Whatever the reason you initially purchased one, chances are that if you are reading this now, you’ve recently said to yourself “I want to get out of my timeshare.” You are not alone. We hear those words every day from our clients and we’re here to help. With more than 15,650 satisfied customers, Timeshare Freedom Group is the leading timeshare exit company in the industry. Based on more than 10 years of timeshare cancellation experience, we’ve compiled a list of 11 powerful tips you need to know when trying to get out of your timeshare. We’ll tell you what to expect, common misperceptions, surprising facts, and so much more. Let’s get started.
- It Is Possible to Cancel a Timeshare Contract
We hear from a lot of our customers that they feel stuck with their timeshare. By the time they reach out to us, a lot of them have tried many ways to get out with no success – from negotiating with their resort themself to trying to sell. So while it may seem like basic advice, we want you to know that it is possible to cancel your timeshare contract, and the easiest way to do so is to work with a timeshare cancellation service.
What is a timeshare cancellation service? In the simplest terms, a timeshare cancellation service, also called a timeshare exit or timeshare relief company, negotiates with your timeshare resort to cancel your timeshare contract. While timeshare cancellation companies cancel your timeshare contract legally and permanently, they are not timeshare lawyers. However, timeshare cancellation companies do work with attorneys for timeshare cancellation when necessary. Not all timeshare exit negotiations require an attorney though, so timeshare cancellation companies are often a best of both worlds scenario for those looking to get out of their timeshare.
One other important note of distinction is that a timeshare cancellation company is also not a timeshare resale company. While not impossible, reselling a timeshare is very unlikely due to market saturation and lifetime maintenance/special assessment fees. In addition, both the Federal Trade Commission and Consumer Reports have issues statements of warning about timeshare resale scams.
- It Is Usually Cheaper to Cancel Your Timeshare Than to Keep It
If you have any hesitation about canceling your timeshare, you may be interested to know that canceling your timeshare is typically far cheaper than keeping your timeshare. During our free consultation with our clients, we conduct a cost-benefit analysis that compares the cost of keeping your timeshare throughout your lifetime vs the cost of canceling your timeshare. In nearly every situation, it is cheaper to cancel a timeshare. Canceling your timeshare can save you thousands to hundreds of thousands of dollars throughout your entire life. Here’s how:
• According to the American Resort Development Association (ARDA), the average timeshare loan interest rate is 14%. In comparison, at the time this blog was written, ValuePenguin by LendingTree cites that the current average home mortgage interest rate is 3.99% That’s 3.5x higher. The higher interest rate of a timeshare loan can mean you are paying tens of thousands of dollars more than your timeshare’s purchase price.
• A timeshare owner is also contractually obligated to pay maintenance fees throughout the entirety of their ownership, even after the timeshare loan is paid in full. Maintenance fees also increase by approximately 6-10% every year. So while your maintenance fees might initially seem affordable, they can become quite steep the longer you own your timeshare. In addition, whoever inherits your timeshare will also be responsible for these ever-increasing maintenance fees.
• In addition to maintenance fees, a timeshare owner is also typically contractually obligated to pay special assessment fees. Special assessment fees give a timeshare resort the right to pass on unforeseen or unplanned fees to timeshare owners, such as the cost of a new roof, damage from severe weather or flooding, budget shortfalls, heating systems, and more. These fees can be very hard to plan for and typically come as a surprise to timeshare owners.
Between high interest rate loans, maintenance fees that continually increase, and surprise special assessment fees, a timeshare can easily cost you hundreds of thousands of dollars throughout your entire life. With this in mind, it is usually significantly cheaper to cancel your timeshare than to keep it.
If you’re like to see real numbers based on your specific situation and timeshare, contact us to schedule a free consultation and one of our timeshare cancellation experts will walk you through a cost-benefit analysis tailored to you.
- Be Patient
Once you’ve decided to cancel your timeshare, that voice inside that says“I want out of my timeshare” can get pretty loud. It’s natural to want immediate gratification, especially when there are monthly or annual timeshare payments involved. However, it’s important to know that the average time to get out of a timeshare is usually between 6-24 months. Timeshare cancellation is a complex and time-consuming negotiation between your timeshare cancellation company and your timeshare resort. The final result is a legal and permanent cancellation of your timeshare contract. Like any negotiation between two companies, it can be complicated and time is often needed to do it right. If a cancellation company promises that they can cancel your timeshare quickly or immediately, that could be a red flag. When it comes to exiting a timeshare, the quickest way isn’t necessarily the best option.
