What is Timeshare Cancellation?
So you bought a timeshare. You may have bought expecting to have a deal of a lifetime. In many cases timeshare owners are told they are investing in real estate. As time goes on you have realized timeshare ownership is not an investment but a liability. As every year passes your maintenance fee’s increase. There is no consistent formula used to determine your next maintenance fee. This means you have no idea what your next years bills are going to be. This is giving the timeshare developers a blank check each year. This increasing maintenance fee is not consistent with financial investments. There is not equity growth. So now we need to look for a exit solution.
Timeshare maintenance agreements are typically 99 years long. Basically your natural life you are locked into a ever increasing bill. If you decide not to pay this bill the timeshare developer has the right to foreclose on you. So now you have paid thousands of dollars to have a foreclosure report on your credit, and a default judgement worth thousands of dollars.
Well this is a good time to find a professional organization which has experience in terminating unfair and deceptive contracts. A professional timeshare cancellation company uses current credit reporting techniques, and consumer protection laws to deliver a full termination of timeshare contracts.
In most cases there are many breaches of the timeshare purchase and service agreement. Deceptive sales tactics are used to deceptive the new timeshare buyer to have them purchase a timeshare for thousands of dollars.
Proper disputing of financial reporting, and filing complaints based on consumer rights violations is the foundation to successful timeshare cancellation.
Timeshare Relief Options And Costs.
Timeshare cancellation can be a lengthy process. Disputing lifelong contracts, disputing credit reporting items, disputing debt collectors, and preparing legal cases can take 9 to 36 months. A standard length of time in most timeshare cancellation programs is 18-24 months.
Every 30-45 days disputes, demands, and responses are drafted and delivered. These formal letters are sent certified and tracked providing verification the receiver has been notified of the dispute. Any lack of response or disregard to consumer reporting disputes or contract breach’s
New Purchase Rescission Period.
Most states have timeshare rescission laws that allow you to return the timeshare directly to the developer for a full refund. The cost of this process is only the postage and printing. Unless you do not make the termination letter in time for verified delivery tot he timeshare developer. Missing the rescission period deadline will cost you thousands of dollars in consumer defense, credit management, and potential legal action. Save yourself the money and head ache and get your rescission letter out ASAP.
The complete process can take anywhere from 7-21 days. Long as the timeshare developer received the cancellation letter within the rescission period. Send the cancellation letter using the USPS certified mailed with signature return confirmation. Keep the tracking number. Also fax a copy of the letter with the tracking number to the timeshare corporate office.
Example Timeshare Rescission Letter
RE: Request To Cancel Timeshare Agreement Contract Number:
To whom it may concern,
I/We, (Your Name), request to cancel the purchase of a timeshare with the contract number: (XXXXXXX).
It was purchased on (Purchase Date). I am within my rescission period. Please refund my deposit of ($1,200), back to my (you account) or send me a check. Also, close out the (credit card or loan account) account and refund all charges.
I am expecting a confirmation of the timeshare account cancellation and refund of all fees.
Deed Back Or Deed Reverted.
Only timeshare owners who have paid off timeshares and deeds. A points package timeshare contact would not apply to this situation. Deed back directly to the timeshare resort developer.
Usually the fee for deed back or reverter option ranges from $800-$3400. The fee may depend on the location State of the timeshare company. This is the best option available if you don’t want to try and sell your timeshare. Most of the time you will need to pay the timeshare developer to take the timeshare back. The fee varies depending on the timeshare developer.
This option is not available to all timeshare owners because not all timeshare developers offer a deed back program. You will usually need to be current on maintenance fees and have the timeshare paid in full to use a deedback program.
Timeshare Transfers and Transfer Companies.
Sometimes the timeshare developer will pay you to take the timeshare back if they are in need of inventory. The timeshare developer won’t pay much, but you can usually expect to receive between $1,000 – $2,000 depending on the timeshare, number of points, week number, and account status.
Other times you’ll need to pay a fee. The fee can be anywhere from $500 – $3000. Always check all fee’s. In some cases the deed recording fee is not included. This deed fee ranges from $350-$700.
This is another great option if your timeshare developer is in need of inventory. Sometimes this is referred to as “Inventory recovery.”
Sometimes timeshare developers work with third party timeshare transfer companies and timeshare real estate brokers to collect inventory. This is usually done behind closed doors because the timeshare developers don’t like to advertise that they are taking back weeks because they don’t want their members to exit their timeshares and stop paying maintenance fees.
To use this option, you’ll need to find a reputable timeshare transfer company with a lot of experience and connections within the industry to use this option.
Timeshare Exit Companies that Work with Lawyers Only.
Although this can be an effective way to get rid of your timeshare, it’s usually the most expensive option. You will also likely need to write a statement describing your situation and how you feel you were lied to or misled during the sales presentation, so there is some work involved on your part.
This is usually one of the only options available to those who owe a mortgage because selling a timeshare with a mortgage is next to impossible. Most timeshare developers won’t allow you to use their deed back program if you owe a mortgage as well.
The average cost to a timeshare exit program using lawyers only is $4,000 – $15,000. If you owe a mortgage on the timeshare, the fee can go up considerably. I major downside to these programs is the damage to the clients credit and the debt collector liability. These programs cannot fulfill both ends of the timeshare cancellation. They may be able to dispute the contract and resource legal demands to present an arguable case. However, the lawyers in the timeshare cancellation program are not able to manage credit reports.
They typically do not assist or implement a debt management plan. So, if credit is a concern to you then make sure which ever program or company you hire has a dedicated credit management team. Having specialist who focus on timeshare credit accounts, and timeshare debt collectors, and public records
Timeshare Relief Program Licensed With Credit Management.
Not all timeshare relief companies are the same. Many are just sales offices or timeshare sale people searching for a new career. Identifying the licensed and the timeshare relief programs which have accountability is by the licensing.
Every financial firm in the US must have a license with a regulation agency. This licensing can be from the State or Federal level. Licensing should state the companies name, date, license number, and the the type of license it is.
Licensed financial firms work for the best interest of their clients. They must follow industry guideline and laws. When a timeshare relief company is licensed they are held to a higher standard of accountability’… Upset clients could report them to the regulation agencies causing massive problems and potential court orders depending on the severity. Either way the likelihood of a licensed financial firm scamming you is pretty low since the owners signed person responsibility in the licensing applications with the government agency.
When hiring any timeshare relief program credit management must be included.
At the end of the day timeshare relief is solely debt and credit. Resolving contract disputes or breach’s of contracts is a portion of timeshare relief for a licensed program. Monitoring the clients credit, removing the timeshare accounts, defending against the timeshare debt collectors, and preparing the legal documents for ant court filings which may be necessary. If you hire a timeshare cancellation company and they do not have a credit management program at the beginning of service then typically they won’t have one at the end either. Be careful of promises of after program services. They never are fulfilled.
The average cost to a timeshare cancellation program that have full credit services, range from $2500-$30,000. This is a large range however there are clients that have 2-6 owners, multiple credit items, debt collectors, pending foreclosure, and third party finance and credit cards which need to be terminated or negotiated for settlement. These programs are complete and address all the aspects of the timeshare account, and the liability that comes along with it.
If you are seeking a licensed firm, with full credit and risk managements services then Legal Timeshare Help is the source you have been waiting for. We offer free consultations and fast quotes. When working with licensed firms we have many payment plan options supplied by United Consumer Financial Services. A national accredited finance company has partnered with our organization making us second to none.