How to Get Out of a Timeshare Legally
If you can’t pay your timeshare payments or use your timeshare, you may need to know how to get out of a timeshare. If you don’t, the developer may harass you and try to sue you. If that doesn’t work, you can consider bankruptcy, but bankruptcy will hurt your credit for 7 years. Before you decide to file for bankruptcy, it is a good idea to talk to an attorney and speak with the developer to find out what your options are.
Defaulting on a timeshare can lead to foreclosure
Foreclosure on timeshare units can be devastating to your credit. Your credit score drops anywhere from 100 to 150 points after a foreclosure. This is not a huge drop, but it will have a negative impact on your future credit. In addition, foreclosure is a public record, and the credit reporting bureaus will have access to this information.
To avoid a foreclosure, a timeshare owner can offer their lender a deed in lieu of foreclosure. A deed in lieu of foreclosure involves paying a lump sum to the lender in return for the right to keep the timeshare. However, this is not always easy for people facing foreclosure.
Foreclosure on timeshares can occur when an owner has failed to make necessary payments. Many timeshare properties are mortgaged and require monthly payments, often with interest. Missing these payments can have serious consequences. If you own a timeshare and miss payments, the property management company will likely file a foreclosure against you in the county where your timeshare is located.
Using a timeshare exit company
If you want to get out of your timeshare legally, using a timeshare exit company is a good choice. These services promise to cancel your timeshare contract and not ruin your credit. But, before you sign anything, you need to understand the terms and conditions of your contract. You should also understand that if you don’t make payments on time, the timeshare developer will report you as a defaulter to your credit bureau.
First, you should contact the resort management company or developer of your timeshare to ask about their surrender program. Many resorts offer such programs, but you may need to pay a fee to withdraw from the program. In some cases, you don’t even need a timeshare exit company to surrender your timeshare. If you do, some timeshare exit companies contact resorts on your behalf and arrange for a surrender of your timeshare. Know how to get out of a timeshare legally.
Passing a timeshare on to someone you know
If you’re interested in passing a timeshare onto someone you know legally, there are several steps you can take. First, you must understand the terms of your timeshare contract. Most timeshares are deeds that are tied to contractual obligations. While some timeshare contracts claim to be perpetual, this doesn’t necessarily mean that you can pass one on to a friend or family member without penalty. It also means that your heirs will inherit all the liabilities and obligations associated with the contract, including maintenance fees.
Once you’ve made this decision, you’ll need to inform your family and friends. You’ll also need to file a disclaimer with the probate court handling your estate. If your kids are interested in the timeshare, you’ll need to tell them to pay the maintenance fees through their parent’s account. Alternatively, you can file a “Disclaimer of Interest” with the timeshare company, which will inform interested parties of your lack of interest.