Timeshare Madness

18 or 19 years ago my elderly mother gave me her Las Vegas timeshare. My wife and I used it for 18 years - actually 17 visits to Vegas through that period of time. It cost my Mom $12,000 when she got it 30(?) years ago, plus she covered the expense of the property transfer when she gave it to me.

Now, I'm almost 65 and don't want it any longer. I've discovered to my dismay that this particular timeshare (which one? I'll keep that info private thankyouverymuch) has an average sale price of less than $500. The reason is simply that so many people want to get out of these contracts, and the resale value of this "investment" has plummeted. Additionally, there are a lot of timeshare selling scams out there. A lot.

We've opted to simply cease paying maintenance fees (close to $500 annually) and let the timeshare management company repossess the property. I'll take a hit on my credit rating - credit which, BTW, I don't use any longer. That process should take about 7 or 8 months. The management company actively and aggressively sells this timeshare to newbs, but they don't mention that there's no way out when you don't want it any more. I would think that since they sell them anyway, why not offer a buy-out program that would allow them to sell former user's timeshares? But they don't.

Just blowing steam. Warning: Think it through carefully before you "invest" in a timeshare. Yes, we thoroughly enjoyed our Vegas vacations through the years, no doubt! But when a person wants out? AARRGGHH!!

[buddyhu]

Originally Posted by Mark Stone

18 or 19 years ago my elderly mother gave me her Las Vegas timeshare. My wife and I used it for 18 years - actually 17 visits to Vegas through that period of time. It cost my Mom $12,000 when she got it 30(?) years ago, plus she covered the expense of the property transfer when she gave it to me.

Now, I'm almost 65 and don't want it any longer. I've discovered to my dismay that this particular timeshare (which one? I'll keep that info private thankyouverymuch) has an average sale price of less than $500. The reason is simply that so many people want to get out of these contracts, and the resale value of this "investment" has plummeted. Additionally, there are a lot of timeshare selling scams out there. A lot.

We've opted to simply cease paying maintenance fees (close to $500 annually) and let the timeshare management company repossess the property. I'll take a hit on my credit rating - credit which, BTW, I don't use any longer. That process should take about 7 or 8 months. The management company actively and aggressively sells this timeshare to newbs, but they don't mention that there's no way out when you don't want it any more. I would think that since they sell them anyway, why not offer a buy-out program that would allow them to sell former user's timeshares? But they don't.

Just blowing steam. Warning: Think it through carefully before you "invest" in a timeshare. Yes, we thoroughly enjoyed our Vegas vacations through the years, no doubt! But when a person wants out? AARRGGHH!!

Many years ago, someone shared a valuable perspective with me: a timeshare is not an investment, it is prepaying for vacations. Your experience seems to bear out the truth of this statement.

Sorry you have encountered the disappointment about your inherited timeshare.

[Kerbie]

Bummer, Mark. I'm sorry to hear that. Before I did it, I'd be doubly-sure I had used my credit for everything I might need.

Originally Posted by Kerbie

Bummer, Mark. I'm sorry to hear that. Before I did it, I'd be doubly-sure I had used my credit for everything I might need.

You bet. However, these days a repo'ed timeshare on a credit report translates to higher interest rates, generally speaking, and not denials (except for credit cards). Also, I haven't used credit for anything in the past 6 years lol -- Add to that the fact the timeshare is owned by me, not my wife, and this will not affect her credit.

[M19]

Mark, I don't understand why selling at a loss is worse than "abandoning" the timeshare?

[sdelsolray]

Originally Posted by Mark Stone

18 or 19 years ago my elderly mother gave me her Las Vegas timeshare. My wife and I used it for 18 years - actually 17 visits to Vegas through that period of time. It cost my Mom $12,000 when she got it 30(?) years ago, plus she covered the expense of the property transfer when she gave it to me.

Now, I'm almost 65 and don't want it any longer. I've discovered to my dismay that this particular timeshare (which one? I'll keep that info private thankyouverymuch) has an average sale price of less than $500. The reason is simply that so many people want to get out of these contracts, and the resale value of this "investment" has plummeted. Additionally, there are a lot of timeshare selling scams out there. A lot.

