How to Get Rid of a Timeshare with a Mortgage Balance

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If you have a mortgage balance on your timeshare, getting rid of the property can take time and effort. However, there are a few ways to accomplish this goal.

Depending on your financial situation, you can choose one of these strategies or combine them to eliminate your timeshare and pay off your mortgage.

  • Explore your timeshare refinancing options.
  • Try and sell your timeshare on the resale market.
  • Give your timeshare to a friend or family. Some charitable organisations accept timeshares.
  • Enlist your timeshare for rent.
  • Hire a reputable timeshare exit company.
  • Get legal assistance in getting rid of the timeshare.

If you can afford to use one of the methods described below, it can be very helpful in getting rid of a timeshare and paying off the mortgage faster. Let’s take a look at these strategies below.

Which Timeshare Plan is Yours?

Fixed Week / Deeded Timeshares

  • Most deeded timeshares are fixed-week plans called “fixed weeks” because they are scheduled to recur at the same intervals each year. 
  • They are similar to traditional vacation ownership plans, where you own a week’s vacation time in a fixed location at a specific time of year. 
  • They also come in fractional sizes ranging from one to fifteen weeks. These deeded timeshares are generally quite affordable and can be a good option if you need to eliminate your timeshare but can’t afford some of the more expensive programs.
  • Deeded timeshares are usually structured so that one owner shares ownership of the unit with the other owners in the group. 
  • Each owner has specific rights to use the unit during a predetermined time every year. For instance, an owner might own two weeks of vacation a year from a specific date until a specified date the following year. 
  • The agreement’s details can vary depending on the circumstances of each situation. Still, generally, the owner can use the unit for two weeks per year during the allotted time frame.

Floating Week Timeshare

  • A floating week timeshare is a deeded timeshare that allows an owner to exchange their week for an equal time value at a different resort. 
  • This allows owners flexibility to travel to different locations throughout the year. It’s similar to a traditional vacation ownership plan, except you’re assigned a floating week of vacation time rather than a week at a set location. 
  • Floating week timeshares often allow more flexibility than traditional vacation ownership plans because they allow you to exchange your time for a different property based on availability and other owners’ preferences. 
  • This eliminates the need to book the entire year upfront when your goal is to eliminate your timeshare quickly.

Points System Timeshare

  • Points systems usually involve an exchange program through a centralised points system with affiliated resorts. 
  • Enrolling or purchasing a point-based timeshare, you receive a “points package” with predetermined values for different accommodations or activities at each resort. When redeeming your points, you simply book at the resort based on the points package you have already purchased. 
  • Typically, each point is worth a certain amount of money, which can be used towards accommodation, meals, entertainment and more. If your travel plans change, the system allows you to exchange your points for more time at a different resort.

Vacation Club Memberships

Many resorts offer two types of membership programs – annual and biennial memberships. 

  • Annual memberships are typically required for first-time purchases and include special perks such as a bonus week of vacation time. 
  • Repeat buyers often prefer biennial memberships, which are typically less expensive than their annual counterparts. These additional benefits vary based on the type of membership you choose.

What Kind of Loan Do You Have?

Traditional Financing:

  • If you are trying to obtain traditional financing for your timeshare, you will have two options: Mortgage or Personal Loans. 
  • A mortgage is a form of secured debt whereby the borrower uses their property as collateral for the loan. It is typically used to finance major purchases such as homes and cars.
    A personal loan is an unsecured loan in which the lender extends credit to consumers based on their creditworthiness. These loans can be used for various purposes, including paying off high-interest debts and making large purchases. Many lenders offer flexible terms to accommodate borrowers’ varying financial situations. 
  • However, rates and fees can vary significantly from one lender to another. Therefore, shopping around and comparing offers is best before settling on a lender.

Bank/Private Lender Financing:

  • You can finance your purchase with a traditional bank or private lender via a loan that will go directly to the resort management company to pay off the original price of the timeshare and provide you with the balance owed at closing. 
  • This arrangement allows you to avoid paying any additional interest and closing costs. It allows you to avoid making monthly payments on the loan until you are ready to use your timeshare.

Third-Party Financing:

  • Third-party financing involves a financing company that does not directly provide the funds to purchase the timeshare but arranges for you to receive a loan through a traditional bank or private lender. 
  • The third-party financing company will provide the required documentation and assist you with the application process. They will also act as a liaison between you and the lender to help smooth the process and ensure a timely closing. In addition, they will arrange the transfer of ownership from the original owner to your name once the loan has been paid off. 
  • This can save you money on interest rates and closing costs compared to traditional financing. However, it is important to understand that you will be responsible for maintaining good credit with the third-party financing company and your lender. Both companies may require updated credit reports during your application process.

Buy-back or Deed Back Programs

  • Most timeshare developers offer “Buy-Back” or “Deed Back” programs. These programs allow you to sell your timeshare back to the developer for a certain percentage of the purchase price based on the time remaining on your contract.
  • If the interest rate is variable, you can negotiate a fixed rate to avoid future increases. Depending on the length of the contract, you may also be required to pay additional maintenance fees when you own the timeshare. 
  • Most of these programs require that you pay an upfront fee known as “closing costs” when they take over ownership of the timeshare. This can vary greatly depending on the specific program being offered.

