Quiting a timeshare.

[repleo Junior Member Find all posts View Profile Close repleo]

I'm a newbee to timesharing. I have been reading up on the topic on this site and TUG etc but have not found an answer to a basic question. What happens if worst comes to worst and I want to get out of a timeshare? If I can't sell it, can I just give it back to (?) or are am I stuck with the maintenance fees until I eventually find some poor sucker to take it off my hands? Does giving the week back effect your credit rateing. It seems that there are hundreds of timeshares on Ebay selling for $1 - are people that desperate to unload their week?
I will have many more questions over the next couple of weeks but this is the one upermost in my mind.

[swirg53 Senior Member Find all posts View Profile Close swirg53]

Quitting a Timeshare: Selling

I'm not too knowledgeable about other timeshares beyond Bluegreen Vacation Club, but for the most part, I think you are right: you are stuck with it. The only way a developer will take it back is if you totally go bankrupt or are so far in arrears, it is hopeless, taking a huge hit on your credit rating and not very ethical on your part either. Of course, they won't GIVE you anything for it and would still expect you to pay your back fees.

So, getting a buck on Ebay is better than nothing plus often the seller requests as part of the deal to be reimbursed for the current year fees. All fees must be up to date to sell to a timeshare.

Do you have something you want to get rid of?

[dougp26364 Senior Member Find all posts View Profile Close dougp26364]

You don't just quit something you own. You remain responsible for it so long as you own it and you own timeshare.

You might not maintain your car but it's usually not lawful to just abandon it either. You must store it yourself, find someone to take it off your hands or dispose of it in some lawful manner. Sometimes a junk yard will pay you a little for it and sometimes you have to pay them to take it. The last time I looked, when you allowed your car to be repoed it hurt your credit rating, the bank would sell the car and then ask you to pay any difference between what you owed and what they recieved when they auctioned it off. This happened to me when the ex-wife allowed the car she kept to be repo'd. She quit paying on it, they took it, they sold it at auction and, since my name was on the loan they expected me to pay the difference.

A house is the same way. You never really just walk away from a house without being responsible for that house. I'm sure there are situations in remote regions that would contradict this thought but I bet they're few and far between.

So yes, you and all the other owners at the timeshare you purchase remain responsible for the maintenance of the resort, insurance and other costs associated with the resort and the payroll of those that work at the resort. You don't just walk away without consequences to the both yourself and the resort. Because they depend upon ALL the owners to put in their fair share to maintain the resort, you are held responsible.

From your first question you may want to think long and hard about whether or not timeshare is affordable and the right thing for you to do. HOA's are suppose to be controlled by the owners and owners should work to keep costs down as much as possible while maintaining acceptable resort quality. Unfortunately, developers hold onto control far to long and are often known to milk resorts for a profit as long as they can. They don't always do what's best for the owners so much as they do what's best for the developer.

[Keitht Super Moderator Find all posts View Profile Close Keitht]

Unfortunately it's a simple question with no simple answer. Some developers will take back an unwanted unit assuming all outstanding fees etc are cleared and others won't. Some developers will chase unpaid fees through courts whilst others will repossess.
Handing back a t/s with the developers agreement won't adversely affect your credit rating, but defaulting on payments may.

[tonyg Goomba & Super Moderator Find all posts View Profile Close tonyg]

Most timeshares have some value. Unfortunately most people buy at the high pressure tour and without any knowledge or financial analysis. Some buy at a nice resort, but in a season no one wants and the result is a poor trading place that they don't even want to visit. The best bet is to try to give the unwanted and unsaleable week back to the resort. If they don't allow it, then they may have many non-paying weeks. Bad credit only last seven years and some people may not even think refusing to pay timeshare fees is such a bad thing.

[timeos2 Senior Member Find all posts View Profile Close timeos2]

Once you own you owe

I'm a newbee to timesharing. I have been reading up on the topic on this site and TUG etc but have not found an answer to a basic question. What happens if worst comes to worst and I want to get out of a timeshare? If I can't sell it, can I just give it back to (?) or are am I stuck with the maintenance fees until I eventually find some poor sucker to take it off my hands? Does giving the week back effect your credit rateing. It seems that there are hundreds of timeshares on Ebay selling for $1 - are people that desperate to unload their week?
I will have many more questions over the next couple of weeks but this is the one upermost in my mind.

