How Do Deed-Back Programs Work for a Timeshare Exit?
Many timeshare owners are lured into purchasing their units in part because of promises during the timeshare presentation that timeshares have some value or even that the value will increase. Unfortunately, those promises are smoke and mirrors, and owners learn the hard truth that their units have no actual value on the timeshare resale market.
Stuck with mounting maintenance fees and other costs, they become willing to even give away their units. Some developers offer “deed-back” programs that, in theory, allow owners to do this. But how do deed-back programs work?
The answer to that question is, unfortunately, “not very well.” Timeshare developers depend on income from annual maintenance fees and other amounts paid by owners, so they can’t just let everyone who wants to use deed-back programs in — otherwise, they’d have no business at all! Deed-back programs, then, just become another tiresome round of the same frustrating shell game.
This article will take a look at how to return a timeshare to the resort, the deed-back process, and how likely you are to be able to actually use these programs to give back your timeshare. We’ll also discuss how you can find better timeshare exit options with Centerstone Group, the premier timeshare exit company, which has had success helping thousands of timeshare owners free themselves from their timeshares without the oppressive terms of a timeshare deed-back program.
What Is a Deed-Back Program?
Though exact programs vary between companies, the main idea of a deed-back program (also known as a timeshare surrender program) is that you simply give back your timeshare to the developer.
Note that the owner in this case normally pays all closing costs for the real estate transaction, in addition to a developer fee for terminating the timeshare ownership, so the programs aren’t “free” in any sense of the word.
Do All Timeshare Resorts Offer Deed-Back Programs?
No, some smaller timeshare companies may not offer a deed-back service, though most of the larger ones, like Marriott Vacation Club and Club Wyndham advertise them prominently on their websites.
It’s important to note, though, the mere fact your developer has a timeshare deed-back program doesn’t mean you’ll be able to use it. As discussed above, timeshare companies have a strong need to keep as many owners in their contracts for as long as possible. This fact alone means there will be high barriers to entry.
In other words, you’ll need to be in good financial standing with the timeshare company, current on all payments, and without any messy legal issues. (For example, if you rent your timeshare without the company’s knowledge or approval, it can cause big headaches.)
If there is any outstanding mortgage on the timeshare, the developer will generally not let you into a deed-back program, period. They will also want to be paid 100% of the interest they are owed on any mortgage. Furthermore, if you’re not the timeshare’s original owner (e.g., you received it through inheritance or sale), there might be even more roadblocks.
Even assuming that, one, a deed-back program exists and, two, you meet any criteria for entry, admittance into the program is solely within the discretion of the developer. That means you might have perfect criteria for deed-back eligibility, and they can still say no.
What’s more, even if you do make it in, be prepared for the process to take quite a bit of time.
How Long Does the Deed-Back Process Take?
Depending on the timeshare company and program, expect to spend months — or more likely years — waiting for a resolution. Though some programs will come with optimistic statements of their length, like 90 days, there is no oversight of the company to ensure they comply with those guarantees.
Timeshare companies have been known to pause admission into these programs — or progression through them — due to the sheer number of owners trying to take advantage of them. This process can add months or years to your waiting time.
During that time, you will certainly be forced to pay even more maintenance fees, special assessments, and other costs, under threat of foreclosure or other legal action by the company. Foreclosure is a powerful threat, as it can lead to spiralling legal fees and severe damage to your credit score. Because of this, owners that enter these exit programs sometimes end up feeling even more stuck and coerced than they did before.
Can I Deed Back My Timeshare If I Still Owe Money?
No, you’ll need to be up-to-date on payments and in good standing with the company if you hope to use these programs. If you took out a mortgage to purchase your timeshare, the developer is likely the company that holds your mortgage, meaning that they are the “bank” that loaned you the money for the purchase.
Just as with a bank lending money to homeowners for their houses, a timeshare company is not going to simply forgive that debt. It would rather foreclose and recover as much of the debt as possible.
But even if you don’t have an outstanding mortgage, you could still have a problem if you have the financial obligation of outstanding fees. Many contracts and deeds will allow just such a foreclosure to occur, but don’t take our word for it. On its website, developer Westgate Resorts openly admits that failure to pay maintenance fees can also result in foreclosure.
Is a Deed-Back Program the Same as Cancellation?
No, the term “timeshare cancellation” usually refers to contract rescission, a process where owners void their timeshare contracts within a certain amount of time using state law. It typically involves drafting a letter referring to a specific part of your contract and mailing it to a certain address within a small window of time. If you’re doing a timeshare cancellation, you should not contact the timeshare company for advice, as they will likely slow you down or give you the wrong information.
If you’ve recently bought a timeshare property and need to cancel it in this way, we suggest you contact us at Centerstone Group immediately so we can offer you free guidance on how to successfully complete the process.
Be Wary of Any “Help” Offered by Timeshare Developers
After reading about the hoops they have to jump through to use these programs, many owners can feel overwhelmed or stuck, but there is good news. Centerstone Group is a dedicated team of professionals with decades of experience in the timeshare industry. We use that experience to find legal, ethical, and faster ways to get our clients out of their timeshare agreements.
We’ve helped thousands of customers out of their bad timeshare situations, and our results speak for themselves. We are an A+-rated, accredited company on the Better Business Bureau website, where hundreds of our clients have given us a score of 4.79-out-of-5 stars.
If you need help with an exit strategy, we can give you the expertise you need, even if you need to cancel a timeshare in Mexico. Contact us today for a free consultation, and we will happily take a look at what we can do for you.
