Timeshare Exit Pros: The Safest and Legal Way to Exit Timeshares

The day of timeshare is almost done. At this point, it’s almost universally accepted that the “investment” opportunity is a deceptive tactic used by the resorts. If you’re looking to prepay for your hotel or resort for your holidays to the same destination year in and year out and you have money to give-away then maybe timeshare might be for you, but it’s far more likely that a couple of years down the line you’re going to want out. This is the point when you find out how horrendously difficult it is to exit from timeshare contracts.

 

How to Legally Exit Timeshare

There is now a growing trend of timeshare exit and support services because before now, it was notoriously hard to do. These contracts are ironclad and designed to keep unwitting customers locked into financial obligations that they did not expect and even after they have decided they want out, it’s very difficult for them to cancel, sell, give-away, or exit. The only legal way to exit from timeshare contracts is to have it mutually canceled by both parties and the only way to successfully pursue this outcome is by hiring a professional service like Timeshare Exit Pros who specialize in just that.

The situation is made worse by a growing number of services, and websites who want to kick you down and profit of the naivety and lost hope of those looking to exit from timeshare contracts. Sites are promising to sell your timeshare or rent it out for a small service charge or fee, fakes buyers are offering ridiculous amounts of cash, but the reality is you can’t and shouldn’t sell your timeshare. If you take the time to look you’ll see people trying to give them away or sell them for a $1. When the market goes that low do you think you’re going to make a profit?

 

Give up on making a Profit, Give up On Recouping Your Losses

The cold hard fact of the matter is this; if you were sold your timeshare as an investment opportunity you have been deceived. It is not the same as investment in property or a holiday home, effectively you own nothing except a deed that holds you legally accountable for monthly mortgage repayments and annual maintenance fees. All a timeshare will do over time is depreciate and become even harder for you to get rid of it. The only fast and legal time to try to exit from timeshare contracts is in the first few days when you can use rescission law to cancel the contract.

 

Getting Out As Quick As Possible

Companies like Timeshare Exit Pros will work on arranging the quickest way for their clients to legally exit timeshare contracts. They do this by leveraging the law and having the contract canceled or annulled directly from Developer it was taken purchased from. The faster you can cancel your contract, the fewer mortgage payments and maintenance fees you will have paid. This will show you tremendous savings on your timeshare, allowing you to use that money to travel freely without the hassle of yearly fees that continue to rise annually or bi-annually.

 

Why You Shouldn’t/Can’t Sell a Timeshare

First, as mentioned above, there is no legitimate market for buying timeshares. Just as you want out of yours for whatever reason is behind that decision, nobody wants to buy it for the same reason. You are not offering something of value and nor is there a shortage of other people trying to do the same thing. So even if you could find a legitimate buyer and not get unfortunately roped into yet another scam, you’re going to have to give it away. Anyone selling you a dream of recouping your loss or turning a profit is selling you a lie.

Second, even if you did manage to “sell” your timeshare you are still legally bound to the monthly mortgage payments and maintenance fees. The only way to legally pass off a timeshare contract is with a quitclaim deed and if the new “owner” misses a payment or decides they don’t want to pay in the first place, it reverts right back to you. These timeshare contracts are filled with horrible clauses like this which is why so many people are looking to legally exit timeshare obligations.

 

Money-Back Satisfaction Guarantee of Safe and Quick Exit

There is no such thing as a hassle-free exit from timeshare contracts, but here at Timeshare Exit Pros, we take on all of that stress so that you don’t have to. We have a specialized and expert team who knows the process of timeshare elimination like the back of their hand and we can guarantee your satisfaction in a swift and safe exit. This is why if we take longer than advertised or fail you in any way we will give you back our consulting fee.  

Trying to navigate the minefield of timeshare contract law on your own is not impossible but it would be quite the headache, hiring a lawyer to go to bat for your behalf would be incredibly expensive. Timeshare Exit Pros offers an affordable and safe exit process.

 

FAQ

 

How Can I Get Out Of My Timeshare?

