The timeshare developer lured you into a timeshare presentation, where a salesperson pressured you until you signed a contract. Maybe you even thought it was a good idea at the time, but as the annual fees and other timeshare expenses pile up, you have joined the legions of owners looking for a timeshare exit strategy. Exiting a timeshare isn’t easy, but if you do it right, it’s easier than staying in an expensive contract for the rest of your life.
As the leading timeshare exit company, Centerstone Group has helped thousands of unhappy timeshare owners get out of their vacation ownership contracts, whether that means making a timeshare developer take your timeshare back, legally canceling a contract, or even consulting with an attorney to bring a legal action against a company that didn’t treat you fairly.
In this article, we’ll take a broad look at potential options for exiting a timeshare. We’ll also discuss the one thing you should never do — just stop paying fees — and why that idea is the worst of all.
When you’re looking for a timeshare exit strategy, the best place to start is your timeshare purchase agreement. This contract is a legal document that sets the rules for your ownership, what you can do, and what you can’t do. Exiting a timeshare contract is a matter that will also be governed by the contract itself.
In other words, if you want to cancel the contract, you have to follow its rules. That might sound hopeless, but in many cases, you might find that the language of the contract gives you a way out.
Virtually every timeshare contract has a term that allows you to cancel or rescind the contract. A cancellation also means that you can get back all of the money that you have paid to the timeshare company. Keep in mind two things though:
Timeshare developers do not make contract cancellation easy. Therefore, if you are lucky enough to be in the window where you can cancel, it is wise to get an expert on your side who can ensure that the cancellation is successful.
Centerstone Group can advise you through this process for free. One recent customer success story is Elaine from Arizona. After buying a timeshare in Mexico, she contacted Centerstone Group. Elaine was still in her cancellation period, so Centerstone Group provided her with templates and materials to complete the cancellation. Elaine’s rescission was completed, and she received a full refund within five days, and Centerstone Group did not even take a fee for the service.
While a cancellation is probably the best outcome, it won’t be available for many owners because it is time-limited. Don’t lose heart though. While you may not be able to cancel your contract outright, it may still be possible to persuade or pressure your developer to take the timeshare back, either through a deed-back program, a pressure campaign, or unique exit approach designed specifically for Mexican timeshares.
There are many ways that deed backs can happen. Some of the larger developers like Wyndham or Marriott have deed-back programs, where it is possible in limited cases for owners to simply give their units back to the company. You won’t sell the units or get any money; in fact, you’ll pay for the privilege of handing over the timeshare that has taken so much of your money already.
Also, consider that developers don’t even have to let you into these exit programs. At a minimum, you have to have your mortgage paid off and be current on all fees just to qualify, but even then, they don’t have to take you. If you’re waiting for your timeshare company to do the right thing, you may be waiting a long time indeed.
Another tactic is to negotiate or pressure the developer to end your contract. This can be challenging for owners because timeshare company employees are notoriously difficult to get on the phone.
Centerstone Group finds that many of its clients have this problem, which is why we developed our proprietary pressure campaign that we have successfully used to get thousands of owners out of their contracts.
We put our knowledge of these companies’ unsavory and often illegal timeshare sales techniques to work to pressure them into providing timeshare relief for our clients. We use a variety of tools, including letters to the developers themselves, social media/review site campaigns, media outreach, and regulatory complaints if appropriate.
These tactics give owners who have been lied to and mistreated the power to fight back, expose the poor behavior of these companies, and steadily ramp up the pressure to release our clients from their contracts. In the process, we may even achieve a larger victory by forcing timeshare companies to change unethical or illegal practices.
But without a professional to help you, negotiating with a timeshare developer can be difficult or even impossible. Approaching a timeshare company in this manner requires insider knowledge of both the developer and the laws that govern it. Centerstone Group has the experience and know-how to guide you through the process to a successful exit.
When exiting a timeshare and picking the best strategy, it makes a big difference if your timeshare is not located in the United States. Given the popularity of Mexico as a vacation destination, we have a large number of clients who come to us seeking exits or pressure campaigns against Mexican timeshare companies like Vidanta. In those cases, pursuing a strategy based on American law will not be successful.
