Dear Liz: I successfully granted back seven timeshare properties in different locations that my father had bought over the years. In several cases, the companies were very unhelpful over the phone, but responded once I wrote a letter explaining my father’s age and inability to travel and requested to grant back the deed. It seems all of the companies have a process for doing this, but won’t reveal it over the phone. I had to pay administrative fees and some other costs ($500 to $1,000 per timeshare), but it was worth it to eliminate the yearly maintenance fees.
Answer: Thank you for sharing your experience. Far too many older people continue to pay maintenance fees long past the point where they can enjoy their timeshares because they don’t see a way out. The timeshare companies usually insist the fees must be paid “in perpetuity.” Failing to pay can lead to collection action and damage to your credit score. Desperate timeshare owners are often targeted by scam artists and unethical companies that fail to deliver on promises to get them out of their contracts.
In reality, many developers will take timeshares back under the circumstances you describe. Owners may be able to sell or give away their timeshares using sites such as Timeshare Owners Group and RedWeek. Or they can simply stop paying the fees and let the developer foreclose. Although the damage to their credit scores may be significant, the effect typically wanes over time and disappears once the collection drops off their credit reports in seven years.