The only legal way to get out of a timeshare is to have it canceled. This is because in most cases selling it will still leave you liable if the new owner cannot or won’t make the necessary payments on it. To have it canceled, you will have to deal directly with the timeshare providers and see what options are available or hire timeshare exit and support services such as Timeshare Exit Pros.

 

What Is The Average Cost To Get Out Of A Timeshare?

The range of costs offered by timeshare exit and support services ranges from $2,000 to $12000 there is no accepted fee and even with those services, it can take years to actually legally exit timeshare contracts. Here at Timeshare Exit Pros we try to offer an affordable and guaranteed quick exit and believe our services to be the best on the market. Contact us today for a quote.

 

What Happens To Timeshare When You Die?

It depends on the contract you signed but most timeshare contracts have perpetual clause that legally have the timeshare passed onto your heirs or family members. If it cannot be passed on then whatever assets you have will be used to reclaim the debt. Timeshare contracts are essentially eternal and even if you die with one still hanging over your head it doesn’t end there.

 

What Happens If I Stop Paying My Timeshare?

If you stop making your obligated payments on the loan or maintenance fees for your timeshare, you will be sued, foreclosed, or handed off to a third-party debt repayment service. The law will, unfortunately, be on the side of the contract and any court proceedings will likely side with the timeshare or loan provider.

 

What Is The Best Way To Get Rid Of My Timeshare?

The best and only legal way of getting rid of a timeshare is by having it canceled from the hotel, resort, or organization you purchased it from. This can be a difficult and confusing process, which is why companies such as Timeshare Exit Pros have specialized in doing it on behalf of their customers.

 

Don’t Buy Timeshare and If You Do Read the Small Print Carefully

The best way to make sure you never have to go through the stress and headache of getting rid of your timeshare is to never buy-in in the first place. If you’re reading this because you’re considering a timeshare then please consider the advice of our clients and don’t. We have helped with far too many incredibly disappointed and outraged people who just want to put the entire ordeal behind them.

To legally exit a timeshare if there is a buyback scheme or system set up by those providing the timeshare then look into that first. After this is you are out of the rescission period then you’ll need to hire professional help. If you’re looking to get rid of your timeshare then chat with a member of our team today to find out how we can help you legally exit timeshare and not have to worry about them ever again. Our expert team will walk you through the process and keep you constantly updated with our progress and our money-back guarantee is proof we will get you the result you want as quickly as we can.

 

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Staff Writers February 10, 2020 0 Comments

What Is The Best Way To Get Rid Of Timeshare Legally?

Owning a timeshare is what financial expert Dave Ramsay has described as a “stupid tax”. If you’re reading this because you’re thinking about getting one, don’t! Unfortunately, the truth of the matter is if you’re reading this it’s already likely too late.

Timeshares are a notoriously poor investment with hidden costs, maintenance fees, and lack of use seeing many customers frantically trying to get rid of them once they realize the truth. But what is the best way to get rid of a timeshare legally? Knowing what you know, it would be neither moral nor legal to sell it off to another unwitting buyer, so what are your options?

In this article, we’re going to look into a few of the ways to get rid of a timeshare legally and some of the options you’ll want to avoid. Read on if you need some advice in getting rid of an unwanted timeshare.

Rescission Period

In most states, the quickest, easiest, and best legal action to take to is to cancel your timeshare while you’re still in the rescission period. The length of time the rescission period will last will vary from state to state so this should be the first thing you check, although the average is usually only 5-10 days after purchase. If you’re lucky enough to have realized as early as within the 5-10 days after purchase, then you need to send the resort a letter via certified mail that you bought the timeshare and tell them that you would like to rescind your contract as you are still in the rescission period.

There might be slight variances in the proper procedure but it should all be detailed in whatever literature or contract you were given when you were sold the timeshare. This method of canceling your timeshare is legal, safe, and effective, but only available to those who came to their senses in a fairly quick fashion. It was put into law to help combat the overly pushy and scary sales pitches that have unfortunately become commonplace in the industry and provide customers with a clean way out even if they were bullied into a contract. It isn’t for those who have realized the timeshares lack of worth later down the line, so how can they get rid of their timeshares?

