Timeshare Trap

Timeshares are one of the worst investments you can make. This journal is to inform people who are thinking about purchasing a timeshare not to do so and help those trying to get rid of their timeshare.

Tuesday, July 04, 2006

Timeshare Upside-Down Loan

Our Comments: An email from a reader with a typical question about what happens when you you are trying to get rid of a timeshare resort vacation rental and still have a loan out on it. The situation is quite similar to those that want to trade in a car with an outstanding loan who find that the car's value is less than what they owe and this is referred to as an "upside-down loan" which basically means the amount you owe on the loan is more than what your car (or timeshare) is worth. Those that take out loans to purchase their timeshare units will often find that their loan is upside-down which is a common occurrence with a depreciating value asset.

When someone wants to get rid of their timeshare unit, they also want to get rid of the loan they have on it. Unfortunately, this is often not possible and the person will still have to pay off the remaining part of the timeshare loan since the money received when selling it won't completely cover it.

As we say time and again, never, ever prepay to sell your timeshare. It's a terrible scam that will cost you money and you will still have your timeshare and loan in the end.


"I read an article where you said that you can sell your timeshare on eBay. Good idea. However, can you explain to me exactly how that would work, when I still owe money on my timeshare?

I have made the huge mistake of paying listing fees "upfront" to sell this thing and no luck at all. Hey I'm a slow learner, I did it more than once. Now I think I'm just stuck..period because I flat refuse to pay anyone anything especially upfront for fear of being ripped off again."


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