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Getting rid of a Timeshare contract?


zorrow

Question

Yeah, I'm aware of the fact Timeshares are one of the most refined scams out there, but... have you any experience about getting rid of a Timeshare contract? Any attorney you would recommend?

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41 minutes ago, zorrow said:

Yeah, I'm aware of the fact Timeshares are one of the most refined scams out there, but... have you any experience about getting rid of a Timeshare contract? Any attorney you would recommend?

Because those contracts are for "ownership", you have to sell your interest.  If you've financed the timeshare, it differs little from the mortgage on your house and will be, most likely, a more one-sided document.  The maintenance fees, if ignored, will be recovered at disposition.  Usually, a foreclosure is so damaging to an individual's credit rating that continuing to pay the contract until sold is the best option.  I'm no lawyer, but your perception of it being a "refined" scam is spot on.  You're not alone.  I've had dozens of clients that endured timeshare investments.  "Getting rid of a timeshare contract" is almost impossible.  Bankruptcy, default and/or foreclosure are the only options for the most part.  And I live in one of the timeshare capitals of the world.  I feel for you, brother. 

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I have no direct experience, but there are timeshare exit firms who purportedly get you out of your contracts, such as these guys, who guarantee they'll get you out or they refund their fee.

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On ‎5‎/‎19‎/‎2017 at 1:17 AM, JohnnyB said:

I have no direct experience, but there are timeshare exit firms who purportedly get you out of your contracts, such as these guys, who guarantee they'll get you out or they refund their fee.

I listen to that guy Dave Ramsey (cool guy who helps people clear up financial issues)    they advertise

on there...  no idea how they work, but like the concept.       Once,  my best friend's father

a graduate of Dartmouth,  was grilling me on how to dump his timeshare.   (personally, I just

would have withstood the pitch or left)   but theres definitely a market for that service!  

 

     

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6 minutes ago, DaveL said:

I listen to that guy Dave Ramsey (cool guy who helps people clear up financial issues)    they advertise

on there...  no idea how they work, but like the concept.    ...     

From one of TimeShareExit's radio ads, it sounds like they convince the timeshare company to take back the timeshare with no exchange of money, void the contract, and free the client of all future monthly maintenance fees.

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19 hours ago, JohnnyB said:

From one of TimeShareExit's radio ads, it sounds like they convince the timeshare company to take back the timeshare with no exchange of money, void the contract, and free the client of all future monthly maintenance fees.

Nice,  sounds like an offer they could not refuse!!    

 

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I think most of those services don't tell you up front that any negotiation is going to require a lump sum payment to get the deal undone.  They're aren't just going to take it back and move on.  Even if the market is really good, which I'm sure is a consideration on their part.  Good luck!

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It's simple.  Sell the timeshare if your contract allows.  Find a homeless person and have a contract drawn up, a notary on hand and a willing homeless person.  Pay the homeless person $501.00 in cash.  Let him sign and pay you $1.00 in cash.  Notarized the signatures and provide him/her transportation to the timeshare.   

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7 hours ago, The Shark said:

I think most of those services don't tell you up front that any negotiation is going to require a lump sum payment to get the deal undone.  They're aren't just going to take it back and move on.  Even if the market is really good, which I'm sure is a consideration on their part.  Good luck!

It seems to me that there is no reason the company would release you from a valid contract without some restitution. Unless you are without assets that could be attached, I would read the legal documents very carefully. I would think the lawyers that drew up the contracts would be trying to prevent this very thing. It's possible you could walk away and only lose the money you have put in, BUT there may be some default protection to the company.

ArnieZ

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47 minutes ago, ArnieZ said:

It seems to me that there is no reason the company would release you from a valid contract without some restitution. Unless you are without assets that could be attached, I would read the legal documents very carefully. I would think the lawyers that drew up the contracts would be trying to prevent this very thing. It's possible you could walk away and only lose the money you have put in, BUT there may be some default protection to the company.

