Stuck In A Timeshare?
By: AdamBurns – TKO Timeshare Solutions
If you ha
ve a parent or loved one struggling to make timeshare payments or has no use for it anymore, it can cause a feeling of helplessness. You are likely concerned about the legal and financial hardship they face and whether you will inherit the mess down the road. After sitting through a high-pressure sales presentation with a well-trained and unscrupulous sales team, it is easy to get persuaded and caught up in the moment.
Unfortunately, we talk to good families who get persuaded by slick timeshare sales presentations all the time. It’s important to know the people benefiting from the transaction are the salespeople and the owners/developers of the resort.
Your loved one, unfortunately, is stuck with a small slice of a unit that has little or no resale value. Having said that, it is essential to understand some of the challenges that you or someone you know may be dealing with:
- A timeshare depreciates once you take ownership;
- It is rare that a timeshare increases in value. Expect it to lose most if not all of its value because the timeshare’s price has to be significantly marked up to cover sales commissions, incentives, and giveaways;
- Most have high yearly maintenance fees, which go up every year; and
- Interest rates for mortgages are usually around 15% for a 10-year mortgage (at the time of this post, rates are in the low 2’s and 3’s)
If a loved one is stuck in a timeshare or vacation membership and needs help, the first thing to do is create a file with all the available documentation they may have. This would include:
- the deed and transfer paperwork;
- the sale contract;
- bylaws;
- account numbers; and
- any communication between the timeshare, including letters, emails, and statements.
It is also necessary to get the status of the timeshare and find out if it is currently paid off or if it has a mortgage. Also, determine if the maintenance fees are past due to get a complete picture of the situation. You have the right to act as the go-between with your loved one and the timeshare. The timeshare company may ask that you sign a power of attorney to request any information.
If your loved one no longer wants to own a timeshare because they are fed up with the timeshare company, no longer have a desire to utilize it, or gained an unforeseen illness or injury that is preventing them from using it, there are solutions to help them on your own. Remember that getting out of a timeshare is like a real estate transaction. You will have to find another party to take ownership, either the resort itself or another buyer.