How One Family Lost $900,000 in a Timeshare Scam (2024)

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archived recording (michael)

Hello, James.

archived recording (james)

Hello.

archived recording (michael)

Hey. How’s it going?

archived recording (james)

Yeah. I’m not having much luck. So the problem is funding. And all of my money is in Mexico, all of it.

katrin bennhold

From “The New York Times,” I’m Katrin Bennhold. This is “The Daily.” A massive scam targeting elderly Americans who own timeshare properties has resulted in hundreds of millions of dollars sent to Mexico.

archived recording (michael)

Once you move forward and make your payment, if anything were to happen, he will directly pay you the full amount of what you’re entitled to, including the gains. He will pay you the full amount.

archived recording (james)

You’ve got all my money. It’s been sent. I sold a freaking house.

Listen to this. I sold a house that I grew up in so that I could come up with funds to send to Mexico.

I don’t even have anything from the sale, nothing.

katrin bennhold

My colleague Maria Abi-Habib on one victim who lost everything and the people on the other side of the phone.

archived recording (michael)

That’s it. That’s it. There’s nothing —

archived recording (james)

You know what? That’s what has been said every freaking time. Every time, just pay this. That releases the funds.

archived recording (michael)

But that’s why we won’t allow it to happen again. This is the last time, James.

katrin bennhold

It’s Friday, April 12.

Maria, you’ve been looking into this scam that’s targeting Americans. Where did your investigation start?

maria abi-habib

So several weeks ago, I received a phone call from a lawyer based in St. Petersburg, Florida, who had been contacted by a family who was very concerned that the father, this man named James, was in the middle of being scammed. He’d sent hundreds of thousands dollars to Mexico. And he was considering sending another $157,000 when his daughter decided to call up this law firm and try to get her father to stop, stop sending money to Mexico.

[DIALING]

So I called him a few weeks ago as I was trying to understand what was going on.

james

Hello.

maria abi-habib

Hi, James. How are you?

james

Good. Thank you.

maria abi-habib

Good.

maria abi-habib

He’s asked that his last name be withheld for privacy concerns because he’s quite embarrassed about the story that I’m about to tell you.

maria abi-habib

You’re retired now, but what were you doing for work? And if your wife was working, what was her job?

james

I was with the Highway Patrol.

maria abi-habib

James is a retired state trooper from California. And his wife Nikki is a former school nurse.

james

She was born in ‘51. So 71-ish.

maria abi-habib

OK.

james' wife

Two.

james

Two. She’s just reminded me, 72.

maria abi-habib

And they’re both in their early 70s. And they own this timeshare that is in Lake Tahoe, California. And they bought it in the 1990s for about $8,000.

katrin bennhold

And for someone who did not grow up vacationing in a timeshare, remind me how exactly timeshares work.

maria abi-habib

Timeshares are essentially vacation properties. And they tend to be beach resorts. And multiple people can buy into this property. The ownership is a shared ownership. And this gives you the right to use the timeshare for one to two weeks out of every year.

And so James and Nikki used their timeshare every other year with their daughters. But as they hit retirement age and their daughters are growing up and starting their own families, they’re just not really using it that much anymore. And timeshares require the owners to pay off yearly maintenance fees. And so they’re starting to think about maybe letting go of their timeshare and selling it.

Then one day, in late 2022, James gets a phone call from a company that is purporting to be based out of Atlanta, Georgia called Worry Free Vacations.

katrin bennhold

Worry Free Vacations?

maria abi-habib

Yeah.

katrin bennhold

That sounds enticing.

maria abi-habib

Yeah. And they start off with a simple question, which is, do you want to buy a timeshare? And James says, I already have a timeshare. And then they say, great. Well, what about selling the timeshare? Do you want to sell? There’s this Mexican businessman, and he’s interested in your timeshare. And he’s willing to buy it for about $20,000.

james

So we figured, well, what the heck? If we can make a few bucks on it, we’ll go for it.

maria abi-habib

And James jumps at the opportunity.

katrin bennhold

And did he do anything to try and verify that this was real?

