Can I Rent My Timeshare? The Reality of Mortgages, Fees, Cost and Return.

Can I Rent My Timeshare? The Reality of Mortgages, Fees, Cost and Return.

The timeshare resale market is often viewed as an area of opportunity for vacation owners to “make some money” when times get tough or they grow tired of their interval. Nearly every day, we speak to someone wondering, “Can I rent my timeshare when I can’t use it?” While those posing this question are sometimes convinced they can profit off of something that has inevitably failed them, most simply aren’t sure what’s true. Like we’ve mentioned in previous articles, this oblivion is mostly due to the deceptiveness of the initial sales presentation

During the purchase itself, many buyers are told they can easily resell, rent or even refinance the purchase at some point if it better suits their needs. A number of things are strategically communicated to prospects in order to put them at ease about the perpetual commitment. Even when some buyers ask the right questions, sales teams know how to respond in a vague manner while using perks and possibilities as a distraction to concerns. Floating the idea that buyers can effortlessly resell or rent a timeshare is down right criminal to say the least. But resorts aren’t the only entities that deceive fractional owners.

The Idea of Timeshare Rental is Meant to Seem Promising.

When consumers find supporting misguidance from resale programs or bias timeshare resources, it encourages them to waste a tremendous amount of optimism and capital on something that was never truly opportunistic. While the message relayed might seem promising, it’s hardly true. Buyers should already be leery of this after the timeshare presumed expectations that didn’t match the experience. Any fractional owner or person intrigued by vacation ownership should look at all information about timeshares as questionable at best.

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Let’s make one thing clear, we’re not here to persuade you that our perspective is better or that timeshare cancellation is your best option. We simply believe that owners deserve to know how to critically analyze what they’re told regarding a purchase of this magnitude. If you’re really wondering, “Can I rent my timeshare,” then you ought to know what you’re actually getting yourself into. In order to explain what the timeshare rental process really entails, we have to be able to look at the entire picture. This way, you’ll be able to see that our perspective is valid and that intent isn’t to mislead you further.

3 Types of People That Buy into Renting Timeshares.

If you took the time to poll every owner that tried to rent out a vacation property, a majority of them would tell you to avoid the attempt at all costs. We know this because a good number of them eventually call us. When buyers initially experience remorse, they normally consider selling the timeshare first. This is because they mistakenly believe the property is an asset and holds value. But once they realize getting rid of a timeshare just isn’t that simple, renting tends to always be the fallback plan. 

Unfortunately, the decision to continue pursuing resale by leasing intervals is usually a costly one. While many fall into the timeshare rental trap out of desperation, there are others that truly believe renting their timeshare is a great idea. Below, we do our best to give you an idea of their reasoning and motives. Challenge yourself to see if you fall under one of these categories. If so, try to honestly justify your optimism by the end of this article. 

1. Gullible Owners that Don’t Challenge Sales Pitches.

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The biggest income opportunity for timeshare companies is vulnerable buyers. While many new owners believe the sale is over once the contract is signed, it most certainly is not. The sales cycle for vacation ownership never ends. Because of this, gullible buyers are often preyed upon throughout their ownership experience. These types of people often paint a target on their backs for their willingness to say “yes” to resort upgrades or suggestions. Sadly, most of these recommendations only benefit the timeshare or its affiliates.

When they repeatedly do as they’re told and trust the pitch instead of investigating every solution, they often find themselves in a lopsided situation they can’t escape from. If you’re asking the resort, “Can I rent my timeshare,” you have to understand why they’re going to tell you “Yes.” Using their resale programs allows them to continue collecting your payments with the potential to make even more money off of your inconvenience. The same goes for third party rental platforms that promise you returns.

Those that are easily persuaded – by either or – rarely last long as owners due to the contractual binds they place themselves in. After maximizing options in an attempt to “fully enjoy an experience” they’ve yet to receive, many have little to show for it. When they reach back out to the resort for guidance, many are sold on points programs or the concept of selling or renting timeshare weeks to make some of their lost money back. These people often have the money to spend, but no cognizance of how they’re being taken advantage of. The elderly normally reside in this category.

2. Owners that View Timeshare Rental as a Saving Grace.

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While many timeshare owners look to leasing because of an overall disappointing experience, some have no choice but to decrease their overall spending. Whether vacation ownership was the culprit for financial hardship or not, all fractional owners end up paying more than they budgeted for. This usually causes unexpected financial problems for those who had no business owning one in the first place. 

In case you didn’t know, resorts specifically target low income households because it allows them to hold the user hostage when funds run out. These types of people are easily persuaded because vacationing is currently considered wishful thinking. An impulse purchase usually transpires when they’re offered free gifts and “once-in-a-lifetime” vacation packages that seem to be affordable. But once they realize they’re in over their head, they frantically look for a way to recoup any of their losses just to stay afloat. 

Whether broke vacation owners desperately try to rent their timeshare through a third party or the resort itself, they’re often relieved by the promises they receive. Some are so ecstatic about the possibility of offsetting their costs that they blindly pour more of their precious capital into advertising in hopes of expediting the timeshare rental process. When timeshare renters or buyers never surface, the outcome is monetarily devastating for those already low on cash. Look, if you’re struggling to keep up with payments, leasing the property will never be your saving grace. There are just too many retail travel options to compete against.

3. People Who Buy Timeshares With Intent to Rent Them Out.

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Over the years, we’ve spent an awful lot of time analyzing online searches regarding timeshare ownership. When it comes to the search phrase, “Can I Rent My Timeshare,” we found that some inquiries are performed by aspiring investors. The problem is – like we said before – the online guidance regarding timeshare rentals can be quite misleading. This causes a number of aspiring entrepreneurs to pull the trigger on what seems to be a promising opportunity with an easy return. 

At the same time, multiple timeshare purchases aren’t always pursued as initial investments. First time buyers with high income levels often purchase additional timeshare packages with the intent to rent when the initial purchase doesn’t work out. They believe a quantitative approach will increase their chances at usage while they make money on unusable intervals. While this may seem like a smart solution to a less-than-stellar timeshare, what happens when you can’t rent or get rid of either property?

