If you’re reading this, you know that vacation ownership is not what it was cracked up to be when the timeshare salesperson was giving you a high-pressure pitch. A new mortgage payment, special assessments, repairs to timeshare property, and annual maintenance fees to timeshare resorts combine to make you feel like you’re always paying someone. “So,” you might wonder, “is there a legal way to get out of a timeshare contract?”
The good news is that yes, you can legally and ethically get out of a timeshare contract. The bad news is that the timeshare industry doesn’t make the process easy. That’s why timeshare exit companies, like Centerstone Group, exist. Timeshare owners need to have an ally and a resource when attempting to get out of unfair timeshare purchase agreements.
In this article, we’ll take a look at some of the ways out of a timeshare contract, both good and bad. The best way to get out is to seek the help of a professional with years of experience, so you don’t wreck your personal finances or cause legal problems later.
Nothing good will happen if you just decide to stop paying the fees associated with your timeshare contract. Timeshare exit companies with poor track records and a lack of experience — like the notorious Timeshare Exit Team — have advised their customers to try this, and it usually ends in disaster for the timeshare owners who take their advice.
Failing to pay your mortgage, timeshare maintenance fees, and other costs will generally make timeshare developers start collection actions. Debt collectors might start calling. You could suffer a foreclosure. You could even be sued and have a deficiency judgment entered against you. Plus, your credit report will take a huge hit, costing you more money by tanking your ability to get loans or good interest rates as your credit score tumbles.
Needless to say, abruptly stopping payment is not a good solution for getting out of a timeshare contract. No matter how hopeless your situation might seem, Centerstone Group can work with you to find other options, like those discussed below.
Here, we want to be careful with the legal terminology. In law, a void contract is unenforceable and never has a legal effect. For better or worse, timeshare contracts are legal and enforceable, and you have to deal with them in that way. (See the discussion above about what can happen if you ignore them!)
Even if the contract isn’t void, you can, however, usually cancel or rescind your timeshare contract within a certain period of time. You should have been informed of this during the timeshare sales presentation, but you might not have gotten the correct information.
The details are governed by state law, as most states have rescission periods (also known as “cooling-off periods”) that range from a few days to a few weeks after your sale is finalized. For example, Florida’s timeshare law gives 10 days for rescission and Hawaii gives seven days.
During the rescission period, you can send a cancellation letter to a specific address and have your contract completely canceled and all of your money refunded.
Again, though, the timeshare companies don’t make this process easy for owners who want to rescind. Even in the best case, companies will make their contracts difficult to read and follow properly. And if you don’t follow the exact language, you’ll be stuck.
Even worse, timeshare company employees might give you the wrong advice or claim they never received your letter. (This last point is a great reason to use certified mail or another method of ensuring you can prove when a letter was sent and received.)
Incidents like these are why it is so important to have experts in your corner. When it comes to rescission, Centerstone Group gives free advice to help you navigate the process.
If you’ve missed the rescission window, reach out to Centerstone Group to learn about our exit services. We have helped thousands get out of their contracts and know exactly how to handle the developers’ abusive practices.
A big problem with rescissions, though, is that the time to complete them passes pretty quickly. If you don’t make the rescission within the short window of time available to you under the state law where the purchase was made, the rescission won’t work. In that case, Centerstone Group can help you in convincing the timeshare developer to take their timeshare back.
Some larger timeshare developers have their own “exit programs” that purportedly allow timeshare owners to simply give back timeshare that they have paid off to the timeshare company.
While those programs may sound great in theory, keep in mind that developers have a financial incentive not to let their owners out of contracts. Whether or not you can participate in them is entirely up to the timeshare companies, and most of the time they will conclude that owners can’t participate, or at least not immediately. And they limit the number of people who can be let out. In the meantime, they will continue to nickel and dime you with a wave of payments and fees.
Though you might be wondering if you can sell your timeshare, there is not much of a resale market — timeshares only barely qualify as real estate. Anyone who tells you that there is resale value is likely running one of a number of scams through so-called “timeshare resale companies.” Attorneys general across the nation have warned consumers to be wary of these scammers.
Centerstone Group’s clients find more success with its proprietary pressure campaign, which forces developers to use deed-back programs and other tools to allow owners to get rid of their timeshares. When our people get to work on your developer, you will be amazed what we can accomplish. Plus, unlike the timeshare developers, your timeshare won’t have to be paid off first.
And beyond a pressure campaign, we can assist with other exit strategies, like transfers, Mexico timeshare exits, and attorney exits.
Centerstone Group is the leading timeshare exit company and a free resource for information about getting out of timeshare contracts the right way. If you find yourself confused or unsure of what to do next, Centerstone Group’s seasoned professionals (with decades of experience in the industry) can help you get financial freedom and peace of mind.
We are an accredited, A+-rated company with the Better Business Bureau (BBB), and our clients have given us an incredible 4.78-out-of-5 stars. With all our experience and success with a whole toolbox of exit solutions, we can guide you on how to get out. Contact us today for a free consultation on the best exit strategy for you.
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