Many individuals looking to rid themselves of a no longer wanted timeshare are concerned about finding the most legitimate method for cancelling their timeshare contract without negatively affecting their credit. Luckily, there are options out there for ending your timeshare contract without sacrificing your credit score.
Timeshare Resale Market & Donation Programs
Unlike real estate, most timeshares lose around 50-90% of their initial value as soon as they are purchased. There are countless Ebay listings with no offers for timeshares practically being given away for $1. While there are timeshare broker companies out there that assist with timeshare resale, these brokers are commission-based and only work with owners of high-end timeshares. Unfortunately, unless you own a high-value timeshare like one by Disney Vacation Club or Hawaii’s Westin Ka’anapali, selling your timeshare is an unfeasible option. Never work with any timeshare resale company that claims to be able to help sell a low-value timeshare or charges you an up-front fee for their service, as this is sign of a scam.
If you cannot resell your timeshare, you might wonder if you can give it away to charity for free. Usually, this is not viable either. There is no reason a charity would want a timeshare that nobody would even purchase for $1. In the past, a company called Donate for a Cause charged timeshare owners a fee for donating their timeshare to charity. However, the business was barred from continuing this by the IRS in 2015.
Timeshare Exit Companies
Some timeshare developers offer programs of their own for buying back timeshares. It never hurts to reach out directly to your timeshare developer for assistance in timeshare contract cancellation. However, if you still owe a mortgage balance, then it is unlikely that the timeshare resort will be of much help.
In such a case, your best option for cancelling your timeshare contract is to enlist the service of a timeshare exit company. These businesses work with legal professionals to terminate their clients’ timeshare contracts. If you are considering this route, it is extremely important to do your research on timeshare exit companies before choosing one to assist you. Ask about the company’s method for protecting your credit, and never listen to advice to stop paying your timeshare mortgage or maintenance fees, as this will result in a damaged credit score.
Additionally, it is never recommended to work with a timeshare exit company that charges its customers direct, up-front fees. Instead, you should only consider working with a timeshare exit company that offers a no up-front fee escrow payment option, which allows the client to initially pay to a third-party holding account that releases funds to the timeshare exit company only once they have completed their timeshare cancellation service, eliminating risk of fraud.
If you want to find out more about timeshare exit companies or no up-front fee escrow payment options, we are here to help. Fill out the contact form on this page or engage in our live chat for further assistance.