What ends up happening is, the financial competence of these types of buyers allows them to be patience while they await a sale. Most view timeshare rental or resale like that of selling or remarketing a house. But it’s nothing like that. Although a lack of interest during the first 6 months may seem normal to them, a year or more of no return can financially cripple their aspirations. The demand for vacation ownership isn’t anything like the residential real estate market – and it should never be viewed that way.

When you assess the reality of timeshare sales, people end up buying because they’re aggressively sold or misled about investment return. Nobody – besides the resort, resellers or investors – are looking to rent a timeshare. They’re looking for those asking, “Can I rent my timeshare,” because they want to take advantage of their desperation so they can make money. Trying to make supplemental income on something people aren’t looking for is a good way to lose a lot of money. Truth be told, many owners can’t even get rid of timeshares for a dollar

The Disadvantageous Cost of Renting A Timeshare.

Since we’ve hit you with a lot of hypothetical scenarios thus far, we can understand if you still think you can successfully rent a timeshare. So, let’s take a look at some of the disadvantages that renting brings before breaking down how much it will more than likely cost you to try.

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1. A Large Investment of Time and Money.

Once owners begin the timeshare rental process, they’re normally caught off guard by how much time it takes them to setup the listing. Not only will you need to provide ample descriptions, a list of amenities and up-to-date imagery, but you’ll also have to manage availability and booking. Although the initial listing cost is fairly cheap, costly upgrades are usually offered to help you with setup and increase the exposure or appeal of the property. 

While every rental platform is different, most recommend advertising to improve results. What was originally viewed as an easy way to profit off of an unused week can quickly add hundreds of dollars to your monthly timeshare expenses – with no money earned. This is especially frustrating when buyers spend countless hours managing their listing.

2. No Guarantees Should Catch Your Eye.

Even though a timeshare rental pitch may sound great, you have to understand that nobody can make promises regarding resale outcomes. Unless there is some sort of money-back-guarantee in writing, you can’t buy into the things you’re told. Far too many owners confidently partake in rental opportunities without much thought because they’ve been reassured the result will be favorable. But even when resale reviews seem positive, you have to learn to separate sales pitches from reality in the timeshare industry. Like most relief options, they’re nothing more than a revenue ploy.

3. Timeshare Rental Scams Are Real.

This disadvantage is pretty self explanatory. Whether you’re looking to rent a timeshare due to dissatisfaction or supplemental income, predatory agencies are built to collect payments and drag out the process. Since most scams are run by former timeshare employees, the operation knows how to dupe and persuade vulnerable owners. They know how to create phony company information so they’re perceived as a valid business with a reliable reputation. Like resale and exit fraud, rental scams should concern you.

4. An Unwarranted Peace of Mind.

One of the most overlooked elements of misleading timeshare rental practices is the simple fact that most owners believe they’ve found resolve. In the midst of financial hardship or extreme inconvenience, they temporarily feel as though they can see the light at the end of the tunnel. Sadly, many continue the cycle of regret when they’re left feeling duped and betrayed by another entity that promised relief. Creating peace of mind with empty guarantees while the owner makes payments is pretty low.

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Breaking Down the Actual Cost of Renting Timeshares.

When you take the time to analyze the overall expense of timeshare remarketing, it can be quite staggering to say the least. In this example, let’s assume the aspiring renter pays around $4500 per year for their mortgage, maintenance fees and special assessments. We believe this is a generous number (below average) which breaks down to about $375 per month. If the owner were to spend $1000 on remarketing setup, management and advertising, it would add $83 to their monthly total ($458). If they purchased an additional timeshare interval with the intent to rent the property, then we can double this total ($917). 

After inspecting some online reviews for “successful” rental solutions, we found that most happy owners typically waited at least 6 months before they saw results. This means, the average reseller spent nearly $3000 before any transaction occurred. While they may have collected a few thousand for the week, they’re still on the hook for the remaining balance. If you owned 3 properties and only rented one interval then your expenses could be extremely one sided – and not favorable by any stretch.

Keep in mind, this scenario is assuming you find someone to lease the timeshare. If you’re experiencing financial hardship, you can see why this isn’t a wise choice. If you’re purchasing multiple units with the intent to rent or sell, then you’ll be digging quite the hole to kick off your investment project. If you don’t take the time to research the purchase initially or any other option throughout, you could find yourself swimming upstream for quite some time.

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So Do I Rent My Timeshare or Not?

In conclusion, renting timeshare intervals is one of the biggest mistakes fractional owners make. While you may not value what we have to say – because we specialize in terminating timeshare contracts – we hope this article has given you some insight on the reality of reselling your perpetual property. We understand that a number of third party agencies and biz operations have had success with timeshare rentals, but it doesn’t necessarily mean you’re equipped to experience the same. 

Many of these resale companies know how to prey on desperate timeshare owners, purchase intervals for nothing and target unexpected consumers with what seems like amazing deals. Unless you’re a con artist yourself, it’s going to be difficult to compete with these guys. They know how to publish mass income opportunities and “stay at home jobs” that attract uninformed consumers – you don’t. In most cases, you probably don’t even have the capital available to pull it off. Even Disney timeshares, that are high in demand, are hard to resell or rent on your own. 

If you really think, “I can rent my timeshare and make some money,” we encourage you to explore other options. Instead of waiting years to master the process and coup a few thousands dollars, you could cancel the timeshare agreement altogether and move on. What could potentially turn into a loss that exceeds tens of thousands of dollars could eventually be avoided with a one-time-payment that’s significantly less. 

To learn more about our attorney based process and our experienced staff, you can schedule a free consultation or proceed with our qualification form below. 

