Timeshare exit FAQ
Honest answers to the questions timeshare exit companies don’t want you to ask.
Q1.Can I just stop paying my timeshare maintenance fees?
You can, but it has serious consequences. Stopping payments does not legally exit you from the timeshare — it leads to default, collections, and eventually foreclosure. During that process (which can take 1–3 years), your debt grows, you receive collections calls, and your credit takes significant damage. A timeshare foreclosure stays on your credit report for 7 years. Stopping payments is a last resort, not an exit strategy — exhaust rescission, deed-back, and resale options first.
Q2.What happens if I default on my timeshare?
When you default, the HOA or lender will typically: (1) send your account to collections, (2) begin foreclosure proceedings after a period of non-payment (varies by state and HOA rules), (3) potentially obtain a deficiency judgment if the debt exceeds the timeshare's value. Timeshare HOAs can also assess collection fees, attorney fees, and interest on top of the original debt. Some states protect against deficiency judgments on primary residences but not timeshares. Consult a consumer protection attorney before defaulting.
Q3.Is the secondary market real? Can I actually sell my timeshare?
The secondary market exists but is extremely difficult. The core problem: supply massively exceeds demand. Timeshare developers sell at retail prices of $20,000–$100,000+ and continue selling new inventory aggressively, so there is almost no reason for a buyer to purchase used inventory at anything above $1. Some valuable exceptions: Disney Vacation Club points, Marriott Destination Club, and Ritz-Carlton club points at top resorts have actual secondary market values — sometimes $5,000–$20,000 — because these are tied to genuinely scarce real estate products. For most non-branded or independent resort timeshares, expect $1–$500 on resale platforms like TUGBBS or RedWeek.
Q4.Do deed-back programs actually work?
Yes — for qualifying owners at participating resorts. The catch: your timeshare typically must be (1) fully paid off with no mortgage, (2) current on all maintenance fees at the time of surrender, and (3) at a resort where the developer has an active program. Programs are completely voluntary for the developer — they can close or change terms at any time. Major programs include Wyndham's Ovation, Marriott's Abound Owner Services, and Hilton's ClubPartner. Independent resort HOAs rarely have formal programs; you may need to negotiate directly or find a buyer.
Q5.What is a timeshare transfer company and are they legitimate?
A "timeshare transfer company" is an organization that takes title to your timeshare out of your name by finding a third party to accept the deed. Legitimate versions exist — typically operated by real estate attorneys or licensed transfer agents who charge after the transfer is complete or in escrow. The problem: this space is full of scams that collect $3,000–$15,000 upfront, do nothing, and eventually go out of business. If you pursue this route, verify the attorney's bar license number, get a contract with refund terms, and never pay large upfront fees. A $500–$1,500 filing fee in escrow may be legitimate; $8,000 upfront to a company you found through a cold call is almost certainly a scam.
Q6.How do I write a rescission letter?
Your rescission letter needs: (1) your full name, address, and phone number; (2) the contract number and signing date; (3) the resort/property name; (4) a clear statement that you are canceling the contract — something like "I am exercising my right to cancel this timeshare purchase contract under [state] law"; (5) your signature and date. Send it to the cancellation address listed in your contract via USPS Certified Mail with Return Receipt. Keep the tracking number and the green card when it comes back. You do not need a lawyer to write this letter — but you must send it within your state's rescission window.
Q7.Can I rent my timeshare instead of exiting?
Renting is an option to offset maintenance costs, but it's not an exit strategy. Most timeshare contracts allow renting but not subletting permanently. Rental income is typically $500–$1,500 per week for desirable resort weeks, which may cover annual maintenance fees — but you remain legally and financially responsible for those fees whether or not you rent successfully. Platforms like RedWeek, VRBO, and Airbnb allow timeshare rentals. Be aware: some developers prohibit or restrict commercial rental activity, and renting to the wrong person can expose you to liability.
Q8.What if my timeshare developer went bankrupt?
When a developer goes bankrupt, the timeshare HOA (Homeowners Association) typically takes over operation of the resort. Your obligations to the HOA — maintenance fees — usually continue even if the developer is dissolved. If the HOA itself fails, things get complicated: the physical property still exists, and local taxing authorities and secured creditors have claims. In bankruptcy, your timeshare obligation may be dischargeable if you file personal bankruptcy — consult a bankruptcy attorney. Never stop paying without legal counsel if your developer has filed bankruptcy, as the HOA may still aggressively pursue collections.
Q9.How do I find a legitimate exit attorney?
Look for: (1) a verifiable bar license number — search your state bar's attorney lookup tool; (2) specific experience in timeshare law — not just "real estate"; (3) charges that are contingency-based, in escrow, or post-exit — not $10,000 upfront; (4) real reviews from named clients, not anonymous testimonials; (5) no guarantee of outcome — ethical attorneys cannot guarantee results. Organizations like ARDA (American Resort Development Association) maintain resources for owner disputes. The Timeshare Users Group (TUGBBS) community forum is an excellent place to get referrals from real owners who have been through the exit process.
Q10.Is it possible to give a timeshare away for free?
Yes, and for most non-branded timeshares this is often the best realistic outcome. Platforms like TUGBBS, Craigslist, and timeshare-specific deed-transfer sites allow owners to advertise their timeshare for free (or even offer to pay transfer fees). The buyer takes on all future maintenance obligations. This typically costs you $300–$1,500 in closing and transfer fees — far less than paying an exit company. The challenge: finding a willing recipient. Buyers on the secondary market are savvy and know most timeshares have negative economic value. You may need to offer to cover several years of maintenance fees or closing costs to attract a taker.
Ready to take action?
If you signed within the last 3–15 days, your free rescission window may still be open.
Information on this page is general educational content, not legal advice. Laws and developer programs change — verify current rules with an attorney or your state AG.