Fortunately, Centerstone Group has extensive experience in helping owners with exiting a timeshare purchased in Mexico. We have a unique attorney-based legal process in Mexico, as well as a deep understanding of the processes used by Procuraduría Federal del Consumidor (PROFECO) that you need to get out of your contract.
Using attorneys and Mexican consumer protection law, Centerstone Group can design a multi-pronged approach that will help you get out of your Mexican timeshare as soon as possible.
You may recall hearing at your timeshare sales presentation that your timeshare was an investment in real estate. They might have told you that you could sell your timeshare sometime in the future or even rent it out for a profit. Unfortunately, none of that is true, and here are the two reasons why exiting a timeshare in these ways almost never works.
Timeshares are a terrible investment when compared to other real estate. Timeshare resale companies who tell you that they can sell easily are usually scammers seeking to make a quick buck by charging upfront fees and then vanishing. The scam victims are then left trying to give their timeshares away for free on eBay or Craigslist, and they then find that they can’t even get rid of them that way.
Not every person offering resale services is a scammer. There are reputable, licensed Realtors who specialize in timeshare sales. Those real estate agents will tell you honestly, though, that selling a timeshare is next to impossible in most cases. Unless you have an exotic or especially high-end timeshare in a high-end destination like Kapalua, Hawaii, resale is not likely an option that will work.
And, even if you do manage to have a timeshare in one of those rare, desirable locations and manage to find a buyer, you’re not going to make a profit. Plus, the sale price is not going to even allow you to break even on what you’ve already paid in maintenance fees and other costs.
If you feel like you’re stuck with your timeshare, it can be tempting to think that you might rent it out to people who want to use it. You might think that you could make back some of those annual fees or maybe even turn a profit, changing the job of exiting a timeshare into an opportunity for income. Some timeshare salespeople might even have told you this was possible at the sales presentation.
The sad reality is that you probably won’t be able to rent your unit. The first reason why is the same reason as so many of your other problems: the timeshare contract. Timeshare developers don’t like competition, and they won’t be able to rent out their selection of units if they’re competing with timeshare owners.
Therefore, your timeshare’s Public Offering Statement or the Governing Documents will likely say that you can’t rent your unit without permission from the developer, which you will not get.
Even if you’re allowed to rent your timeshare unit, don’t expect that the developer will let you do so for free. Just as with everything else, there will be fees. You will likely be charged a commission for listing and renting your unit.
In some cases, you will have to obtain a guest certificate in order for someone other than you or your immediate family to even use the unit. You can expect to pay a couple hundred dollars per guest certificate and associated fees, which means that the idea of making money from a rental is not realistic.
If you’ve given up on the idea of even trying to make money on your unit, and a deed-back or similar option isn’t possible, you might be wondering whether you can just give your timeshare away to someone else who wants it.
Giving a timeshare to someone else presents several problems: timeshare companies often don’t want you to do it, and the people or charities to whom you give the timeshare might not appreciate the gift when they see what you’ve unloaded upon them. Below, we discuss these problems and a potential solution from Centerstone Group.
Timeshare contracts restrict how and when timeshares can be transferred because developers don’t want you giving your unit to someone who doesn’t have the means or intention of paying the annual fees on the unit. In other words, they don’t want their guaranteed source of income (from you) to dry up, so they use your contract to keep you in place.
Even if the company does allow you to make the transfer, you won’t be able to do it for free. Expect to pay thousands in transfer fees as well as escrow and title costs.
You may think you can circumvent the above issues by donating your timeshare to a charity. The idea behind this is that a charity serving people who have to travel for medical treatments might be able to give those people a free place to stay.
While this is a nice idea, it also does not work in reality. First, timeshare developers will be as against this idea as any other transfer.
Second, charities are keenly aware of the financial issues presented by timeshares. One risk management consulting firm called timeshares “the black hole of charitable giving.” Charities don’t want the obligation of paying a litany of annual fees any more than you do.
Third, because timeshares are more of a liability than an asset, taking the donation will typically leave a charity in a worse position than it started. If you truly like a charity and believe in its mission, saddling it with a timeshare contract is a poor decision.
Because of these downsides, we’re unaware of any charities that will take a timeshare as a donation, meaning this isn’t a viable exit option.