Can I Sell My Timeshare? 4 Resale Items Worth Considering

Can I Sell My Timeshare? 4 Resale Items Worth Considering

When it comes to timeshare travel, there are a number of reasons why consumers believe the purchase will be worth it in the long run. The problem is, most of their reasoning is actually misguidance as their reality rarely matches the presentation. Although the experience is not a disappointment to all fractional owners, many ponder reselling the timeshare at some point in time. So don’t worry, you’re not the only person wondering, “Can I sell my timeshare?” The way the product is described tends to give off the impression that the property will be an equity opportunity like buying a home. But is it really that simple?

After speaking with thousands of timeshare owners over the years, we’ve confirmed that a majority are completely misinformed on the way the resale market works. Some of our clients were even told that purchasing multiple agreements creates multiple revenue streams that’ll cover the purchase while allowing them to travel nearly anywhere. This is simply not true. Timeshares are one of the fastest depreciating purchases anyone can make. If you’ve asked the resort, “Can I sell my timeshare if I don’t like it,” and they told you “yes” – then you’re in for a big surprise. Just ask anyone that’s attempted the feat themselves.

A timeshare interval should never be viewed as an asset as it’s nothing more than a liability. You don’t actually own the property; only a shared period of time, a right-to-use lease or access through a membership. The single source of value you get out of owning one is allocated time – in the form of an 8 day visit every year. The product is the experience, and truth be told, it’s not always available.

This causes many to immediately consider resale.  But when the trip isn’t satisfactory to you, who do you think will want it? Some people are even told by online sources that it’s a good way to earn passive income from home. Listen, timeshares should not be purchased for the purpose of making a profit – whether it be through rental programs or resale platforms.

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Because of the misleading sales practices of most resorts, there are now timeshare sales laws in place to prohibit this type of language during presentations. At the same time, this doesn’t help the thousands of people who thought resale was an option. Deeded timeshares are perpetual agreements that are extremely difficult for any buyer to escape them. While the resort will encourage you to use their in-house resale programs, it’s hardly beneficial to owners. Keeping you under contract is their main priority. So before you go out of your way asking everyone you know, “How can I sell my timeshare,” consider the following.

1. Selling a Timeshare is Not an Easy Thing.

When you take the time to analyze the way timeshares are sold by development teams, you’ll realize an awful lot of persuasion and diversion is used to close the deal. In reality, most buyers know nothing about vacation ownership. So what’s that mean? It means people aren’t out shopping for one. Historically and presently, timeshares are sold by luring unsuspecting consumers into a pressure filled presentation with limited-time-offers and enticing gifts. Are you able to compete with this to sell yours?

Waiting for someone to find your offer on a listing site or rental platform is a pipedream. Without the predatory approach, it’s nearly impossible to persuade anyone to take on something you’ve found to be useless. Most people who take the time to research the purchase, don’t buy it. Owners that anticipate an ability to sell usually find themselves trying to offload the contract for $1 on eBay out of desperation. Some even offer to pay the associated annual dues two years in advance just to cancel. The fact of the matter is, if you’re selling to escape payments, you’ll continue incurring fees while you wait for a buyer. This is financially burdensome for most.

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One of our clients even did a video testimonial for us that touched on his frustration with resale. “I knew I couldn’t sell my timeshare, because I had tried years before. There’s no value in it. I’d be willing to give it away, pay for all the escrow fees and just give it away. Ironically, nobody wants them.He said. Unless you’re willing to stoop to the level of timeshare salesmen and shamefully talk someone into taking over your contract, selling it is not a smart decision.

2. Managing Resale Bookings is No Easy Task.

Utilizing a timeshare is a lot more complex than people think. It’s not something you can just purchase and teleport to every vacation. Sometimes, major hoops have to be jumped through just to gain access during ample times. Aside from the general unknown of usage, the commitment required and the conditional baggage the purchase carries can be quite overwhelming for most. This is why we do our best to warn unhappy owners when they tell us, “I can sell my timeshare on my own.”

While finding someone to rent or buy the timeshare is like finding a needle in a haystack, it’s only the tip of the iceberg. Actually processing the transaction requires an entirely new bag of tricks. For the most part, advanced booking methods will be an essential cog during the process. Not only will you need to qualify those interested in the property, but you’ll want to avoid fraud and other timeshare scams.

Effective booking capabilities are also required in order to obtain desired inventory. With that being said, you have to set aside time to learn the programs on top of investing money to use them. If you don’t have a competent software, then potential customers will be distracted by the timeshare industry’s targeted ads. If it’s too difficult to book your condo – due to lack of cooperation from the resort or poor booking systems – then interested parties will move on.

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3. The Timeshare Market is Now Overpopulated.

Ever since the 1980’s, the timeshare industry has focused on expansion over sustainability. Instead of making the experience a priority, they’ve concentrated on building possibilities. What’s concerning about this approach is the simple fact the demand isn’t really there. While most businesses base their supply on needs or desires, timeshare developers establish the supply and solicit people to buy it. 

Even though the internet has become the prominent highway for connecting modern travelers with cheap and flexible options, timeshares have refused to adapt and compete. The timeshare sales concept was born decades before the internet ever existed and they’ve adamantly stuck to their old ways of new acquisition. They know that as soon as someone is locked into a perpetual agreement, residual income is inevitable. 

Instead of challenging travel advancements, the industry has learned how to survive at their owner’s expense. In order to extend their relevance in a digital age, resorts have become cunning at up-selling their products with “point based membership” programs. While it may seem like this wouldn’t hinder availability, it most certainly does. Long story short, there are a lot of people asking “Can I sell my timeshare,” right now.

When buyers use in-house timeshare programs to help them offload their contract, it normally involves an exchange that disadvantages them further. Moreover, the resort regains ownership, collects more fees and resells the same unit to another sucker. Because this cycle has been ongoing for quite some time now, the industry has created a bottleneck based on possibilities

The Manhattan Club specifically lost their license for selling points that exceed their actual availability. When flexible points are more appealing than the unit you no longer desire, this hurts you as a timeshare reseller. An assortment of options gives you a low to no chance at selling. Now that deeded exclusivity has lost its appeal, resorts are able to profit tremendously off of minimal availability. When all rooms are paid for, whether they’re being used or not, the revenue keeps rolling in.