- Donating Your Timeshare Can Be Pretty Hard
It might sound counterintuitive, but if you’re looking to get out of your timeshare contract by donating your timeshare, you could have a hard time finding an organization. As mentioned earlier, even after a timeshare loan is paid off, maintenance and special assessment fees are the responsibility of the owner throughout their lifetime, and then they get inherited by the timeshare owner’s beneficiaries. Since maintenance fees increase about 6-10% every year and a timeshare resort usually has the right to charge surprise and unforeseen special assessment fees, most organizations won’t accept timeshares as donations. It’s just too expensive. Not only do the fees never cease, but they also increase year after year. Unfortunately, for these reasons, donating a timeshare can be a very rare occurrence.
So what is the solution? Here’s how to get rid of your timeshare the easy way.
- Not All Timeshare Cancellation Companies Are the Same
There are a lot of timeshare cancellation services out there, and they are not the same. The prices between them can vary and the price difference can often reflect how full-service they are. In other words, some may charge less, but then also perform a lot less work. For example, some timeshare cancellation companies may advise you on how to proceed, but will not contact or speak with your timeshare resort on your behalf. This can mean hours and hours of numerous conversations and written correspondence with your timeshare resort that you are responsible for conducting. It can take anywhere from 6-24 months to cancel a timeshare, so that is a lot of time to spend over a long period of time. It’s a big commitment. Our best recommendation is to work with a timeshare cancellation company that is all-inclusive. After the initial onboarding and document handoff is complete, the best timeshare company will take all of the work off of your plate for an all-inclusive fee. For other tips on how to choose the best timeshare exit company, click here.
- Not Paying Your Timeshare Payments Can Affect Your Credit
When looking to cancel your timeshare and speaking with timeshare cancellation companies, you should know that it’s illegal for a timeshare cancellation company to advise you to stop paying your timeshare payments. This includes your mortgage, as well as any maintenance or special assessment fees. Certain general timeshare credit protections do indeed exist, but unfortunately, this isn’t the case for the timeshare industry. If you stop paying your timeshare mortgage and/or fees, your late payments can be reported by your timeshare company. No timeshare cancellation company can protect your credit against this. You have to make a personal decision on what the best way to proceed is for you, but it’s very important to know that your credit can be affected since your credit score can have wide personal and professional implications. If any timeshare cancellation company is advising you to stop paying your timeshare payments and fees because they will protect your credit, this can be a red flag.
- Get Everything in Writing
When speaking to timeshare resorts or timeshare cancellation companies, it doesn’t always necessarily matter what a sales representative tells you when you meet with them. What usually matters is what is written in the contract. This is why it is important to make sure that you get everything in writing. A legally binding contract with your timeshare cancellation company is the best way to protect yourself and to make sure you are working with a reputable and professional company. A contract will spell out important details, such as how much you are paying your timeshare cancellation company, what the payment schedule is, if there is a money back guarantee, what the refund policy is, when you qualify for a refund, how to go about getting a refund, what services the timeshare company will be performing, and more.
Another reason it’s important to get a written contract in place is that a lot of contracts have what is called an Entire Agreement clause. We are not lawyers, but in layman’s terms, an Entire Agreement clause usually aims to limit a company’s obligations to what is in the contract itself – and only what’s in the contract. This typically means that what you were told over the phone and via emails might not completely count or matter. There can be some limitations to Entire Agreement clauses, but as mentioned again, we are not lawyers. However, it is a good best practice to make sure that you are protected and that all details are laid out accurately and clearly in your contract before signing. This leads us to our next tip.
