Timeshare ownership does have a lifecycle for many owners. While you have enjoyed the use of your timeshare, life circumstances can change, and timeshare ownership may no longer be a fit for you and your family. When that happens, it makes sense to explore your exit options.
The option that you may be most familiar with is using a timeshare exit company to cancel your timeshare. This article discusses both the positive and negative aspects of this option.
The Positive:
You don’t have to do anything but make payments. If you are looking to exit your timeshare, want nothing to do with the process, are not in a rush to exit, and cost is not a concern, then a timeshare exit company may be the solution you are looking for. The company will handle the process from start to finish, and your only responsibility will be to make the payments they request and perhaps sign some documents along the way.
The Negatives:
You are paying a company to do something you could do yourself for free. At the end of the day, the primary service most timeshare exit companies provide is contacting your developer on your behalf to use existing exit options to get you out of your timeshare. These are almost always the same options that you will be offered if you make that call yourself. In some cases, these options may even be better if you call directly, since you are the timeshare owner and there is likely animosity between timeshare companies and timeshare exit companies.
The cost can be unpredictable and surprising. While timeshare exit companies will request an upfront fee to get started on your timeshare exit, that is often not the only payment you will have to make. The amount of these additional payments and how many more payments there will be depend on how long the timeshare exit process takes. Based on the information shared by timeshare exit company customers online and the findings from multiple state and federal agencies, these additional costs can range from a few thousand dollars to tens of thousands of dollars over a time period than spans several years.
The wrong advice is common and can ruin your credit. It is not uncommon for a timeshare exit company to tell you to stop paying your maintenance fees and/or your loan payments as a way to exit your timeshare contract. Missed payments from loans and maintenance fees can be reported to a credit reporting agency, and if they do, they will likely show up if you apply for credit related to any real estate transaction, such as buying a home or renting an apartment. Additionally, if you work in an industry with moral turpitude requirements, it can also have an impact on your employment.
Your timeshare exit company may not be successful in canceling your timeshare. Ultimately, what happens with your timeshare is controlled by your timeshare company. If they are unwilling to work with a timeshare exit company or they do not have an exit solution available, your attempt to exit will not be successful. If this happens, there are other options available to exit your timeshare, such as rental and resale.
Timeshare exit scams are common. On a regular basis, government agencies, consumer protection groups, and timeshare owners file complaints against timeshare exit companies that make unrealistic promises and/or take large upfront fees without delivering any results. Make sure you thoroughly investigate any timeshare exit company you are considering using and confirm that they have a verifiable reputation and track record of success before engaging with them.
Our advice: Even if the time and expense of working with a timeshare exit company is not a concern, you should still contact your timeshare developer before deciding to use a timeshare exit company. Not only will your timeshare company be much more willing to work directly with you, the owner, but the process will also likely be faster, giving you relief sooner and costing far less.