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Exiting timeshare ownership... (by KC):

sandl2 wrote:

Just one more reason that the exit companies are a scam is that some of the reputable timeshare companies will take the property back and let you walk away without any further obligation if you just ask. No doubt that doesn't apply if you still owe them money for the purchase price. But Wyndham, for example, will take back a property if seniors can no longer travel and/or don't have heirs that want to own it. They much prefer that to on-going legal battles with exit companies. If owners walk away on their own, Wyndham (and other owners) are left holding the bag for maintenance expenses. But since they can't stop an owner from walking away, they decided it was better to part with some goodwill in tact. Just knowing that that's their viewpoint, makes me think that other timeshare companies could be open to the same conversation.

Numerous deep-pocket "chains" have adopted "deedback" programs in recent years, including Diamond (only developer-direct purchases are eligible for deedback with Diamond, however), Hyatt, Westgate and Wyndham. I'm not sure about Hilton (HGVC), but I believe they have done so as well. In all instances, of course, there must be no unpaid loan balance still outstanding and all maintenance fees must also be fully paid up to date in order to be eligible for "deedback" consideration.

Deedbacks are a much more difficult proposition at smaller, independent timeshares (i.e., properties with no "big chain" affiliation). With no deep pockets corporation in the background to help prop things up financially and with no high-pressure sales and marketing operations actively soliciting new owners, the financial impact of non-paying intervals is much more severe at independent resorts. No fees get paid by HOA-owned weeks, so (as you have pointed out already) the financial pressure on owners is increased as operating budgets get strained by reduced financial resources, often followed by a unwelcome fee increase for remaining owners to mitigate the shortfall. Not at all a good situation.