Selling a Timeshare

How does a timeshare owner find out in advance what happens if he/she just abandons his/her timeshare and lets it be foreclosed on by the timeshare developer? Bluntly, what's the worst that can happen to you if you have a timeshare you don't want, that you can't find a buyer for, that you can't even give away, and that the developer refuses to take back?

lancec13 wrote:

mikeh937 wrote:

I just edited mine listing it for $1, 2016 fees paid, and closing costs paid for my me. Let's see what that does :)

The other thing to try is to write to the resort's Homeowners' Association explaining that you need to give your unit back. Offer to pay closing costs and possibly the next maintenance fee. You can even try what Don P says about how deeded one back. Let the HOA know that, one way or another, you are getting rid of your unit and that the HOA can accommodate this the easy way or the hard way.

Just like any other bill you don't pay. They can report it to the credit bureaus and they can also go to court and get a judgment against you.

donp196 wrote:

...and they can also go to court and get a judgment against you.

OK, and what's the cost of a judgment against me if the timeshare has a market value of ZERO? We all have seen ads where you get a timeshare for $1 and the seller pays closing and fees and this year's maintenance and maybe next year's maintenance, too. That can add up to $2-3 grand. Could it be cheaper to let them foreclose?

Everyone's situation is different. Your call. I was able negotiate two deed backs in 2011 to get out of those timeshares. I called the resorts and explained to them that I was going to get rid of them with or without their cooperation and they both agreed to the deed backs. It was quick and inexpensive.

I agree with everything you say. I just don't know how to sell with Ebay or Craigslist past the listing point. How do you "vet" the potential buyer, if there is one? Also, if I want to rent my TS week to cover some of the maintenance fee, how do I do that with a floating week?

tracey75 wrote:

Buyatimeshare.com is an advertising site with a high upfront fee. Are they a scam? They do actually advertise your timeshare. Do they give you accurate pricing information when helping you decide to advertise with them? I doubt it although they will blame their customers when called on it. I own at a resort that has more than 20 for sale listings with them. The average price listed is about $12,000 with some listed as high as $23,000. You can regularly buy the best weeks on Ebay for $1 if you pay closing. The worst weeks will be free with no closing costs and a year's use included free. The most I could imagine it selling for on Redweek would be $2000 for the best season/size unit. None of the sub $5000 listed are the best. I don't think any of the listing will ever sell at the prices listed.

I don't think you will get any more for advertising with them then you would with Redweek and the fee will be a lot less. It doesn't mean that it will sell on redweek. There are a lot of TS worth $1 or even less, meaning that MF's are more than what you could easily rent them for. I own a week with a mf of $400 which is pretty decent. It is in a seasonal location. In the summer they rent for $800-$2000. Most winter weeks sit empty although you could rent it off RCI for less than $200 for the week. There just is no demand for off season weeks at that location.

Here is the website for how to sell on E-Bay:

http://pages.ebay.com/realestate/timesharesellerguide.html

As for renting out a floating week, you must first book that week. Then, when you have it, you can rent it out. Just be aware that many of the prime floating weeks get scooped up quickly and renters are usually looking for prime weeks.

Elizabeth -

To post a floating week for rent you can do what Lance suggests and reserve a specific week, or another option is to advertise the date range during which you are able to reserve a week. If you choose the latter, then you would just need to put in the Details section of the posting that you have to check on availability at the resort before a reservation can be made.

If you have further questions, please Contact Us.

Phyllis

Thank you for your suggestions. I will look into this.

Thank you for the info. I will look into this.

How does a timeshare owner find out in advance what happens if he/she just abandons his/her timeshare and lets it be foreclosed on by the timeshare developer? Bluntly, what's the worst that can happen to you if you have a timeshare you don't want, that you can't find a buyer for, that you can't even give away, and that the developer refuses to take back? / Said another way, What's the cost of a judgment against me if the timeshare has a market value of ZERO? We all have seen ads where you get a timeshare for $1 and the seller pays closing and fees and this year's maintenance and maybe next year's maintenance, too. That can add up to $2-3 grand. Could it be cheaper to let them foreclose?

stu20 wrote:

We all have seen ads where you get a timeshare for $1 and the seller pays closing and fees and this year's maintenance and maybe next year's maintenance, too. That can add up to $2-3 grand. Could it be cheaper to let them foreclose?

