Purchasing a timeshare can be exciting at first. When that ecstatic feeling subsides a few weeks later or when maintenance costs and other fees start pouring though, that’s when things fizzle. You then wanted to get out of the horror of mounting dues. Question is– can timeshare be sold even when not fully paid off? Quick answer– Yes, there are various legal options which may help you in this quest.
How do you get rid of a timeshare that is not paid off?
So, how to get rid of a timeshare that’s not yet settled? First things first, try to read back your contract’s stipulations. See if you still have time to rescind a contract or may have been duped into believing that it’s an investment. If it’s beyond stipulated rescission period, you may want to check out if timeshare mortgage is secured by loan on the property itself. In some cases, timeshare loans are actually personal loans. This type of arrangement allows you to sell the timeshare property and the sales proceeds to pay off remaining balance of a loan.
Some lenders also allow timeshare short-sale noting the fact that such property are lumped as a depreciating asset. As awlays, mortgage balance will be far greater than the current value of the timeshare property. What happens is that the lender will convert such loan into an unsecured one. You still need to pay the balance though, but you can now be free from annual maintenance fees and other pertinent costs with no more timeshare on your hand.
When planning to sell, you got two quick options– people you know and timeshare owners owning a week before or after of the same allotted timeshare. Contact family members, friends or work colleagues who have shown interest in owning a timeshare. They are far more reliable than dealing with a stranger on auction sites like eBay or via social media forums. A timeshare owner who holds a week before or after your alloted time may also take advantage of the extra weeks on their vacation without the added travel expenses.
Limited But Promising Options
Without a doubt, options can even be more limited to deeded timeshare. Aside from a short sale, you can also donate it to a charity or perhaps, ask a family member or a friend to just take it away from you by default. But the most amenable option is to seek out a timeshare developer or agency. Most of them have some sort of “buy-back” programs or options for timeshare owners to get out. Some can offer to sell it on your behalf or perhaps, buying the property back from you– of course, at a far lesser price than the initial valuation.
Selling a timeshare that’s not paid off can be hit or miss. In some cases, owners opt to request a deed in lieu in the same way as one does to a foreclosed home. A resort or timeshare developer may allow you to relinquish your ownership. If it’s a mortgage via a lender then, you need to also send notification. With this, however, you need to provide evidence about your inability to pay. When approved, a quitclaim deed will then be signed by you. Or worse, you can also file for bankruptcy.
Most, if not all, former owners of a timeshare property know precisely the horrors that it brings when one come unprepared for the added costs. Apart from the payments due the property, additional costs and fees can easily morph a timeshare into an unwanted burden. But abandoning such agreement can only put your credit rating in oblivion. If still not sure on what to do, pursuing legal options with the aid of a timeshare lawyer can be your best bet in saving yourself from this financial quicksand.