It’s estimated that more than 20 million American households own a timeshare. The right timeshare can take you around the world. Unfortunately, things get complicated when you are ready to let it go.
Chances are, at this point, you are trying to figure out any method possible to get rid of this timeshare while ensuring your credit doesn’t take a hit.
If this is the case, keep reading. Here you can learn how to get rid of a timeshare without ruining credit.
The Recession Period
When you purchase a timeshare, you can cancel it during the “recession period.” While this varies, it usually ranges from three to 15 days.
After that period has passed, there is no easy way to unload your timeshare. The industry hasn’t provided any dignified exit for timeshare owners. This leaves an opening for shysters and crooks to take advantage of unsuspecting buyers.
One scam is to promise to sell an owner’s timeshare, usually for a very high price, but on condition that an upfront fee is paid. These nefarious individuals may also promise to find a charity that will take the timeshare. Unfortunately, there are few charities that will take these timeshares.
You Probably Won’t Get Your Money Back
If you own a timeshare, you need to be realistic. More people want to sell timeshares than to buy them.
Timeshares for higher-end properties, like those owned by Hilton, Wyndham, Marriott, or Disney, sell for (at most) 15% of their original price. A timeshare at an older or a less swanky resort will probably never find buyers. Also, sellers may have to pay annual fees for several years to encourage someone to take over their shares.
While this is true, you do have some options to consider. These will help you unload the timeshare but minimize the possibility of your timeshare taking a hit.
Potential Options to Getting Rid of Your Timeshare
If you are looking for options to get rid of your timeshare, check out some of the options here.
Ask the Resort to Take the Timeshare Back
There are a few programs (very few) that have formal programs for owners who want to give up their shares. These programs are discretionary. What this means is that the chains will decide what timeshares they will take back.
Most of the other developers will not take any timeshare back. While this is true, it never hurts to ask. A developer that will accept a return may require the owner to pay fees each year for a few years until a new buyer is found.
Make sure you are wary of anyone who contacts you to sell your timeshare. These are usually scams.
If you need assistance and you own a timeshare at one of the higher-end resorts, you can look for a broker. These brokers will not charge you and upfront fee but will take a commission for the sale.
There are also sites where you can sell your timeshare for under $100. Just remember, there is usually a lot of competition on these sites, with many timeshares being listed for as low as $1.
Rent It Out
If you want to avoid a negative hit to your credit, you can try to rent your timeshare. You can usually find the sale sites also offer rental options.
Hire an Attorney
In many cases, this should be a last resort. You can hire an attorney but be sure to be careful with this.
Choose an attorney who has a proven track record with buying and selling of timeshares. Also, make sure there is a cap in the fee you pay them.
Give Your Timeshare to a Friend or Family Member
Do you have someone you know who would be willing to take over the timeshare? This may be a friend, family member, or even a co-worker.
If you have someone who takes over ownership, they will also take over the payments. However, if this is not a viable option, you can try one of the other ways to get rid of your timeshare that is listed here.
How a Timeshare May Impact Your Credit Score
Now that you know your options, it is also important to know how it may impact your credit rating.
If you stop paying your mortgage and the maintenance fees on your timeshare, you may hope the resort will foreclose on the property. Unfortunately, this can cause serious problems when it comes to your credit rating.
Not all missed payments will cause foreclosure. Late payments, for instance, will result in fees and penalties. In some situations, just a single missed maintenance fee payment on your timeshare may result in the resort reporting you to collection agencies.
A collection account will remain on your credit report for a minimum of seven years and may result in major damage to your credit. As you can see, it is best to avoid this by using one of the other methods mentioned above.
How to Get Rid of a Timeshare Without Ruining Credit Made Easier
When it comes to answering the question of how to get rid of a timeshare without ruining credit, you’ve got a few options, as fleshed out above. These can provide you with the information needed to make the right decision, get rid of your timeshare, and protect your credit rating.
Are you looking for help? If so, contact us. Our team can help you with timeshare mortgage cancellation, timeshare transfer, and more.