ArnieZ

A former buyer deeds his property back to the timeshare company, just to get free of the monthly maintenance fees. That sounds like a pretty good deal for the timeshare company, no? The more TimeshareExitTeam makes deals, the more free merchandise the timeshare companies have to sell.

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1 hour ago, JohnnyB said:

A former buyer deeds his property back to the timeshare company, just to get free of the monthly maintenance fees. That sounds like a pretty good deal for the timeshare company, no? The more TimeshareExitTeam makes deals, the more free merchandise the timeshare companies have to sell.

 

1 hour ago, JohnnyB said:

A former buyer deeds his property back to the timeshare company, just to get free of the monthly maintenance fees. That sounds like a pretty good deal for the timeshare company, no? The more TimeshareExitTeam makes deals, the more free merchandise the timeshare companies have to sell.

Agree, but this assumes someone wants to buy it otherwise the timeshare companies expenses increase. It just depends on the market. A desirable time share may be sold with little problem and a poor one may not

ArnieZ

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The market would have to be almost void of inventory for these people to just take back the property without any consideration.  Show me.  And I'm not from Missouri. 

If our friend Zorrow is able to negotiate a simple surrender of the property and the obligation, I'll eat my hat.  I have many clients that have been through this.  Sorry.

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If the Timeshare industry wasn't making money, why would they keep doing it? And getting free properties to sell, doesn't that make it even better for them?

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6 hours ago, JohnnyB said:

If the Timeshare industry wasn't making money, why would they keep doing it? And getting free properties to sell, doesn't that make it even better for them?

Are you assuming that the "Timeshare" industry has no debt and banks aren't involved?  In a perfect world, they would own the properties before they sell them.  But they don't.  They are in partnership with a lender that's usually not the "broker" selling the properties to the end line buyer.  There's much more to "taking back" a property with just a signature on the timeshare end.  They have debt, so a market that's weak or properties in sub-optimal areas of the world would require them to hold more inventory each time somebody surrendered the property.  And the maintenance fees don't disappear because a property reverts to a previous owner.  Those expenses don't just go away.

If you read the testimonials, you never get the whole story. 

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When you purchase a timeshare, you don't actually own anything.  What you get is a right to use a room in a property for specified times, usually with some opportunities to trade times and locations with other "owners".  Basically, it's a pre-paid discount on a hotel room.

Along with your right to use the property, you acquire the obligation to pay maintenance fees and assessments.  These are significant revenue streams for the timeshare company (or whoever they have been sold to) and these are the main reason why the timeshare company doesn't want to buy back your contract.  They would lose the income stream, incur the expense of re-selling, and be in competition with themselves as they try to unload a nearly unlimited supply of new units.  The expense of selling a timeshare is significant, primarily because they have to pay huge commissions to the thugs that bully people into signing the contracts.

If the unit is attractive, the timeshare contract can be sold in the secondary market for a fraction of its original cost.  If it's not highly desirable, the seller will likely have to pay someone to assume the maintenance and assessment costs. 

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9 minutes ago, BadgerDave said:

When you purchase a timeshare, you don't actually own anything.  What you get is a right to use a room in a property for specified times, usually with some opportunities to trade times and locations with other "owners".  Basically, it's a pre-paid discount on a hotel room.

Along with your right to use the property, you acquire the obligation to pay maintenance fees and assessments.  These are significant revenue streams for the timeshare company (or whoever they have been sold to) and these are the main reason why the timeshare company doesn't want to buy back your contract.  They would lose the income stream, incur the expense of re-selling, and be in competition with themselves as they try to unload a nearly unlimited supply of new units.  The expense of selling a timeshare is significant, primarily because they have to pay huge commissions to the thugs that bully people into signing the contracts.

If the unit is attractive, the timeshare contract can be sold in the secondary market for a fraction of its original cost.  If it's not highly desirable, the seller will likely have to pay someone to assume the maintenance and assessment costs. 

