Are you reconsidering your timeshare ownership? We get it; owning a timeshare can be a lot. Whether you’re stretched for time and not as available for yearly vacations, having difficulty booking your desired dates, or fighting rising maintenance fees and annual dues, you may be looking for a way out. Many timeshare owners may begin looking for a reliable timeshare exit company when they’re ready to say goodbye to ownership. In contrast, savvy owners may head to the resale market to put some money back in their pocket. So, what is right for you? Timeshare cancellation or timeshare resale? In this blog, we’ll discuss everything you need to know about cancelling timeshare ownerships versus selling timeshare property on the resale market. Let’s dive in.
Rescission Period to Cancel Your Timeshare
First and foremost, before we discuss timeshare cancellation and the resale market, we should talk about the rescission period. This is the easiest way to say goodbye to your unwanted timeshare, though it’s the strictest. The rescission period is a specific timeframe when a timeshare owner may cancel their timeshare purchase and receive a full refund. This period usually begins the day you sign the contract or receive the disclosure statement. However, recession deadlines are often very close after the initial purchase of a timeshare interval. Think about returning a shirt you purchased that doesn’t fit as you expected; you may only have a week to return the shirt to the store, or it’s yours for good. This is known as the “cooling off period” after your purchase. Buyers typically know whether or not they want to keep their timeshare within a five-day rescission period.
While this rescission period can vary from state to state and among foreign countries, the average state’s rescission period lasts from five to seven days from the date of the initial purchase. Alaska generously offers fifteen days, while Nebraska and Kentucky only offer three days, which is the Federal Trade Commission’s minimum requirement. If you own a timeshare abroad, your resale rights, cancellation clauses, and rescission period may differ. So, you’ll want to check your country’s/state’s rescission laws to see how much time you have to legally cancel your purchase. The cancellation window to get a full refund is narrow, so make sure to review your timeshare documents and act quickly. If your rescission period has passed, don’t worry. We’re here to help understand timeshare cancellation and how to get rid of a timeshare using the secondary market.
How Does Timeshare Cancellation Work?
One of the options available to owners looking to break free from a vacation ownership commitment is timeshare cancellation. There are a lot of timeshare exit companies out there looking for owners who want to cancel a timeshare ownership. However, some of these companies are sketchy and require proper vetting before you pay them any money. Cancelling timeshare is no easy feat, as timeshare contracts are legally binding agreements. Just as you can’t cancel your mortgage or deed, you can’t cancel a timeshare. These companies, typically made up of law firms, charge steep upfront cancellation fees and operate in one of two ways.
Many timeshare exit companies set up a shell company. After you pay the upfront fee, the company transfers your timeshare title to the shell company. The resort developer may ultimately foreclose on the property with your credit on the line. In the worst case scenario, they may just take your money and disappear, leaving you with a timeshare and more financial loss.
The other strategy a timeshare exit company will employ is to send a timeshare cancellation letter via certified mail to the timeshare company responsible for your timeshare, telling them to cease all communication with you. Though many developers will work with you if you claim financial hardship, simply sending a letter requesting no contact will likely not do the trick. Timeshare exit attorneys also typically advise you to stop paying your annual maintenance fees. This is a red flag when it comes to timeshares as, once again, the timeshare company will likely foreclose on your timeshare if you do not pay those timeshare maintenance fees, and you’ll take a hit to your credit.
Is Timeshare Cancellation a Safe Option?
Owners looking to get out of their ownership should not seek help from timeshare cancellation companies, as they are not a safe option. In fact, the American Resort and Development Association (ARDA) cautions timeshare owners to be wary of any companies that promise to “cancel” timeshare contracts. As mentioned above, a typical timeshare cancellation company is more likely to ask you to pay exorbitant upfront fees for legal cancellation, only to leave you with damaged credit. The problem with “cancelling timeshare” is that in much the same way you can’t stop making mortgage payments, you can’t simply cancel a timeshare contract. While these cancellation companies and their cancellation process often cause more harm than good, there are ways to say goodbye to your timeshare contract safely and responsibly.