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4. You’ll be Battling a Multi-Billion Dollar Industry.

Timeshare companies know how to leverage the terms of their contracts to ensure owners remain compliant – even when people are dissatisfied with the purchase. From perpetuity to 20-30 year right-to-use agreements, the advantage is theirs. Holding owners hostage is easy when they’re able to use the money they collect to control the marketplace. While plenty of people think they can sell their timeshare, there’s just no way to win here.

At the end of the day, resorts are known to push out their prime inventory to the general public instead of offering it to paying owners. For the most part, the interval you currently own will never compare to what’s being offered on platforms like Expedia or Priceline. Even if their  offers are too good to be true. Like we said before, no one is looking to buy a timeshare online. Because of this, resorts know how to take advantage of certain situations.

When they sell timeshare units through third parties as vacation deals, they aggressively solicit retail guests during their stay. Some are even required to attend a sales presentation upon arrival. When owners aren’t able to book certain dates and they allow family members use their interval, the same should be expected. Even complaints are viewed as opportunities to sell more. The sales machine that the timeshare industry has become is something you should never be naive to.

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You Can Try to Sell Timeshares If You Want, But..

So, for those of you asking, “Can I sell my timeshare,” the answer can be a bit cloudy. We understand there are plenty of resources out there that claim this feat is possible, but it’s important that you take the time to assess who’s filling your head with these possibilities. There is plenty of noise in the industry, but most of it is bias information geared towards a sale. 

While it might be difficult to believe a company that specializes in timeshare cancellation, we’re one of the few that’s been around for a while. Our goal isn’t to persuade you to cancel your timeshare agreement. We simply want consumers to be aware of what they’re getting themselves into. If you’re willing to pay an upfront fee to list a timeshare with no guarantee that it will rent or sell, then you’ll probably like what we have to say. 

Timeshares are not assets. They should not be bought for profitability reasons as you will spend a lot of time and money chasing a pie in the sky. Take the time to do your own research and determine what the best long term solution is for you and your family. Don’t allow yourself to be sold quickly and avoid all limited-time offers. Ask yourself if paying a “convenience fee” to travel to subpar accommodations is actually cheaper and more convenient than a retail vacation? Is the mortgage, maintenance fees, assessments and taxes worth it? Are you willing to continue paying these on top of listing fees while you await the sale? 

Timeshares ought to be purchased for the value in the vacations taken. Membership access should benefit travelers and routine vacations should create a sense of fulfillment. Unfortunately, this is rarely the case. While it’s admirable to never give up hope, sometimes the logical decision is the hardest one to make. If you’d like more information on our attorney based process, you can always fill out a qualification form below or schedule a free consultation.

Online Timeshare Advice by Keyboard Warriors Isn’t Usually Valid

Online Timeshare Advice by Keyboard Warriors Isn’t Usually Valid

When you think about it, credible information online can be difficult to come by. In a world full of people that are vying for the consumer’s attention, it’s not surprising that most information is nothing more than an opinion. Although finding dependable resources is becoming more popular amongst the general population, most people still aren’t sure what is actually believable. This is especially true when it comes to reasonable timeshare advice. Since most communication within this industry is rather aggressive, consumers are essentially forced to trust what seems to be the most ideal.

The problem is, most advice in the timeshare realm is questionable at best. While you might assume we’re writing this to promote the agenda of our cancellation services, it couldn’t be further from the truth. At the end of the day, we want to help potential buyers and current owners make favorable choices regarding timeshares. Knowing what you’re getting yourself into and who might mislead you along the way helps you avoid the inevitable disaster that follows an uninformed purchase of this magnitude. Consumers deserve to know the truth and we’re eager to share the efforts we’ve invested in to prove our communication is sincere.

Keyboard Warriors Can Be Very Persuasive.

Assessing the types of online messaging that timeshare owners come across while browsing the internet can’t be done in one article. So we decided to focus on what we believe to be the loudest voice in the digital world, the keyboard warriors. Whether they’re logged into social media accounts, chatrooms, message boards or website comment sections – these people are extremely motivated to share their opinions on a number of topics. It always seems like they have excessive time to burn and rarely waiver from their stance no matter how much factual information is presented to them.

Considering timeshare advice from those that seem to be credible is flat out dangerous. If you’re uninformed and looking for guidance, keyboard warriors can be awfully persuasive. Because they believe in something (or someone) so strongly, they feel like they have to influence people to adopt their perspective. They also think they have the right to verbally destroy (or type to death) anyone in opposition. Challengers often walk away from these types of digital arguments due to a person’s ignorance or lack of open-mindedness during the conversation.

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Since a majority of remorseful buyers want to believe they can get out of expensive timeshare purchases for free, they tend to value the opinion of those who confidently spew timeshare advice. Especially when the resort hasn’t been helpful and they’re considering paying for exit services to avoid further penalties. Anything that encourages owners to remain optimistic, even if it’s inaccurate, clouds their judgment and causes them to avoid using logic.

What Kind of Timeshare Advice Can You Expect?

When seeking timeshare relief, owners normally have no idea where to begin. Most file complaints or join online conversations to share their story with users who’ve experienced similar misconduct. When complaints aren’t pursued to their satisfaction, they have no choice but to find someone who can advise them on what to do with their timeshare. Since many aren’t to the point of hiring a lawyer or cancellation firm, they ideally would like to find a way to work things out. The last thing they want to do is sign up for a scam or incur more penalties.

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Inaccurate Input Regarding Timeshare Relief.

When the answers they receive tell them they’ve been lied to further, it’s believable. For the most part, disgruntled buyers have been deceived throughout the entire timeshare experience. Responses that arrogantly inform them that, “The resort will just take back the mortgage” or “You don’t need to pay to get rid of your timeshare,” can be misleading to say the least. 