maria abi-habib

Yeah. So remember, James is former law enforcement. And he feels very confident in his abilities to sniff out untrustworthy people. So he goes online, and he googles this Mexican businessman and sees that, yeah, he is a real person.

james

He’s a very well-respected individual in Mexico, very well off. And —

maria abi-habib

And this makes James feel at ease, that he’s selling to a legitimate person, that Worry Free Vacations are who they claim to be and that he’s going to double his money overnight, essentially.

katrin bennhold

And what happens next?

maria abi-habib

Well, a couple of weeks after he makes the agreement with the buyer, he’s told that he needs to send a couple thousand dollars to facilitate the purchase.

katrin bennhold

What does that mean, facilitate?

[MUSIC PLAYING]

james

I can’t remember specifically whether it was supposed to be cross-border registration —

maria abi-habib

So he’s being told that there are these fees that are paid directly to the Mexican government.

james

Or SPID or some other fee that was Mexican government required or not.

maria abi-habib

A lot of these fees are the same types of fees that you would pay in the United States for a real estate transaction. So he begins wiring money to an account in Mexico.

james

After that —

maria abi-habib

But —

james

— a few days later, we get a notification. Well, everything went well, except that we have to pay an additional fee.

maria abi-habib

Every time that he sends one fee, he’s being told that he’s got to send another fee right afterwards.

katrin bennhold

Does he get suspicious at any point?

james

His wife is suspicious. After the first couple of payments, she starts saying, this does not feel right.

katrin bennhold

Hmm.

maria abi-habib

But James is the former law enforcement officer, right? And he’s the one that basically handles the family finances. And he’s confident that all of this is going to work out because he’s being told that the buyer of the timeshare will reimburse James for all of these fees once the sale goes through.

james

Michael from the Worry Free Vacations was constantly reassuring me the money’s in that account. Check with the commercial escrow account. It’s there. It’s just these fees have to be paid, and you’re being reimbursed for all of this.

maria abi-habib

They’re sending James documents that show all of the reimbursements that he’s owed and how much money he’s going to get. And this just makes him feel like all of this is kosher.

james

We have this commercial escrow company that was involved out of New York. So there was an air of legitimacy that I was comfortable with.

maria abi-habib

Maybe OK, these guys just need one more fee and everything is going to finally be cleared.

But about a year in, James starts to get suspicious. He begins asking questions because he wants his money.

james

And every time I asked, hey, is there a way I can get a partial release of these funds, there was always no, these funds have to be paid from your account before they’re released.

maria abi-habib

But Worry Free Vacations, they pivot. And they tell him that, listen, there are all these complications. It’s going to be really hard to get your money out from this transaction.

james

I could pay about $30,000 and change to reinvest the $313,000 into an environmentally-conscious development in Loreto, Mexico.

maria abi-habib

Instead, we’ve got this other investment opportunity in Mexico.

james

And I’m sure you know where that is, over on the East Coast of Baja.

maria abi-habib

Mhm.

maria abi-habib

And that is going to make you a huge return, even more money than you had thought that you were going to make, much more than the $20,000.

james

I’m supposed to have 54 million pesos in a Mexican bank account.

maria abi-habib

Yeah. OK.

katrin bennhold

So this is now no longer just about his timeshare. They are now partners in a real estate investment.

maria abi-habib

Right. And there’s this whole new round of fees and fines associated with that.

maria abi-habib

So how many payments would you say?

james

Oh, geez.

Quite a few. Couple dozen at least, maybe more.

maria abi-habib

When was your last payment?

james

It would have been 17 January.

maria abi-habib

Uh-huh. And what was that for?

james

Good question.

maria abi-habib

And all along, he believed it was necessary to pay these costs just to get the money that he’s owed.

james

The amount of money that I’ve sent to Mexico is just freaking exorbitant. And I mean, it is approaching $900,000 or more.

maria abi-habib

Wow. OK.

maria abi-habib

And at this point, he’s sent about $900,000 to Mexico over about a year and a half.

katrin bennhold

Nearly $1 million.

maria abi-habib

That was almost all the money that he and his wife had saved for their retirement.