Contact a Timeshare Exit Expert

Here at Timeshare Exit Pros, we know that the only legal and proper way to get rid of your timeshare is to have it canceled directly and mutually with whomever you purchased it from. We have a team of experts who excel at getting that contract canceled as quickly and cleanly as possible. We have built a reputation for ourselves and most companies we deal with know that we won’t quit until we’ve gotten our customers free of the timeshare and so most fold fairly early in negotiations.

There are several laws put into place to protect customers from shady timeshare deals and contracts that are fairly iron-bound, we leverage these rules and regulations to negotiate a cancellation of the contract on your behalf. Whereas resale sites require maintenance fees for the listing or further investment on top of the money pit that is the timeshare itself, we show results and achieve resolution quickly and at an affordable cost.

Give It Back Direct To the Hotel or Resort You Bought It From

As the industry is slowly shifting towards more safeguards and regulations regarding timeshares there has been a shift from some of the hotels and resorts selling them to save face. This means that a growing number of those hotels and resorts now have their buy-back schemes or exit programs advertised. If you’re lucky (or unlucky as the case may be) enough to have a timeshare with a hotel or resort that is offering a scheme like this whilst you might not make money or even recoup your losses, it’s a clean exit at least.

The process, reimbursement, and stipulations for these programs will differ from resort to resort but you should explore them fully before you turn to less trustworthy or potentially illegitimate dealers or websites found on Craigslist. The internet is rife with deals and offers by companies and customers claiming they will buy your timeshare for you relying on the desperation and lack of good information available to panicked customers. So what shouldn’t you do to try and get rid of your timeshare?

How Not To Get Rid Of Your Timeshare

Selling It

Believe it or not, but if you look through the contract you were given when you first purchased your timeshare you’re likely to find out that the only legal way for the owner to transfer the timeshare is through a quitclaim deed. Now the quitclaim deed transfers the title but not the obligation to pay the monthly mortgage or annual maintenance fees. This means if the new owner decides to stop paying, it reverts right back to you to legally cover those costs.

So selling, renting, or even just giving the deed away, even if you do manage to find someone willing to take it off your hands, doesn’t get rid of the legal tie to the timeshare at all. Some sites that claim to do the work on your behalf know this information fully well and maybe looking to illegitimately profit off of two misinformed parties at once whilst not taking any of the risks themselves.

Renting It

There are many sites and scams that claim they can sell your timeshare or rent it out for a profit. When customers first come to the realization of just what a poor choice the timeshare was, any promise of recouping that loss or even turning a tidy sum in profit is going to seem incredibly appealing. Unfortunately, that is precisely how scams work and if it sounds too good to be true it probably is. Most of these sites will tell you they have buyers lined up and that it will be a quick and easy process they just need a membership fee or some money upfront to list it. This is when you quickly turn the other way.

It is one of the most distressing and painful truths that human beings will happily profit off of the misfortune of others and just the same as overdraft fees those who are already hurting seem to have the target squarely on their back. If you want to get rid of your timeshare because of the hurt it provides financially, the last thing you want to do is pay more fees and more monthly memberships to try and alleviate it.

Give It Away

You shouldn’t and wouldn’t give away a timeshare for all the reasons listed above. Not only would you still be ultimately liable for monthly mortgage or any potential maintenance fees, but you would also be burdening another human being with something that you know isn’t worth the money it costs. There are many different reasons why you would want to get rid of your timeshare, and they don’t all apply to everyone, but think very carefully if the investment would be worth it for them? Even if you gave it to them for “free”.

Timeshares are unfortunately targeted at those that cannot afford them and so even if you think you can, you can’t. Unless you’re the type of person who can pay the timeshare off in cash up front, it’s never going to be worth taking out a loan or the interest on that loan. Most timeshare sellers even sell you their credit line so that they can extract gain from you two ways.

Is A Timeshare A Good Investment?

A timeshare shouldn’t be labeled an investment at all. An investment implies that you will make your money back at some point or that you might even make a profit out of the deal. This might be true for a holiday home or investing in property portfolios, but that’s not what you’re doing with a timeshare.

