Timeshare ownership is a paradox. Many owners want out of their deeded timeshare purchase agreements, but the resorts seldom relinquish them. Feeling captive and hopeless, the owners often make ill-mannered decisions like abandoning their timeshare obligation. However, have you considered the risks of walking away from your timeshare?
In this guide, you will find out precisely why so many people are interested in walking away from the timeshare industry and why that’s rarely a beneficial idea.
It is safe to say that timeshare purchases hardly ever live up to their hype. They often get sold with bells and whistles that distract buyers from the truth about the vacation property. In all actuality, timeshares are pricey and surprisingly difficult to use.
Maintenance fees are one of the main reasons owners are looking for a way out of their timeshares. Furthermore, these fees increase every year. Before too long, timeshare maintenance fees can quickly send people into debt.
You may think that walking away from your timeshare is the best option, but it's not.
Before you walk away from your timeshare, consider the many consequences of that decision. Here are a few examples:
This one is obvious. Refusing to pay the mortgage loan or maintenance fees will result in your timeshare company prohibiting you from all resort accommodations. That may include revoking your current reservations, refusing future requests, and restricting you from any exchange options. If you abruptly walk away from your timeshare responsibilities, returning to that resort or timeshare developer in the future will be nearly impossible.
Were you planning to walk away from your timeshare? Prepare to receive an absurd amount of phone calls. Just as with any other bill, once you stop paying your timeshare's financial obligations, the resort will insistently attempt to collect their money from you. What begins as phone calls will eventually lead to a collection agency coming after you if you continue not to pay.
On top of the nonstop collection attempts, there will also be several late fee penalties you’ll likely be responsible for. So by simply walking away from your timeshare, you increase your debt, but you also end up owing more than the original price caused by the fees.
It's also worth keeping in mind that you may face threats of legal action by continuing to hold out on paying your timeshare expenses. An unexpected legal battle with a major corporate resort could cost you dearly.
As more time passes without paying your timeshare fees, more repercussions materialize. A delinquent timeshare account may eventually get reported to a major credit bureau, and your credit score would undoubtedly suffer. A low credit rating limits your ability to make significant purchases such as a house or car. A negative mark like that could stay on your credit report for up to seven years.
Resort developers can also pursue foreclosure on delinquent timeshare properties. The foreclosure process for timeshares can be a treacherous path. Costs include court fees, filing fees, attorney expenses, and more. Not to mention the process takes a long time. Often, timeshare owners get blindsided when courts get involved and are unprepared for these drastic consequences.
Unfortunately, when walking away from a timeshare and its subsequent maintenance fees, your actions affect others at the resort. Your fees will ultimately be dispersed amongst the remaining fractional owners of the resort, increasing their financial struggle for your benefit.
Please do not put it past your timeshare company to sue you for walking away from your timeshare. It has happened before, and it will likely happen again. Most timeshare owners don't believe they will ever get taken to court over this, but they downplay how vital the maintenance fees are to these resorts.
According to the American Resort Development Association, the average annual maintenance fee has reached $1,000 and growing. Remember, timeshare agreements typically have a perpetuity clause meaning they last indefinitely. Meaning unpaid maintenance fees result in a significant loss of revenue for these resorts.
Why else should you not walk away from your timeshare? Because you may be able to end your agreement through a timeshare exit company legitimately. For years, selling your timeshare or giving it back directly to the resort was the only viable option for owners who did not want to risk the perils of walking away. Unfortunately, both are extremely rare, and as a result, many owners have had to endure more timeshare debt.
That was until recently. Luckily, today, there are timeshare exit companies helping people get out of their timeshares.
You might have second thoughts now that you understand the downside of walking away from your timeshare agreement. Working with a timeshare exit program may prove to be in your best interest instead.
Wesley Financial Group, LLC (WFG)* is a reputable timeshare exit company that has proven its moral compass time and time again by helping more than 16,000 families get rid of their timeshares. A leader in the timeshare exit industry that genuinely cares about the decisions you make, WFG offers free timeshare exit consultation to those who might be interested in their services. Don't hesitate to reach out to them today!
Wesley Financial Group, LLC, and its affiliates, successors, or assigns are not lawyers or a law firm and do not engage in the practice of law or provide legal advice or legal representation. All information, software, services, and comments provided on this site are for informational and self-help purposes and not intended to substitute for professional advice, legal or otherwise.