katrin bennhold

Wow.

maria abi-habib

It also included money from the sale of James’s childhood home and money that he had borrowed from his daughter and son-in-law, about $150,000 from them.

katrin bennhold

It’s awful. So they were completely cleaned out by these guys.

maria abi-habib

Yeah. And this is when his daughter asks a law firm to look into this, which is the point in the story when I meet James. And when we start talking, it was clear to me that he just did not know what to think, even after losing this much money.

maria abi-habib

So this started in 2022. When did it end?

james

We’re still in it.

maria abi-habib

Oh, geez.

james

Right now.

maria abi-habib

And he’s still talking to the scammers.

james

And as a matter of fact, presently, there was a request for $157,000 and change to clear up this whole thing. It would clear the entire issue out. Now —

maria abi-habib

And James is even considering putting a second mortgage on his house to send that money that he’d been promised would finally clear all this up — one final payment of $157,000.

katrin bennhold

It really sounds like he’s still wanted to believe that this was somehow legit.

maria abi-habib

Yeah. It was pretty clear to me that he was being scammed. But I didn’t definitively know what was going on, so I asked him if he could start recording his phone calls with the scammers.

maria abi-habib

Would you be so kind as to do me a favor?

james

Yes.

maria abi-habib

Would you be willing to give them a call and record them?

james

[LAUGHS]: I’ll let you in on a little secret. I’ve been recording them.

maria abi-habib

And it turns out he already had been.

[DIALING]

archived recording 1

Worry Free Vacations.

maria abi-habib

So he shared the recordings of these calls that he’d had with these scammers over the last year or so. And it was just remarkable. It gave me huge insight into how the scam worked and the way that it sounded over the phone.

Is this is Michael in? I think he’s trying to call me. I couldn’t get through pick up.

archived recording 1

Yes, I believe he did try to call you, sir. Give me a second. I think he’s only going to be in for a couple of minutes. One second.

maria abi-habib

There are two main takeaways for me listening to these calls.

archived recording (michael)

Good afternoon. Michael McCarthy.

archived recording (james)

Michael, I missed your call. I was trying to pick up.

archived recording (michael)

Yeah, don’t worry. Yeah, I figured something was wrong with your phone. Everything OK?

maria abi-habib

The first is that these scammers had really gotten to know James so well, and they really made James believe that Worry Free was a company that was working for him.

archived recording (michael)

That’s why we need to hurry up and get this money over to you. Because hey, I’m losing my mind too. I’m not even here to convince you, James. I’m not — I’m your broker, and —

maria abi-habib

One of the things they continuously say is, trust me.

archived recording (michael)

Look, I’m doing everything I can in my power and will on my end. So James, just look — like I told you from the get-go, I’m going to resolve this. And we are doing it. I just need you to focus on the goal.

maria abi-habib

They would refocus the conversation on what James needed to do to get his money back.

archived recording (michael)

Look, if you make your payment as a security deposit, right away they will release the funds to you. With these —

maria abi-habib

And the other thing —

archived recording (james)

Hello?

archived recording 2

I’ve been having so much trouble trying to reach you, and I have not been successful.

maria abi-habib

— is that the scammers had created this elaborate cast of characters.

archived recording 2

Why don’t you answer my calls?

maria abi-habib

And some of them were really aggressive. James shared a recording of this one man who claimed to be an agent for the Mexican government. And he basically started yelling at James.

archived recording 2

I don’t care if your wife is at the hospital. To be honest with you, I don’t give a damn! But you know where I do give a damn? It’s your money, and my name is written all over it! Do you understand?

james

Yes.

maria abi-habib

And he even threatened James. If James didn’t pay off these fines, then he would lose all the money that he’d sent to Mexico already.

archived recording 2

You could get the best lawyer you want. You could get whoever you want. And this is not a threat. This is facts. But anyways, who am I to convince you, right?

james

Right.

