Timeshare dilemma

[04261]

A couple years back I made a terrible mistake when I was on vacation in Las Vegas and ended up purchasing a timeshare. Not sure exactly what I was thinking at the time, but the way that it was explained to me it seemed like it would be an inexpensive way to spend a week out there every year. Boy, have I learned the reality of that lesson in a big way.

To make a long story short, I still have $14,000 on the loan at 17% interest rate, plus I have yearly maintenance fees that I can no longer afford. I'm wondering if anyone can tell me how to get out of this mess? I have tried to get other people to take over the loan, but nobody is interested in nobody will buy the timeshare until the loan is completely paid off. What is the best course of action I can take in this situation in order to get the timeshare out of my name?

[jeffrey]

This, unfortunately, it's a lot more common than you would think. Even worse, there really isn't a whole lot that you can do except take a massive loss.

If you purchase the timeshare from the resort, you paid far more than its worth. Currently the secondary market for timeshares is completely flooded. While the desirability of the week that you hold will make a huge difference, chances are that it's probably now worth less than 10% of what you paid for it. I know that that stings, but it's simply the reality of the timeshare market these days.

What that means is is that the $14,000 loan that you're currently caring is one that you will probably still have even after you get rid of your timeshare. What you need to do is find out whether the loan is secured with the timeshare or whether it is one that is not secured by anything. With the interest rate that your quoting, my guess is that it's not secured. What that means is that you can sell your timeshare, but even after it is sold you will still be responsible for that $14,000 outstanding loan. If the loan is secured with the timeshare, you're going to have to pay off the entire loan before you will be able to sell the timeshare.

Selling the timeshare itself can be a problem. Like I mentioned above, there are far more people trying to sell at the moment then there are buyers. This means that they can be difficult to even give the timeshare away because nobody wants to be stuck with the yearly maintenance fees. Here are some options you have to try to get rid of the timeshare. Unfortunately, none of them is easy and it will likely take quite a bit of work on your part to get it done. As a side note, never pay an upfront fee to someone who says that they can sell your timeshare quickly -- these are all scams and you will lose any money that you pay and still have your timeshare in the end.

All you can really do at this point is chalked it up to being an expensive financial lesson and take the steps you need to get rid of it so you're out from under the maintenance fees.

[lorraineb]

Is there any way that you can transfer the $14k loan to get a lower rate? I pay less interest on my credit card (well, I would if I ever carried a balance). That would be my first priority.

[Goldy]

You could try and get a loan from lendingclub.com to pay off that timeshare note. The interest rates would be less (depending on credit) and the timeshare loan would then be paid off allowing you to dump it a little easier.

[disneysteve]

plus I have yearly maintenance fees that I can no longer afford.

As long as you own it, you could try renting it out to at least cover your maintenance fee.

Time shares are HORRIBLE purchases (I won't even use the word "investments" because they clearly are not - with the exception of DVC, Disney's plan).

[04261]

What do you mean? I can't get anything for my timeshare? So I will have to sell it for nothing to get out of the maintenance fees and then even though i don't have anything, I will still owe $14,000? That's not fair!

[jeffrey]

While you probably can get something for your timeshare, it's not going to be anything near what you paid for it. Whether it's "fair" or not is irrelevant -- it's the reality of the situation. Unfortunately, there is really nothing you can do about it other than chalk it up to an expensive and painful financial lesson.

[KTP]

$14,000 at 17%!!!

Hope those free tickets to O were worth it.

Sorry for your troubles, but this is a good lesson to anyone else out there even thinking about letting someone they remotely like buy a timeshare.

[04261]

Are you serious? I don't believe it. There is no way that something I paid $20,000 (plus a couple of thousand in maintenance fees) I can't even get $14,000 back on. That's ridiculous. You must not know what you're talking about because I have never heard of anything like that. I was told that my timeshare was an investment and that it would always be worth something. I came here for help and all you seem to be telling me is that I'm going to lose thousands of dollars. There must be someone that will purchase it for what it's worth.

[Wino]

Something is worth exactly what someone is willing to pay for it, and not a penny more.

Go ahead and try to sell the timeshare. Let us know how much you get for it.

[kv968]

Are you serious? I don't believe it. There is no way that something I paid $20,000 (plus a couple of thousand in maintenance fees) I can't even get $14,000 back on. That's ridiculous. You must not know what you're talking about because I have never heard of anything like that. I was told that my timeshare was an investment and that it would always be worth something. I came here for help and all you seem to be telling me is that I'm going to lose thousands of dollars. There must be someone that will purchase it for what it's worth.

Of course they told it's a good investment, they're trying to get you to buy it. And of course it'll be worth something, however that "something" doesn't have to be anywhere near what you paid for it.

Here's a site (there's many) with some Vegas timeshares that are for resale. See if you can find one that matches yours and see what they're asking. Remember also, this is what they're ASKING, not necessarily getting.

Timeshare resale

[disneysteve]

Are you serious? I don't believe it. There is no way that something I paid $20,000 (plus a couple of thousand in maintenance fees) I can't even get $14,000 back on. That's ridiculous. You must not know what you're talking about because I have never heard of anything like that. I was told that my timeshare was an investment and that it would always be worth something. I came here for help and all you seem to be telling me is that I'm going to lose thousands of dollars. There must be someone that will purchase it for what it's worth.

There are people who will buy it for what it's worth. What you aren't grasping is that at best, it might possibly be worth $1,000-$2,000 and that's probably pushing it.

Unfortunately, you decided to make a $20,000 purchase without doing a moment of research. A quick Google search for "should I buy a timeshare" would have revealed an endless list of articles telling you not to. Here is just one from a well known timeshare site that discusses the difference between buying new and used:

http://tug2.net/timeshare_advice/timeshares_buying_new_or_used.html

Note that it says the $25,000 new unit might resell for $2,500. Ten percent of original price is fairly standard for resales, so if you paid $20,000, the most you are likely to get is $2,000, and that's if you can find a buyer at all.

[Petunia 100]

Are you serious? I don't believe it. There is no way that something I paid $20,000 (plus a couple of thousand in maintenance fees) I can't even get $14,000 back on. That's ridiculous. You must not know what you're talking about because I have never heard of anything like that. I was told that my timeshare was an investment and that it would always be worth something. I came here for help and all you seem to be telling me is that I'm going to lose thousands of dollars. There must be someone that will purchase it for what it's worth.

A salesperson, who only makes money if you buy what s/he is selling, told you that it was an investment. Think about that. There's a valuable lesson to be learned.

[lorraineb]

You came here asking for help -- although you might not like the truth, the truth is what you're getting. Until you're willing to accept the truth and make the necessary moves from that point, there is really nothing that any of us can do for you. I know that this must be coming as a shock to you, but that doesn't make it any less real.

[04261]

If I can only sell it for $2000, then why should I sell it at all? If I did that, I would have $12,000 at 17% interest of debt and absolutely nothing to show for it. If nobody is willing to pay what it's actually worth, then I'm not willing to sell it. I refuse to take that much of a loss because doing so would be financially irresponsible.