Reader Request: Getting Out Of A Timeshare

[james.hendrickson]

Forum Community,

Saving Advice received the following request for help from a reader named Randall.

via email:

I have an 8,000 timeshare that we barely use and the maintenance fees continue to go up. We can’t go during peak season because we don’t have enough points. When we purchased the timeshare we were told we would be guaranteed at least one week as a family and that has not been the case. Often we have to go during the fall and spring.

Thanks,

Randali

he wants to know how to get out of his timeshare. If you have thoughts or suggestions, please don't hesitate to leave them below.

[bjl584]

https://timeshareexitteam.com/?utm_source=google&utm_medium=cpc&utm_campaign=BrandedSEM&gclid=Cj0KCQjwm6HaBRCbARIsAFDNK-g2lggjh61dUc_RKuL1y_C_OtV82KR9yd_O8YZMobecJTE_UNANr-EaAkSyEALw_wcB

Check out Timeshare Exit Team.
It's officially endorsed by Dave Ramsey

[msomnipotent]

If you look up reviews of Timeshare Exit Team, it seems like they charge you $1,500 and up to find someone else to buy your share from you. There are hundreds of companies that do the same thing, and once you get on one of their lists, you get calls all the time. I got out of my timeshare several years ago and I was getting calls until I canceled my home phone. I still get things in the mail, too.

I'm legally obligated to not say how I got out of ours. You can put yours on Ebay (start at a penny) and hope someone takes it off your hands. Or you can call the timeshare company and say you want them to take it back. Sometimes they have take back programs. You probably will not get any money back. Consider yourself lucky just to get out of it. If it is paid off, maybe some "enterprising" person will offer to pay your for it and then just add their names to the title somehow. If they don't, you will probably have to let it go to collections.

[TexasHusker]

As we all should hopefully know by now, the whole concept of "time share" is a ruse. It ranks right up there with pet rocks, sea monkeys, and paying to get a star named after yourself. Except a time share can be financially ruinous.

To review:

1. You are essentially paying many $ thousands of dollars in advance for a hotel suite that you can use a few days a year. Whether or not you use it, you're still going to pay for it.

2. You are paying yearly "maintenance" fees that would likely be enough to rent you a nice hotel suite each year. But again, you are paying these fees whether or not you are using the hotel suite.

3. When you figure out the game, you then try to get out of it. The only way you can get out of it is to find someone else who hasn't figured out the game. There is a new crop of these people all the time, but they aren't surfing eBay: They are vacationing somewhere, and across the desk from someone who is about to get $10-15K from them.


As for your question, of course you have to pay $$$ to get out of a ruse. Consider that your exit fee and move on.

[rennigade]

My in laws had to lawyer up...that was the only way they could get out of it.

[~bs]

if you're lucky you might be able to find someone to buy it off you for a minimal amount or for free.

[Like2Plan]

There are a lot of variables which could influence the end result.
For one, did Randall finance the purchase and does he still owe money on the contract? This might be a problem because the contract on the resale market may not be worth as much as he owes.

Which timeshare company did he buy from and where is the property located?
For example, he might have a better chance to recoup some of his cost if it is a Marriott timeshare in Hawaii or a Disney timeshare in California (at the Grand Californian).

There are some websites that specialize in timeshare resales (and general information on timeshares). There are a few that specialize in only Disney timeshares.

One is Redweek https://www.redweek.com/

Another TUG (timeshare user group) http://tug2.net/

(Redweek and TUG have a small fee to join and to list a property)

There is also craigslist and ebay

While you waiting to sell, there is VRBO for renting your points:

https://www.vrbo.com/

I would be nervous about spending another $1,500 up front with no guarantees that the timeshare would be sold.

[TexasHusker]

There are only 419 listings on eBay for timeshares where there is currently a bid of $1.00 or less. Add yours to make it an even 420.

https://www.ebay.com/sch/i.html?_nkw=timeshare+for+sale&_sop=15&_udhi=1

[~bs]

There are only 419 listings on eBay for timeshares where there is currently a bid of $1.00 or less. Add yours to make it an even 420.

https://www.ebay.com/sch/i.html?_nkw...sop=15&_udhi=1

on the bright side, there's 801 timeshares sold for $0.01 over the last few months!

Too bad ebay doesnt have a system that allows the seller to pay the buyer to take items off their hands for them. lol

Edit: I spoke too soon.