Well, thank you for the information. And — are you still there? Hello?

katrin bennhold

Wow. So these scammers were basically doing a good cop, bad cop routine to stop James from walking away and to squeeze every last penny out of him.

maria abi-habib

Exactly.

james

If you provide me your email, contact information, I will certainly be happy to forward all of the wire transfer information from my bank account to you so that you can see where those funds went.

maria abi-habib

Yeah, that would be great. I have your email.

maria abi-habib

James asks me, a reporter who’s based in Mexico, who speaks the language, if I could help him figure out where his money had gone to.

james

Thank you very much. I really appreciate your assistance.

maria abi-habib

I’m just doing my job. Thanks again, and we’ll talk soon.

maria abi-habib

And the only way that I could figure that out was to understand who was on the other side of the phone.

[MUSIC PLAYING]

katrin bennhold

We’ll be right back.

So Maria, who was on the other side of that phone line?

maria abi-habib

So by the time that I’d met James, I’d already gotten a tip from US law enforcement agencies that they were seeing a new trend. Mexican drug cartels were getting involved in the timeshare scam industry.

katrin bennhold

Drug cartels?

maria abi-habib

Yeah. And not just any drug cartel. This is one of the most notorious, violent, bloody drug cartels that exists in Mexico and Latin America, the Jalisco New Generation cartel. And when I looked at James’s bank records, guess what? All the money that he was sending was going to various bank accounts that were all located in Jalisco state in Mexico.

katrin bennhold

Wow. So why would the drug cartels get into the timeshare scamming business?

maria abi-habib

It is a huge business. The FBI told me that it’s about $300 million in profits over the last five years.

katrin bennhold

Wow.

maria abi-habib

But the thing is is that the potential for it to actually be multitudes more is huge. Because the FBI estimates that most of the scams are actually not even reported. In fact, only about 20 percent are. So that means the total timeshare scam business could actually be much larger than the $300 million that they have knowledge of over the last five years.

katrin bennhold

But wait. I thought the drug business was a pretty lucrative business in itself. So why get into the scamming of elderly people for their properties in Lake Tahoe?

maria abi-habib

Well, you have to remember that these drug cartels, they’re not just doing one thing. They’re doing multiple things. They’re essentially conglomerates. Because it’s really expensive to run a cartel. You need to pay off officials, both Mexican and American. You need to maintain basically an army in order to secure your routes up to the United States, ports of entry into Mexico from Colombia. And any big business, you need to diversify your income to make sure that you keep the money flowing. Because you never know when one business is going to be shut down by authorities or taken over by your rivals.

We’ve reported that they’re now in the avocado business and the construction business. And timeshare fraud is basically no different than any of those. So we’re seeing that the cartels have their fingers in many pies, the legitimate and the illegitimate economy here in Mexico.

katrin bennhold

It’s kind of fascinating to think of these drug cartels as like sprawling diversified business empires. But when did the cartels first get into the scamming business?

maria abi-habib

So Jalisco New Generation started about 15 years ago.

And when they started to consolidate their empire in Jalisco state, they found that there were all these scam timeshare call centers all over the state that were being run by various players, and that this was a huge, huge moneymaker. Because essentially, all you have to do is call up retired senior citizens in the US and Canada. It doesn’t take that much money to run that kind of a scheme. There’s no product you’re making.

So essentially, they conducted a hostile takeover of these call centers. They went in. They kicked down doors and dragged out the people who were managing these call centers by their hair and threatened to kill them unless they gave up the call centers or started handing over a cut of what they made. And slowly, slowly Jalisco New Generation cartel took over the entire timeshare fraud industry.

katrin bennhold

Interesting. Were you able to find any of these call centers?

maria abi-habib

So these call centers are pretty hard to find. They look like any other storefront. But I was able to visit two that were located in an upscale neighborhood in Guadalajara, which is the capital of Jalisco state. And it was just really perturbing because it was just so normal. Two villas about a mile away from each other outside. Outside of one villa, parents were walking by, holding their children’s hands as they did drop off at school.

It was right next to a park where people taking their morning exercise or their dogs for a walk. There was no real sign that the cartel was doing business there. But a few months before, Mexican law enforcement had found the bodies of eight young people who had used to work at one of these call centers and said that the Jalisco cartel had killed them.

katrin bennhold

Wow. What happened?

maria abi-habib

So I wasn’t able to talk directly to any of the victims’ families. They’re just too scared. But in general, this is usually how it starts.

