Timeshares give owners the right to use a property, usually a part of a resort. Individuals are allowed to use this right every year. However, purchasing a timeshare also means an obligation to pay high maintenance fees on a property that tends to increase over time. You are not alone if you are tired of owning an unwanted timeshare. Once you figure out that your buying decision was a mistake, we know a few ways for a timeshare debt release. In this article, we’ll discuss a concern of cancellation of debt on timeshare.
How to get rid of a large timeshare debt?
Many timeshare owners might not know that some timeshare companies offer clients a deed-back or surrender program. These buyback programs appear with relatively low prices but don’t expect to return property for the entire initial cost. Honestly, a majority of timeshares are sold not more than 15% of their price initially. Anyway, immediate property returning will make you free from paying annual maintenance fees. This also dentures the remaining loan payments that result in some timeshare debt release.
You might also consider selling a timeshare on the online resale markets. Anyway, keep in mind that timeshare ownership isn’t a kind of real estate ownership. This is because timeshares are split with multiple owners that aren’t appreciated, like real estate properties. Nonetheless, selling an unwanted timeshare can help owners pay off any remaining timeshare debt, which is more important. Once again, you shouldn’t expect to get back the entire timeshare cost you have spent on it initially.
Some timeshare owners decide to stop making all the payments, but it is the wrong way. Any defaulted payments will be transmitted to a collection agency that acts under the timeshare debt collection laws. As a result, you will receive many phone calls from collectors. Default on the timeshare payments enables timeshare companies to impose foreclosure on your property. This results in paying annoying collection fees, increased interest expense, and even damage to your credit score.
Can timeshare debt be transferred to another person?
Transferring a timeshare might be a pretty simple process once a timeshare is fully paid off. However, it might not be as easy if you still carry debt on your property. Consult your attorney if you want to transfer a timeshare to another person since laws vary from state to state.
You might also think about gifting property to a friend or relative. Despite the debt balance, you need to make sure a person you are planning to transfer a timeshare deed is aware of all the requirements for paying annual maintenance fees. They have the potential to increase by 5% every year, after all. Not everyone will be interested in such a gift, but you still have a chance to ask.