Countless individuals get caught up in the moment when sitting through a timeshare presentation and sign on the dotted line, only to regret doing so hours or days later. They don't consider the benefits and drawbacks of this purchase and may find the purchase costs significantly more than they anticipated. In addition, the lender may foreclose if the payments cannot be made as agreed. Why should a person hold off on purchasing a timeshare?
A Hard Sell
Individuals who sell timeshares know most people who attend a presentation have no plans to buy. They only show up to get something for free. However, they find the salesman talks them into the purchase and they need to know what to do. A person might cancel timeshare purchase if they act quickly and reach out to an attorney for help.
Additional Payments
When buying a timeshare, a person might think they are only responsible for the mortgage payments. However, the developer assesses other fees. Maintenance fees, property taxes, and special assessments are three fees a timeshare owner will probably be asked to pay. Failing to pay could lead to the developer foreclosing and the buyer being left with nothing.
A Bad Investment
Many owners find their timeshare was a bad investment. They are difficult to sell when an owner no longer has use for a vacation rental. In addition, they rarely sell at the purchase price, so a person should only buy a timeshare if they want a guaranteed spot at a specific resort.
Resale Scams
Selling a timeshare interest is challenging, and scam artists recognize this. They refer to themselves as timeshare resale brokers and claim to have a buyer for a timeshare. When the scammer collects their upfront fee to broker the deal, they disappear. The owner is out of any money they provided to this person. Fortunately, several states have laws in place protecting consumers from these scams, but not all do.
Foreclosure is a Possibility
If a person defaults on a timeshare loan, the developer may foreclose on the loan. The same holds if the owner doesn't pay other financial obligations, such as special assessments or maintenance fees. This foreclosure will show up on the owner's credit report and hurt their credit score. In addition, the lender might claim a deficiency if they resell the timeshare and take a loss on it. While some states prohibit lenders from doing so, not all do.
Rentals Aren't Guaranteed
A timeshare contract might allow owners to rent their shares to other people. However, many people find they are unable to secure a renter. In other cases, the contract may prohibit renters or place restrictions on rentals. A person needs to know this before signing on the dotted line.
Scheduling Can Be Challenging
Some timeshares come with an allotted week at a specific property, but that is not the case with all of them. If the owner is not guaranteed a certain week at a specific property, they may find they cannot get a rental when they want. This has become such a problem that states have put laws into place to protect owners from timeshare developers who misrepresent the ease of scheduling accommodations.