The cartel seeks out English speakers to work for their call centers. Sometimes they don’t even tell them what exactly they are doing. They would tell the recruits that the job was adjacent to the hotel industry.

You have to remember, Jalisco is a huge, huge tourism magnet for Americans and Canadians and others. And the cartel would get their call lists from bribing hotel employees to give them the names of people who stayed at these hotels and also at the timeshare resorts. And the people who would work at the call centers are provided the names and a manual of what you need to do when you call, like a loose script of how to try to suck as much money as you can out of these people up North in Canada and the States.

katrin bennhold

Mhm.

maria abi-habib

So we don’t know for sure what exactly happened with the eight young Mexicans who were killed last year. But through an intermediary, one sibling told us that when their family member knew what their job actually was, they became extremely uncomfortable and tried to leave the call center and find another job maybe.

But the Jalisco New Generation cartel is known for being extremely brutal. They chop off heads, and they’ll put them on the gates of a playground, for instance. So that everybody in the neighborhood knows what went down. And in this case, it’s possible that they wanted to send a warning that there’s no defection from their timeshare call centers.

katrin bennhold

So basically making a very scary example of these guys, in case anyone else is thinking about quitting one of the call centers.

maria abi-habib

Exactly. And one man, who runs an organization who advocates for missing people and actually organizes search parties to comb the forests of Jalisco state looking for the missing, says that he knows of about 30 people who have disappeared from the call centers in Jalisco state since 2017. So while Americans and Canadians might be losing much of their life savings, in Mexico, this is actually deadly.

katrin bennhold

Are the authorities doing anything about this?

maria abi-habib

Not really, other than the fact that these two call centers were shut down. The authorities haven’t arrested others. They’re not putting pressure on Mexican banks, for instance, to look into these payments coming from senior citizens in the US or Canada. And you have to remember that people are really afraid. But you also have to remember that in Mexico things are not that clear. There is a lot of corruption and government collusion with organized crime and cartels.

And the tourism industry, it is huge in Mexico and particularly in Jalisco state. This is a multi-billion dollar industry. They don’t want Americans or Canadians or Europeans who are coming to Jalisco for its beautiful beaches and its mountains to hear about these stories regarding the cartels being involved in the tourism industry and think, I’m not going to send my family there for that beach vacation. It’s just simply too dangerous.

So everybody has an incentive to have the scam continue, whether because they’re too afraid and don’t want to speak out or because they’re in on it.

katrin bennhold

So in a way, local authorities have an interest in sweeping it under the carpet in order to just maintain this idea of a tourist destination.

maria abi-habib

Exactly. I mean, the spokeswoman for the prosecutor’s office was very responsive to me until I told her what I wanted to ask her questions about. And then she just simply never answered any of my texts or phone calls.

katrin bennhold

So Maria, based on everything you know, all the information you have, would you say that you’re confident that the cartels were the ones who scammed James?

maria abi-habib

Yes, 100 percent. Everything I’ve seen points in that direction.

katrin bennhold

What did James say when you told him this?

maria abi-habib

So it took him quite a while to really allow himself to believe it. On the advice of his lawyers, he stopped picking up the phone calls. And about a week ago, they stopped after the scammers kept trying to call him.

katrin bennhold

But you said he was in it for over a year. Why do you think it took him so long?

maria abi-habib

Can you tell me, after all of that had been presented to you, why do you think you weren’t willing to be entirely convinced?

maria abi-habib

Well, I actually asked him that question.

james

That’s a very good question. Why wasn’t I able to pick up on that right away? And I think in the back of my mind, I’m finding out that I’m a little more stubborn than I thought I was.

maria abi-habib

And for him, it was pretty complicated.

james

And I think that I didn’t want to believe that I had fallen for this. I didn’t feel I was that foolish and stupid when it came to this. You know? I guess I didn’t want to believe that I could be fooled.