One of the best ways to get rid of your timeshare is actually pretty simple: contact your timeshare developer. Many timeshare companies have in-house solutions to aid owners without having to damage their credit. These solutions can range from accepting your timeshare back and freeing you from financial responsibility to offering guidance on next steps. This helps you avoid sketchy legal cancellation, falling for timeshare scams, and ruining your credit. Wyndham and Holiday Inn, for example, have Wyndham Cares and Horizons by Holiday Inn as exit options for owners who have missed the cancellation period but no longer want their timeshare.
Going right to the source makes this method much safer than timeshare cancellation. Although they may not offer an ideal solution for your situation, it’s best to check in with them just in case. If the solution offered isn’t what you’re looking for, many timeshare companies will refer you to a verified reseller that’s safe and secure, such as Timeshares Only! See why resale is better than cancelling timeshare below.
The Timeshare Resale Market as an Alternative to Timeshare Cancellation
If timeshare cancellation is not a safe timeshare exit strategy, then what is? Outside of working with your developer, the safest way to get out of a timeshare commitment is to post it for sale on a reputable online marketplace. This method puts money back in your pocket so you can pay off late annual fees or focus on other responsibilities. However, some judgement is still necessary, as some advertising companies charge steep fees for services that don’t really sell your timeshare.
Researching potential companies before making a commitment is key. Look for a company that uses an innovative marketing platform that ensures they can attract a wide variety of buyers for your property. Moreover, the timeshare industry is complex, so make sure the company you choose is an expert in timeshare resales. Look for an experienced resale company that knows the timeshare resale market inside and out.
The resale company you choose should also be able to refer you to a trusted timeshare resale broker once you receive an offer on your ownership. Having experienced, licensed real estate agents available to help guide you through the timeshare closing process is an added benefit to you, the seller. These agents can help negotiate closing costs, draft contracts, and refer you to a reputable title company who can hold funds in escrow and perform the title transfer. Sounds way safer than cancelling timeshare with an exit team, right?
Avoid Timeshare Cancellation & Sell Your Timeshare with Timeshares Only
If you feel like you’ve bought a timeshare and fallen into a timeshare trap, you’re not alone. Timeshares are a great way to save money on travel and take spectacular vacations every year. However, sometimes, we find we’ve bitten off more than we can chew. If you no longer use your timeshare or feel you are the victim of high pressure sales tactics, Timeshares Only is here to help. We’re a featured reseller for the American Resort Development Association (ARDA) and have an A+ rating with the Better Business Bureau. Not to mention, we have 20+ years of experience helping owners just like you advertise their timeshare interests. This makes us a much more reliable option than timeshare cancellation.
We’ve simplified the timeshare marketplace by making our website as informational and transparent as possible. Timeshare owners can find satisfaction knowing their ad is exposed to thousands of prospective timeshare buyers daily. Adding to our stellar reputation, Timeshares Only is the #1 resale service that many resort developers recommend and trust. Our sister company and preferred timeshare resale brokerage, Fidelity Real Estate, also has years of experience in the industry and licensed real estate agents ready to help guide you through the resale process. But whether you’re selling your timeshare in Florida, Mexico, Hawaii, or beyond, Timeshares Only is here to help. Call us today at 1-800-610-2734.
Rent Out Your Timeshare with Timeshares Only
On the other hand, if you’re unsure whether to sell your ownership, there’s another way to put money in your pocket while keeping your ownership: renting out your timeshare! Renting is a great way to make some money off your timeshare during years you’re not using it. What’s more, Timeshares Only can help! We can post your timeshare for rent on our marketplace, which can help you put some money back in your pocket or help you pay your maintenance fees. Renters can then enjoy a discounted, pre-booked vacation at a beautiful resort destination. What’s not to love? If you have any questions, please give us a call at 1-800-610-2734 or email us at [email protected]. We’re here for all your timeshare buying, renting, and selling needs!
