public relations problem, for good reason. Most people don’t like the high-pressure sales tactics typically used by the companies that sell them. Timeshares, in general, have a badly tarnished brand image.

Before you attempt to sell your timeshare, get all the information you can about the process. The best source we know is the Timeshare Users Group or TUG. You can find them at TUG2.com.

TUG is a community of timeshare owners who offer advice and share their experiences. It costs $15 a year to join and it’s probably well worth it.

If you try to sell your timeshare 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 for it. Next, you’ll have to advertise. 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 have an attorney draw up the contract.

If you’ve been unsuccessful selling your timeshare, if you’ve given up hope for 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, making this a last resort.

Another option is to use a so-called “timeshare exit company.” This one is tricky because there are a lot of scam artists in this space. You’ll want to find one with a track record of helping people get out of their timeshares—and ask for referrals. We don’t know of a legitimate timeshare exit company, but there may be some out there. Just be careful about paying money upfront.

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 someone experienced in getting folks out of timeshares. This is sometimes possible because these companies don’t always keep their end of the bargain and can then be found in breach of contract.

You’re probably wondering what some of these options might cost you. If you try 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.

Here are some things you shouldn’t do: 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 for Christians, anything that would dishonor God.

Also, do not stop making payments, even though it might be tempting to do so. That will not only result in endless harassment by the timeshare company or some collection agency, but it will also ruin your credit and may result in foreclosure.

You’ve also signed a contract and pledged to 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.” Those are the options for trying to get rid of a timeshare, but the easiest way is to not buy one in the first place. You’ve heard the saying, “An ounce of prevention is worth a pound of cure.” It couldn’t be more true than with a timeshare. You can also listen to the related podcast on this topic.