Table of Contents
- How to Get Rid of a Timeshare with a Mortgage Balance
- What Type of Loan Do You Have?
- Know What Kind of Timeshare Plan You Have
- Have You Considered Refinancing?
- Buy-Back Or Deed Back Programs
- Do You Have Legal Rights to Cancel your Timeshare?
- Contact an Attorney?
- Can A Timeshare Developer Sue You?
- Look Out For Scams
How to Get Rid of a Timeshare with a Mortgage Balance
Timeshares can be a great way to vacation, but having a high timeshare mortgage balance can be a burden when you’re looking to sell or cancel your timeshare.
Unfortunately, most timeshare resorts don’t offer a free cancellation option. If you are struggling to keep up with your timeshare payments each month, you might consider canceling or selling your timeshare.
Many timeshare owners struggle with paying off their mortgages and find that paying it off just isn’t an option anymore. If you’ve considered cancelling your timeshare but are afraid you’ll lose money by doing so, don’t worry — there are options available to you that will help you get rid of your timeshare without losing money.
Getting rid of a timeshare is never easy and a mortgage only makes it even harder! You have a couple of different options at your disposal that you can use to get rid of your timeshare without suffering a huge financial loss.
But is it possible to get rid of a timeshare with a mortgage balance? Let’s find out.
What Type of Loan Do You Have?
There are four types of loans when it comes to a timeshare purchase: traditional financing, owner financing, bank/private lender financing, and third party. It’s best if you know what kind of loan you have in order to better understand your options.
- Traditional Financing: This type of loan involves taking a loan from a financial institution to purchase the timeshare. You typically pay the loan back over 15 to 20 years with interest included.
- Owner Financing: This type is when you borrow money from the seller directly. This option is great for buyers who are short on cash and can’t qualify for a traditional loan. It also gives you more flexibility when it comes to paying off your loan because you can amortize it over a longer period of time with lower interest rates.
- Bank/Private Lender Financing: With this type of loan, you work with a bank or private lender to secure a loan for your timeshare purchase. This is a good option for buyers who are able to qualify for this type of loan and are looking for the lowest interest rates available. Typically, you’ll pay off this loan within a few years at higher interest rates than you would pay for a traditional loan.
Third Party Financing: This is when you work with a mortgage broker to secure the loan for your timeshare purchase. This is a good option for buyers who don’t qualify for a traditional or bank loan because of their credit history or other financial issues. Since brokers have access to several different lenders, they’re able to offer competitive interest rates and flexible terms so that you can pay the loan off over a longer period of time with a lower monthly payment.
Know What Kind of Timeshare Plan You Have
Fixed Week / Deeded Timeshares
Fixed Week refers to any week that is attached to a specific resort for a particular year. This means that you will only be able to use this particular week during that designated year at the particular resort that you purchased. For example, if you purchase a fixed week at your same resort every year for 10 years, you will have access to that specific week every year during those years.
Floating Week Timeshare
Floating week refers to a timeshare where the owner can use their allotted vacation time as they wish within the period of ownership. You can choose any available week within your ownership year, and depending on your agreement it can be attached to a specific timeshare.
Points System Timeshare
With a points-based system, you have a number of “points” that you can use to reserve specific weeks at a given resort. Depending on the number of points you have, you can reserve a week anywhere from two weeks to a full year in advance. Or you can use your points to pay for other amenities at the resort like dining or spa treatments. You can also use your points to travel to other resorts within the exchange network. This is a great option for people who travel frequently and want to experience different resorts and destinations around the world.
Vacation Club Memberships
The Annual Fee is a one-time fee that is paid each year to maintain your membership with the resort or vacation club. This is typically around $500-$1000 per year. This fee is charged regardless of whether you actually use your vacation time in a given year or not. It also includes certain amenities like clubhouse access, dining discounts, etc.
Knowing what type of timeshare you have will help you choose a plan to dispose of it!
Have You Considered Refinancing?
If you’re looking to sell your timeshare or get rid of it altogether, refinancing may be a great option for you. Most banks will allow you to refinance your timeshare mortgage to get rid of your current balance and save on interest costs. You can shop around and find competitive rates in your area online. By refinancing your loan with a bank or credit union, you can get a lower interest rate and a longer term length to reduce the monthly mortgage payments and pay off the loan faster. Once you’ve paid off the loan completely, you can then sell or transfer the timeshare to someone else without having to go through the hassle of listing it on the resale market.
