Timeshare Companies and Timeshare Exit Companies
By: Adam Burns – TKO Timeshare Solutions
Timeshare companies and timeshare exit companies are at war with each other. They’re constantly involved in litigation, but the timeshares have bigger pockets. Their goal is to drive them out of business. Timeshares use exit companies’ money-back guarantee to break them. This is because the timeshares control 100% of the process and it’s just a matter of time before the refund period expires, and the exit companies have to give back the entire fee they charge.
Smaller exit companies have not been able to hang on, but the larger companies have fought back. Some exit companies have done this under the guise of fighting the evil corporations that timeshares may be but they cannot escape the fact that unless they could come up with a surefire way to exit the people they charge, it’s only a matter of time before the house of cards comes tumbling down.
This means that timeshare exit companies cannot let the timeshare companies know they represent you. They certainly cannot send any demand letters on their company letterhead and communicate directly with the timeshare companies. If they use the same attorney over and over again the timeshare company may notice. If that happens, your file will most likely be blacklisted and any type of negotiation on your file will probably end.
Once you sign the dotted line to purchase that timeshare, you are effectively married to it. If you financed the purchase, the timeshare company has you locked in on the mortgage, which is currently running around 15% (even though current rates are at all-time lows in the 2’s and 3’s). If you paid in cash you are locked in for a lifetime of maintenance fees and special assessments. All owners are a steady source of cash flow. They’re not going to want to let that cash flow go. They may be nice at first, but it will eventually turn ugly, especially if you discontinue payments.
It has gotten to the point where exit companies have been accused of calling the resorts and pretending to be their customers. See the Press Release here.
Even if your timeshare has a buyback program, they will not deal with you if they find out you are working with an exit company. See Diamond’s Transition Program. As of late, timeshares are making it extremely difficult to work with an exit company.
Ultimately it all comes down to finding another party to take the timeshare off your hands. This can be your timeshare through a buyback program, but they all have many conditions to apply, including that you can’t have a relationship with an exit company or even one of their attorneys. Exit companies can still help you out, but FIRST, determine if hiring an exit company will hurt your chances of working directly with your timeshare’s buyback department.
Let’s start the journey together of getting you out of your timeshare, legally, quickly, and permanently. Schedule a no-cost consultation today!