If timeshare ownership no longer fits your vacation lifestyle, there are several ways for you to exit your timeshare, depending on your circumstances. When exploring your options, however, it’s important to understand the common mistakes some owners make so you can avoid them.
First off, before you even make your first timeshare purchase, you need to know your rights of rescission. Timeshare rescission is a procedure created by state law that allows recent timeshare buyers to cancel a timeshare contract. Typically, the period for timeshare rescission ranges from three to fifteen days after signing the contract. Make sure to know your rights before you leave the sales table!
Second, here are some other things you need to look out for when exiting your timeshare:
Common Timeshare Exit Mistakes
- Not contacting their timeshare company to learn about exit programs – Many timeshare companies offer a take-back program that allows you to return your timeshare to them for little-to-no charge. Always check with your timeshare company to explore take-back options before working with another company or service.
- Stopping loan or maintenance fee payments: Some companies might advise you to simply stop paying your timeshare maintenance fees or loan payment as a quick fix. Doing this will not only prolong your exit process, but it can lead to foreclosure and have a negative impact on your credit score.
- Not researching exit companies before working with them: If you decide to use an exit company, you might find yourself asking if their services are too good to be true. To avoid falling victim to an exit scam, ask yourself these three questions before engaging with a timeshare exit company:
- Who is the company? If a timeshare exit company has reached out to you without you contacting them first, or if there is no way to verify who they are, do not engage with them.
- What do they want me to do? If they a company is asking for a large upfront fee to stop paying your maintenance fees or mortgage, or to pay them money in order to get money back, these are indicators of potential fraud.
- What evidence supports their promises? Always use independent sources like third-party reviews, business history on the Better Business Bureau, and even social media to verify claims.
- If they offer a 100% money-back guarantee, how will they protect your money if they go out of business? Too many timeshare owners have been left out in the cold when their timeshare exit company goes out of business and they are left with no way to get their money back.
Our Advice: When it comes to timeshare exit, it’s important to know what mistakes can lead to a prolonged exit process or a negative impact to your finances and credit. Remember to always ask your timeshare company about exit options and do your research before engaging with an exit company.