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How To Terminate A Timeshare Agreement

How To Terminate A Timeshare Agreement

 

Every year, more and more people walk away after buying a timeshare believing they have just made a great purchase and investment for themselves. After some time spent with their timeshare property, or lack thereof, these same people often feel buyer's remorse and tend to want a way out of their agreement. The key to successfully getting out of the agreement is to act fast, if possible. However, we also understand time is not always on your side, and so continue reading and we will discuss the number of ways to terminate a timeshare agreement. 

First Off, Why Would You Terminate A Timeshare?

Timeshares were developed out of innovations within the vacation industry over 40 years ago, and even today, they still appear like a good idea on paper. Sadly, as time has passed and other innovations have been conceived, the number of unhappy timeshare owners continues to rise and the industry's reputation is falling. This has led many timeshare companies to integrate new sales approaches that many deem unprofessional and even unethical.

Timeshare salespeople are undoubtedly some of the most talented people in the sales field, and that is because they are selling something worthless that ends up being an all-around bad idea for just about anybody. Deceit and deception seem to be a couple of their most well-known skills, and they exhibit them quite often during their timeshare sales pitches. They swindle countless families into financial turmoil by convincing them that they are making a great investment for their family and will have power as an owner.

In reality, timeshare owners hold no control over the property as the true owner is the resort developer. By the time most realize what a terrible agreement they are involved in, the numerous expenses and hidden fees associated with it have shaped into a large financial burden. Unless you just have money to throw away and are unable to find anything else meaningful to spend it on, then a timeshare is not a smart investment to make for you and your family.

Could You Just Stop Paying For Your Timeshare?

Purchasing a timeshare is synonymous with signing up for endless fees for a lifetime, or as long as your name is on the deed.  What separates these properties from other real estate options is that timeshares can never be definitively paid off. Even once the mortgage is all paid off, maintenance fees must still be paid annually. While the price may seem insignificant at first, please be advised they will increase with each passing year. This does not even include the additional costs if something goes wrong with the unit. Unlike problems at your own house that you can put off for some time, resort developers waste no time in charging further costs for even the most insignificant renovations. 

With so much financial stress resulting from a timeshare purchase, regret is felt by many, and some question if they should continue to pay their expenses. While the feeling of true ownership may not be there, if your name is signed on the deed then all financial responsibility will sadly fall on your shoulders. Failing to pay your timeshare expenses promptly can quickly turn an already sour experience into an even more unpleasant financial situation. Timeshare companies are quick to work with collection agencies the moment you make your first slip up, and could possibly bring on a foreclosure lawsuit if it continues. Timeshare differs from other real estates in almost every other way, but in this case, timeshares have the same foreclosure process. Simply walking away from a timeshare is not the best option and could make a big dent in your credit score. However, as the owner of the timeshare, the choice is yours to stop making your payments or continue paying them. 

So, How Do You Legally And Safely Terminate It?

Let’s avoid going to court with this because it will only add on more costs for you and will most likely be a dead-end anyway. Not only is it important to evade foreclosure lawsuits, but it is also crucial to find a way out of your timeshare without negatively affecting your credit score. There are a couple of ways to go about this but the easiest way to terminate a timeshare can be done without ever stepping into a courtroom or constantly checking your score afterward. There is one way though...

Act Quickly & Cancel During The Rescission Period

You have to take action quickly! What we mean by this is that as a timeshare owner you have to decide very early on after the purchase date that you no longer want to go through with the purchase. After purchasing the timeshare, the consumer has the right to rescission and can terminate their agreement with the resort. Also regarded as the cooling-off period, this is a short grace period where customers can still consider backing out without any financial consequences. 

As we mentioned earlier, there are many unhappy timeshare owners presently, so you would think more of them would have taken advantage of the rescission period to get out of their timeshare. Unfortunately, this duration only lasts for a few days after the purchase and the length can vary from state to state. They typically will not last further than a week though, which works against the consumers, but conveniently benefits the resort company. As you could probably guess, the majority of timeshares are purchased while on vacation and usually at the beginning of the trip. Therefore, more times than not, the rescission period passes by unbeknownst to the purchaser as they are relaxing on vacation and not thinking about a cooling-off period in the slightest.

