Timeshares Questions

Q: My husband co-signed on a timeshare with his ex-girlfriend several years ago (before I knew him).  When they parted ways, he sold out his 'interest' in the timeshare through a real-estate lawyer and she signed a 'hold-harmless' agreement, which basically says that he is not responsible for the balance owed on the timeshare.  She has not defaulted on the payments so far, but there is a significant balance, more than $10,000 owed.
 

The timeshare debt still shows on my husband's credit report - even though it is current, we would like to have it removed or to somehow indicate that he is not responsible for the debt on this property.  In talking with the current holder of the note, the only way to completely remove his name is for her to refinance the loan, which at almost 14% interest, you would think she would want to do that.

Any suggestions on how we can get this off of my husband's credit report?

A: The only way to get it off your husband's credit report is for his ex-girlfriend to refinance the loan. Perhaps your husband can call her and ask if she'd be willing to refinance. Otherwise, you have to simply pray that she doesn't do anything foolish.

Q: I am thinking about buying a timeshare at a big discount. On the Clark Howard Show (01-02-02), there was a person on the show that wanted to give away her timeshare. I would like to get more information and make an offer to buy this timeshare at a possible 80% discount. 

Where can I find the persons that want to get rid of there timeshares?

A: I don't connect listeners as a policy. But if you're interested in timeshares, check out timeshares.com and e-bay's new timeshare division.

Q:  I am thinking of selling my time share.  It's a two bedroom Fairfield condo in Arkansas.  The week I bought was the week of Labor Day.  The property is a golf resort.   My trading options are for any other week when I do a space deposit.

Please let me know where to start.  I only paid $3000. and would like to sell for 7,000. or more.   What do you think?

A: Time Shares are notoriously difficult to sell. Many people can never get rid of them. If they abandon them, it goes on their credit report. Some people have had some success in giving them away to charity. I don't know why you think the value of your timeshare has doubled -- for your sake I hope it has -- but if you're serious about selling I'd start marketing your place immediately. Talk to the developer, talk to the person who does the rentals, put up a sign in your laundry room (if you have one) and talk to people around the area.

Q: Hi, I have a question I hope you can answer.  My husband and I attended a vacation ownership presentation on 2/25/01 where we purchased a timeshare.  We paid $799.00 as a down payment and are scheduled to begin making monthly payments in May 01.  I am now seriously reconsidering this decision.  Can I get out of this now without paying anymore money?  I realize that I may not get back what I have already paid, but at this point I will consider that an expensive lesson.  I just don't want to get too deep into something that I already don't have a good feeling about.  If you could give me an answer, I would very much appreciate it!!!

A: If you signed a contract, I doubt very much whether you can cancel it. But seek the advice of a real estate attorney immediately. Timeshares are a horrendous business for consumers as there is typically is no ability to resell or even abandon the property (without causing huge problems for your credit history).

I hope this lesson doesn't turn out to be too expensive, but you'd better move on it NOW!

Q: I have one last question. I find it real hard to just give the time share away because it cost us about $16,000 for two weeks plus the maintenance that we have been paying for the past 6 years, which by
estimation costs us about $21,000 over that period. Do you think that it is good idea to auction it on the internet? I am willing to take about $10,000 for the two weeks. The companies that it is listed with are trying to sell the two weeks for $18,000 negotiable.  Thanks again for your time and information.

A: You have very little to lose. If you can get anything at this point, I'd take it and just recognize it as an expensive lesson.

Q: I have been listening to your program on the Clark Howard Show and find you very informative and resourceful. I have a question for you in regards to the resale of a time share. I have a two week time share in Aruba and I have been trying to sell it for about four years without any luck. I have listed it with two companies and have lowered the price by almost 50% of the purchase price. My wife and I were sort of "suckered" into buying this time share. We were on our honeymoon and we thought this would be a great investment for our future. We have tried to resell it back to the property and they told us that they cannot buy it back because they do not have a resale department. What can we do to get this property off our hands?

A: There is virtually nothing you can do to get rid of this. Timeshares are like the plague, they just linger on and on. The real reason the company doesn't want the time share back is they can't sell it either.

Your best bet is to see if you can give it away to a charity and let them auction the timeshare off as a fundraiser. Your other choice is to simply give it to someone else and be glad you're done with the annual payments.

I'm sorry I don't have better news or resources for you, but this is why Clark is always dropping a bomb on timeshares.

Q: We own a timeshare in Florida through Fairfield properties.  We paid $500 down and have paid $100 for two years and have not used it.  Now my husband has medical problems and we cannot afford the $100 a month.  I really just want someone to take over the payments and I will lose out, but oh well.  Fairfield will not help me so I am considering foreclosing which I don't want to do.  Can you help me and make some suggestions.  Clark says go to Florida and try and sell it but we can't even afford to go to Florida or take off work.  

A: You're in a tough spot, which most timeshare owners find themselves in eventually. You should take out an ad in the local paper advertising a free timeshare. Hopefully, someone will take you up on your offer.

Another option is to give away the timeshare to a non-profit charity -- if you can find one.

Other than that, I'm fresh out of ideas other than foreclosure, which will wreck your credit.

Q: Thanks for taking the time or having your people to take the time and write me regarding my timeshare.  I don't understand when you say I can give it to an organization.  Can I do that if I still owe money on it.  We owe about $5500 on the balance of the loan.  Can they put a lean on my house if I let the timeshare go in foreclosure or do they just ruin my credit. I won't bother you after this one. 

A: I didn't realize you still had a loan on the place. You can only give it to an organization if it's completely paid off. If you let the timeshare go into foreclosure, it will ruin your credit.

I don't have an easy answer for you on this one. You can try to get the developer to take it back, or you can simply pay off the loan and give it away, or you can try to sell it on your own.

Timeshares are really lousy investments, and they often aren't even good vacations because you're so frustrated with the cost that you can't enjoy it.

Plan on this being a total loss and perhaps you will be pleasantly surprised if you can unload it.