| When our readers share their timeshare horror stories… they express so much regret. “My credit is now ruined…” “We can’t afford this on a retirement income…” “We never even were able to book time at the resort…” “It was all high-pressure sales and the meeting went on for hours…” “Why did we believe anything they told us… it was ALL LIES!!” If you look at our past editions, there are so many more regrets. Well, for anyone who is considering that timeshare vacation… …here are ten good reasons to think twice before buying a timeshare. We are sharing the highlights, but seriously… read the full article before you buy! #1 Timeshare Salespeople Are Notorious for the Hard Sell “Many people go to timeshare presentations …for the promised free round of golf, spa treatment, or restaurant meal. Unfortunately, some of those folks walk out of the presentation as timeshare owners. Others go thinking they might buy a timeshare, but get pressed into signing a contract without carefully weighing the pros and cons or assessing the total cost of timeshare ownership.” #2 You Are on the Hook for More Than Just Mortgage Payments “If you cannot afford to pay cash for the timeshare, you’ll have to get a mortgage. But read the fine print of the timeshare contract…you may be liable for special assessments, property taxes, maintenance fees, and utilities. If you don’t pay these, the timeshare developer can foreclose on your timeshare.” #3 Timeshares Are Not a Good Investment “There are very few buyers looking to purchase a timeshare in the after-market, which makes them very difficult to sell. The bottom line: You will likely lose money when you go to sell your timeshare.” #4 Timeshare Resale Scams Are Rampant “Because it’s so difficult to sell timeshare interests, a whole industry of scam artists has popped up, called ‘timeshare resale brokers.’ These folks tell you they have a buyer for your timeshare and can broker a sale; but not without a price. The scammers charge you hefty up-front fees and then, lo and behold, never manage to sell your timeshare.” #5 You Cannot Deduct a Loss on a Timeshare Sale on a Federal Tax Return “If you sell your timeshare at a loss (which is almost certain), you won’t be able to deduct the loss on your federal income tax return, with few exceptions.” #6 If You Default on Timeshare Payments, You Will Face Foreclosure “When you buy a timeshare, you are purchasing an interest in real estate. If you take out a loan (mortgage) to pay for part of the timeshare price, you will face foreclosure if you default on those payments. But that’s not all. If you default on your other timeshare financial obligations, like special assessments, taxes, and maintenance fees, you will also face foreclosure.” #7 After a Timeshare Foreclosure, Lenders Might Claim a Deficiency “In many timeshare foreclosures, the sale proceeds are not enough to cover the amount owed on the timeshare mortgage. The difference between what you owe and the sale proceeds is called the deficiency. If you live in a state that allows for timeshare deficiency judgments, the timeshare lender can sue you after the foreclosure for the amount you still owe, and then collect by garnishing your wages, attaching your bank accounts, and using other tactics available to judgment creditors.” #8 You Cannot Count on Renting Out Your Timeshare “While timeshare contracts may allow the owner to rent the timeshare to others, the reality is that this is difficult to do. There are usually many timeshares for rent and few people who want to rent them. Some contracts don’t allow one to rent the timeshare at all, and others place restrictions on rentals.” #9 Scheduling Your Allotted Time Might Be Harder Than You Think “The sales presentation might make it sound like booking the timeshare resort will be a piece of cake. Unfortunately, this is not always true. In fact, misrepresentations about ease of scheduling became such a problem that some states passed laws that specifically outlaw such deceptive statements.” #10 Renting Accommodations in a Similar Resort Might Be Cheaper than Timeshare “Many people think that buying a timeshare is a great deal, saving them money over booking a hotel room. In fact, in many cases, if you factor in the additional costs that come with timeshares, like special assessments, maintenance fees, taxes, and the like, you’ll find that renting a room in a similar resort ends up being cheaper.” We wish everyone could read this advice before that initial sales meeting. Thank you NOLO for providing such good counsel! If you have some “buyer beware” tips about timeshares, send them along to info@timesharefacts.com. The American Resort Development Association (ARDA) represents timeshare companies in Washington, DC. Jason Gamel is the President and CEO of ARDA. Maybe he should hear how these sales tactics impact the lives of real people, not just the bottom line of timeshare companies. Let’s email him at jgamel@arda.org. Or… here is a list ARDA published of its VIPs across all its member companies. Maybe you can find your timeshare company executive and share your story with them too! Tell us your timeshare horror story, too. Send it to us at info@timesharefacts.com. PS: Follow us on social media. Twitter Facebook Instagram |
