The timeshare regime, also known simply as a timeshare, is basically a vacation property that is not under the name of a single owner; rather it is a shared property. Therefore, the cost is also divided among the buyers.
It seems like a good option. However, it is expected that you want to end this banking relationship since each owner has a certain amount of time to use the property, which means you cannot leave whenever you want.
If this is your case, here are the options for you to terminate the timeshare relationship without it affecting your credit.
I want to get rid of my timeshare. What can I do?
The first step we recommend is determining how much the timeshare you are part of costs. If it has a high value, that is, a good position and high demand, it will be easier for you to sell your timeshare.
To relent your ownership of the timeshare property, you have several options: reselling it to another owner or hiring a timeshare exit company are two of them.
The important thing is to choose the option that does not affect your credit so as not to have consequences on your credit score in the future.
Can I stop making the timeshare payments?
Neglecting to pay your timeshare is not recommended. If you stop paying, you will be excluded from the contract, but this will also significantly affect your credit, credibility, and relationship with the bank.
Remember that a timeshare is a contract between the owners, and there is a payment part to that contract. If you are unusually late in your monthly payment, your major credit bureaus will be notified.
This means that not only will the account where the payment is credited have its credit reduced, but the other agencies you manage that have been notified will likely decide to reduce your credit score as well.
Another situation that is not favorable with this decision is that the unpaid installment debt will be attributed to a debt collection agency, so they will start calling you to remind you of the debt. You may even receive demand letters for delinquency.
If the timeshare management company receives a letter of judgment against you on the debt, they are within their rights to file a wage or bank garnishment, so stopping payment is not advisable.
Can I cancel my timeshare without ruining my credit?
Cancellation of the contract is an option that will not damage your credit. However, this will only happen if you continue paying annual timeshare fees. With this option, you will have to pay the fees until the end of the contract.
This option can help you sell the timeshare because buyers will not pay the annual fees. Another alternative is to rent out your timeshare.
Is there a Rescission right?
The right of rescission is completely legal; this allows owners to cancel an agreement and get a refund. However, in order for it to work, it must be with a three-day notice; otherwise, it will not work.
Selling Your Timeshare
Selling your timeshare ownership is perhaps one of the best options to leave the timeshare and not affect your credit.
Before selling it, we recommend first talking to the other owners; some of them will likely want to buy your timeshare to have an extra week in the timeshare. We recommend you talk to the owners who have the week before or after yours.
If not, you can always post on websites dedicated to buying and selling, such as eBay, Craigslist, Redweek.com, Timeshares Only, and Timeshare Users Group. You can also hire a real estate agent to help you sell the property.
Once the transaction is completed, the property sale will ensure that you are permanently disassociated with the timeshare without paying annual fees or other expenses.
Working with a Timeshare Exit Company
Suppose you don’t quite understand your best option for exiting the timeshare without getting hurt. In that case, some companies will handle all the management of exiting the ownership agreement for you.
The companies specializing in the exit of the timeshare contract offer their services so that the owners can cancel their timeshare, working with lawyers who study the owner’s case.
It is a legal option and one that saves you research time and paperwork, but you should be aware that timeshare exit companies charge for the steps taken. These costs will vary from case to case.