It's possible. But just remember that these resorts might report you to credit bureaus and agencies which could negatively impact your credit score. You would probably have to deal with harassing letters and phone calls (but those can easily be ignored). That might lead to problems down the road when trying to get loans and/or lines of credit.

As Don P suggested (when you asked this same question a couple of weeks ago), why not try working with the resort's Homeowners' Association to see what can be worked out trying to negotiate a deed back. I'm sure the HOA would prefer this over a costly and lengthy foreclosure process.

lancec13 wrote:

stu20 wrote:

We all have seen ads where you get a timeshare for $1 and the seller pays closing and fees and this year's maintenance and maybe next year's maintenance, too. That can add up to $2-3 grand. Could it be cheaper to let them foreclose?

It's possible. But just remember that these resorts might report you to credit bureaus and agencies which could negatively impact your credit score. That might lead to problems down the road when trying to get loans and/or lines of credit. ... why not try working with the resort's Homeowners' Association to see what can be worked out trying to negotiate a deed back. I'm sure the HOA would prefer this over a costly and lengthy foreclosure process.

We're among those timeshare owners who are long retired but still able to travel and still able to afford it. We don't have any idea what our credit score is and we don't need a line of credit. The management of the timeshare we'd like to be done with -- which we have advertised off and on for more than three years with no success -- treats us like ... er ... well, you know ... for even asking whether they'd do a deedback, and that only increases our desire to get rid of this particular unit. They're just plain nasty -- and I'm trying to be polite here.

stu20 wrote:

How does a timeshare owner find out in advance what happens if he/she just abandons his/her timeshare and lets it be foreclosed on by the timeshare developer? Bluntly, what's the worst that can happen to you if you have a timeshare you don't want, that you can't find a buyer for, that you can't even give away, and that the developer refuses to take back? / Said another way, What's the cost of a judgment against me if the timeshare has a market value of ZERO? We all have seen ads where you get a timeshare for $1 and the seller pays closing and fees and this year's maintenance and maybe next year's maintenance, too. That can add up to $2-3 grand. Could it be cheaper to let them foreclose?

A primary concern for some people is that a foreclosure will ultimately result in a "hit" to their credit rating. For younger folks who might have plans to apply for a home mortgage or some other significant loan in the not too distant future, that record of default, foreclosure and the associated credit rating "hit" will surely be discovered and considered by a prospective lender. If you have no such needs or plans for loans or a good credit rating, then foreclosure will likely have little or no discernible impact upon you. A resort developer is highly unlikely to ever initiate or pursue liens or garnishments. Why would they even bother? After all, once they take the deed and the ownership back via foreclosure, they will then simply market and sell that exact same "product" all over again to some other "lucky" buyer --- perhaps doing so many times for the exact same week as the foreclosure scenario repeats itself. Each time, the developer will obviously keep every penny that each and every foreclosed-upon owner paid before the foreclosure. Quite a profitable enterprise for them, when you think about it.

On the other hand, you should probably expect to be pestered by collection agencies after you stop paying your fees, but before the developer decides to initiate foreclosure proceedings --- which could actually be a few years down the road, depending on the developer.

I own time shares in Aruba at Marriott and also Marriott points. What's the best way sell these?

barbarab961 wrote:

I own....What's the best way sell these?

Always remember the cardinal rule for selling: Never, ever pay anyone a large, upfront fee to sell, rent out, market, or "cancel" your timeshare.

Next, check out reputable timeshare resale websites such as here on RedWeek, My Resort Network, E-Bay, Timeshare Users Group (aka "TUG"; tug2.net), or even Craigslist (but be prepared for a lot of spammers and scam attempts). Check out what similar units are selling for. E-Bay's completed sales section might give a good idea as to what units are actually selling for as opposed to what people are in most case, unrealistically listing for. Price your unit competitively and realistically.

Once a potential buyer responds to your ad and the two of you agree on a selling price and who pays the closing costs, hire a reputable, competent closing agency who will do all the legal paperwork. However, considering where you own, it might be a Right-to-Use (RTU) instead of a deeded property. If it is RTU, then check with the resort for the legal procedure how to transfer ownership to a new owner.

And be patient. Many of these take time to find a new suitable owner. Sadly, many owners get impatient if they don't get any bona fide offers in the first week and then they foolishly start seeking the "assistance" of many of these scam or shady outfits.

I believe Marriott is willing to buy back according to my sale agent. It is likely 30% off of your purchasing price.