Except it is rarely a discount after all expenses are accounted for, and you are tied down to single location and have to try to trade it, if you wish to go elsewhere.  My brother-in-law has a timeshare, sounds like an expensive PIA (much like his wife!) without upside.  I like the freedom to go where I want, when I want. 

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The legal term in Florida is "Interval Ownership".  That "ownership" is sold and often via a mortgage.  The amount of interest paid on that mortgage is deductible similarly to your primary residence.  The interest is reported as Mortgage Interest on Form 1098 for tax purposes.  That "mortgage" is usually how people buy in.  So, it's rare that only maintenance and assessment fees are the only obligation owners have.  So, handing back a property, albeit only fractionally owned, oftentimes includes defaulting on a mortgage agreement.  Hence, my thoughts that you'll have to damage your credit and offer a lump sum to surrender.  Obviously, the recurring fees are often as much or more than any mortgage concerns.  But the majority of these properties are purchased by those that can't afford an entire property on their own.  So, they borrow on their end to make the deal.

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Quote

 

Most of my friends that own timeshares are those that are deeded properties that are in perpetuity and can be passed down in the family as part of an estate.

ArnieZ

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I just wish this would have been a thread titled, "Thinking about buying a timeshare".  Then, we could have tied Zorrow up and sat on him until the urge subsided.  And trust me, I've made some real financial mistakes in my life.  You live and learn.  Boats, pools, and horses come to mind.

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10 minutes ago, The Shark said:

I just wish this would have been a thread titled, "Thinking about buying a timeshare".  Then, we could have tied Zorrow up and sat on him until the urge subsided.  And trust me, I've made some real financial mistakes in my life.  You live and learn.  Boats, pools, and horses come to mind.

If it flies, floats or fucks, rent it, the depreciation will kill ya. 

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Zorrow have you tried rent out your timeshare? I know it doesn't get you out of your timeshare but at least it may allow you to recoup some of the expense associated with it.

We have rented a timeshare's a few times and it has always been better than staying at some resort or hotel. For the cost of a hotel room/suite at a resort you can rent a townhouse/condo. I have done this 4x's  once in Vail Colorado, Orlando Florida, and twice in Jamaica. All of these I have found locally via Craigslist except the Orlando and that was posted on the employee website of the company I worked for.

I know it's not the solution you are looking for but it may help in freeing you up to take a vacation on your chosen time and place.

Carl B  

P.S

I did find this place on the web.

http://www.timeshare-resale-rental.com/rent-out-your-timeshare/

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2 hours ago, The Shark said:

I just wish this would have been a thread titled, "Thinking about buying a timeshare".  Then, we could have tied Zorrow up and sat on him until the urge subsided.  And trust me, I've made some real financial mistakes in my life.  You live and learn.  Boats, pools, and horses come to mind.

   I just came up with an idea that's better than timeshare exit team...   how about a specially trained elite team,  who would go in, 

deflect the sales pitch and leave with the free Disney tickets without signing a contract.    It would also work for amway, and even greater

financial danger,   women's candle parties!    

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Just hang a Nazi flag in the window during your turn in the apartment.  Have a party with friends that have shaved heads and are all dressed in black with boots that have red laces.  No one has to really be a Nazi, just give the impression.  Then you wait a week, so the other renters will have time to make their complaints.  Call the management company and tell them you have friends looking to get into timeshares after seeing your place. 

You will get an offer to buy out your timeshare. 

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49 minutes ago, Steve Haynie said:

Just hang a Nazi flag in the window during your turn in the apartment.  Have a party with friends that have shaved heads and are all dressed in black with boots that have red laces.  No one has to really be a Nazi, just give the impression.  Then you wait a week, so the other renters will have time to make their complaints.  Call the management company and tell them you have friends looking to get into timeshares after seeing your place. 

You will get an offer to buy out your timeshare. 

And you're information will be logged into a watch list.  But who doesn't like attention?

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