Those on the verge of legally terminating their agreement with a legitimate company can be influenced to change their mind when they’re told, “All exit companies are scams” or “You shouldn’t hire them if they charge upfront fees.” Even owners that have wasted money trying to sell their interval can be encouraged to keep trying by a keyboard warrior lacking substance. In reality, there is no resale market for timeshares. There’s no way around it.

Believing that all resorts have a “take back program” is also untrue. The fact of the matter is, most do not. Even when one does exist, it’s very difficult for owners to qualify. Aside from being forced to pay off the entirety of the mortgage, owners are usually required to cover the anticipated cost of maintenance and assessment fees for the next couple of years. Something usually goes wrong and they remain stuck in perpetuity with additional expenses that range in the thousands. 

None of this timeshare advice is credible. While there are ways to work things out with the resort, you will most likely be funneled through a continued sales cycle and encouraged to purchase more to resolve your issue. Even if you’re able to process an equity trade in or interval transfer, it’s highly unlikely that it’ll resolve your underlying complaints. Often times, buyers upgrade into more problems or find themselves stuck in multiple agreements. Although a good portion of exit solutions are scams, not all are out to steal your money. At the end of the day, researching options through credible resources yourself is the best solution.

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Refusing to Pay is Bad Timeshare Advice.

Although bias relief tips can prolong the process of actually exiting a timeshare contract, there are more serious ramifications that can result from listening to someone who has no business giving timeshare advice. If you’ve been told you can, “Just stop paying and walk away,” or that, “You can just foreclose on your own and nothing will happen,” guess again. In reality, the timeshare can come back and pursue you for a deficiency whenever they choose to. While the idea of telling the resort to kick rocks may sound good, not many decisions are worse.

An outstanding mortgage balance, interest, late surcharges, legal fees, court filing costs or past due maintenance and assessment fees will add up over time. The resort may not notify you right away, but they know what they’re doing. Just when you think you’re in the clear, they strike. If a judgement is filed, then you’ll have no control over how that money is taken. This gives the timeshare the right to forcefully collect from your bank account, garnish your wages or even enforce liens on personal property to settle dues. 

Are you okay with rolling the dice by calling the timeshare’s bluff? Is hoping for the best an ideal strategy when the resort is pursuing you for contractual default remedies? Even though some unhappy buyers ignore potential consequences, you should most definitely take the timeshare’s threats seriously. They have all the ammunition necessary to pursue contractual fees. Walking away due to displeasure isn’t going to win the battle that will transpire. And your choice to base this decision on a keyboard warrior’s comments is even more erratic.

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How to Assess Timeshare Advice by Keyboard Warriors:

If you want to make smart timeshare decisions and avoid irrationality, then you have to inspect the sources that influence you. In today’s digital-driven society, anyone and everyone can voice their opinion online as a keyboard warrior. Who you’re paying attention to can not only alter your perception of reality, but create quite a bit of grief. In order to help you with these types of investigations, we’ve come up with three questions you need to ask yourself before acting on the information you read from bold voices online.

  1. Determine where online users are getting their “information” from. The easiest way is to ask them detailed questions about their statements. Without challenging them, ask how they “know” or what type of evidence they have to sustain their claim. In most cases, another uninformed party told them this or they’ve believed in the resort’s  misleading promises themselves. Some people simply refuse to admit their purchase was a mistake and expect it to work out. The more people they can influence to join in on their ignorance, the better they feel about it. Others simply read one biased article and now strangely consider themselves an expert on the topic.
  2. Do they have unique professional experience, training or resources that make them suitable to offer advice? If you’re unable to get anywhere with the question method then all you need to do is research the person. If the online profile doesn’t even have accurate credentials (name, title, contact info), then it’s pretty obvious they’re online surfers without much cause. A majority of people spewing out timeshare advice only claim to be experts. Without confirmation, consider their opinion nothing more than that.
  3. Are you able to validate their information from credible/documented sources or is it more bogus information? This is much different than the first suggestion. While many keyboard warriors are unable to substantiate their stance, some are able to supply you with sourced information. But this doesn’t always mean what they’re referring is accurate. Inspecting their provided resources is key to any validation of truth. When you take the time to properly assess the entirety of your argument, you’ll be able to gain clarity on what you can actually pursue as a fractional owner.

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Most Online Input About Timeshares is Bogus.

Just because one person says that they walked away from their timeshare without any help or any penalty does not mean they are off the hook. On multiple occasions, we’ve received inquiries for help by owners dealing with 5-10 years of accrued fees. Like aforementioned, they don’t hear anything from the resort for years. Then out of the blue, they receive documentation that demands a lump sum within a certain amount of time, threatening legal action.

Uninformed people voice their opinions all the time online. We even ran into a situation on Facebook where a user was claiming to know the cost of our services. When another timeshare owner inquired about our pricing on one of our posts, our detailed answer was challenged by his errant remark. “Only $5000 up front,” he said. After looking through past correspondence with him, we confirmed we never even supplied him with a quote or had any correspondence with him to discuss our services. 

For whatever reason, he felt the need to provide this form of timeshare advice without any rhyme or reason. While we’ve yet to cross paths again, he more than likely received some industry quotes and felt his educated guess was valid. Maybe he didn’t like the idea of paying to cancel a timeshare and wanted to encourage others to be fearful of the expense. Either way, his efforts weren’t necessary nor valuable. While he didn’t deter the unhappy buyer from proceeding, these types of comments play a huge role in the decisions timeshare owners make.

Find a Real Expert for Timeshare Advice.

If you’re interested in “no strings attached” timeshare advice, any of our consultants will be more than happy to address your concerns and aid you in relief. Sometimes, our attorney based service isn’t the best option. Our integrity is important to us and we’d like for you to be able to trust our insight and the guidance we provide. In the end, there’s no better feeling than helping previous and current timeshare owners enjoy their vacations.

Are Owners Required to Pay Annual Timeshare Fees for Special Assessments?

Are Owners Required to Pay Annual Timeshare Fees for Special Assessments?