Write & Deliver A Cancellation Letter

In the case that you are acting within the rescission period, then termination will be an easy venture and will save you from more financial struggles. All that has to be done from here is to put it in writing and in the form of a cancellation letter delivered to the timeshare company. Easy right? Well as we know, these resorts are known to make things more difficult than need be, so stay cautious. If you forget to mention the smallest bit of information in your letter -- or deliver it wrongfully -- then it could be deemed invalid by the company, leaving no way for you to escape.

So, what should be included in this letter? First, it is important to know that this information can vary with each state, so you should inquire about your state's specific laws when in this situation. There is also the basic information that should always be accounted for, but oftentimes is missed. Included should be:

  • Your name as it is in the original agreement
  • Your street address, email address, & phone number
  • The timeshare company
  • A specific description of your timeshare unit
  • Current date & purchase date
  • Lastly, a clear-cut statement affirming you wish to terminate your agreement

Once the letter is written, all that is left is to deliver it and the method by which to do so will also be specified by your state law. Follow the instructions very closely and ensure that the delivery will be completed, either by delivering in-person or through certified mail, so there is proof they received it and cannot say otherwise. If required information is missing or the notice is not delivered correctly, then the cancellation letter could be presumed baseless and you risk not reaching termination by doing so.

Can You Still Terminate After The Rescission Period Is Over?

This question is asked by so many timeshare owners. It could be someone experiencing buyer's remorse just a few weeks after purchasing a timeshare, or someone who has grown exhausted from years of payments on a vacation property they can rarely ever use. Terminating a timeshare agreement after the cooling-off period has expired will be circumstantial, and if possible, will cost more time and expenses for the owners.

Knowing what we do about timeshare representatives now, it should not be surprising that so many people feel lied to or deceived by these salespeople. Anyone who feels this way about their timeshare purchase experience has grounds for cancellation from their agreement and a chance to cancel their timeshare.

Work With A Timeshare Cancellation Company

Your best bet when terminating a timeshare agreement is to do so with an honorable and respected timeshare cancellation company. The cancellation industry is new and was birthed from the countless unpleasant experiences of timeshare owners. From withholding important information or lying about specifics of the agreement, to even using intimidation tactics to secure a sale, timeshare companies will do and say it all. Cancellation companies help those who have experienced this fraudulent behavior and work on the consumer’s behalf to remove them completely from their disastrous agreement. 

Also known as timeshare exit companies, they practice full termination of agreements with these resort companies and may eliminate all debt for the individuals and families. Working with a company like this will assure you that you will not be annoyed with attorneys or law firms, which rarely accomplish cancellation and only make things more complicated. Families all over the country are relieved to be working with cancellation companies and are escaping a lifetime's worth of financial burdens set forth by a timeshare agreement.

Be Cautious Of Alternatives When Getting Rid Of Your Timeshare

The timeshare business is already filled with fraudulent activity.  It is no surprise that this is where other scam opportunists would try their luck. With so many timeshare owners feeling duped and looking for a way out of their agreement, con artists only see a large group of people that they can take advantage of. "Timeshare Resale Companies" are a big one. They will mislead innocent people, telling them they have a potential buyer on the other line, convince them to pay upfront fees, then they will vanish and never be heard from again. This will only dig you further into debt and you'll still have that timeshare too.

Finding the right company to work with can be unnecessarily tricky for many timeshare buyers. Let's go over how to avoid these phony companies we discussed above. Well first off, never pay any upfront fees the first time you talk to anyone. And before you pay anything, it is best to ensure they have a 100% money-back guarantee in case your results are not delivered. Lastly, do your due diligence and properly research whoever you plan on working with. Find past client reviews and see how the company holds up to their word with others in similar situations to yourself. 

To cancel your timeshare agreement after the rescission period has expired, be sure to work with a cancellation company you can fully trust and that they have a well-respected reputation within the industry.

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