Essentially you are pre-paying for a stay at a resort or a hotel. On top of what you would pay to stay there, you now have to factor in the loan interest, the maintenance fees, and a monthly mortgage. So when they “treat” you to a “free” week at the hotel or resort you should do the math and figure out if it would have been cheaper to buy the room direct. More often than not… it is.

Conclusion

Contact a member of our helpful and expert team today to talk to us about how we can get your timeshare canceled legally and quickly. Canceling is the only legitimate way to do so outside of the rescission period and we can make that happen for you.

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Staff Writers February 8, 2020 0 Comments

Timeshare Exit Pros Release Client Pro Portal!

We understand our clients frustrations when it comes to timeshare contracts. You want to exit your contract safely and quickly, without the additional headaches and psychical paper work to fill out by hand like all other timeshare companies have you fill out.

 

In order to make your exit experience seamless and more efficient, we reinvest into new systems to streamline our process. As a result, we are proud to announce that we are the first Timeshare Exit Company to release a Pro Portal for Clients.  This allows for a quicker and more organized exit.

 

All documents needed for your exit process can be electronically submitted into our system via the Pro Portal. This is so they can be filed instantly and reviewed immediately. Unlike other timeshare exit companies, we ensure you do not have to go through any manual processes, fill out forms by hand or even send in multiple emails. All of these tasks become too time consuming and leave more room for error

 

Contact A Timeshare Exit Company: We specialize in timeshare exit and help people get rid of their unwanted timeshare safely, legally, and permanently. Feel free to schedule a free consultation to learn more about the exit process.

 

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Staff Writers November 9, 2019 0 Comments

Your Timeshare Exit Checklist!

Re-sale Homework: Do your research and try and see if there is any value for your timeshare. You can easily pull up your web browser and visit eBay, Redweek, etc. You can pull up sources you trust the most, as long as you are using reputable sources. It is very important to keep in mind, that if there are other units listed at your resort, it does not mean they are selling for that amount or selling quickly. We always recommend cancelling so you get rid of your timeshare permanently. If you sell you are still liable for the obligation. This is something timeshare sales companies will not disclose.

Resort Engagement: You can also try contacting the resorts. You will find that this is not easy and that you may be on a call with someone now trying to up-sell you, when you mentioned you wanted to transfer back ownership.  If you do upgrade, you now have two timeshare contracts that you are now obligated to financially.

 

Contact A Timeshare Exit Company: We specialize in timeshare exit and help people get rid of their unwanted timeshare safely, legally, and permanently. Feel free to schedule a free consultation to learn more about the exit process.

 

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Staff Writers October 3, 2019 0 Comments

The Pros vs. The Other Guys

It appears you are looking for a company to help you get out of your timeshare contract, but you cant seem to find a perfect fit.

No matter where you look, it’s the same PRO and CON situation. The same give and take, this and that, the good and the bad. We will help you make an easy decision by providing you real scenarios that our clients have shared with us during our initial discovery call. We record these scenarios to learn more about our competitors and to help educate our clients on what they might expect and what to avoid. We had requested our operations department to provide us a few scenarios to share with you.

Below you will find the top picks from our Exit Pros. Even if you do not choose our company to help you exit your timeshare, at least you will walk away with several great pointers!

 

THE OTHER GUYS

  • PRO PICK 1: You find a company that seems more honest than the last, but they’re a bit slow at getting things together.
  • PRO PICK 2: You find a company that appears to have their ducks in a row, but they didn’t appear to be knowledgeable when you asked them specific questions regarding your situation.
  • PRO PICK 3: You find a company that is well-educated as well as honest. However, they are very expensive and during the initial stages, they ask you to find a notary in your area to notarize your documents.
  • PRO PICK 4: You find a company that makes you fill out a long survey by hand, rather than having a convenient online submission form you can submit digitally.

 

Keep an eye out for these scenarios during your online shopping. These are situations that we find are red flags and that will occur early on. Each scenario above represent a few of the below concerns:

  • Dishonest Behavior
  • Expensive Without Justification
  • Unorganized and/or Inefficient
  • Old Processes are associated with not being Up-to-date
  • Traditional forms are often warning signs of traditional thinking.
  • Not funding notary processes are sign of a struggling company.