Over the past few weeks, we’ve been discussing the financial impact of timeshare ownership. Thousands of buyers struggle to completely understand the purchase and the amount of value it brings them. To consumers, the fluctuation of costs is frustrating because they expect a specific experience that was sold at a distinct price. While it is the buyer’s responsibility to know what the loan and contract terms entail before signing, you can’t fault them for being deceived

Nonetheless, the unexpected typically forces many to go over budget or into hardship. But a higher monthly obligation (due to interest, tax or travel expenses) isn’t the only thing that’s concerning. Annual timeshare fees for maintenance and special assessments can really add to the constrained burden of fractional ownership. Receiving unforeseen charges that weren’t even included in the contract can be maddening. Especially when these invoices arrive in owner’s mailboxes during the holiday season.

Fees for Special Assessments Aren’t Always in Writing.

For most timeshare owners, annual fees are most certainly included in their contracts. The salesmen at the presentation just do a great job of avoiding the pertinent details of the perpetual agreement while overhyping the possibilities of the travel purchase. But not all timeshares include this type of language in their agreements. The problem is, they’re still charging for annual timeshare fees based on “industry standards” and conformity by a majority of owners. 

At first glance, the emergence of improved travel seemingly threatens the outlook of timesharing. Today, the general population is well aware of their timeshare sales tactics more than ever before. But resorts continue to find ways to manipulate potential buyers and hold them liable for certain obligations by threatening penalties. Knowing that potential buyers can confirm that annual timeshare fees are not included in the contract and still be charged for them is concerning to say the least.

Vague Reasoning for Annual Timeshare Fees.

Back in 2015, Eric Jordan of the Conde Nast Traveler published a story that detailed how timeshare companies justify their demands on owners. After growing tired of non-contractual, annual timeshare fees for special assessments, Tim (previous owner) and his wife reached out to the website for advice. So Eric reviewed their situation and attempted to reach out to Marriott for answers. He quickly realized the only thing that was justifiable was the buyer’s sense of hopelessness

What astounded him the most was the amount of effort required just to garner clarity. When he finally spoke to the director of operations at Seaport Development, N.V., the justification set him back even more. Mr. Trivedi stated, “Over 99 percent of our timeshare members have paid their share of the special assessment.” We’re not exactly sure what this has to do with the simple fact the annual timeshare fees weren’t included in Tim’s contract. Neither did Eric.

Either way, Trivedi went on to say that they have the right to limit the usage of those who don’t adhere to payment requirements and that all buyers are held to the same standard. When Eric pressed the same concerns, Trivedi simply reiterated his stance. “Special assessments for extraordinary renovations are a standard industry practice and upwards of 99 percent of our members have paid in full.” So, if owners decide to jump off a bridge, everyone else should be required to do the same? The argument seems a little dry if you ask us.

The resort’s leader even suggested that Tim and his wife were being disingenuous because they’ve paid for annual timeshare fees for special assessments in the past. Eric went on to combat the resort’s ambiguous responses by insisting the contract needed to include these details in order to be upheld. In the long run, Tim and his wife’s refusal to pay for the assessments cost them their ownership rights.

How to Avoid Unexpected Timeshare Expenses.

While it’s nearly impossible to avoid this type of misconduct, there are ways to avoid the unexpected when signing up for a timeshare. But this requires extensive knowledge of the purchase itself. If you’re attending a timeshare presentation for the first time, it’s imperative that you know what you could be getting yourself into. Studying the details of timeshare contracts helps you know what to look for and understand what needs to be in writing. 

If Tim and his wife would have noticed that annual timeshare fees for special assessment costs weren’t included in the agreement, they could have taken the proper steps to ensure they weren’t charged. It’s not out of the ordinary to require certain details in writing before signing anything. If all else fails, at least you can walk away confidently. The last thing you should want is a perpetual burden that can set you back financially.

The Timeshare Financial Burden is Causing Buyers to Cancel

The Timeshare Financial Burden is Causing Buyers to Cancel

For the most part, fractional ownership is one of those major purchase decisions that can be a shot in the dark. Whether potential buyers know nothing about timeshare travel or they are fully aware of the industry’s pitfalls, both are essentially rolling the dice when they don’t thoroughly analyze what they’re signing up for. No matter how or why an owner arrives at the point of regret, the timeshare financial burden is usually the driving force. When maintenance fees, taxes, assessments and interest catches buyers off guard, they quickly realize the expense wasn’t exactly something they could afford.

While it’s easy to blame the consumer for biting off more than they can chew, it’s important to understand how timeshare companies go about positioning their product. Resorts intentionally target those that can’t quite travel to desired locations because of limited incomes. Free gifts, vouchers and travel packages tend to appeal to this audience more. When they’re offered a seemingly low price for an annual trip they never dreamed they could afford, many are willing to rearrange their spending to make it work.

Higher income families aren’t as advantageous for resorts because they’re less likely to conform if timeshare financial concerns arise. People that make more money typically do so by making good decisions. Those living comfortably aren’t going to allow themselves to be at the mercy of the resort if the purchase doesn’t work out. Instead of funneling more into the purchase, they’re more likely to spend their capital on timeshare cancellation services or other methods of relief. 

Pitching supposed travel deals to people that have no business making this type of purchase is downright criminal. But it’s the reality of the business. Every year, tens of thousands of consumers anticipate an experience that never transpires. Once they discern that listening to an incentivized salesman was a huge mistake, it’s normally too late. At this point, they’re forced to completely alter their spending just to avoid more fees or worse – like the possibility of foreclosure and judgements for the deficiency. 

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The Result of Timeshare Financial Hardships.

When people in general are struggling financially, relationships are often affected the most. While it’s easy to assess the physical aspects of a financial crisis, it’s important to remember the mental or emotional trauma that ensues. The guilt from poor financial decisions can creep into confidence levels and lead to assumptions. 

When multiple people have to endure the hardship, tension amongst family and friends can easily make matters worse. Stress levels can become magnified and bitterness can settle in if people aren’t dealing with loss appropriately. 

Making Sacrifices to Make Timesharing Worthwhile.