maria abi-habib

To come to terms with the fact that he had lost so much money was to come to terms with the fact that he wasn’t the person that he thought that he was, that he wasn’t this kind of clever former law enforcement officer who was used to fighting the bad guys and winning.

james

I’m disappointed in myself. There’s a huge level of anger towards the perpetrators. And all of those things wrapped into one. And part of that, I think, contributes to not wanting to actually believe that I was wrong.

maria abi-habib

Hmm. Yeah, I hear you. I’m sorry. I can hear the pain in your voice.

james

[LAUGHS]: Yeah.

maria abi-habib

Some of it’s based on shame, right? That he lost all this money, everything that he’s worked for, and the fact that this was all supposed to be money that his children and his grandchildren were going to inherit. And now it’s gone.

[MUSIC PLAYING]

maria abi-habib

And have you told your daughter that you think you’ve come to terms with the fact that this might have been a scam?

james

Oh, she’s been involved. Yeah. They know.

maria abi-habib

OK.

james

My daughter does.

maria abi-habib

I’m sorry. This is a tough time.

james

Yeah.

So I’ve got to make some sort of arrangement to compensate them for this on top of our regular debt. So yeah. It’s been a swell experience, all of it brought on by my — evidently, my stubbornness to believe that I couldn’t possibly be a victim.

maria abi-habib

How’s your wife doing throughout this whole process, with this new knowledge?

james

She’s not real happy, obviously, at all. I hear a lot of “I told you so.” And at this point, I’ve got no defense. She’s absolutely right. There’s no question about it.

maria abi-habib

Do you worry this is going to affect your marriage?

james

Yes, there has been an effect.

katrin bennhold

And do you think that at this point there’s any way for James and his family to get some kind of justice or at least find some kind of closure?

maria abi-habib

Ay. Justice? Unlikely.

james

At this point, I’m not necessarily expecting much in the way of restitution.

maria abi-habib

And as for closure, it’s a little bit too soon to tell. In a way, James has gone through several stages of acceptance for what happened. There’s fear. There’s shame. There’s resignation. And now he’s talking to me partly because he feels like it’s a public service, that he needs to be vocal so that other people don’t go through what he’s gone through and fall for the scam. And I think it also helps him feel a little bit empowered in a situation for over the last year and a half he was at the mercy of these people who were calling him multiple times a week.

james

I want to try to get as much information to as many of these official organizations as possible. I have a streak of anger through me now that I’ve developed to the point where I’m not going to let this go.

katrin bennhold

Well, Maria, thank you.

maria abi-habib

Thank you for having me.

katrin bennhold

We’ll be right back.

Here’s what else you need to know today. OJ Simpson, the football star who was accused and later acquitted of murdering his former wife and her friend, died of cancer at his home in Las Vegas, his family said Thursday. He was 76.

Today’s episode was produced by Astha Chaturvedi and Will Reid, with help from Clare Toeniskoetter and Lindsay Garrison. It was edited by Brendan Klinkenberg and Michael Benoist, contains original music by Marion Lozano, Rowan Niemisto, Dan Powell, Pat McCusker, and Will Reid, and was engineered by Chris Wood. Our theme music is by Jim Brunberg and Ben Landsverk of Wonderly.

[THEME MUSIC]

That’s it for “The Daily.” I’m Katrin Bennhold. See you on Monday.

How One Family Lost $900,000 in a Timeshare Scam (2024)

FAQs

Are timeshares rip offs? ›

Are Timeshares a Financial Scam? Many people are under the impression that timeshares are a good investment, but that isn't necessarily the case. If you're thinking financially, then no, timeshares are not a good investment. Any industry professional will never tell you that you can make money off your timeshare.

Do timeshare exit companies really work? ›

Many timeshare exit companies are not legitimate and are not safe. If and when an attorney advises you to stop paying your maintenance fees or mortgage, take it as a red flag. These fees and dues are legally binding. If you stop paying your annual fees, your ownership will be foreclosed on and it will harm your credit.

How to buy a timeshare without getting scammed? ›

It is important to use the contact information provided by the state to verify you are communicating with the licensed agent and not a scammer impersonating the agent.
  1. Don't take official-looking documents at face value. ...
  2. Contact your resort. ...
  3. Get information about the fees and timing of payments in writing.

