Advice needed: Helping a relative get out of a timeshare

September 8, 2020 5:35 AM

My relative, Jim (who is in his 70s), has asked me to help get him out of two timeshares. Looking for advice on how to do this at minimal cost.

Background on Jim (see also previous ask): Jim’s health has taken a turn, and managing/organizing his finances has fallen to family members. Jim is no longer able to travel (and didn’t get much use out of these anyway). Jim rents an apartment, and owns a vehicle outright. Jim will likely not need good credit to finance any purchase going forward. Jim’s lifespan may be significantly impacted by several ongoing health issues. Jim’s health does not allow him to speak on the phone.

Background on timeshares: both are with US companies (Jim is Canadian, lives in Canada). Both timeshares are current on payments. I haven’t seen the actual contracts yet, but will get my hands on them soon. I believe Jim owns ‘points’ in both. Jim bought timeshare #1 and found it of little value, and somehow got talked into timeshare #2 with the understanding that that company would get him out of timeshare #1, which did not happen.

I have explained to Jim that these timeshares have no value, and that the best he can hope for is no future payments. The goal here is to stop making maintenance fees & special assessment fees for properties he will never use. I am looking for advice as to if it makes sense to try to give them back (perhaps have his lawyer draft a letter?), simply stop paying them, or some other option I haven’t thought of. I have not called either of these companies yet, but expect this to be painful because a) they are timeshare companies and inherently predatory and b) I am not Jim.

What would you suggest, based on your experience?

posted by walkinginsunshine to Work & Money (9 answers total)

I see timeshares listed for free on craigslist. In theory, the timeshare networks offer the opportunity to visit other places, not just use one's own unit. Look at their marketing, craft good ads, and you may be able to give them away. Searching 'give away timeshare' returned a ton of links; this is a common scenario. I don't think the timeshare company has to take it back, and if he stops paying, I suspect they will be assertive in trying to collect.

It's really kind of you to take this on. Good luck.
posted by theora55 at 6:03 AM on September 8, 2020

The contracts are key and may have provisions related to termination. Another thought would be to look for information with the attorney general in the state where the property is located. With some quick googling, it looks like there is an industry of "timeshare reseller" brokers in Florida who help you unload a timeshare, typically at a loss. I hope Jim did not buy these with debt, because it seems like dumping a timeshare simply means getting back less than what you spent, but if he bought them with loans then obviously he still owes the loan balance.
posted by Mid at 7:05 AM on September 8, 2020

Response by poster: They were purchased outright, no debt.
posted by walkinginsunshine at 7:32 AM on September 8, 2020

IIRC (and IANAL), as a Canadian residing in Canada Jim cannot just be pursued as though he were in the US -- the timeshare company will need to bring a case against him in a Canadian court and show jurisdiction.

...which happens all the time, of course, but it adds a certain financial barrier. However, this goes both ways if Jim wants to try to defend himself, but the point is to pay attention to the penalties -- if they're low enough the company may give up rather than pay for lawyers. He may be able to simply walk away. Or not!

So, consider hiring a contracts attorney to advise you/Jim on what to do next.
posted by aramaic at 8:26 AM on September 8, 2020

There are companies that specialize in helping people getting rid of the timeshares. Google terms like timeshare exit, etc.
posted by zeikka at 8:33 AM on September 8, 2020

IAAL in Canada, this is not legal advice. Aramaic's advice is not quite correct. The company may be able to bring a case in a US Court and obtain a judgment that is enforceable in Canada. Responding to a case brought in the US while residing in Canada is very annoying and can be expensive. It is typically the defendant that raises jurisdiction issues and if they do not respond in the US the US Court will likely issue a default judgment that may be enforceable in Canada.
posted by lookoutbelow at 9:37 AM on September 8, 2020

Before you end up paying a premium to a timeshare exit company (many of which are scammy), it's worth investigating if the company he owns with has its own free or low cost exit program.
posted by merriment at 10:09 AM on September 8, 2020 [2 favorites]

We just got rid of our timeshare in St. John USVI. My husband advertised it through Redweek.com and also on the Timeshare Users Group https://tug2.com/timeshare-resales/default.aspx - it actually sold on ebay. He used Redweek to complete the sale because they are good at handling all the paperwork between the buy and seller, The Westin and the title company. It cost $1200 for closing costs and commission but worth the hassle.
posted by IndigoOnTheGo at 12:19 PM on September 8, 2020

Yes, go to the timeshare users group (TjUG) and ask about this there. They will be able to offer advice on the specific places he owns. DONOT Pay a timeshare exit company-they will just take his money and are total scams. Consider defaulting-if he doesn’t need credit any more it might not matter.
posted by purenitrous at 5:25 PM on September 8, 2020 [2 favorites]