Timeshare Exit and Cancelation, also known as buy-backs or buy-outs can be a positive step to take for currently used timeshare owners.
They are designed to reduce the financial burden of ownership by paying cash compensation in exchange for rights and privileges.
Buying out your existing timeshare can free up some much-needed extra time along with reducing the monthly maintenance fees attributed to owning multiple timeshare vacation properties.
However, be wary of timeshare exit scams as they are a big problem.
If you want to get rid of timeshares with legal methods and stay clear of closing fees and timeshare deposits, you should know what to look out for before handing over your money and signing any document.
In this article, we will discuss six easy steps on how you can cancel and exit your timeshare.
Step 1: Assess the Value of Your Timeshare
If you are thinking of canceling or exiting your timeshare contract, the first step is to assess the value of your timeshare.
You will want to make sure that you can recoup at least 80 to 90 percent of what you paid for it. If that is not possible, then it may not be worth it to cancel.
Moreover, you will also want to look into how much it will cost you in fees and penalties to exit your timeshare.
Many timeshares charge an exit fee if you want out before the contract ends. This fee can be anywhere from $1,000 up to $10,000 and even more!
So before you sign anything, know what all the costs are going to be once you decide to cancel your timeshare.
Step 2: Obtain a Timeshare Lien Release Letter from the Mortgage Company
If you have taken out a loan for any reason, such as buying a car or purchasing a home, you will need to pay off that loan before you can close on your timeshare exit.
However, if you do not pay off the loan, then you will not be able to sell or transfer ownership of your property.
Since most people who own timeshares took out loans through their bank or mortgage company to purchase their property, this is where they need to start in order to obtain their lien release letter.
Also, many banks require proof of funds before they will issue a lien release letter, it is important that you have money in the bank before contacting them about getting one issued.
Step 3: Contact a Licensed Attorney Admitted to Practice in Your State
Timeshare exit or cancellation is a process that requires you to work with a licensed attorney.
This is because the process involves filing documents with your local government, which requires a degree of skill and knowledge.
Once you obtain a lien release letter from your mortgage company, the next step to canceling your timeshare is to contact a licensed attorney admitted to practice in your state.
An attorney can help you file the necessary paperwork, which will result in the cancellation of your timeshare ownership and any fees associated with it. This includes:
- The recording of documents such as notice of intent to cancel and declaration of rescission
- The preparation of any required notices required by law
- The filing of any required declarations or affidavits needed for court proceedings
Step 4: Contact Your Resort to Explain Your Intention to Cancel Your Timeshare Agreement
Once you already have a licensed attorney, you will now have to contact your resort to explain your intention to cancel your timeshare agreement.
You will need to send them a letter of intent that explains your plan and your reason for wanting to cancel your timeshare agreement.
This is the fourth step in canceling your timeshare agreement. You may also need to pay fees or penalties if you decide to cancel your timeshare agreement early.
Some resorts will let you cancel without paying any fees or penalties but most won't do that unless they have some reason for wanting to get rid of you like if they're going out of business or something like that.
If they won't allow you to cancel without paying any fees or penalties then it's best that you just stick with them until the end of the contract period and then start looking for another place for vacation purposes only.
It's important that when sending this letter of intent, make sure it comes from an attorney and not from yourself personally. This is because it might look like spam mail which could end up costing more money down the road.
Step 5: Get the Cancellation in Writing and Keep It for Your Records
After you contact the resort, make sure to get the cancellation in writing and keep it for your records.
If you are having trouble getting a written confirmation from the resort that they have received your request, you can send them a certified letter by registered mail.
Make sure you don't get sucked into a "Buy-Out" offer. Many timeshare companies will offer a buy-out option in order to try and convince you not to cancel your contract.
However, this should be considered as just another way for them to make money off of you instead of taking care of their responsibilities under your original agreement.
If you are offered a buy-in or buy-out option offered by your timeshare company or resort, it is important that you understand what exactly is being offered before making a decision on whether or not it is best for your situation.
Step 6: Close Your Credit Accounts
Make sure all accounts are closed after cancellation. Don't just close the account associated with your timeshare; close any other accounts as well (like utility accounts).
That way no one can open them again in the future without your permission.
We hope these tips will help you out in your timeshare exit and cancellation. If you are planning to book a timeshare that offers great discounts, you should be skeptical.
Think twice if you hear the name of a vacation club or the promise of the best price guaranteed.
Never sign anything before reading it and make sure there is no obligation to pay until you are 100% sure about what they are offering and what they asking for in return.