Anybody get stuck with a timeshare?


#1

Hey Everyone!!!

One of my biggest financial regrets is that in my 20’s before I was financially wise, and found the FI community, my wife and I got talked into buying a timeshare. I understand that there’s tons of people that like them and that this type of vacation ownership works for certain people. We aren’t those types of people!

It was a very low points package that didn’t cost that much so I was able to pay it off rather fast. The biggest reminder of this purchase comes in the mail every other year in the form of ‘Maintenance Payment Due’!

I really want to get out of the timeshare but the only options I’ve seen are the timeshare resell sites that you have to pay upfront fee (not doing). I’ve also been called before by this legal company that says they can help me get out of the timeshare but I’d have to pay a ton of money upfront as well (not doing either)!

Has anyone been successful or know anyone that has successfully gotten out of their timeshare?


#2

I wish I could say something positive here, and I don’t have any personal experience of ownership, so with that said…I understand that they are practically impossible to sell for a profit. Many people just file a quit claim deed back to the timeshare operator and walk away. I know that my grandmother did this with a timeshare in Hawaii and I think she was able to walk away without continuing fees or maintenance obligations. I’ve heard that you definitely should be wary of any of the re-sellers who charge an upfront fee (which you already seem to be, so good). So, hopefully others can give more positive advice, but I can only say: quit claim and walk away.


#3

Oh yea, I’ve chalked the money spent as being long gone down the drain and I’m not to worried about that! I’ll look into the quit claim deed, though, don’t want to have it impact my credit.

I’m going to call them and see if they will just take it back. I know they will say no, but perhaps I’ll just bug them enough, they will cave in!

The resort said that they have first right of refusal on any sale, so I may just tell them that I’m placing it on ebay for a penny. Hopefully they will just say “Fine, we’ll take it back” and be done with it. If not, hopefully someone will buy it!

The resort has changed a few things up to make it a lot more user friendly, so I think we can actually get some value out of it, though, I’d rather just get out of it all together so I’m not trapped in maintenance fees forever!


#4

Requirements vary by state (where the timeshare is located), but you should have some sort of public offering statement and set of by-laws, etc… that were provided to you at your time of purchase that should have detailed information about your rights upon re-sale or transfer. You probably want to go through those with a fine tooth comb before you proceed. A quit claim deed is just a deed that will transfer title back to the timeshare owners association. The deed alone won’t create any problems with your credit - what can cause problems is if the association holds you liable for ongoing fees and taxes and then files claims against you for them. So, just do your best to follow the rules in your initial purchase documents before taking any action.


#5

It’s pretty hard to sell a timeshare. Most either sell it back to the resort or donate it. Looked into this for a family member awhile back. Either way, you’ll probably take a loss. Think they make their money with the maintenance fees since they’re usually for the duration you own the timeshare. Good luck trying to get rid of it!


#6

We once bought an upscale timeshare at a ski resort that was quite expensive. We used it every year, and the company rented it during the weeks we weren’t there, but overall it was a bad investment. After about eight years, we listed it with a real estate company and they sold it for us. We probably lost about $10,000, and chalked up the experience to stupid tax. We thought about advertising it and selling it ourselves, but after reading through all the fine print, it was obvious that we needed a professional salesperson to help us unload the thing. Agents will charge a high commission because timeshares are much harder to sell than other properties. Good luck.


#7

My wife and I got stuck with timeshare we had used for more than 20 years. However we got to a point where we were not going to be able to return to timeshare. we tried to quit claim to head office but they would not accept. In the end we gave it to a friend of my wife’s mother but it cost us over $800 in legal fees to give it away. maintenance fees were running $500 plus per year.


#8

Yea, I feel like we’re going to be eating some “stupid tax” for transferring the title, etc. It’s insane that these companies can essentially keep you hostage even after paying the thing off! We’re going to get some use out of it this year (for the first time ever) and then dump it!


#9

I think that’s about the total we will be out. Way better than those $40,000 units they try to sell you on! We are going to use it for the very first time this year and then work on getting out of it. I’m not looking forward to the additional stupid tax we will have to pay for transferring the title, etc on top of the $10k stupid tax we paid when we initially purchased the stupid thing!


#10

Thanks! After we use it this year, I’m going to call them and say that we are posting it on ebay for a penny and just want out. I’m hoping that they will just take it back but I’m sure I’ll have to pay fees for transferring title.


#11

Lots of people sell these on Ebay. If they think they can re-sell it they’ll buy it from you, if they can’t they’ll let you sell it to the person on Ebay.

If the annual dues are less than the cost of a vacation to the location that you own at, it might be worth holding on to if you actually use it.


#12

Hah - we just got back from a timeshare presentation and we’re going back to another one (same company but different location).

My husband was so inspired by these presentations that he’s actually going to write a blog post detailing how it may make sense to (some) people, and how it does not make sense to a majority of people

Nevertheless, if your willpower is great and if you already know you’re not going to buy but you receive an invite and love to travel, it may work out in your favor :slight_smile:


#13

Timeshares almost always a bad financial deal as they are often located in tourist/vacation destinations and do not have the steady demand as urban real estate where all the jobs are. The low entry price for the timeshares make them enticing investments into realty asset class that people may otherwise be ineligible to participate in urban centres.

One workaround is to rent luxury and own utility. eg splurging on airbnb accommodation and owning realty in urban centre with job growth (eg Seattle, Denver, Austin)


#14

My parents have had a lot of time shares. The ones in Hawaii retain the most value. There was a time you could buy re-sales in Palm Springs or Arizona for very cheap…I recall we had a family friend who would give a timeshare away for free if you would take it off his hands because he didn’t awnt to pay the dues anymore.