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How to Get Rid of Your Timeshare Without Ruining Credit Score

How to Get Rid of Your Timeshare Without Ruining Credit Score

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How to Get Rid of Your Timeshare Without Ruining Credit Score

There is no doubt that there are many dissatisfied timeshare owners out there who looking to get rid of their timeshare contracts. And perhaps you are one of them. If you are interested in terminating your timeshare contract without affecting your credit score, you are at the right place.

We understand that you might have once cherished your timeshare ownership and deemed it a worthy investment. You might have once considered it a means of enjoying many beautiful moments with your family and loved ones.

But unfortunately, certain realizations or life circumstances sometimes force an adjustment, and priorities change. This could be because of a change in your travel habits, or as a result of health issues, financial difficulties, etc.

Timeshare owners also become handicapped by the annual maintenance fees which continue to increase, all the more so in addition to certain hidden fees. Some timeshare owners may even slip into buyer’s remorse after discovering that they have been taken advantage of by the timeshare company’s sales tactics.

In sum, different timeshare owners have different reasons for seeking to terminate their contracts. The good news is that there are various ways by which you can do this safely and effectively.

 

Cancelling your Timeshare while Maintaining Good Credit Status

There are several options timeshare owners have when it comes to cancelling a contract. One option involves abandoning the timeshare property and stopping payment of its associated fees. Be wary of this option, however, as it will negatively affect your credit score. Aside from that, another option would be to make use of what’s known as the rescission or cooling off period.

You may also speak with your resort regarding your intention to see if they can help. Alternatively, you may just choose to sell your timeshare to a new buyer, rent it out, transfer it to an interested friend or family, or even donate it to charity. Hiring a timeshare exit company is another route you may consider.

 

Should you to Abandon your Timeshare?

It may be easy for one to abandon certain things and imagine those things were never there. But a timeshare is a different ball game. You might be tempted to stop paying your fees and get rid of the property altogether. However, you should avoid this option, as it is capable of ruining your credit score. You could even face a lawsuit from the timeshare company. Additionally, a collection agency could be sent after you.

Below are better alternatives:

• Utilize the rescission/cooling off period
The rescission period is the best time to get out of a timeshare safely, effectively, and legally. Moreover, it comes with no cost and in fact gives you the opportunity to get a refund.

The typical duration allowed for a cooling off or rescission period is between one and two weeks, depending on the specific laws of the state involved. Different states have different legal provisions regarding the right of rescission.

You should do your homework and take note of the state law provisions applicable to your own timeshare. Review your timeshare contract for any helpful information.

Generally, rescinding a timeshare while it’s still legally possible only requires a letter of cancellation—no complicated setbacks. This letter would include certain information as well as a clear statement of your intention.

If you’re reading this article, chances are that you have already missed the rescission period. Don’t give up! There are other ways to achieve your aim. It is important that you keep up with the payment of your maintenance and mortgage fees during this time.

• Contact your resort for a deed back or its equivalent
Some timeshare developers offer certain programs that allow owners to return their unwanted timeshares. Often, the reason for this is to provide relief to those who might be facing challenges.

Wyndham, for example, has a program called Certified Exit (formerly known as Ovation). Cancelling your timeshare contract directly through your resort will pose little or no risk at all to your credit score.

When you contact your resort and inform them that you want to get out of your contract, you will learn if they have provisions for deed back, buyback, or take back. This will also tell what steps to take afterwards. Be careful, though! Some sleazy companies might attempt to pressure you into buying more points or weeks.

• Gift the timeshare to a friend or family
If you have someone around you who might be interested in taking up the ownership of your timeshare, then good for you! This option easily takes the burden off you since the person assumes responsibility.

Even though it may be a bit difficult to find someone who would want to take over something you’re trying to escape, you might find someone who is interested in your contract.

Similarly, you can donate your timeshare to charity, although some charity organizations may also not want to get embroiled in the issues of the ever increasing fees. It helps if you owe no fees at the time of donating your timeshare.

• Sell your timeshare to a new owner
Another safe way to escape your timeshare troubles is to sell the timeshare either yourself or through a resale or brokerage company.

By following the DIY approach, you may just list your timeshare for sale on various advertising platforms, after which you discuss the terms with any interested buyer and subsequently close the deal on your own terms.

Examples of platforms where you can list your timeshare include Craigslist, RedWeek, eBay, Sell My Timeshare Now, Facebook Marketplace, tugbb, to mention a few. You should note that some of these listing websites come with a fee, while others are free.

If you don’t want to go through the stress of selling your timeshare yourself, you could instead hire a timeshare resale company to do that for you. If you choose this option, make sure use a reputable company because there are many predators out there.

As a general safety measure, you should never go for a resale company that requests upfront payment as this is a clear red flag. Reselling a timeshare is extremely difficult, even for a resale company; as such, payment is better made after the successful resale of the property.

• Hire a timeshare exit company
You can enlist the service of a timeshare exit company to help you out of your worries..

The first thing a reliable exit company will do is get as much information about your case as possible. This is done through a free consultation session, after which necessary paperwork would be prepared through a certified and experienced timeshare attorney.

The use of a timeshare exit company ensures that your contract’s cancellation is done legally and prevents any damage to your credit rating. It is however essential that you don’t just hire any company, because there are scammers out there parading as genuine exit companies.

We always recommend exit companies that use escrow as a payment option. The good thing about this is that whatever money you pay the company will be locked away in the escrow wallet until your contract is cancelled. Should the cancellation be unsuccessful, you can simply withdraw your funds.

If you have hired a reputable company, your chances of a successful cancellation are high. If an assessment reveals that your situation is irredeemable, an honest exit company will decline to take your case

Conclusion

The ultimate key to keeping your credit score in good condition is to continue to pay your maintenance fees or mortgage.
Stopping payments makes you a debtor and ultimately gets you in more trouble than the distress you are already experiencing with your timeshare.