How to Get Out of That Vacation Timeshare Amid the Pandemic



Timeshare or a vacation ownership may be a property arrangement which allows you to to share the property cost with others so as to ensure time at the property. But what they do not mention are the growing maintenance fees and other incidental costs and hidden costs that occurs annually and which will causes owning timeshare unbearable. It puts vacation ownership within the financial reach of these who would really like a second range in a destination they love, but might not be ready to afford to shop for whole ownership – or might not want the degree of monetary commitment for a second home purchase. 

Owning a timeshare always ensures one a guaranteed vacation each year but recent developments in the contract and improvements in the timeshare framework has complicated the process. Without a membership of a vacation exchange service provider, customers cannot swap their timeshare week for an alternate vacation elsewhere. Where the leading timeshare exchange company, RCI with world’s largest number of resorts and destinations offers a spread of vacation options including exchanging into properties at all their affiliated resorts worldwide, for an equivalent nominal fee per week, no matter the dimensions or destination, plus access to discounted rental vacations and travel extras with no additional costs.

Where in situations like global pandemic where everyone globally especially in US faced financial fears and uncertainties, businesses like travelling, leisure and resorts have come at a risk and adding more timeshare payments to the owners can cause a serious hardship.

Evidence from the past shows that many timeshare owners borrowed and prioritized timeshare payments over any other expenses that they may have. However, this trend changed during the COVID-19 as this changed the behavior of owners when now they were getting rid of their unwanted expenses. 

In addition to that, our previous data shows that there is a strong relationship between unemployment levels and timeshare defaults, as in the graph below, where borrower’s credit quality is measured by their FICO scores in the graph. 

Over this one year, travel and leisure industry has just about to come to a complete standstill for many of us and now all most of us think about is to stay safe and avoid any contact for the coronavirus.  

This has caused various timeshare owners to think and reevaluate about their financials and catering to their financial priorities, there are various ways and ideas for timeshare owners to get rid of their ownership and find their freedom once and for all. Here are those:

  1. Cancel the Plan:

A lot of individuals have either cancelled their travel plans or opted to require an opportunity due to the financial disturbance and economic instability leaving people with less personal income to spend on vacations. This has caused many of us to cancel their plans and counting on their contract, a number of them are also looking to require an opportunity for a short time because the financial anxiety that has been brought upon during the pandemic can have you ready to rent your timeshare for a year or two while you’re not using it or defer payments. If you want to cancel your timeshare or refinance then now is great time to consider those options.

During the time of recession and financial instability, you can also write a cancellation letter and ask for your cancellation. To do this, you will need to either write a cancellation letter or an email to the resort and send an email or mail it to their cancellation address. You’ll have to keep a check to see whether the cancellation has been made. Incase if you can’t find the address, you can call the resort or hotel and ask the relevant details for it. The other way is to look up the details on internet or on their website where you will be able to find all the details, and if your timeshare is easily accessible, yoe must know you’ve got something to be grateful for.

  1. Consult with Financial Advisors

While most of the people in US and globally are aware of timeshares and how it works, there are some who are not and require advise from financial experts. Whether you own your timeshare or planning to get rid of them, you require to consult with a financial advisor so they can lay out the entire plan and process for you and know the legal matters to look out for the clients. The entire process is to give the clients and owners the much-needed financial freedom. As owning a timeshare is a contract and is legally binded, to get rid of it, your financial advisor guidance will help you throughout this process.

You can also find one who specializes in finance and in contract law. With their support and knowledge, you will be able to get away with this by paying to your advisor and will save a lot over the period of time.

  1. Transfer of Property

Transferring timeshares is the easiest method to get rid of your existing ownership and passing it on to a friend or a family member. Just like any other transfer, this is easy and requires simple form to be filled out with a few verifications to complete the transfer of ownership of your timeshares.

In some cases, you can transfer timeshare to someone else through a realtor. You will be paying some amount to the realtor as a service fee and he will be able to help you get rid of it. You can also advertise on websites and local newspaper about selling your timeshare and your updated listings.

Incase if owners find it difficult to pay for their timeshare mortgage, they must reach out to ARDA which are currently offering relief packages, and referrals for people who are in severe financial crisis or facing medical and health emergencies.

Comments

  1. There are so many inaccuracies in this article, I don’t know what to say.

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