There are timeshares, usually highly seasonal ones, that have weeks that are worth nothing even as the prime times may hold high values. If you own one of the low to no value weeks you may have a tough time selling it at any cost or even giving it away because it carries the annual fee with it - not because the sale price is too high. The true cost of any timeshare is the annual fees and if the time you own has little or no value you can't get value from that fee you are obligated to pay - thus no value to you or a potential buyer. It is up to the resort to solve that problem. The well operated ones do by figuring out ways to create value in those otherwise worthless weeks. It could be by shutting down during those periods and moving the costs to the better weeks, it could be by combining the prime weeks with the poor ones to cover costs, it can be by finding ways to generate income from those poor weeks through leasing or rentals - but they need to find a way to create a value. If they do then chances are that resort will accept weeks back from strapped owners as they have a method to "recycle" them and generate income. If they depend on outsiders such as RCI/II to generate value for worthless time as has been the case in the past then the resort is in a downward spiral and most likely will eventually fail.

As an owner of one of the poorly managed resorts that hasn't taken steps to create value for all owners you can be stuck between continuing to pay for worthless time, being unable to sell or deed back and risking your credit rating. For those owners there is no easy answer except that paying an upfront fee to sell or trying to dump your week by paying(!) $3000+ to one of the Post Card Companies isn't an answer either. You too have to be creative to find somehow to get out of the obligation - it isn't going to easy I'm afraid. But it is your obligation until you find a way out. Work with your resort to fix the root problem and create a market for your time. Good luck!

[Beaglemom3 Senior Member Find all posts View Profile Close Beaglemom3]

If you have something of value, your local PBS station may accept it for their annual auction providing fees are paid to date. In fact, to enhance their taking it, paying one year ahead may entice them even more.

You'll get a tax deduction to boot.

I see timeshares listed on our own WGBH (the PBS flagship station) auction here in Boston twice yearly.

B.

[repleo Junior Member Find all posts View Profile Close repleo]

Many thanks to everyone for your informative replies. Your answers confirmed my suspicions but I am a little surprised that this aspect is not spelled out more clearly in the various Timeshare 101's and FAQ sites. I suppose it is considered so obvious that nobody bothers to mention it. It will certainly influence my decision making and help me resist jumping on one of those $1 giveaways.

I am always leery of things that 'last forever' - like vinyl siding. I think I will focus my attention on a shorter term right-to-use to start with as I expect my vacationing plans will change in the next 10-12 years as I near retirement.

[1950bing Senior Member Find all posts View Profile Close 1950bing]

The short of your question, you are stuck.

This is one of the most important parts about timeshare ownership but your salesman most likely said very little or nothing to you about the end of ownership. You were all excited about timesharing and the exit of ownership was so far down the line, years and years away, it was not important. Salesmen are just that. They are there to sell you something so they will not speak of any negitives. They are interested in making a sales quota and not so much in having the right product for your vacation needs. All they want is the sale.

By seeing them on the net for a $ really shows what some people think they are worth or just desperate to unload the things to get out of having to pay ever increasing maintenance fees and all the other new fees that come with ownership. Other groups get in on the forever fees too.

Having said all that, I don't think you should have to settle for the ebay way. Your place is worth more than a buck. There may be someone out there that could make use of your place. This is a great place to get the CORRECT information on selling. There are also places (beware) that will take any amount of money from you upfront for them to sell your place. Don't do it. They will do nothing but take your money! You can list your place here and there are other ways to sell your place most of which will have some fee but not like the huge amounts the upfront shark places charge as mentioned.
before.

I have heard of places that take back timeshares but that did not work for me when I wanted out from under fees. They asked me why would they want it back while I was already paying all the fees? Makes sense!

It will take a while but at some point maybe there will just be that person that wants what you have. Keep paying fees to protect your credit ranking.

Timeshare are a great way to vacation for SOME people but unlike what some salesman will tell you not EVERYONE NEEDS one ! I have learned that one needs to learn how to "work it", it is sort of like a cult. Also, for the ones that do make it work they don't seem to be concerned when there is an increase in fees or when a new fee comes along.There are many ways to enjoy time off without owing at a timeshare resort while using the same timeshare resort.

Be careful and ask here before selling to be sure you can make the most of what you have, good luck.

[repleo Junior Member Find all posts View Profile Close repleo]

Thanks. As an Architect, one of the first things I do when I enter a building is to check for the exits. I haven't actually bought a TS yet. Your comments about new fees and increased fees are a bit disconcerting. I was thinking more in terms of a points membership although I know they have the same 'perpetual' considerations. Maybe I will just rent for a while until I get a better feel for TS business.

