If you own a timeshare, you may find yourself in a situation where you no longer want or can afford to keep it. One option to consider is deeding the timeshare back to the resort.
But can you actually do that? Let’s explore.
What is Deeding Back a Timeshare?
Deeding back a timeshare is also known as a timeshare surrender or a deed-in-lieu of foreclosure. It’s basically an agreement between the timeshare owner and the resort where the owner transfers ownership of the timeshare back to the resort. In return, the owner may be released from any future financial obligations related to the timeshare.
Why Would You Want to Deed Back Your Timeshare?
There are many reasons why someone might want to deed back their timeshare. Perhaps they can no longer afford the maintenance fees or special assessments associated with owning it. Or maybe they’re not using it as much as they thought they would and would rather not be tied down by it anymore.
Can You Actually Deed Back Your Timeshare?
The answer is: it depends. Some resorts have programs in place that allow owners to deed back their timeshares under certain conditions. However, not all resorts offer this option and even those that do may have specific requirements that must be met before they’ll accept a deeds-in-lieu of foreclosure.
Requirements for Deeding Back Your Timeshare
If your resort does offer a deeding-back program, here are some common requirements you may need to meet:
- Your maintenance fees must be current.
- You cannot have any outstanding mortgage payments on your timeshare.
- You cannot have any outstanding special assessments on your timeshare.
- You cannot have previously rented out your unit without the resort’s approval.
- You cannot have any liens or judgments against your timeshare.
What Happens After You Deed Back Your Timeshare?
If you’re able to deed back your timeshare, the resort will take ownership of it and you’ll be released from any future financial obligations related to it. However, deeding back your timeshare may not necessarily get you out of any existing financial obligations. For example, if you have an outstanding mortgage on the timeshare, deeding it back may not cancel that debt.
Is Deeding Back Your Timeshare Right for You?
Deeding back your timeshare may seem like a simple solution to getting out of a timeshare that you no longer want or can afford. However, it’s important to weigh the pros and cons before making a decision. You may want to consider speaking with a real estate attorney or a timeshare exit company to explore all of your options.
Conclusion:
Deeding back a timeshare is one option to consider if you’re looking to get rid of yours. However, whether or not this is possible depends on the resort and specific requirements must be met. It’s important to carefully consider all options before making a decision that could impact your finances and credit score.