What You Need To Know About Timeshares

Kiplinger's Personal Finance came out with a short list entitled What You Need To Know About Time Shares. The list is basic with good advice although we'd have strengthened a couple of them. Here is what they had to say:

Time shares are still a lousy investment

Selling agents may be of little help

Financing is a last resort (we'd stiffen this up and say no resort)

Trading spaces can be a headache

A slice of a condo can be better than no condo at all (we'd opt for the renting a timeshare unit rather than purchasing as a smarter move)

Timeshare Cooling Off Period

Our Comments: It seems that part of the law in the United Kingdom gives timeshare owners a 14 day cooling off period where they can cancel any timeshare unit that they have purchased. This is a wonderful idea that we would love to see implemented in the US on a nationwide basis. Some states have a cooling off period for timeshares, but you must check your specific state to see what the time period may be.

The sale of timeshares in the UK is regulated by the Timeshare Act 1992 (amended in 2001) and enforced by local trading standards officers.

Buyers must be given a 14-day "cooling-off" period' it is illegal for selers to take a deposit during this time.

Reputable agents, even within the UK, can be hard to find. And anyone contemplating buying a time-share abroad should tread with utmost caution... entire article

Timehare Trap Information In Europe

A letter we received from a reader located in Europe:

"Can anybody help us, long story but we stupidly signed up for a timeshare in tenerife with RCI, we told them that we could not really afford it and they kept us there for 7 hours until we signed they took a deposit of 1000.00. When we got back of holiday I wrote to them and said that we could not afford this but they said the ten days had passed and they are going to take us to court for the rest of the money. anyway we can get out of this. These are resales (whatever they are)"

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Our Comments: For those that have had trouble with timeshare resorts in the United Kingdom and Europe, there is little help that we can provide. A website called Timeshare.org.uk may be able to provide you some help.

Stopping Payment On A Timeshare Resort

We received the following email:

I visited your web site and was wondering what your advice would be to just get rid of a timeshare we have in Mazatlan, Marina del Rey Beach Club. We aren't interested in selling it or getting a tax deduction. Just want to stop making payments. We were recently told that if we stop making payments, the timeshare company can put a lien on our home and destroy our credit. I don't understand how or if this can work since the contract was signed in Mexico and is subject to Mexican Law. Please advise.

Our Comments: Even if you purchase a timeshare resort in a foreign country, stopping payment can still effect your credit in the US. Most timeshare companies in foreign countries will have offices in the US and if you simply stop payment, they can hire a collection agency or place a lien on your property to try and collect on the payments. It is not recommended that you stop payment as a way to get rid of your timeshare as it will likely come back to haunt you.

Escape From Timeshare Hell

August 4, 2006

Our Comments: It's not often that you see the media run articles on those that find themselves in the timeshare trap, so it's always nice when we come across one. Smart Money has put together a piece called "Escape From Timeshare Hell" that addresses some of the points are made at the timeshare trap website. While there is nothing new in the strategies, it does give it a face by telling some of the people's stories. It was also nice to see they have broken the myth that it is just a few people that find themselves in the timeshare trap. From the article:

...While there are no official statistics on the number of timeshare owners looking to unload their investment, the sheer size of the marketplace suggests there are thousands — if not hundreds of thousands — of unhappy timeshare owners looking to get out.