Many timeshare owners are lured into purchasing their units in part because of promises during the timeshare presentation that timeshares have some value or even that the value will increase. Unfortunately, those promises are smoke and mirrors, and owners learn the hard truth that their units have no actual value on the timeshare resale market.
Stuck with mounting maintenance fees and other costs, they become willing to even give away their units. Some developers offer “deed-back” programs that, in theory, allow owners to do this. But how do deed-back programs work?
The answer to that question is, unfortunately, “not very well.” Timeshare developers depend on income from annual maintenance fees and other amounts paid by owners, so they can’t just let everyone who wants to use deed-back programs in — otherwise, they’d have no business at all! Deed-back programs, then, just become another tiresome round of the same frustrating shell game.
This article will take a look at how to return a timeshare to the resort, the deed-back process, and how likely you are to be able to actually use these programs to give back your timeshare. We’ll also discuss how you can find better timeshare exit options with Centerstone Group, the premier timeshare exit company, which has had success helping thousands of timeshare owners free themselves from their timeshares without the oppressive terms of a timeshare deed-back program.
What Is a Deed-Back Program?
Though exact programs vary between companies, the main idea of a deed-back program (also known as a timeshare surrender program) is that you simply give back your timeshare to the developer.
Note that the owner in this case normally pays all closing costs for the real estate transaction, in addition to a developer fee for terminating the timeshare ownership, so the programs aren’t “free” in any sense of the word.
Do All Timeshare Resorts Offer Deed-Back Programs?
No, some smaller timeshare companies may not offer a deed-back service, though most of the larger ones, like Marriott Vacation Club and Club Wyndham advertise them prominently on their websites.
It’s important to note, though, the mere fact your developer has a timeshare deed-back program doesn’t mean you’ll be able to use it. As discussed above, timeshare companies have a strong need to keep as many owners in their contracts for as long as possible. This fact alone means there will be high barriers to entry.
In other words, you’ll need to be in good financial standing with the timeshare company, current on all payments, and without any messy legal issues. (For example, if you rent your timeshare without the company’s knowledge or approval, it can cause big headaches.)
If there is any outstanding mortgage on the timeshare, the developer will generally not let you into a deed-back program, period. They will also want to be paid 100% of the interest they are owed on any mortgage. Furthermore, if you’re not the timeshare’s original owner (e.g., you received it through inheritance or sale), there might be even more roadblocks.
Even assuming that, one, a deed-back program exists and, two, you meet any criteria for entry, admittance into the program is solely within the discretion of the developer. That means you might have perfect criteria for deed-back eligibility, and they can still say no.
What’s more, even if you do make it in, be prepared for the process to take quite a bit of time.
How Long Does the Deed-Back Process Take?
Depending on the timeshare company and program, expect to spend months — or more likely years — waiting for a resolution. Though some programs will come with optimistic statements of their length, like 90 days, there is no oversight of the company to ensure they comply with those guarantees.
Timeshare companies have been known to pause admission into these programs — or progression through them — due to the sheer number of owners trying to take advantage of them. This process can add months or years to your waiting time.
During that time, you will certainly be forced to pay even more maintenance fees, special assessments, and other costs, under threat of foreclosure or other legal action by the company. Foreclosure is a powerful threat, as it can lead to spiralling legal fees and severe damage to your credit score. Because of this, owners that enter these exit programs sometimes end up feeling even more stuck and coerced than they did before.
Can I Deed Back My Timeshare If I Still Owe Money?
No, you’ll need to be up-to-date on payments and in good standing with the company if you hope to use these programs. If you took out a mortgage to purchase your timeshare, the developer is likely the company that holds your mortgage, meaning that they are the “bank” that loaned you the money for the purchase.
Just as with a bank lending money to homeowners for their houses, a timeshare company is not going to simply forgive that debt. It would rather foreclose and recover as much of the debt as possible.
But even if you don’t have an outstanding mortgage, you could still have a problem if you have the financial obligation of outstanding fees. Many contracts and deeds will allow just such a foreclosure to occur, but don’t take our word for it. On its website, developer Westgate Resorts openly admits that failure to pay maintenance fees can also result in foreclosure.
Is a Deed-Back Program the Same as Cancellation?
No, the term “timeshare cancellation” usually refers to contract rescission, a process where owners void their timeshare contracts within a certain amount of time using state law. It typically involves drafting a letter referring to a specific part of your contract and mailing it to a certain address within a small window of time. If you’re doing a timeshare cancellation, you should not contact the timeshare company for advice, as they will likely slow you down or give you the wrong information.
If you’ve recently bought a timeshare property and need to cancel it in this way, we suggest you contact us at Centerstone Group immediately so we can offer you free guidance on how to successfully complete the process.
Be Wary of Any “Help” Offered by Timeshare Developers
After reading about the hoops they have to jump through to use these programs, many owners can feel overwhelmed or stuck, but there is good news. Centerstone Group is a dedicated team of professionals with decades of experience in the timeshare industry. We use that experience to find legal, ethical, and faster ways to get our clients out of their timeshare agreements.
We’ve helped thousands of customers out of their bad timeshare situations, and our results speak for themselves. We are an A+-rated, accredited company on the Better Business Bureau website, where hundreds of our clients have given us a score of 4.79-out-of-5 stars.
If you need help with an exit strategy, we can give you the expertise you need, even if you need to cancel a timeshare in Mexico. Contact us today for a free consultation, and we will happily take a look at what we can do for you.