Answers to Your FAQs About Timeshare Exit
Are you trying to get rid of a timeshare, but have more questions than answers? Newton Group can help. As the nation’s longest-standing timeshare exit company, we have compiled a list of timeshare owners’ most frequently asked questions.
The most obvious reason you can’t sell your timeshare is the resale market is flooded with “DEVALUED” INVENTORY—because the market consists almost entirely of sellers, with no buyers.
As seen in the Consumer’s Guide To Timeshare Exit, it is estimated that at any given time there are roughly 1 million owners looking to end their timeshare ownership. A quick online search reveals thousands of timeshares listed for less than $1 or even for free.
But there is a less well-known obstacle to a viable timeshare resale market. Some timeshare resort developers view resales as a THREAT TO THEIR REVENUE STREAM and have taken direct and intentional action to SUPPRESS THE RESALE MARKET—including restricting rights and benefits for owners who purchase their timeshares on the resale market. This is a tactic used by some resorts to help ensure any potential timeshare purchaser views a timeshare interest sold by the resort as more valuable than one sold by a timeshare owner.
Want to learn more? Click Here to read our blog! “Why Can’t I Sell My Timeshare?”
It’s common for timeshare owners to believe a timeshare is an investment, but unfortunately, timeshares are not financial assets. Timeshares don’t appreciate and have little to no resale value, and since maintenance and other fees are ongoing, a timeshare is actually a liability.
Sadly, it is when consumers try ending their timeshare ownership that many first discover their timeshare is a liability and not an asset. This is because timeshare sales representatives often mislead buyers at the time of purchase into believing their timeshare is an investment that appreciates in value or can be sold on a secondary or “resale” market.
According to Newton Group’s Timeshare Exit Study—based on over 9,000 timeshare ownership experiences—OVER 60% RESPONDED THAT THE TIMESHARE SALES REPRESENTATIVE(S)/PRESENTATION DECEIVED THEM AS TO THE INVESTMENT VALUE OF THEIR UNIT.
SO WHAT IS THE VALUE OF A TIMESHARE?
For the truth, you can find it somewhere in the voluminous timeshare resort owner manuals or master agreements. Here is an example of language taken directly from a U.S. timeshare resort’s public offering statement that is over 249 pages in length:
“The purchase of a Unit Week should be based on its value as a vacation experience or for spending leisure time, and not considered for purposes of acquiring an appreciating investment or with an expectation that the Unit Week may be resold.”
YES, ANY VALUE YOUR TIMESHARE HAS IS NOT FINANCIAL, RATHER, ITS VALUE IS ONLY AS A VACATION EXPERIENCE OR LEISURE TIME.
This begs the question, if the resorts clearly state all this in public documents and timeshare contracts, why does it come as a surprise to so many timeshare owners? Discover why by reading the full blog: “Your Timeshare is a Liability, NOT an Asset”
And to learn more about how Newton Group and our partner law firm are using the Timeshare Exit Study as a tool in the exploration of claims against timeshare developers and related entities in the industry, visit “You May Have a Claim”.
Using your resort as an exit option to end your ownership isn’t recommended. The reason is supported by our data: over 65% of our clients who tried exiting before hiring us, first tried using their resort as an exit option and were either denied, ignored, or worse, upsold for thousands of dollars. Resorts have a financial interest in keeping owners locked in a fee-paying contract. Many sales representatives are trained to use an owner seeking to exit as an opportunity to sell more timeshares. Resort exit programs also have restrictions, and they don’t work for everyone. Plus, the resort exit program usually requires that you sign a release so that you have no other legal recourse. We have many signed legal declarations from clients recounting what happened when they went back to the resort for an exit. Here is just one example:
“We received a written communication from [our resort] that discouraged owners from hiring an attorney or any third party in an attempt to cancel timeshare contracts. The letter advised that [our resort] would be willing to work with us directly. . . After spending approximately five hours we reluctantly agreed to a membership purchase that provided us with 15,000 points for a total purchase price of $56,100. . . We felt that we were misled into making an additional purchase when that was not what we desired to do. We don’t feel that [our resort] was interested in listening to our concerns, and rather used our visit as an opportunity to upsell us.” —Sworn Legal Declaration
Generally speaking, stopping payments on your timeshare or related fees can result in collection efforts by your resort, which could damage your credit for years to come. You could incur interest and penalties on what you owe, and then the collection calls can start. If you still refuse to pay your bills, the resort may do any number of things to collect, including, in worst-case scenario, putting a lien on your property. Ultimately, the resort could foreclose on the timeshare—damaging your credit and impacting your financial future.