 

THE EXIT PRO’S

At Timeshare Exit Pro’s, we are honest from start to finish.

We are 100% transparent and we provide our clients updates every step of the way. Our team is fast, organized and efficient because our company reinvests annual budgets into technology and automation developements. Canceling a timeshare is tough business, even for us as professionals. It is important that we place all our focus on the clients end goal and our company procedures. This way we do not spend our time and your money on traditional and tedious manual processes.

By doing so, we can put 100% focus on your cancellation and relieve our team from manual work, and at the same time cultivate an efficient environment to improve the speed of our process with zero room for error. In doing so, we are able to charge lower rates due to volume and increased automation. We are always on top of the industry and best practices and we keep an eye out for regulations and resort policies as well. If you have a question, it will be answered immediately. If we don’t know the answer off the top of our head, we will be sure to check with compliance and return with an answer same business day, after the information is confirmed correct.

Our customers will never be asked to locate a notary or pay for their own signatures. We have nationwide notaries that will visit you at your preferred location and they will call prior to penciling in a time that best fits YOUR schedule. As for the surveys, they are standard industry policy and are required to complete in order to safely and successfully help you exit your timeshare. The good news is the Timeshare Exit Pro’s have developed an online survey that you can conveniently complete at your own pace and easily submit your answers online.

Once the information is submitted into our system, our operations department will organize them into your file. You can forget about wrist pains and your Adobe PDF Reader freezing up on you before saving your answers. The pros have your covered!

85% of all owners regret their timeshare purchase and 100% of our customers are happy with their exit experience.

 

 

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Staff Writers August 12, 2019 0 Comments

Notary Public Pros Nationwide, Funded and Provided By Timeshare Exit Pros

Most timeshare exit companies have their clients cover the cost of the notary process. Some charge their clients for each signature and others will ask you to find your own local notary and have you handle all the paperwork.

At Timeshare Exit Pros, you can forget about that inconvenience. When it comes to customer satisfaction and convenience, we’ve got you covered. Each case varies, but we assist anyway we can in order to help you complete what is needed. This will also depend on locality. 

You have been scammed and pressured into your timeshare and you are looking for honest help. We get it, and we’re here to handle all of the additional foot work for you.

We dont just say this, we prove it! Our company is the first and only exit company to have Mobile Notary Public Pros visit our customers. We have Mobile Notary professionals across the nation who are able to lawfully notarize any and all paperwork to begin your exit process.

Our company will assign the closest mobile notary team member and organize everything for you, and we will also fund the entire process! We will have our mobile notaries come to YOUR location, because YOU are the priority…

  • We do not have any hidden fees or add additional fees to cancel your timeshare contract. 
  • We will not ask you to use your valuable time locating a notary. 
  • Our company will assign a Notary Pro in your area and have them schedule a time to come to your preferred location that is convenient for you!
  • We will fully fund the entire notary process and we will do it for unlimited signatures.
  • Our company streamlines every process which makes your exit experience simple, efficient, quicker, and more convenient.
  • Our notary team will leave you with hard copies and and we will have digital copies sent to our office to begin the next steps.

This is another service perk from simply choosing our company to help you with your exit! If you are looking to exit your timeshare contract, feel free to visit our pre-approval page to see if you qualify! APPLY TO QUALIFY.

Remember, you do not need to hire an attorney to cancel your timeshare contracts. Save your money and increase your odds by hiring seasoned professionals that will help you exit your timeshare safely, or your money-back

Have A Safe Exit Experience!

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Staff Writers August 9, 2019 0 Comments

A Perfect Timeshare Cancellation Letter

THE LETTER CANCEL PHASE

Are you looking to cancel your timeshare? If you’re like most our customers who have been pressured into a timeshare, the answer is yes.

Over 80% of all owners regret their timeshare purchase.

