Timeshare Relief 360

Timeshare Relief – Get Rid of Your Timeshare Today

Mar 05

How Much Is Your Timeshare Worth? Many Are Below Zero

For anyone that has ever bought a new car, we know that sinking feeling we get as the value drops like a rock after we drive it off the dealership parking lot. Once you sign the contract for a timeshare, the impact is as if you bought and drove several new cars off the dealership lot at once. You’re going to lose a lot of value immediately.

A timeshare can lose 40% to 75% of their market value immediately after you sign the contract with the timeshare salesperson. One factor that contributes to the steep drop in value is that the salesperson and the company immediately receive their percentages on commission.

In the short time that it takes for the ink on your contract to dry, the timeshare turns into a notch on the timeshare salesperson’s belt. Immediately considered an asset to the timeshare resort, the clock starts to siphon money from the fresh timeshare owner in the form of maintenance and special assessment fees.

After a while, the timeshare resorts have little incentive to provide upkeep and to upgrade the timeshare. There is a reason for that. The timeshare contract guarantees revenue through all the fees the resorts collect from timeshare owners, so they do not need to bother with improvements. They take this money and use it to build new resorts that guarantee that they can collect even more maintenance fees from new timeshare owners.

As the timeshares age and the maintenance fees increase, there is less desire to purchase a condo unit from that location. Most potential buyers would prefer new, more modern timeshare units. At the same time, if the value for the increased maintenance fees paid begin to annoy timeshare owners, how do you think it will affect a potential owner who never vacationed there before? For many owners, they end up paying for something they don’t use and no one is looking to purchase from them. So, the value of that timeshare is negative — below zero — it’s taking money away constantly.

Timeshare Relief helps people out of this vicious downward spiral of value and get rid of those timeshares.

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Feb 22

Passing Your Timeshare Debt to Your Children, Will You Or Won’t You

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When you buy a timeshare, one of the sales pitches timeshare salespeople make to entice you is that timeshares can be willed to you children as an inheritance.

After all, they explain, once your children inherit your timeshare they can keep using it to make their own cherished memories during their family vacation trips. What a great gift to provide the timeshare to the next generation in your will. Your children will treasure it as a keepsake and talk about it being in the family for ages. Salespeople, especially timeshare salespeople, make it sound as if it is one of grandmother’s heirloom broaches or an adored family dog.

They “forget” to mention this part…

The maintenance and special assessment costs on your timeshare will increase. Your children will be stuck paying these rates at a much higher rate than you did.

Many timeshare resorts do not have a good reputation for maintaining the upkeep on the timeshares. Your kids will see a significant decline in quality. What was once a nice resort for you during its prime will be deteriorating once it is passed on to your children.

You are actually creating a financial burden for your children when they inherit a timeshare. They are going to be stuck paying perpetual fees whether they want the timeshare or not.

A better parting present for your children would be to get rid of the timeshare. Your children are grown and can make their own decision regarding their finances and vacation trips.

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Tagged with: generational ownership • get out of timeshare • Get Rid of Timeshare • inherit a timeshare • Maintenance Fees • special assessments • timeshare • timeshare ownership • Timeshare Relief • Timeshare Resale • timeshare salespeople

Feb 12

Timeshares: When is an Investment not an Investment

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A number of people love their timeshares – especially those who have excess cash to spend and enjoy knowing where and when they will vacation every single year. However, if you’re considering a timeshare as an investment, or you bought one for that reason, have you considered the interest involved?

If, like most people, you finance your time-share purchase over time, the interest costs alone may eat away that supposed profit. Timeshare loans typically carry high interest rates — often 13% or higher.

Even if you pay in cash, you lose the interest you could otherwise have earned on that money. After all, imagine – $20,000 even in a modest CD could net 3.9% APR – and that’s money you could actually give your children, instead of passing along an annual bill.

In a special consumer report, the American Bar Association family legal guide reminded potential owners that the investment is less of an investment when you consider that “your time-share contract will make you responsible to pay any increases in taxes, maintenance, or repairs. If you think any of these amounts are going to decrease, you’re in for a big surprise.”

A true investment in real estate means you can one day sell it and see a return on that investment. With tens of thousands of timeshares flooding the resales market, that’s obviously not the case here.

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Tagged with: Get Rid of Timeshare • timeshare cost • timeshare investment • timeshare loans • Timeshare Relief • timeshare resales

Jan 12

Timeshare Exchange Programs – Just More Timeshare Fees?

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Originally, timeshare owners only had the option to stay in the same timeshare unit, at the same place, year after year. The call for increased flexibility brought about timeshare exchange programs, whereby owners are able to swap their timeshare for another timeshare in another part of the world. Imagine beginning in a timeshare in the Caribbean, and then being able to exchange that unit to marvel at the French Alps later! These exchanges programs allowed the vacationer the luxury to experience many domestic experiences or international cultures during ownership.

However, even though timeshare owners who join an exchange program have the choice to exchange their timeshare for another when they are ready, they have to pay an exchange fee on top of the purchase price and the maintenance fees. Similar to maintenance fees, the exchange programs in many timeshare contacts require annual membership fees for the administration of the exchanges. These fees are not excessive, but they should be considered when making the purchase. They are part of a contractual obligation of the buyer whether the timeshare is exchanged or not. Plus, there are fees when proceeding with the exchange. More potential fees may apply when choosing various options and amenities in these exchange programs as well.

Timeshare owners should decide early on whether they want the option to exchange their time-share. If not, the appeal of this option will wear off quickly. They will constantly pay fees year after year without any benefit, otherwise. Much like a maintenance fee, an exchange fee is paid when owners justify the cost because they might make an exchange in the future.

One thing timeshare owners should take away from this information is the recommendation to use the timeshare and any amenities added on in the contract as much as possible. If they find they can’t, they should drop any options not needed, so that money isn’t wasted. Fortunately, many exchange programs do not obligate you into signing a long-term contract. Unfortunately, if the owner has banked time in the past, cancellation of the membership causes them to lose any accrued time.

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Tagged with: Maintenance Fees • Time Share • timeshare exchange • timeshare owners • Timeshare Relief

Aug 18

The Price of Timeshare Foreclosures – Having All Owners Pay

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During this time of financial difficulty, timeshare foreclosures have increased dramatically. Like foreclosures on homes, the result is very damaging to one’s credit for future large purchases. It’s simply another reason why many people should never purchase a timeshare ever.

But there is also a more hidden cost of timeshare foreclosures and non-payment of maintenance fees. The timeshare property management companies rely on having a certain level of revenue in order to maintain & manage the property properly. With a decrease in operating funds, they need to find it from other sources — namely those timeshare owners that CAN pay their maintenance fees. So, there are a number of reports of owners receiving special assessment bills due to the fact that the annual maintenance fees are not able to cover the operational cost of their timeshare resort.

It’s very similar to what is happening with local and state governments. Because of decreased tax revenue, they have to tax those that CAN pay to cover shortfalls. There’s very little use in taxing those that cannot pay, except perhaps penalties that may or may not be collected in the future.

All timeshare owners who paid their special assessments should ask if they can receive some of the profits when the economy improves and resorts are awash in maintenance fees. Think they’ll do it?

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