What’s harder to get rid of than termites and hurts more than a toothache?
A certain group of people will tell you it’s a timeshare. It seemed like a good idea at the time…but now it’s just another budget buster. Today, we’re diving deeper into this topic. Unfortunately, none of the options are particularly great, but let’s explore them.
Why Are Timeshares Hard to Sell?
First, it’s important to understand why timeshares are so difficult to sell. Ideally, you’d sell your timeshare and recoup your investment. However, this rarely happens. If anyone has managed it, please let us know how!
The main issue is that timeshares often lack a clear need for potential buyers. You can book a week at a similar resort without the upfront cost and ongoing fees. Additionally, timeshares suffer from a poor public image due to aggressive sales tactics, making them less appealing to buyers.
Getting Informed
Before attempting to sell, gather as much information as possible. A great resource is the Timeshare Users Group (TUG) at Tug2.com. For a $15 annual membership, you can access a community of timeshare owners sharing advice and experiences.
Selling Your Timeshare
If you decide to sell your timeshare yourself, be realistic about its value. It’s likely worth much less than what you paid. Advertising options include TUG’s marketplace, eBay, Craigslist, Facebook, and local classifieds.
Once you find a buyer, drafting a contract is essential. It is wise to hire an attorney to ensure the contract is legally sound.
Other Options
If selling doesn’t work, consider these alternatives:
- Timeshare Deed Back: You can ask the resort to take back the timeshare. This is called a deed back and is often the cheapest way out. However, you might need to have paid off the full timeshare cost.
- Timeshare Exit Company: Be cautious with these companies. Look for one with a solid track record and referrals, as there are many scams. Costs typically start around $5,000 and can go much higher.
- Hiring an Attorney: An attorney experienced in timeshare contracts might help, especially if the company has breached the contract. Legal fees can also be high, often comparable to timeshare exit companies.
Costs and Considerations
Selling your timeshare might involve several hundred dollars in advertising fees. You’ll also lose the difference between your purchase and sale prices. Using a timeshare exit company or attorney can cost between $5,000 and $10,000 or more.
What to Avoid
- Extravagant Claims: Avoid companies that make unrealistic promises about getting you out of your timeshare for a low cost.
- Upfront Payments: Don’t pay upfront fees to timeshare exit companies.
- Illegal Actions: Never engage in anything illegal or dishonorable.
Don’t Stop Payments
Stopping payments on your timeshare is tempting but dangerous. It can lead to relentless harassment from the timeshare company or collection agencies, damage your credit score, and potentially result in foreclosure. Remember, you signed a contract, and as believers, we are called to honor our commitments. Psalm 3:27 says, “Do not withhold good from those to whom it is due, when it is in your power to do it.”
Prevention is Key
Ultimately, the best advice is to avoid buying a timeshare in the first place. As the saying goes, “An ounce of prevention is worth a pound of cure.”
We hope this information helps you navigate the challenging process of getting out of a timeshare.
On Today’s Program, Rob Answers Listener Questions:
- Should I use my extra $500 income each month to pay off my car loan quicker to save on interest, or should I invest that money in renting a parking lot so I can provide dog training services again?
- I wanted to ask about a new feature in the Roth IRA that my school system offers, where I can choose to protect my investments at certain percentages from drops in the market. I would like to know if choosing the option where I would be protected unless it dropped below 40% or rose above 60% is a good idea or if the other option of protection below 115% and above 40-60% is better. Is this type of downside protection even a good idea?
- I’m looking for ideas on how to fund a supplemental retirement for my wife using some inheritance money I recently received. As a retired federal employee, I only chose a minimal survivor benefit for her, which will not provide her with enough income when I pass away. I wanted suggestions on investing the $75,000 inheritance to generate retirement income for her after I am gone.
Resources Mentioned:
- Timeshare Users Group (TUG)
- Give To FaithFi
- Rich Toward God: A Study on the Parable of the Rich Fool
- Find a Certified Kingdom Advisor (CKA) or Certified Christian Financial Counselor (CertCFC)
- FaithFi App
Remember, you can call in to ask your questions every workday at (800) 525-7000. Faith & Finance is also available on Moody Radio Network and American Family Radio. You can also visit FaithFi.com to connect with our online community and partner with us as we help more people live as faithful stewards of God’s resources.
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