[Jim McLaren Member Find all posts View Profile Close Jim McLaren]

Renting is a good idea to test the waters. You might want to try this ad. It is a three year right to use RCI points membership. Entry price is pretty good and yearly maintenance is good. You can renew after three years or just walk away. My understanding is that you can renew up a to a total of 15 years.

[taffy19 Gold Contributor Find all posts View Profile Close taffy19]

Thanks. As an Architect, one of the first things I do when I enter a building is to check for the exits. I haven't actually bought a TS yet. Your comments about new fees and increased fees are a bit disconcerting. I was thinking more in terms of a points membership although I know they have the same 'perpetual' considerations. Maybe I will just rent for a while until I get a better feel for TS business.

You did your homework! Good for you so you won't be stuck with a timeshare you can't get rid of. Renting sounds better every day as the timeshare related fees keep creeping up constantly.

With airlines going out of business (three this last week), owning timeshares where you have to fly to may not be such a good idea either. You may consider that too.

[Larry Senior Member Find all posts View Profile Close Larry]

Unfortunately it's a simple question with no simple answer. Some developers will take back an unwanted unit assuming all outstanding fees etc are cleared and others won't. Some developers will chase unpaid fees through courts whilst others will repossess.
Handing back a t/s with the developers agreement won't adversely affect your credit rating, but defaulting on payments may.

You are soo correct Keith. Even some of the most knowledgeable people here and on TUG just assume you are stuck forever but as you say it depends on the developer/HOA and some that I own will take back the week and it will not impact my credit.

It never hurts to ask and if you have a decent week you can sell it. I know for a fact that I can sell every week that I own for more than I paid for it. I have sold over a dozen timeshares and made a profit on every sale.

[tonyg Goomba & Super Moderator Find all posts View Profile Close tonyg]

Not to demean Larry in any way, but he either bought after learning about timeshares or was very lucky. I have made money on most of my sales, but I did lose on 2 and I have one still that may incur a small loss. You really have to know what you are buying and the market to be assured of consistent gains on resales. On the resort group I knew well- I didn't lose any money reselling. Some resorts hold their value, others gain some after a certain point and some lose any value at all. My advice is to research first and avoid the bad boys (CFI, Celebrity and the vacation clubs) and then look for a low market price on the resort you want. Fear not- if you miss out by offering or bidding too early, the odds are fairly high that another similar bargain will come by.

[Larry Senior Member Find all posts View Profile Close Larry]

Not to demean Larry in any way, but he either bought after learning about timeshares or was very lucky. I have made money on most of my sales, but I did lose on 2 and I have one still that may incur a small loss. You really have to know what you are buying and the market to be assured of consistent gains on resales. On the resort group I knew well- I didn't lose any money reselling. Some resorts hold their value, others gain some after a certain point and some lose any value at all. My advice is to research first and avoid the bad boys (CFI, Celebrity and the vacation clubs) and then look for a low market price on the resort you want. Fear not- if you miss out by offering or bidding too early, the odds are fairly high that another similar bargain will come by.

Sorry Tony but luck had nothing to do with it. All of my timeshares were bought resale except for my first week at Playa Linda which I still own and bought at the developers close out sale. Perhaps you could say that was luck since I new nothing about timeshare at the time and went to several presentations that week in Aruba all of which made no sense based on the numbers. When I went to Playa Linda the price was right and I have more than recouped my initial investment by renting out the week for the last 8-10 years at a net rate of return of about 15-20%. As a matter of fact I never intended to buy any more weeks and it wasn't until about six years after I bought my first week that I saw a week for sale that seemed so good I couldn't see how I couldn't make momey on flipping it. I sold it in 3 days after closing on the purchase to a friend of mine who over the years bought 2 more weeks from me.

Since then I stick with areas that I have researched and know when I am getting a bargain price where I can sell at a profit. I don't do a lot of sales because I am very selective of what I buy and even when I haven't bought the greatest resort my purchase price was so low that there is no way I can ever loose on any of my weeks. I currently have some weeks that I am keeping with the intent of using when I retire and some that I trade for family vacations and vacations for me and my wife.

The weeks that I have bought and sold were all at excellent pricing and were all bought with the intent of flipping the weeks.