You won’t have to read very far in this post to know how we feel about timeshares here at The Spahn Law Firm. We have seen countless numbers of people come in frustrated that they can’t get out of their timeshare. The truth is this: a timeshare is not an investment. Put more bluntly, a timeshare is a bloodsucking, wealth diminishing, future corrupting, headache waiting for a place to happen. There is only one set of people who benefit from timeshare sales: the timeshare companies! They are able to sell people by giving them a vacation for next to nothing or some fancy dinner. The next thing you know, you owe $13,000.00 or $30,000.00 on a piece of property that you can only visit once every other year if you schedule that trip 18 months in advance.
I understand many people will think I sound rather extreme in my beliefs regarding timeshare companies. However, this is a result of having to deal with these vampires. Some reading this may say, “I have a timeshare and I love it!” Well, I am truly happy for you and hope that it stays that way and I hope you want to have it forever. There is the rare case where an individual truly loves their timeshare for many years. It’s only when life happens to them and they need out that it becomes a nightmare.
So, what if you have signed on and want out? The companies love to play hardball. They love to tell you that the property is yours and you are welcome to sell it. Of course, no one is going to buy it from you. So, now what? Well, it depends on your goals and how much you can stomach. You can start the process by calling the company and asking what a similar unit is selling for. Be firm and explain that you are looking to sell it and just need a good idea of what its worth. Then, in a later call, offer to sell it back to them at a discount. Some have had success with this. However, the companies know pretty well that the timeshare is worthless and you are not going to be able to sell it.
We have had a great deal of success having the company agree to just take it back for nothing, allowing the client to just walk away. However, each company is different and every situation is unique.
Photo credit, Steve Snodgrass
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If the time share allows the client to walk away, wouldn’t that affect your credit?
Part of our negotiation with the timeshare company includes the signing of a document called a “Mutual Release”. This document dictates that no negative information can be reported about the debtor in exchange for the release of all claims against the company. The timeshare company also releases all claims against you.