Buy-Back Or Deed Back Programs
A buy-back program allows you to sell your timeshare back to the resort for a set price that is determined by the current market value. In most cases, the resort will give you a cash payout for your timeshare so you can walk away without owing any money to the resort. If you are unable to sell it yourself, you can also consider hiring a company to sell it for you for a fee.
Many resorts offer buyback programs to help owners get rid of their timeshares. If the resort offers a buyback option and you have equity in your timeshare, you should consider this option instead of selling it on the resale market. This will save you time and money while eliminating the hassles that come with selling a timeshare on your own.
Can You Sell Your Timeshare?
Is your timeshare deeded to you or someone else? If it is deeded to someone else, you will need their permission to sell it. If they refuse, you will be stuck with a property that you can’t sell. If the owner is deceased, you will need to obtain proof of death from the executor of the estate before you can proceed with a sale.
If your timeshare is owned as real property, you will generally be able to sell it like any other real estate property. You will need to get a real estate appraisal to determine the fair market value of your timeshare before you list it for sale. You should also be familiar with the laws in your state regarding the resale of timeshare properties so you can make an informed choice about the best way to dispose of your property.
Ask the People Who Own Timeshare Weeks with your Resort
Selling your week to other owners via a “flip” – that’s when a current owner sells his week to another owner at a higher price. However, you need to ask if the buyer is willing to sell you the week back if he decides he doesn’t want it anymore. Why you may ask? Because there is high chances that once the buyer pays for the purchase, he will not want the property anymore so there is a need for assurance that they are willing to sell the week back once the deal is completed.
Can You Give Your Timeshare Away?
The reason this doesn’t work so well is that most timeshares are not worth much in terms of either time or money. Also, since you are giving away a piece of real estate, you will most likely have to pay some form of capital gains tax on the profit you make when you sell it later.
Can Your Rent Your Timeshare Out?
If you have purchased a timeshare with the expectation that you could rent it out when not in use by you, you may run into some difficulties. Many vacation resorts do not allow individuals to rent out their weeks and will only do so on a limited basis through the resort itself. In addition, you probably will not have much success renting out your timeshare because individual owners do not have the kinds of marketing resources available to hotels and other large commercial establishments. As a result, you will probably end up turning down too many of the potential renters who are interested.
What If You Stop Your Maintenance Fees?
If you choose to stop making your maintenance payments, the timeshare company has the right to declare your account delinquent and take it over. In many cases, they will hire a third party to contact you to make arrangements to pay the outstanding amount. Unfortunately, this is only a temporary solution. Once the delinquency has been resolved, the company will probably put you on a payment plan and require you to make all of the future payments on time in order to avoid any additional charges.
Hire a Timeshare Cancellation Service?
Timeshare cancellation services work by negotiating with the timeshare company on your behalf so that you can get out of your contract without paying any money or experiencing any further harassment from the resort. However, many of these companies charge exorbitant fees and will not guarantee that they will be able to get you out of your contract. Some of them even make the claim that they can help you cancel your timeshare no matter what the situation might be. This is simply not true because there are a number of factors that could make it impossible for you to get out of your contract, no matter how much you pay them.
Do You Have Legal Rights to Cancel your Timeshare?
There are several federal and state laws that can be used to help you get out of your timeshare contract, but the process is generally more complicated than just cancelling your membership and walking away.
For example, you might have to file suit in court in order to get your contract cancelled and get any damages that you are entitled to. This process can take a long time and be very expensive, so it is generally better to try and avoid this problem in the first place by making sure that the contract does not have any hidden cancellation clauses or other unfair terms. If you contact the resort representative after signing the contract to request a copy of the terms and conditions, they should be able to provide you with the relevant information.
In some states, you have a right to cancel a contract within a certain period of time after you have signed it. This is known as the “right of rescission” or “cooling off period.” To find out whether you have this right in your state, you can talk to an attorney or check the statute or case law in your area to see the laws that are applicable to your situation. Also, some resorts offer their own “timeshare exit programs” that will provide you with assistance in cancelling your contract under certain conditions. Check with your resort to find out if they offer any such programs or to find contact information for their consumer affairs department.
Contact an Attorney?
Most states, including Florida, have laws that provide protection for buyers of timeshares by giving them the right to cancel their contracts within a certain period of time after they buy them. The amount of time allowed varies depending on the type of contract and other factors, so it’s important to consult with a lawyer about your specific situation before making a move. An attorney will be able to explain the process to you and help you make the right decision for you and your family.
