Trying to get out of a timeshare contract while still owing a mortgage can be frustrating. Most paid-off timeshares are already difficult to sell on the timeshare resale market, so adding in the factor of balance on the timeshare mortgage makes it nearly impossible to sell the timeshare. Timeshare developers rarely offer much assistance in cancelling a timeshare contract if the timeshare owner still owes fees because they profit from the timeshare owner’s payments.
Fortunately, there are still options out there for cancelling a timeshare that still has a mortgage balance.
Don’t Stop Paying Your Mortgage
Firstly, it is important to be aware of the consequences if you should refuse to make your timeshare payments or pay the timeshare’s maintenance fees. Doing so is illegal and can negatively affect your credit score. There is chance that the timeshare resort may sue, as well. It is never advisable to stop paying your mortgage on a timeshare or its maintenance fees. Instead, you should evaluate your options to take the best route to legally get out of your no longer wanted timeshare.
Timeshare Mortgage Cancellation Options
You may have legal standing to terminate your timeshare contract. If the timeshare was misrepresented in any way during its sales presentation or there are illegitimate claims in the timeshare contract, then you have a good chance of terminating the contract through the law. There is even a very slight chance that you may be entitled to a partial refund of the timeshare purchase. For instance, Manhattan Club, a timeshare resort in New York, was caught selling more timeshares than were available in their inventory. A lawsuit ensued, and the timeshare owners won $6.5 million.
There are timeshare companies out there that employ legal professionals to assist with such cases. Ask yourself the following questions to determine if using one of these timeshare exit companies’ services might be the best option for you:
- Was information about your state’s rescission period provided to you in documents from the timeshare developer upon your timeshare purchase?
- Did the timeshare resort offer to purchase a timeshare you already owned from you if you, in exchange, purchased their timeshare, but the timeshare resort never followed through?
- Was a no interest financing option advertised with the timeshare, but you ended up being charged loan interest?
- Was the incentive tax benefits for the timeshare purchase made?
- Were fees for the exchange of your timeshare for a different location disclosed?
- Was a gift offered only if you purchased the timeshare?
- Was the timeshare presented as an investment that gains value over time?
- Did the timeshare developer claim that they would buy back the timeshare if you did not want it in the future but later found this untrue?
- Was a promise made that maintenance charges would not rise, but they did?
- Did the timeshare presentation or tour last longer than promised?
- Was the sales presentation initially disguised as something else, such as a dinner meeting?
If any of the above questions were true in your situation, working with a timeshare exit company may be the best option for getting you out of your timeshare contract. Here on our website, we provide timeshare owners like yourself with advice on timeshare cancellation and review timeshare relief companies. We only recommenced timeshare exit companies that offer no up-front fee escrow payment options that allow clients to first pay for the service to a third-party holding account that doesn’t release funds to the company itself until the successful cancellation of the timeshare contract. This is the only sure way to avoid scams.
To find out more or get a consultation on your individual case from us, please fill out our contact form or engage our live chat.