Exit Programs, Postcard Companies and Timeshare Owners September 15, 2010
Posted by Bryan Connelly in : Customer Comments, General, News & Events, Timeshare Resale, Timeshare Resource, Travel , trackbackIt’s alarming, the number of timeshare owners turning to exit programs. Many timeshare owners have been subject to increased annual dues along with high resort assessment fees and need a way out. The strategies used by these companies have helped owners to unload unwanted timeshares… but at what cost? A growing number of consumers are reporting that some post card companies never transferred the ownership out of the individual’s name and now they remain liable for the maintenance fees.
For some, the exit companies provide instant relief, transferring ownership out of the timeshare owners name and into an LLC. An Exit program will operate like a middleman. Anyone can transfer the ownership of a timeshare however. Many companies are equipped to transfer timeshare ownership but it is paramount that the transfer is handled correctly and legally. One such company that we recommend is TransferATimeshareTitle.com. Fast and efficient is great, but you also want to know that your timeshare is in fact being transfered.
Post card companies send out mass mailers directly targeting timeshare owners across the US. Friendly representatives contact each owner by phone stating that their company has a way to get rid of their unwanted timeshares. All the owners need to do is be present at a local hotel in their area. Enter the ‘squeeze play.’ The salesman starts to pitch 50-150 timeshare owners, stating that timeshares have no value and the only option for them to get rid of the timeshare is to pay thousands of dollars to their company.
Not all exit programs are from unethical companies however. In fact, to many owners who have disposed of their timeshares successfully, these companies are saviors. But there is no reason to pay over $3000 to do so little. At least an advertisement on a timeshare resale website reaches out to buyers, a licensed broker can negotiate the sale, a title transfer agency can handle the closing, but a postcard company is not a licensed broker. And while they work with title transfer agencies directly, the closing costs only range from $500 to $700. So why charge over $3000?
A legitimate exit program will send a list of the most valuable properties to some brokers and they will try to sell off what timeshares they can. But any owner can contact a broker and pursue a commission-based sale for their timeshare. The less valuable properties are transferred to a shell company which will disregard all payment and collection requests from the resort. This shell will then file bankruptcy and the fees must now be paid by the remaining owners. Though post card companies will approach you with an attractive offer, know that if you are going to take that leap of faith and sit with a ‘counselor,’ you will pay $3000 to $4000.
If you are simply looking to transfer a timeshare, ensure that the transfer is being handled correctly and ethically. Companies like TransferATimershareTitle.com specialize in lawful timeshare closings. Beware that if you pay some company $3000 to take your timeshare, you may be surprised by another annual maintenance fee invoice from your resort.
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