Be careful when dealing with anyone calling themselves an attorney or an “Attorney at Law” because this is not a valid title. Anyone who claims to be an attorney but cannot provide you with a current Bar membership number should not be considered a legitimate attorney and should be reported to your state bar association immediately.
It is also a good idea to check with the attorney you are thinking of hiring to make sure that they have all of the necessary qualifications to represent you in your lawsuit. By doing a little research ahead of time, you should be able to avoid falling victim to a scam and find an attorney who can help you get out of your timeshare contract without spending any money or dealing with any more stress than you already have.
Can A Timeshare Developer Sue You?
Generally speaking, if someone sues you they must prove their case in court before they can win a judgment against you. If they don’t prove their case, there is no judgment and you can walk away from the lawsuit with no strings attached. If someone files a lawsuit against you claiming you owe them money, it’s possible that they are simply trying to scare you into paying the money that they are owed. Even if there is a judgment against you, in most cases you will be able to either pay the judgment through a payment plan, or you can find a way to get rid of the debt without having to pay any money to the creditor. Here are a few things to consider if you find yourself being sued by a timeshare developer:
- Before you do anything else, you should make sure that you actually have a debt that is being claimed against you. Many people think they are being sued for a debt when they actually owe nothing at all. You should talk to a lawyer to make sure that your rights are protected and that you aren’t being taken advantage of by the timeshare developer who is suing you.
- Once you have confirmed that you are being sued, you should explore all of your legal options before you decide what to do next. For example, you could work with your lawyer to see if it would be possible to settle the debt for less than the amount being asked for in the lawsuit. You could also try to negotiate a lower interest rate so that you can pay off the debt more quickly and save money in the process. The bottom line is that there are several different options open to you if you want to avoid having to pay the full amount of the debt that is being claimed by the timeshare developer. Your lawyer should be able to advise you on the best course of action depending on your circumstances.
If you can’t afford to pay the entire amount of the debt that is being claimed by the timeshare developer, you shouldn’t panic. There are a variety of debt relief options available to anyone who is struggling to keep up with their monthly financial obligations. Some of these options include consolidation loans, debt management plans, and bankruptcy. Whichever option you choose, you should always talk to your lawyer or financial advisor to find out what your options are and which one would be best for you. In the end, the most important thing is that you do whatever you can to avoid having to pay off the full amount of debt that is being claimed by the timeshare developer.
Look Out For Scams
A scam occurs when someone tries to take advantage of you by using deception in order to steal your money or personal information. There are many different types of scams, but they all have one thing in common—they are designed to take your money away from you and make you the victim of theft. It’s important to know how to spot a scam so you can avoid them in the future and keep yourself and your finances safe.
The most important thing to remember when it comes to spotting a scam is to look for things that are not consistent with the rest of the agreement. If you notice that something in the contract doesn’t quite make sense, you should do your research to find out what the deal really is and whether or not it is in your best interests. Another thing to keep in mind is that anything that sounds too good to be true probably is. If someone offers you an amazing deal on a timeshare package or convinces you that you can save money on a particular service, there’s a good chance that they are lying and are only trying to get money from you.
The FTC warns people each year that the #1 leading cause of a timeshare exit scam is paying thousands of dollars in up-front fees. In fact, sometimes these up-front fees are all that it takes for the scammer to empty your bank account and leave no trace of their existence. If you do come across an investment opportunity that seems too good to be true, take the time to look into it a little further before making a decision. Read the fine print and make sure everything that you agreed to is covered in the contract before you hand over any money.
Final Thoughts
Unfortunately, many people who find themselves in over their heads with a timeshare end up just giving up and paying the debt off. They figure that they can never sell their timeshare for enough money to pay off their debt and that it’s better to just settle for the payments that they have to make every month.
However, there are actually a number of ways that you can get out of your timeshare without paying anything extreme. The most important thing to remember is that you should never give up hope. There’s always a chance that you can negotiate a better deal with your resort or find a solution to the problem if you take the time to look for it. As long as you are persistent and you don’t give up, there is really nothing stopping you from getting rid of your timeshare and finding happiness once again.
We understand getting rid of a timeshare can feel overwhelming. But it doesn’t have to be. We’ve helped thousands of people just like you get their timeshare canceled and discovered freedom from their unwanted property. And we can help you too! Just initiate a Live Chat below to get started on your FREE consultation today. Or you can fill out the form on the right side of the page to have one of our representatives reach out to you. It’s never too late to get rid of a timeshare!
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