How many people regret buying a timeshare? ›

The timeshare industry is valued at more than $10 billion. But one study found that as many as 85% of buyers regret their purchase.

Why are timeshares so scammy? ›

Timeshares have gained a reputation for being a scam due to various unethical practices employed by some companies in the industry. Instances of high-pressure sales tactics, misrepresentation of the property or its value, and deceptive marketing techniques have left many feeling duped and disillusioned.

What defines a timeshare scam? ›

The majority of timeshare scams rear their heads during the resale process. Individuals claiming to be from exit companies may call you with too-good-to-be-true promises to free you of your timeshare or even inform you that they have already found a buyer for it. That's when the request for an upfront fee comes in.

What is the FBI timeshare scam? ›

Timeshare scams have been perpetrated for many years, targeting unsuspecting victims out of their hard-earned money. In one common scam, timeshare owners receive unexpected or uninvited telephone calls or emails from criminals posing as sales representatives for a timeshare resale company.

How do I get my money back from a timeshare? ›

How to get out of a timeshare without ruining your finances
  1. Use the rescission period. ...
  2. Try a timeshare deed-back. ...
  3. Hire a contract law attorney. ...
  4. Sell your timeshare on the resale market. ...
  5. Find a timeshare exit company.
Aug 11, 2023

How to get rid of a timeshare that is not paid off? ›

To get out of a timeshare legally, consider these options:
  1. Use the rescission period.
  2. Call the timeshare developer.
  3. Rent your timeshare out.
  4. Sell your timeshare on the resale market (but expect to take a hit).
  5. Gift your timeshare to a friend, family member or stranger.

What is the cheapest way to get out of a timeshare? ›

Ask the Resort to Take It Back

Some are surprisingly simple, like a timeshare deed-back. This is a legal, low-cost way to give the property back to the resort. Pay off debt fast and save more money with Financial Peace University. Look through your timeshare's paperwork to see if this is an option for you.

How much does a timeshare exit team cost? ›

While it can differ depending on which timeshare exit team or business you look into, many have starting rates at upwards of $5,000, some reaching tens of thousands of dollars. Additionally, timeshare exit companies will often give you a money-back guarantee if they can't get you out within a certain time frame.

Why timeshares aren t worth it? ›

Timeshares Decrease In Value

Unlike vacation homes, a timeshare doesn't typically increase in value over time. Instead, it's more likely to decrease in value since it's considered an illiquid asset, which means the timeshare owner can't quickly get cash for the value of the property.

Does anyone actually buy timeshares? ›

People buy timeshares because the average cost is almost nominal in comparison to a lifetime of hotel stays. At most timeshare presentations, a sales representative will show you approximately how much you'll spend over your lifetime on travel.

What if you just stop paying your timeshare? ›

Refusing to pay timeshare maintenance fees may result in them being forwarded to collection agencies and ruin your credit reports. If you default on your ownership, it will appear on your credit score. Missing payment is risky as your credit score will decline significantly.

Is anyone ever happy with a timeshare? ›

An ARDA survey found that 85% of owners are happy with their purchase. But another study by the University of Central Florida found that 85% of buyers regret their purchase. So which 85% would you be a part of? Each case is different, but here are some factors to consider if you are considering buying a timeshare.

Why are timeshares a trap? ›

What Is A Timeshare Trap? The timeshare trap is the Catch-22 that many timeshare owners find themselves in when they decide they want to sell their timeshare. After paying thousands of dollars for a timeshare, many find that they are unable to even give their timeshare away for free due to the yearly maintenance fees.

Is attending timeshare worth it? ›

Are all timeshare presentation offers a good deal? No, especially if you're staying somewhere cheap or they're just handing out free parking. But if you do some research, you can score serious discounts in truly exciting locations.

Should I stop paying my timeshare? ›

It's never a good idea to stop paying your timeshare without consulting an attorney or understanding the consequences of such actions. If your developer refuses to work with you and the alternatives they propose aren't viable, know that you are not alone.

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