When dealing with timeshare financial hardship, buyers ordinarily have to make sacrifices just to cover the unexpected costs of fractional ownership. Sadly, the perpetuity of the agreement regularly reminds them of their mistake. We’ve spoken to hundreds of people desperately looking for help after the timeshare has completely altered their lifestyle. Although the purchase was once seen as an opportunity to get away every year, many realize they can’t even go out anymore.

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Restaurants, local events and other forms of entertainment tend to be the first things eliminated due to tight budget restraints. Holidays, birthdays and other special events also become limited when the timeshare financial burden gets out of hand. Some of our clients have sold personal items of value and even taken on second jobs just to revitalize their quality of life. Nobody would sign up for a timeshare if they knew hidden costs and sacrifices were a part of the deal.

Coping With the Financial Burden of a Timeshare.

Although being backed in a corner may actually help some people gain confidence in improving their income levels, it’s rather devastating more often than not. Going from a state of euphoria to painful remorse can be tough to deal with. Especially when you don’t have the tools, social circle and capital to persevere. Even if you’re able to pay for all that the timeshare entails, you subconsciously know that another costly setback can be disastrous.

Financial Scenarios That Call for Timeshare Cancellations.

When dealing with a timeshare financial burden, many people simply aim to survive the entrapment of the purchase. But this leaves them extremely vulnerable when further financial blows occur. While most people avoid spending more money on something they’ve heavily invested in, there’s always a final straw that lands on the camel’s back. It’s kind of a rule of thumb in life. At some point, you just gotta eat your losses and try to move on.

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Since we’ve been helping timeshare owners find relief for a while now, we know that this reasoning typically surrounds their inability to comply with the timeshare financial agreement. While they may have been able to keep their head above water for an extended period of time, they reach a point where survival mode just doesn’t make sense anymore. Here are three scenarios that normally point users to a third party cancellation.

1. An Unexpected Income Change.

If you’ve experienced financial hardship before, you know that losing a source of income is the worst possible thing that can happen. While other financial obligations may be willing to work with you to soften the blow, timeshares haven’t been known to show much empathy here. Forbearance, restructured payments or downgrading isn’t an option here. Prominent resorts are firm believers in holding buyers accountable for the price they agreed to.

This can be especially difficult for parents who have mouths to feed or the aging community that lacks the skills required in today’s workforce. One of our retired clients ended up having to go back to work after using up an inheritance and taking out a second mortgage on their house. Another told us she had no choice but to legally cancel when the resort refused to alleviate her timeshare financial burden after she lost her job. It was the only line of credit unwilling to do so.

2. A Poor Understanding of the Cost.

Like we mentioned in the past few articles, the actual cost of the purchase is a lot more than what’s initially presented. Interest rates on contracts tend to mislead buyers tremendously. When they’re unable to refinance the purchase to decrease lender’s fees, the annual cost becomes a lot higher than anticipated. Instead of focusing on how much of the principal balance they’re actually paying, they tend to spend more time trying to decrease their monthly payments.

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When owners finally realize the resort isn’t going to provide them with favorable timeshare financial help, they confidently make the decision to legally walk away from the purchase. There’s just no need for them to continue paying for something that they can’t pay off, use or enjoy the way they want to.

3. Sales Tactics are Recognized.

Once fractional owners are able to identify the intent behind the timeshare sales system, they often feel somewhat liberated. Instead of constantly finding themselves frustrated with outcomes and costs, they start to understand how they’re being played. This usually occurs when the purchase is seen for what it is: a liability instead of an asset. Unfortunately, most buyers don’t realize this until they’re facing quite a few timeshare financial burdens.

Another one of our clients reached out to us for help after figuring out the timeshare wasn’t actually offering them solutions. Instead of listening to and addressing their concerns, the resort was up-selling them into further timeshare financial obligations. The major hospitality chain even went as far as ignoring the owner’s cancellation request and charging unknown credit cards without their consent. When the simple purchase accumulated over $100k in charges, they knew a professional exit strategy was their best bet.

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Don’t Let Timeshare Financial Burdens Rule Your Life.

Although buying a timeshare property may seem like an opportunity you’ve always wanted to explore, just know that it’s a risky decision. Unless you take the time to fully assess the purchase, you should never get too excited about the possibilities. Far too many people are currently overwhelmed by a timeshare financial burden that could have been easily avoided. 

If you feel trapped in fractional ownership, hopelessness doesn’t have to be the result. While we do specialize in getting rid of timeshare contracts, there’s always a chance you can work things out with the resort. Knowing how to approach the situation can make all the difference. To learn more about our attorney based process, you can schedule a free consultation or proceed with our client qualification process below. 

How Timeshare Refinancing Actually Costs Buyers More Money

How Timeshare Refinancing Actually Costs Buyers More Money

Over the past few weeks, we’ve taken a deep dive into the reality of borrowing money for a timeshare purchase. If you’ve been following along, then you’ve become well aware of just how costly the expense can be. At the same time, the general population knows little about the financial pitfalls of timeshare travel. Even the smallest bit of information can save most from buyer’s remorse. While the unexpected fees, liabilities and lender rates of a mortgaged property can alone be devastating, the burden usually compiles when buyers decide to pursue the peril of timeshare refinancing. 

After speaking with thousands of unhappy timeshare owners, we’ve been able to develop a solid understanding of the fractional owner’s perspective. At first glance, many see the purchase as an opportunity to go on vacation for a low monthly cost that fits within their budget. Even when they attend the sales presentation without a single intent to buy, the product intrigues them. After hours of pressure filled sales pitches and distracting incentives, many attendees truly believe they can’t let the opportunity pass them up. 

The problem is, when consumers are sold on possibilities instead of realities, they find themselves chasing expectations throughout their tenure as owners. When expectations don’t transpire, they’re forced to cough up more capital to make the expensive decision worth it. Since they’re stuck in a perpetual agreement, they don’t have much choice. You see, the resort doesn’t want them to know companies like ours actually know how to strategically get out of timeshare contracts.

