December 3, 2018 By

Q&A: Watch out for scams when trying to dump a timeshare

Dear Liz: How do I get out of a timeshare contract? A few years back, we signed up for one that’s associated with a major hotel chain. Promises were implied but not kept. Since then, I continually receive notices from legal groups that say all laws favor the timeshare developer and that my kids will take over my debt unless I pay the attorney thousands of dollars to get out of the contract.

Do you know of legitimate ways to sever the ties? I know I will lose my investment but would rather be out of the contract “for eternity.”

Answer: Timeshares typically include “in perpetuity” clauses meant to keep owners on the hook indefinitely for annual maintenance fees and other charges.

That doesn’t mean their heirs have to be on the hook, however. Your kids can “disclaim” — essentially, refuse to inherit — the timeshare on your death, as long as you haven’t put their names on the deed.

If you’re not happy with your timeshare, though, consider getting rid of it before your death. Check to see if the developer will take it back or if you can sell it on a site such as RedWeek or Timeshare Users Group. Don’t expect to get much, if any, money out of the deal. In fact, you may have to pay a year or two of maintenance fees in advance as a sweetener. That could be a relatively small price to get out of what otherwise might be a lifetime obligation.

It’s unfortunate that most timeshares don’t offer a simpler way out for owners. The difficulty in getting rid of timeshares opens the door for all kinds of scams and shady behavior, with companies charging thousands of dollars and often not delivering the exit they promise.

Filed Under: Q&A, Real Estate Tagged With: , , ,
October 4, 2018 By

Thursday’s need-to-know money news

Today’s top story: How not to inherit Mom’s timeshare. Also in the news: Why bundling insurance doesn’t automatically mean savings, why your financial advisor has a financial advisor, and 12 documents to prepare now for your heirs.

How Not to Inherit Mom’s Timeshare
Limiting liability.

Will You Save Money Bundling Insurance? Not Always
When bundling isn’t saving.

Why Your Financial Advisor Has a Financial Advisor
Even experts need experts.

12 Documents to Prepare Now for Your Heirs
Making a difficult time easier.

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October 2, 2018 By

How not to inherit mom’s timeshare

Timeshare owners James and Barbara Ruh enjoy their annual vacations in Hawaii, but they don’t want their daughters to be obligated to take over the contracts when they die. So the Ruhs, who are attorneys with offices in Santa Barbara, California, and Edwards, Colorado, created a trust to hold their timeshare interests.

The daughters, who are co-trustees with their parents, can keep the timeshares, sell them or abandon them after the parents’ deaths, Barbara Ruh says. The trust is designed to prevent the timeshare resort developer from going after their daughters for any unpaid or ongoing costs.

“If our daughters do not want the timeshares, they will not be liable individually for any fees,” Ruh says.

In my latest for the Associated Press, a variety of options to assure nobody’s getting an obligation they don’t want.

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August 7, 2018 By

How to get rid of a timeshare

Some timeshare buyers know almost instantly that they’ve made a mistake. Other owners struggle for years with loan payments and ever-escalating annual fees before they’re ready to throw in the towel. Even the happiest timeshare owners may decide they want out of their contracts, perhaps when they are no longer able to travel.

In my latest for the Associated Press, how to get rid of a timeshare.

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June 28, 2018 By

Thursday’s need-to-know money news

Today’s top story: Don’t let puppy love blind you to the expenses of a dog. Also in the news: The pros and cons of timeshares, 9 unsung ways to earn airline miles for free, and every expense you can expect with a first-time home purchase.

Don’t Let Puppy Love Blind You to the Expense of a Dog
Keeping Fido’s costs in check.

Are Timeshares Worth It? Possibly, if You Buy Smart
There are bargains to be found.

9 Unsung Ways to Earn Airline Miles for Free
Convert your groceries into miles.

Every Expense You Can Expect With a First-Time Home Purchase
The costs lurking behind the celebration.

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June 26, 2018 By

How to be a happy timeshare owner

Many people are desperate to shed their timeshares. That provides bargains for timeshare enthusiasts like Angie and Mike McCaffery of Los Angeles.

The retired couple has paid as little as 50 cents for “used” timeshares. They’ve parlayed their timeshare weeks at four mainland U.S. resorts into affordable stays in England, Spain, Costa Rica, Hawaii, Mexico and the Caribbean.

“You hear all the nightmare stories, but if you know how to work it and you can plan ahead, it’s the best thing ever,” says Angie McCaffery, 71.

In my latest for the Associated Press, what people who are happy with their timeshares have in common.

Filed Under: Liz's Blog Tagged With: ,
July 14, 2014 By

Q&A: How to escape a timeshare

Dear Liz: How do I walk away from a timeshare? It’s paid off but we have yearly maintenance fees that are now $3,600 each year. This will be prohibitive in retirement, and it’s quite a burden now. The developer won’t let us give it back, and we can’t sell it because the resale companies are sharks that demand money upfront. Can they ruin our credit if we stop paying? Is there any way to protect ourselves?

Answer: If you stop paying your annual maintenance fees, your account can be turned over to a collection agency. That will trash your credit, and you could be sued.

Many people who buy timeshares don’t realize they’re making a lifetime commitment, said Brian Rogers, owner and operator of Timeshare Users Group. Even after any loans to buy the timeshare are paid off, owners owe maintenance fees on the property. Maintenance fees typically rise over time and may be supplemented by special assessments to repair or upgrade resorts as they age.

The good news is that you may be able to get out from under these fees by selling your timeshare, and you don’t have to use a resale company that charges an upfront fee. In fact, you shouldn’t, since those arrangements are frequently scams, Rogers said.

The amount you’re paying indicates that you own a timeshare at an upscale resort. (The average maintenance fee is closer to $800 a year, Rogers said.) If that’s the case, your timeshare may have some value, even if it’s only a tiny fraction of what you paid. Owners at less desirable resorts often find they can sell their timeshares for only $1, and may have to pay others to take the timeshares off their hands.

You can list your timeshare for sale at no or low cost on EBay, Craigslist, RedWeek or Timeshare Users Group, among other sites. To get some idea of what it’s worth, enter the name of the resort into EBay’s search engine and click on the “completed sales” box on the lower left side of the page. Timeshare Users Group and RedWeek offer additional advice on selling timeshares.

You also could consider renting out your timeshare, using those same sites. Many owners discover they can offset or even completely cover their maintenance fees through such rentals, Rogers said.

Filed Under: Q&A, Real Estate Tagged With: , ,