 

Timeshares are not valuable assets, in other words a bad investment. The associated fees accumulate overtime, and buyers always feel a majority of the facts were not provided at the time of sale. The good news is there are ways to exit your timeshare! If you find that your timeshare purchase was a mistake after signing the contract, you might be able to revoke the contract. If you are lucky and you are able to revoke the contract, then you can exit out of your timeshare contract without the exit pros, because you already handled the first pro step!  You should also be reimbursed any money spent. If time has past and you cannot cancel the contract, you can try writing a letter on your own.

 

You will find that most people waste time, effort and energy doing this and that letters do not work. This is where the exit pros step in and work with the resorts effortlessly to get your contract canceled. If you follow the step below and write a perfect timeshare cancellation letter and it still does not work, simply give us a call at 866-883-5329 and we will help you exit safely, legally and ethically – FOREVER!

 

 

PRO EXIT TIP 1: Identify the length of your rescission period and how long it lasts

The first thing you’ll want to do is to find out how long your rescission period is. It ranges from 3 to 15 days in most states, so you won’t have a lot of time to spare even in the best circumstances. Look at your contract to find out how much time you have. If the rescission period hasn’t expired yet, the contract should tell you what you need to do to cancel your timeshare contract. Follow the instructions in the contract exactly! Some contracts will contain a timeshare cancellation form that you can fill out and send in. Or, you may need to send a timeshare rescission letter.

 

PRO EXIT TIP 2: Writing the timeshare rescission letter

Here are the steps you can take if you need to send a timeshare cancellation letter (rescission) to the resort (developer). It will need to contain the following:

  1. The timeshare contract number.
  2. The names on the timeshare contract.
  3. The name of the timeshare company.
  4. The date you purchased your timeshare.
  5. The reason you’re writing. (be specific)
  6. Add a request of money paid to be returned and for your loan to be canceled, if applicable.
  7. Sign and date the letter.

Include all of the above in your letter and do not give them a reason to deny your request.

You will want to send this cancellation letter as soon as possible because time is of the essence. There will be an address on your contract. You will want to use that as sometimes there are different addresses associated with the timeshare.

Lastly, you will want to send it by certified mail. This way you have proof of delivery and receipt within the time period.

 

PRO EXIT TIP 3: Verify and double confirm your timeshare cancellation.

If you receive a confirmation that your timeshare contract has been canceled, then you are all set. You did it all by yourself and you are an exit pro! If several weeks go by and you have not received word, contact the resort and try to see if something is hindering the the rescission/cancellation. Again, you can write this letter on your own, but it’s never so easy and not as clear cut as it may seem. The process is negotiation and time consuming. It’s very important to make sure that you contact seasoned professionals before you send or say something you cannot undo.

 

You do not need to hire an attorney. There is no course for timeshare law. Hire the Timeshare Exit Pros today and save a bundle!

 

Remember, if the recession period passes then you’ll definitely need take other action to end your timeshare contract. There are other options and methods, but be sure to hire seasoned professionals if needed which you can find more information here.

 

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Staff Writers July 28, 2019 0 Comments

What To Know About Exiting With A Pro

THE TIMESHARE NIGHTMARE: 

Timeshare contracts are stressful, we know. It sounded like a dream resort package and soon turned into a nightmare. The good news is that we will be your dream catcher and destroy every last one of your timeshare nightmares.

The Timeshare Exit Pros difference is all about service, transparency and efficiency. We want to keep our happy and in the loop at all times. We will provide you a professional, safe and ethical exit and we can do this quicker than our competitors.

The question is, how do we do this? What makes us more special?

 

EXIT PRO AUTOMATION:

Our team has streamlined our back-office process and infused the experience of our senior professionals with our new savvy development specialists. This has improved our process and automation initiatives. We use modern tools and software to get your exit started the SAME DAY!

Our timeshare elimination consultants have one mission: To serve our clients with integrity and honesty while bringing a piece of mind that comes from relieving them of their timeshare obligation!

 

CALL A PRO TODAY!

The timeshare industry has spent a tremendous amount of time and money to delay, confuse and deter you from canceling your timeshare contract. Our team of timeshare exit professionals act as your consumer advocate and will work tirelessly to free you from your timeshare contract, mortgage, and maintenance fee bill.