Winning Bid: $$$$ Paid by Buyer
Closing Costs: $0 Paid by Seller ($449 Savings)
Resort Transfer Fee: $0 Paid by Seller ($299 Savings)

GIFT CARD:
Buyer will receive a free $250.00 VISA gift card from the brokerage company upon completion of ownership transfer.

https://www.ebay.com/itm/Massanuttens-Shenandoah-Villas-McGaheysville-VA-FREE-CLOSE-FREE-250/112934056340?hash=item1a4b64f194%3Ag%3AW48AAOSwAghaz5tA&_sop=15&_udhi=1&_nkw=timeshare+for+sale&LH_Complete=1&rt=nc&LH_Sold=1

[TexasHusker]

on the bright side, there's 801 timeshares sold for $0.01 over the last few months!

Too bad ebay doesnt have a system that allows the seller to pay the buyer to take items off their hands for them. lol

Edit: I spoke too soon.

Winning Bid: $$$$ Paid by Buyer
Closing Costs: $0 Paid by Seller ($449 Savings)
Resort Transfer Fee: $0 Paid by Seller ($299 Savings)

GIFT CARD:
Buyer will receive a free $250.00 VISA gift card from the brokerage company upon completion of ownership transfer.

https://www.ebay.com/itm/Massanutten...t=nc&LH_Sold=1

you might be onto something. bribe someone to take it. Offer someone $5K i bet you would have a taker.

[~bs]

you might be onto something. bribe someone to take it. Offer someone $5K i bet you would have a taker.

From looking at the listings, it actually seems like that's what companies are doing. They get paid $X,XXX to get someone out of a timeshare, then list it on ebay and pay some sucker $250 to take the timeshare off their hands. lol

[Like2Plan]

As for your question, of course you have to pay $$$ to get out of a ruse. Consider that your exit fee and move on.

Here is a link to yelp on the Timeshare exit team

https://www.yelp.com/biz/timeshare-exit-team-lynnwood-3

Overall they get 2.5 stars on Yelp, so apparently they have been successful for some, but not all.

Here are a few excerpts from folks for whom they have not been successful:

"...If I could give them less than one star, I would! Going on 3 years with this company and nothing. Up until late last year, the communications were pretty consistent and regular, but now not so much. I was originally told it would take upwards of 18 months to complete the transaction and as I stated, I'm in year 3..."

"...DON'T GIVE THESE PEOPLE ANY MONEY!!!! They took my parents money and did NOTHING!!!! It's been four years and we ended up working directly with the time share! "

"...I contracted with the Timeshare Exit Team almost 3 years ago. Meanwhile I continue to pay my taxes and fees to Diamond International. "

So, in addition to paying timeshare expenses, these folks have also paid $1,500.

What we don't know is Randall's situation. If Randall financed the timeshare and still owes money on the contract-- he is going to have to pay that off.

It would be better to first try to sell using one of the less expensive ways than to give someone else more money with no guarantees that he will be free of the timeshare.

Failing those approaches, it would be better to try to do a quit claim with the developer (which may or may not be successful). Or, spend the $1,500 on a lawyer to see if there are any other options not previously explored. Maybe there is a defect in the contract or the lawyer might have some other advice.

Or, Randall himself could make an offer on Ebay to pay 1,500 to a buyer to take the timeshare.

[Like2Plan]

Also, some timeshare companies have exit options--which most likely won't be the most favorable terms compared to what you can do on your own, but might be worth checking on.

Also, there are some timeshare brands that exercise their right of first refusal on a contract if the price is too low. Generally, this keeps resale contract values from going to zero. I think the biggest problem is that the resale prices are way less than buying from the developer--so in general a person is not going to be able to sell the contract for what they originally paid (or even for what they owe if they financed the purchase).

There are a few rare exceptions--like Disney that folks purchased years ago having contracts worth more than they originally paid--but, there is no guarantee that will hold true at the current price valuations.

Before buying a timeshare a person should research it fully. Also, it is a good idea to have an exit strategy. By this I mean you should check out the resale market before even thinking about it. This should dissuade most people from buying (or buying from the developer). I believe I read the average time a person holds on to a timeshare is 7 years. It is hard to imagine this when the timeshare folks are painting pictures of unicorns and rainbows in their presentations. But, kids grow up, families change. But, anyway, all this is water under the bridge for Randall who is already in a contract.

[~bs]

its kind of amazing that they can just take people's money and not even be accountable for anything other than vague promises. lol

Most contracts require specific deliverables by XXX date otherwise YYY gets triggered. These guys get fronted 100% of the money up front, then years go by without results.

A legit agent would get paid upon completion of the deal. Like a real estate agent or something.

[disneysteve]

its kind of amazing that they can just take people's money and not even be accountable for anything other than vague promises. lol

Most contracts require specific deliverables by XXX date otherwise YYY gets triggered. These guys get fronted 100% of the money up front, then years go by without results.

I wonder what their paperwork actually says when you sign up with them.