We've opted to simply cease paying maintenance fees (close to $500 annually) and let the timeshare management company repossess the property. I'll take a hit on my credit rating - credit which, BTW, I don't use any longer. That process should take about 7 or 8 months. The management company actively and aggressively sells this timeshare to newbs, but they don't mention that there's no way out when you don't want it any more. I would think that since they sell them anyway, why not offer a buy-out program that would allow them to sell former user's timeshares? But they don't.

Just blowing steam. Warning: Think it through carefully before you "invest" in a timeshare. Yes, we thoroughly enjoyed our Vegas vacations through the years, no doubt! But when a person wants out? AARRGGHH!!

You might be able to voluntarily surrender the timeshare to the management company without forcing them to foreclose. Call them and ask how you might do that.

[fatt-dad]

donate it to a church group, non-profit, etc. You get full donation value (i.e., something other than $zero) and the deduction.

My step-father-in-law along with my mother-in-law owned two or three time shares, which they used for a while. When that time ended and estates were being resolved, we learned the same truth.

f-d

[Larry Pattis]

We went through this when my FIL passed away a few years ago.

He was (ahem) "persuaded" to buy into a timeshare in his latter years by his "girlfriend", paid about $35K, and we sold for around $2K...perhaps a bit less.

His kids tried to convince him not to buy, but it was pointless. No one got any use out of the darned thing...maybe once, over a 6 or 7 year period.

Heckuva investment, don'tcha think...?

I figured everyone knew about the near-zero-value on resale on timeshares...which was a part of what we tried to express to him as he was buying.

Sigh.

Originally Posted by Larry Pattis

We went through this when my FIL passed away a few years ago.

He was (ahem) "persuaded" to buy into a timeshare in his latter years by his "girlfriend", paid about $35K, and we sold for around $2K...perhaps a bit less.

His kids tried to convince him not to buy, but it was pointless. No one got any use out of the darned thing...maybe once, over a 6 or 7 year period.

Heckuva investment, don'tcha think...?

I figured everyone knew about the near-zero-value on resale on timeshares...which was a part of what we tried to express to him as he was buying.

Sigh.

True. Fortunately for us, it was a gift and we bore no cost on the initial purchase. They make it very easy to buy -- nearly impossible to sell -- and then if a person does sell one it's for pennies on the dollar.

[Tahitijack]

The time share cost you nothing. I'd sell it for $500 and be happy. Keep your credit rating clean.

Time shares can be good if you own the right one. You need to say to yourself is this a place I would love to return to every vacation? Hawaii? Colorado/Utah ski resort? Florida or California coast? I have a TS and can not stay in a comparable place in that resort town for two weeks for the cost of our annual fees we look at the total cost, including buy in price of ownership every year.

Originally Posted by sdelsolray

You might be able to voluntarily surrender the timeshare to the management company without forcing them to foreclose. Call them and ask how you might do that.

We've had that conversation with them and they will not go that route with us.

Originally Posted by M19

Mark, I don't understand why selling at a loss is worse than "abandoning" the timeshare?

Abandonment is much less expensive. Additionally, it is very difficult to find a legitimate agent to sell the property. Most legit places we found charge fees above the value of the timeshare.

[reeve21]

Originally Posted by Mark Stone

We've had that conversation with them and they will not go that route with us.

Mark,

If you are concerned about your credit, there are actually companies that will buy the time share from you and take you off the hook for the fees--the catch being that YOU pay THEM!

Some friends of mine inherited a time share and they ended up doing this. They are savvy people and don't toss their money around lightly.....

[Jim Owen]

Hi Mark,

Long ago, I worked for a very large law firm. (I proofed legal documents.) One afternoon in the break room, one of the lead attorneys asked me what I was currently working on. "Crooked timeshare," I said. "Don't be redundant," he replied.

[Tico]

Mark thanks for the PSA about timeshares.

Such a scam!