Remember, you do not need a lawyer to exit your timeshare contract and you can read more here.

 

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Staff Writers July 26, 2019 0 Comments

You Don’t Need To Overpay A Lawyer to Cancel Your Timeshare Contract

There are a lot of scams in the timeshare industry, including the resorts, exit companies and resell companies. Even with all the noise, there are good companies too.

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Staff Writers July 20, 2019 0 Comments

Home Vs Timeshare Mortgage

Home Mortgages vs. Timeshare Mortgages

The word “mortgage” carries various connotations. One may cringe at the debt they’ve acquired because of a mortgage, while another may rejoice over it because it means they’re entering a new chapter in their life of home ownership. Regardless, there are a plethora of resources and services dedicated to educating consumers about the pros and cons of home mortgages. Most of these resources are also held to maintain ethical practices that serve to help borrowers find the best solution to align with their current financial situation. Unfortunately, this practice isn’t followed across the board; timeshare mortgage processes are a completely different story.

In relation to home mortgages, the relationship of lender and borrower doesn’t end after one meeting. It’s typical for background checks, employment verification, and even courses that need to be completed before any home mortgage agreements are signed. This is a thorough process because lenders want to protect themselves and the consumer from any liabilities they can’t afford. The process for mortgage loans to own real estate is a distinguishing difference between home and timeshare mortgages.

We’ve heard of the dreaded timeshare presentation. Some consumers have shared stories where they were lured into what was advertised as a quick walk-through of their resort that turned into 4-5 hour long interrogations. Unfortunately, this experience usually ends in some consumers signing up for a timeshare that they can’t afford. This includes dropping thousands of dollars for a down payment and possibly signing up for a credit card or loan owned by the timeshare or referred third party on the spot.

A mortgage application for a timeshare doesn’t require the same or similar procedure that other real estate mortgages do, which hurts the consumer. Although home mortgages are often higher costs than timeshares, consequences of failing to pay back the lender as timeshare owners and home owners are comparable. For instance, if a timeshare or home owner defaults on payment it can end up in foreclosures, bankruptcy, and even wage garnishments. Some lending businesses won’t mortgage timeshares because they are considered high-risk lending. The average interest rate on a timeshare mortgage is 14% while the average interest rate on a home mortgage is only 4.59%¹. It truly sheds light on the risks timeshare developers put on consumers since they aren’t pre-qualifying the financial stability of the families they approach to purchase timeshares.

Another large contrast between having a mortgage on a home verses a mortgage on a timeshare, is that as the home owner, you are the sole benefactor of the property. As a timeshare owner, your mortgage funds the developer. ARDA reported in 2016 that 79% of resorts offer some form of rental program². Imagine having to pay your home mortgage while others were being allowed to use your property and utilities without having the same financial responsibilities you did, and their payment of usage went directly to the mortgage lender instead of you as an owner. Now imagine how it would feel if your lender said you couldn’t access your home because third parties had already reserved use of it.

The value between home mortgages and timeshare mortgages is also a large difference. If a home owner is ready to move onto another home, they can list their house on the market, and more often than not, there’s equity to reap from the sale. The timeshare sale process on the other hand is limited and again is another poorly regulated industry. Several consumers have fallen into timeshare resale scams. Most people who can exit their timeshare successfully usually don’t receive any money back, despite what they’ve been told during the sales presentation.

We urge consumers to educate themselves before signing into a timeshare mortgage. These are legally binding contracts that unfortunately are not heavily regulated as other consumer purchases. No company should pressure you on what you should or shouldn’t purchase without allowing you to sleep on it before making a decision. If you are thinking of purchasing a timeshare, take the time to research the terms of the contract, and make sure timeshare ownership makes sense for your financial standing as well as your lifestyle before making the purchase.

Remember: even if the channel you’re considering is all the rage right now, it might not fit your brand. Always make informed decisions that directly relate to your company. Otherwise, your message won’t be delivered to its intended audience and you’ll have wasted time, effort and money.

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Staff Writers July 15, 2019 0 Comments