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When buyers are at the mercy of the timeshare, it presents a bundle of revenue opportunities for the resort and its partners – most of which are lenders. They could care less when owners continue to make costly mistakes as long as they remain under contract. This tempts buyers to engage in anything that gives them any type of hope for reducing the burden. Unfortunately, a majority of the solutions presented to owners aren’t favorable.

Should I Refinance My Timeshare to Cut Costs?

Most owners are eager to refinance their timeshare because they’ve been battling high interest since making the purchase. Like we’ve mentioned before, timeshare presentations do a great job of misleading potential buyers. Many would have never signed the agreement had the timeshare salesman not told them they could revise their borrowing rate shortly after signing. Once they realize banks don’t offer timeshare refinancing, they tend to exhaust their efforts to bring the interest rates down.

Whether they restructure their financial obligation with the resort or upgrade into a new contract with lower rates, rarely is either option advantageous. This causes owners to continue revisiting the idea of restructuring timeshare loans with third party lenders – even if it entails unsecured lending or secured lending on assets they own. Once owners make a string of poor decisions, all they can do is hope for some sort of financial relief. But what ends up happening is, buyers find themselves in a whole lot of debt without ideal resources to help them.

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So if you’re thinking about timeshare refinancing to shave a little off of your monthly payments, we encourage you to rethink your strategy. Especially if you’re close to paying off the mortgage. While financial hardship might be staring you in the face, you have to remember that the timeshare prefers that you’re at their mercy. Acting out of desperation can be costly. Telling them that you’re considering bankruptcy or threatening to walk away only gives them ammunition. They’d rather talk you into temporary bandaids that enhance their profits over time. 

Timeshare refinancing is the type of solution that fits right into their “MO.” When you think about it, it’s pretty discouraging to know the resort wouldn’t help you out with a lower interest rate because you couldn’t prove the salesman told you so – but they’re willing to do what it takes to keep you under contract once the purchase completely overwhelms your bank account. But you’ve come this far and there’s no need to keep giving your money away. Restructuring once you’ve paid a whole lot of interest is a bad move. 

The Reality of Restructuring Timeshare Mortgages.

In case we weren’t clear before, refinancing a timeshare mortgage is not a solution to financial hardship. If you look up the definition of solution, it means to solve something. If you’re completely in over your head with a weekly interval or point membership, then restructuring payments will only further your problems by adding even more lender fees. In other words, you’re essentially solving nothing. While you may have some strong reasoning to support your stance, allow us to paint the picture for you.

Say you have a loan with 5 years left on the repayment schedule. If you’ve been paying $359 per month for 5 years already, then you’re probably pretty close to putting a dent in the principal balance (close to $6K of the original $20K loan). Since a typical 10-year term that’s paid within this time frame normally carries $23K in interest, about $15K should be taken care of. While this may be eye opening to most of you, it’s the hard reality of borrowing money with an enormous borrower’s rate. Any large purchase with similar financing (nearly 18% on average) would turn out the same way.

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When timeshare owners allow the resort to sway them into restructuring a timeshare mortgage, they’re basically enabling the money scheme to continue. When they show they’re desperation, timeshare companies have been known to forcefully upgrade them into new contracts and extend the loan back out to 120 months (10 years). Although the “result” is a more “affordable” monthly payment, the buyer now has to cover additional principal. Most aren’t aware of this or they wouldn’t agree – similar to their initial decision to buy.

Timeshare refinancing resets the buyer’s obligation to pay lender fees, even if 65% of the interest on the original loan has been paid. On top of that, 80% of the new loan’s payments will go towards the reset interest, not the remaining principal balance. Imagine paying tens of thousands for nothing, only to start all over again and extend the burden. If you want to lower your monthly costs then you’re better off cutting back in other areas of your life. As you can see, restructuring your loan with the resort only gives them more of your hard-earned money (in the form of interest) with zero added value to your vacations.

Another Example of Poorly Restructured Timeshare Loan.

One of the best ways to explain this is to compare the decision to that of a refinanced car loan that has almost been paid off. Negative equity in the car is created when you pay additional interest on a depreciating vehicle that you can’t even afford anymore. While the overall cost may seem fitting, you have to consider maintaining the car, out-of-warranty repair costs, upgrades, speeding tickets, insurance rates and even gas. At the end of the day, the borrowed amount of the car loan itself isn’t exactly the problem.

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The clear takeaway here is that the best option for the car owner is to give the car back and cease payments altogether; instead of trying to make it work. But it’s not that simple for timeshare owners. Even donating the purchase isn’t always fruitful. Timeshare cancellation services might not be ideal either if you’re worried about additional costs. At the same time, fractional owners know that dragging out unwanted payments just to avoid another purchase else to get rid of the timeshare for you?

Don’t Let Refinanced Timeshare Mortgages Handicap You.

The more consumers allow themselves to be trapped in longer mortgage terms and further contractual agreements, the harder it’s going to be for them to find peace and joy. We’ve helped hundreds of buyers who didn’t even know secondary timeshare loans or resort branded credit cards (backed by Comenity Bank and Barclays) were in their name. The deceitfulness behind the sale of a timeshare can lead you to believe you’re making smart decisions, but you’re really digging yourself into a deep hole. Timeshare refinancing only digs the hole deeper.

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If you feel like you’re being forced to look into personalized lines of credit, unsecured loans or HELOC secured loans against your home to create a rewarding experience, something is wrong. Don’t let the mistake of the purchase cloud your judgement. Take advantage of your consumer rights while thoroughly analyzing every method of payment you involve yourself in. In most cases, there was something presented to you along the way that provides you with leverage to escape the clutches of your agreement. 

You have your whole life ahead of you. There are plenty of better things you can buy with the money saved from eliminating fractional ownership. If the idea of timeshare refinancing is your only hope then we’d love a chance to explain all the options available to you. While it can be hard to trust any timeshare solution these days, we take pride in making sure you qualify for cancellation before we even discuss our services. If you’d like to learn more, simply schedule a free consultation or proceed with the qualification form below.

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