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9 Common Issues Timeshare Owners Typically Face

9 Common Issues Timeshare Owners Typically Face

9 Common Issues Timeshare Owners Typically Face
9 Common Issues Timeshare Owners Typically Face
Image: Pexels

The decision to buy a timeshare requires careful consideration, but many buy into these contracts without knowing the benefits, disadvantages, and total cost of ownership. In this post, we’ll list the top nine issues timeshare buyers and owners encounter.

Aggressive Sales Tactics

Enticed with offers of free meals, rounds of golf, and spa days, many people attend timeshare presentations without plans to buy—but some get sucked in without weighing the risks and benefits. Depending on factors like location and the time since signing, an Attorney Based Timeshare Cancellation may be possible.

The High Cost of Timeshare Ownership

Those who can’t afford outright purchases often take out mortgages to pay for timeshares. Buyers must read contracts carefully, as they contain fine print on property taxes, special assessments, utility bills, and maintenance fees. If these go unpaid, the developer or the mortgage lender may foreclose on the property.

Poor Investment Quality

Few buyers look to the secondary market for timeshares, which makes them a challenging sale and a potential loss for owners. While buying a timeshare allows for hassle-free vacations, it’s best not to look at them as investments.

Resale Rip-Offs and Scams

Because it’s so hard to resell timeshares, a new field of ‘timeshare resale brokers’ has appeared, promising fast and reliable resales. While such scammers may promise a quick sale, it comes at a cost. Resellers often charge high upfront fees, only to have sales fall through. Thankfully, many jurisdictions have enacted laws protecting consumers from timeshare resale scams.

Non-Deductible Losses When Selling

If an owner sells a timeshare at a significant loss—a virtual certainty—they can’t deduct that loss on their next tax return. There are limited exceptions, and an attorney can provide reliable advice.

The Risk of Foreclosure Constantly Looms

When buyers get into timeshares, they’re purchasing real estate interests. If a mortgage pays for a timeshare, the owner faces foreclosure if they default on payments. Foreclosures have significant consequences, including credit score decreases and higher costs on future loans.

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Lender Deficiency Claims and Potential Litigation

During timeshare foreclosures, a sale’s proceeds may not be sufficient to cover what’s owed on the mortgage. The difference between the amount owed and the sale price is a deficiency. While some states keep lenders from pursuing owners for deficiencies, others do not—and collection tactics may include wage garnishments, bank account attachments, and more.

Trouble Renting to Other Vacationers

While some timeshare contracts allow owners to rent to others, it’s not always easy. Few people want to rent timeshares, and limitations are numerous. Therefore, purchasing a timeshare as a rental property isn’t the best option.

Scheduling Challenges and Booking Obstacles

If location and booking periods aren’t addressed, the timeshare sales presentation may make booking seem easier than it is. Misrepresentation of scheduling processes is an issue that has led many states to pass laws against deceptive timeshare sales practices.

Avoid Difficulties and Save Money

While many assume that timeshares are a good deal, they’re not always the best choice. In most cases, if you consider additional costs like taxes, fees, and assessments, you may see that booking a room in another resort is cheaper when planning a vacation. If you’re in a timeshare and want to get out, there’s help available—you have to know where to look.

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