Most people rush to buy timeshares without proper consideration of the contract and the property. If you have bought your timeshare, congratulations are in order. However, like most people you may experience remorse after some time if the property is draining your finances faster than you expected. You may be forced to walk away or sell it if you do not cancel the contract within the identified period.
This article will help you learn great tips about timeshare 101 and how to cancel timeshare contracts once you have bought timeshares.
What is a timeshare?
A timeshare is a property owned by multiple individuals who have the right to use it at a particular time frame. The timeshare company divides occupancy of the property and sells the property based on the time-based intervals. The shared usage guarantees the owner maximum utilization of the property during different times of the year and helps alleviate the burden of finances and management associated with ownership.
Timesharing is growing fast because it avails a desired property for you to use at a given time. However, before signing a timeshare contract it is important to consider the location of the property, the finances needed, and the type of program that suits you best. Thorough research aids in making a well-informed decision as to the best property to consider for timesharing.
Why is it challenging to cancel a timeshare?
Most people view timeshares as a waste of money and try their best to get rid of the ones they own. However, the process is often challenging because of the following reasons.
The endless paperwork involved is tiring and confusing. The timeshare companies use numerous paperwork to discourage you from the cancelation process. The stipulations included in the contracts, such as the refusal clause, may be hard to understand clearly.
Timeshare companies do their best to protect themselves through the contract. The numerous paperwork will often result in signing without knowledge of what you are agreeing to. This eventually results in great challenges during the contract cancellation process.
Canceling your timeshare may prove difficult once you have made your down payment using a credit card. The interest rates rise dramatically and this takes a long time for you to complete payment. This often makes people feel trapped in the agreement longer than they wish.
If you are falling behind on your payment, the cancellation process is even more challenging because of the hefty fines and interests involved.
You have limited alternatives when it comes to timeshares. You can sell, rent out, get rid of it by canceling the contract, or walk away. All these alternatives are made incredibly difficult by the timeshare companies.
Timeshares depreciate after purchase and most people experience substantial losses when they choose to sell. On the other hand, you cannot be certain that someone renting the property will pay for accommodation on time. The best alternative may be to cancel the timeshare contract to avoid these losses and get rid of the timeshare.
Payment on your timeshare
Owning a timeshare is similar to owning a house in that even after completion of the mortgage payment you still have to pay the bills regularly. In a timeshare, the bills include property tax, repairs, and utilities. If the property requires major repairs or improvement and the cost is not covered by insurance, you will have to pay from your pockets.
Falling behind on your payments allows the timeshare association to repossess the property and get a lien. The timeshare company can either follow the judicial foreclosure way and get permission from the court to sell the property, or they can follow the non-judicial foreclosure way and use procedures set by the state law.
If the timeshare association repossesses the timeshare, you still have to pay all outstanding fees and other additional costs including unpaid assessments, fines, interest, late charges, and attorney fees.
Lack of payment before you cancel your timeshare may also affect your credit. It is not common for timeshare associations to report foreclosures to credit bureaus. However, the foreclosures are still public records that credit bureaus can look for when they want to have more information on their clients. Your dream about getting rid of the timeshare will come true but it will be more costly.
Read on to learn how to cancel timeshare contracts in a legal way to ensure a streamlined process and improve chances of triumph.
Act within the contract cancellation period
The timeshare contract should have a period stated in which you can rescind the contract. It is important to read the contract carefully and compare the content with what is dictated in the state’s laws to aid in signing a precise contract.
Some timeshare companies may not willingly disclose rescission periods or may intimidate you into closing the deal too fast without proper research. This makes it harder for you to get out of the deal. Therefore, it is essential to inquire about the grace period before signing any timeshare contract to ensure you have all the information needed to make a timely cancellation, if necessary.
Other timeshare companies offer take-back programs that allow ownership cancellation during recission. Ask about the program and what is needed for qualification to join it and act before the recission period is over.
Review the cancellation terms stated in the contract because the conditions are a vital guide to aid in quickening the process. Remember that you have limited time to act on your decision to ensure you terminate the contract fast. It is crucial to also assess the liabilities that may be experienced during the cancellation process to ensure you are well prepared.
Write a cancellation letter
Some contracts stipulate that you can have oral rescission. However, it is always important to have a write-up of the cancellation. Ensure you have copies of all timeshare cancellation records that you can refer to when the need arises.
The letter should clearly and firmly state your intention to cancel your timeshare; include a subject line to inform the reader about the content in the letter. Ensure the letter is brief and get to the point in the first paragraph. If you are fed up or frustrated with the property, do not let your emotions get in the way when writing the cancellation letter.
You should bear in mind that the people the letter is addressed to will do their best to prevent the contract cancellation. Therefore, it is crucial to include all vital information to prevent them from convincing you against canceling or ignoring your letter. Your letter must have:
- The name of your timeshare as it appears in the contract
- The purchase date
- The contract holder’s name
- The contract number
- Your membership ID
Bold these details to ensure they stand out and capture the reader’s attention. The timeshare company may rule out your letter as invalid if it lacks all the essential information.
An effective cancellation letter has well-written expectations. Inform the reader that you are not interested in other ownership opportunities regarding the property and the time you are expecting a response for your letter.
Deliver the cancellation letter appropriately
Contracts often specify the means of delivery for contract cancellation letters. You can hand-deliver the letter or send it through certified or registered mail. Follow the contact’s instructions to the latter and ensure the letter gets to the company within the specified time for cancellation. Once you send the letter, keep the receipt which should have the mailing date indicated to ensure the company does not claim that it did not receive the letter.
Cancellation after expiration of cancellation period
Once the rescission period has expired, timeshare companies will quickly respond to you with two words- not possible, when you want to cancel the contract. They are aware that most buyers have remorse after a while; hence ensure the contracts are extremely hard to cancel.
If the cancellation period has ended, you must be wondering how to cancel timeshare contracts. Fortunately, some states allow for the cancellation of timeshare contracts in limited circumstances after the expiry of the rescission period. In this case, the process of cancellation often involves a lawsuit against the company. You will need expert advice from a trusted firm to move forward and achieve success.
Don’t do it alone!
Writing your cancellation letter is a great first step, but you will need all the help you can get. Companies are vigorous in preventing the cancellation of timeshare contracts and a cancellation letter is not be enough to get you to the finish line. Most people often give up on the cancellation process because the timeshare companies can be a great nuisance. You should contact trusted experts who are experienced in dealing with timeshare companies, and who will provide a safe and affordable timeshare cancellation process if you want to succeed.
Are you ready to cancel your timeshare?
Now that you are well-informed on how to cancel timeshare contracts you can begin the process right away to avoid wasting more money. The process may be long, but you can refer to the information above anytime you feel confused. We wish you the best of luck!