For these reasons and more, no one should stop making timeshare payments without first having Personal Legal Representation. Doing so is a major problem in the exit industry. There are many instances where the lawyer giving advice actually represents the exit company and not the timeshare owner. In such a case, the lawyer has a fiduciary duty to do what’s best for the exit company and not the consumer.
Newton Group doesn’t operate that way—our clients are protected with personal legal representation. Should you choose to stop making your timeshare payments, having legal representation advances certain protections, including those granted by the Fair Debt Collection Practices Act (FDCPA). Under the FDCPA, consumers are protected from abusive debt collectors attempting to collect on certain types of debt, such as mortgages. For instance, a debt collector is not permitted to contact you once the debt collector is aware you have retained an attorney. This is just one of the reasons you should have personal legal representation before stopping payments.
An upfront timeshare exit fee by itself is not a red flag. Despite what timeshare sales representatives may tell you, a timeshare typically has little-to-no resale value. And timeshare exit companies cannot earn commissions on a transaction involving something that is not a financial asset and holds no value. An upfront fee protects the timeshare exit company performing a successful exit for a client who decides not to pay when the work is done.
However, it’s important to know the value of the services you are paying for and that the services are backed by a written agreement from a company with a solid reputation. At Newton Group, our comprehensive process includes exit services and personal legal representation for a single flat fee. The Newton Group partners, together with experienced attorneys, co-founded a law firm to focus on timeshare exit legal issues.
If you were to hire a lawyer on your own, it’s rare to find one who has actual experience with timeshare contracts and agreements, since “timeshare law” is not a recognized area of specialty. Also, private attorneys usually require large, upfront retainers and have constantly increasing billable hours. This makes hiring a lawyer unaffordable for most timeshare owners who are often already facing financial constraints. Newton Group’s unique setup and process offers accessible, affordable representation to timeshare owners.
If you’re looking to find a timeshare exit lawyer, this is where to start. First, “timeshare law” is not recognized as an area of specialty—such as tax law or medical malpractice—which makes it difficult to find the right lawyer to represent you in your timeshare exit. You want to find a lawyer well versed in contract law and who has experience with timeshares. In short, you want a lawyer with both timeshare and contract law experience
Second, beware of companies that position themselves as “advocacy” groups or “consumer protection” groups and have “attorneys on staff”. If an exit company has “attorneys on staff”, it has legal counsel–you don’t. You want an attorney with whom you have a letter of engagement; one who works directly for you and has a fiduciary and ethical duty to act in your best interest.
To learn about Newton Group’s unique exit process that combines experienced exit services with personal legal representation, read “The Story of Our Law Firm–Why Newton Group Partners Co-Founded DC Capital Law”
Should a money-back guarantee be the only requirement on your timeshare exit checklist? Offering money-back guarantee protection is one of the most abused marketing tools in the timeshare exit industry. Unfortunately, it has also become one of the most concerning. Unproven timeshare exit companies are exploiting the promise of a money-back guarantee in order to gain consumers’ trust, even though they may have little or no timeshare exit expertise and possibly a faulty business model.
The exit industry has changed in recent years. In most cases, timeshare exit is neither quick nor easy, and regrettably, a money back guarantee does not equate to quality of service. The hard truth is, at the time of this writing, six major exit companies filed for bankruptcy and closed their doors in the last 18 months. Each bankruptcy created turmoil for hundreds—even thousands—of unwitting timeshare owners who saw their money-back guarantee rendered worthless. Even worse, unproven and unstable exit companies have left consumers—many elderly and on fixed income—without the financial means to hire a reputable exit company to help them.
Read more about the Money-Back Guarantee Mirage and how to protect yourself in the Consumer’s Guide To Timeshare Exit.
Your family can inherit your timeshare. Most timeshare contracts are written in perpetuity, so your family inheriting your timeshare can be a concern. In the 17+ years that Newton Group has been providing timeshare exit services, we have had many clients who inherited a timeshare from parents or grandparents.
In fact, one of the pitches that timeshare resorts often use to try to convince consumers that a timeshare is a lasting investment is that the timeshare can be passed on to their children. Unfortunately, for owners looking to exit, the fear of their children being stuck with the timeshare
is real…even if they didn’t sign the contract. This is another reason the personal legal representation our partner law firm offers is so valuable in guiding you through the exit process and protecting your family.