- Read the Fine Print
While it’s important to have a signed and written agreement with your timeshare cancellation company, it’s equally as important that you read the contract in full. This might seem like an obvious step, but you’d be surprised how many people do not read the fine print. By reading the fine print carefully, you can ensure that what you were told over the phone or via email is exactly what is included in your contract. In this way, you can also find out if anything is included in the contract that was not previously discussed with you. Reading your contract in full, including all of the fine print, is the best way to avoid potential problems before you sign a legally binding document. Understanding what your contract says and what you are committing to will help you to assess the company you are working with, to protect yourself, to make sure there aren’t items that you feel uncomfortable with, and to ensure nothing is missing that you want to be included. As time-consuming, sometimes confusing, and perhaps boring as this step can be, it is a really important and critical part of the timeshare cancellation process.
If you have any trouble understanding some of the legalese in the contract, we recommend contacting a lawyer to ensure you are protected.
- A Timeshare Cancellation Company Can’t Get Your Money Back
While a timeshare cancellation company can get you out of your timeshare contract, they cannot get you back the money you paid your timeshare resort or loan lender. Any down payments, loan repayments, maintenance fees, and special assessment fees are unfortunately gone. However, once your contract is canceled, you won’t have to pay your timeshare resort or lender any more money. This can save you hundreds of thousands of dollars throughout your lifetime.
It’s also important to understand that a timeshare cancellation company is not a timeshare cancellation law practice or law firm and the contract cancellation process is not a lawsuit. The timeshare cancellation process is a negotiation. With years of expertise and longstanding relationships in the timeshare industry, a timeshare cancellation company negotiates with your timeshare on your behalf.
While a timeshare cancellation company doesn’t get you back the money already paid to your timeshare resort, a sign that you are working with one of the best timeshare exit companies is that they offer you a 100% money back guarantee. In this way, a timeshare cancellation company is standing by its service fees. Typically, the way it works is that if the timeshare exit company doesn’t get you out of your timeshare contract within a set period of time, it will refund its service fees. However, every company is different and it’s important to ensure the details of the money back guarantee are included in your signed contract.
- Make Sure to Get a Custom Quote
By the time a customer gets to the point where they are frantically typing “get me out of my timeshare” into a Google search, their patience is most likely stretched thin. When they are searching for timeshare cancellation options, sometimes the last thing they want to do is schedule a consultation to get a quote. They just want to know what it’s going to cost and how long it’s going to take – right now. It’s totally understandable. Timeshare ownership can be stressful, especially if you feel misled into buying one or if you are having trouble affording your timeshare.
However, what’s important to know is that timeshare cancellation quotes are not one-size-fits-all. There are a variety of factors that can affect the cost of exiting your timeshare, including factors such as how long you have owned your timeshare, your specific resort, how much your fees are, if your loan has been repaid, if you are behind on any payments, and much more. There are so many variables that can affect the cost that your quote will likely be inaccurate if you don’t take the time to get a custom quote.
Here’s the good news – getting a custom quote can take as little as 15 minutes with a company such as Timeshare Freedom Group and it is 100% free. In this free consultation, you’ll be able to speak to a timeshare cancellation expert who will ask you all the necessary questions to determine exactly how much it will cost to cancel your contract. In addition, they are there to answer any questions you may have about the process and to help you decide which timeshare cancellation process is right for you.
If you want to learn more about the different types of timeshare cancellation and the importance of getting a custom quote, we’ve put together a blog here that serves as our ultimate guide.
- Work With an All-Inclusive Cancellation Company
Lastly, when choosing which timeshare cancellation company to work with, we recommend working with an all-inclusive company. This means that your timeshare cancellation company is doing all of the work for you. They are not simply advising you on what to do, while you do all the leg work. Once your all-inclusive timeshare cancellation advisor has been fully downloaded on your account and all documents have been handed off, your timeshare cancellation company is the one who will be spending hours on the phone with your timeshare resort, hours producing and tracking written correspondence, and hours navigating the intricacies of the situation — not you.
If you’ve been saying to yourself “I want to get out of my time,” but you didn’t know where to turn, we hope these top tips helped bring you some clarity and peace of mind. Timeshare cancellation can be a really complicated and confusing industry. If you have any questions about timeshare cancellation or want to schedule a free consultation, our timeshare exit experts are here to help. You can get in touch with us here or call us at 1-866-668-6872.
Are You Ready to Get Out of Your Timeshare?
Schedule a free consultation with one of our timeshare cancellation experts today to get started.