Also, keep in mind that if you give your timeshare to a family member or friend, you could put that relationship in danger.
Your adult children might think a vacation property sounds great, but then they are going to have to deal with annual maintenance fees, HOA special assessments, and a contract that will follow them around for the rest of their lives.
You know exactly how bad timeshare ownership can be. Passing it on to your loved ones or friends could take a financial problem and turn it into a serious personal problem as well.
As you can see, the problems with transfers can be many, but in some cases, a transfer can be the best option. Centerstone Group has developed a superior transfer option that allows you and your timeshare to be matched with a waiting transferee who has been properly advised on the costs.
Using this program, it is possible to successfully transfer your timeshare to someone who is willing and able to shoulder the costs. This program lets you avoid giving the timeshare costs to a friend or loved one who may not be ready for them. You also avoid saddling your favorite charity with a timeshare that will only cost it more money.
Just to be clear, litigation is never an easy or desirable choice for anybody. Pressing a lawsuit is difficult, time-consuming, and expensive. In the case of timeshares, though, it is sometimes necessary. Perhaps a salesperson induced you into signing the contract by lying to you. Perhaps the timeshare company just didn’t deliver what it promised. While a legal case isn’t pleasant, it is sometimes necessary.
Expect timeshare companies to make the process even more unpleasant. In many cases, expect your developer to try to keep you out of court by forcing you into arbitration. This is often a confusing, expensive process that prevents you from getting the justice you need.
Even if you manage to make it into court, timeshare companies have armies of lawyers. Those lawyers will come after you, seeking not only to win the case but to force you to pay all their legal fees and costs.
In order to even have a chance in a lawsuit or arbitration, you would need to hire a qualified attorney or law firm to represent you. And while they will certainly do the job well, they don’t work for free. Expect to pay thousands in legal fees. If you win, you may get those back, but that is far from a guarantee in most cases.
So while legal action can be a necessary and fruitful tactic for dealing with timeshare companies that behave badly, it is not a silver bullet. It can also be extremely expensive. Therefore, it is not an option that should be entered into lightly.
Some owners consider simply letting go and no longer paying any of the annual fees or mortgage payments for their timeshare. This strategy for exiting a timeshare, which has been recommended by failed timeshare exit companies like Timeshare Exit Team and Timeshare Compliance, is a serious mistake that could get you into a lot of trouble.
Timeshare developers don’t like it when you don’t pay your bills, and they are not about to take it lying down. They will absolutely come after you and try to pry the money from you in any way they can. This may result in a timeshare foreclosure or, even worse, a lawsuit by the developer against you for a deficiency judgment for all of the money you owe them.
But that’s not the end of it. Failing to pay a mortgage or the fees to which you have contractually agreed is a matter that will be reported to the credit bureaus. This, in turn, will negatively affect your credit score for years. A lower credit score will cost you even more money in the future, as it will make borrowing more expensive and give you fewer credit opportunities.
Therefore, while not paying might seem like a good idea in the short term, in the end it can be a disastrous decision. If you find yourself considering this strategy, we strongly urge you to contact Centerstone Group immediately so that we can help you find a better way.
Exiting a timeshare can be a stressful process, but not doing it in the right way will make it even worse. The best timeshare exit strategy for you depends upon several factors, including when you signed your contract, what your contract actually says, and which company developed your timeshare.
The complexity of this task can be daunting, which is why Centerstone Group’s trusted professionals are here to help. We can sit down with you to examine your contract and the related materials. We’ll interview you to understand what happened in your situation.
Using our decades of experience in the timeshare industry, we can build a timeshare exit strategy tailored to fit your unique needs. Those needs might include a contract cancellation, our proprietary pressure campaign, or even hiring a qualified timeshare attorney to help you with the legal aspect of your case. (If an attorney is needed, we can also negotiate substantially discounted legal fees.)
Centerstone Group is the most respected name in timeshare exit companies. We are an A+-rated, accredited company with the Better Business Bureau (BBB) and has received a 4.81-out-of-5-star rating from satisfied clients.
Contact us today for a free consultation and evaluation of all your exit options. Then, you can get started down the road to freedom from your unwanted timeshare.
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