Many current timeshare owners come to a point in their timeshare ownership when they start looking for ways to get out of a timeshare. In reality, it’s not as easy as you might think. There are many fraudulent companies that will try to take money from unsuspecting owners, promising to sell their timeshare, without helping the owner at all.
Many of our clients, before hiring us, first tried going back to their resort to see their options. In most of those cases their resort denied, ignored, or worse – sold them more timeshare. It is difficult to know who to trust when it comes to timeshare exit. This is why Newton Group wrote the Consumer’s Guide to Timeshare Exit, and we offer it to timeshare owners completely free of charge.
If you want to get your question about how to get out of a timeshare answered quickly, just click here to schedule a time with a pro. When you schedule time with a pro, you automatically gain access to our Consumer’s Guide to Timeshare Exit.
The Newton Group. As the nation’s longest standing timeshare exit company, we have successfully helped over 15,000 timeshare owners to get out of their timeshare(s) since 2005. We have built a system that ensures our clients receive the best possible solution to their timeshare exit. When it comes to looking for the best timeshare exit company, what matters most, it is the end result that we focus on. We encourage you to take a look at our customer testimonials. See for yourself what former timeshare owners think about us now that they are completely timeshare free – because of our company and what we do. Want more questions answered quickly? You can click here to schedule a time that works best for you.
Timeshare cancellation, timeshare exit, timeshare termination, timeshare freedom – they all amount to the same thing: putting an end to your timeshare ownership. Is it easy? No. Can we simplify the process for you? Yes. The first thing we recommend is to get yourself educated on the basics. You can do that by downloading our FREE Consumer’s Guide to Timeshare Exit here. You can also schedule a call at a time that is convenient for you with a timeshare pro by clicking here.
If you just purchased your timeshare, most timeshare contracts have a right of rescission, which means that you have a certain amount of time that you are allowed to cancel a timeshare. This will typically range from 3 to 10 days. If you missed that window, you are in the right place. Tryin to cancel a timeshare can be a confusing process, and it’s not easy. Get started by downloading our Consumer’s Guide to timeshare Exit, take a look at our timeshare Exit Survey of over 9,000 owners who may have been in your same situation, and don’t forget to check out our reviews and testimonials. If you want to skip all of that information and speak with a timeshare pro here at Newton Group directly, click here to choose a time that works for you.
If you are ready to take the next steps, you may be wondering what the cost will be for timeshare exit. The answer depends on your unique situation. Many questions need to be answered before we can understand the process that will best suit your individual needs. Some examples are, is your timeshare paid in full? Are your maintenance fees current? Who is the management company of your resort? The good news is, Newton Group can provide a free informational consultation that will help you through the questions you have. Click here to schedule time with a pro.
Since every case is different, the timeline for any timeshare exit process will vary. Each owner has different circumstances that need to be taken into account when analyzing the proper way to process their file. There is no definitive amount of time that the timeshare exit process will take. Any timeshare exit company that will guarantee a time frame for timeshare exit, in our opinion, is a company that you should stay away from. We consider that to be a red flag. One thing that sets the Newton Group apart from other companies is that in as little as 45 days, you will know what your exit options are. For more tips and tricks, or to get your questions answered by a pro here at Newton Group, click here.
It is common for timeshare owners to believe that their timeshare is a financial investment. Many owners were told, when purchasing their timeshare, that it would appreciate in value. Unfortunately, many owners find out the hard way how difficult it is to sell a timeshare. The hard truth is, most timeshares don’t have any financial value. One can argue that the value in a timeshare is the happiness it brings you. However, if you are not happy with your timeshare because of maintenance fee costs, assessment costs, availability of inventory when you want it, or any other reason, then you may no longer see the value in owning it. Newton Group can help you – click here to speak with a pro at a time that works best for you.
Absolutely. Many owners who hire Newton Group have previously hired another exit company who failed them. One of the reasons those clients are happy with our service is that they feel good knowing what is happening – because we keep in contact with them along the way. There are many reasons we have been around for over 15 years. The main reason is our customer service. We keep our clients updated throughout the process of timeshare exit, and keep them informed of everything happening along the way. Click here to schedule an appointment with one of the pros at Newton Group.