Explore Refinancing Options

Sometimes, people need to pay off their timeshare loans. This may happen for various reasons, including changing your financial situation or simply wanting to own the timeshare. If this is the case, consider refinancing your loan to save money on your monthly payments. Sometimes, you can refinance your current timeshare loan with another lender at a lower rate to pay off the balance faster. To do this, you will need to:

  • Provide the new lender with income information and several personal and financial documents. You may also be required to pay a fee for this process.
  • The good news is that once you have been approved for the refinanced loan, you will no longer be required to make any payments on the original loan. This will allow you to pay the principal more quickly and eventually be free of your obligations. 
  • It is important to note that you will not be eligible for this type of refinancing if the timeshare has been transferred to a third party or if you default on the original loan.

Read Can I Refinance My Timeshare?

Can You Sell Your Timeshare?

If you’re looking for a quick way to get rid of your timeshare, you may want to sell it to a willing buyer. However, timeshares are notoriously difficult to sell, and it may take a long time to find the right buyer.

  • If you decide to sell, beware of scammers who may try to take advantage of you. Scammers often advertise online and offer to buy your timeshare at a price much lower than its value. 
  • They may claim they can use the timeshare as collateral to get money for business or plan to renovate it and turn it into a lucrative business. If you agree to the deal, you will likely have to turn over the title deed and pay a large sum of money upfront.
  • Once the scammer takes possession of your property, you will never hear from them again. To avoid getting scammed, make sure that you deal with a reputable dealer registered to do business in your state of residence. Also, ensure the buyer has the funds to purchase the timeshare before you make any arrangements.
  • An easy way to determine whether or not you are dealing with a legitimate seller is by checking online reviews and testimonials from other people who have sold their timeshares through that dealer.

Once you find a buyer willing to purchase your timeshare at a reasonable price, you should contact the developer to handle the paperwork and legal aspects of transferring ownership to the new owner. The developer will also request that you surrender the title deed and any other documents that prove you own the property. This may take some time, so starting the transfer process as soon as possible is a good idea if you want to sell your timeshare quickly.

Can You Give Your Timeshare Away?

You can give away your timeshare in several ways, including donating it to a nonprofit organisation or giving it away to a family member or friend. 

  • For example, if you own a timeshare in a resort located in a tropical paradise, you could donate it to a local charity that helps disadvantaged children in the local community. Or, if you own a timeshare in an inland location like Orlando, Florida, you could give it to a family in need in your community so that they can use it for vacation every year.
  • It’s important to remember that you will not be able to receive financial or tax benefits from your donation if you choose to give all or part of your timeshare away. 
  • However, you may claim a charitable deduction on your federal income tax return if you are willing to contribute your time to the charity or organisation you choose to support. Visit the IRS website for more information about claiming charitable deductions on your income tax return.

Can You Rent Your Timeshare Out?

  • Some timeshare owners choose to rent their timeshares instead of selling them because this arrangement allows them to generate extra income while retaining the right to use the property whenever they want. 
  • Suppose you want to rent out your timeshare but don’t like sharing your vacation time with someone else. In that case, you may want to consider finding a temporary renter who will commit to paying you a flat fee to use your property during your vacation periods.
  • This type of arrangement is known as an exchange-based rental, and it’s a great way to earn additional income while helping to cover the costs of owning and maintaining your timeshare property. 
  • Suppose you are interested in renting out your timeshare property. In that case, you can work with a local property management company to help you find tenants and manage all aspects of the rental agreement.

Read How to Rent Your Timeshare Step-by-Step.

Stop Your Maintenance Fees (But Expect Consequences)

Can’t afford maintenance fees? Here’s an idea for you – stop paying them! With this option comes consequences – you’ve likely heard of the now infamous “timeshare termination scam,” where a person tries to get you to stop paying dues by threatening you with lawsuits and other legal actions. But there are other reasons why you might not want to maintain your unit’s upkeep. 

  • Maybe it’s not worth the cost to keep a property you aren’t using. Maybe you simply can’t afford it? Or you might not have the time to invest in it since you don’t want to bother with it anymore.
  • Whatever the reason, don’t be surprised if you get some resistance from your resort management when you try to cancel your contract and stop paying your maintenance fees. 
  • When you begin the conversation with your management, ask them if you can stop the payments and walk away. They will likely insist that you are still responsible for all of the costs associated with maintaining the physical upkeep of the property. 
  • They may even try to offer you a new agreement or membership deal that will make it easier for you to continue to pay your maintenance fees. 
  • Bottom line: they will try to talk you into staying on as a paid member for as long as possible, even if that means taking money from your bank account each month after you’ve already cancelled your membership.

Hire a Timeshare Exit Company?

  • A timeshare exit company can help you successfully terminate a timeshare contract without facing any unnecessary legal or financial consequences. 
  • These companies work with timeshare owners to legally cancel their contracts and help them receive refunds for their unused timesharing weeks.
  • They typically charge a fee based on the complexity of your situation, and the process usually takes one to four weeks to complete. If you hire a timeshare exit company to help you cancel your contract, remember that they do not guarantee a refund. 
  • They can only help you get your money back from the resort management company. 
  • However, if you want to cancel the contract on your own and don’t feel confident that you’ll be able to complete the cancellation process, hiring an exit company is probably your best bet. 
  • Remember to research before hiring a company, and never pay anything up front!
  • Some companies charge an upfront fee just to help you cancel your contract. This fee is charged regardless of whether you receive any money at the end of the process. 
  • After completing your cancellation process, other companies will ask you to pay for the services. This option is known as escrow. With this option, the company will hold your money in escrow until they successfully get you out of your timeshare contract. If you choose this payment option, read the contract carefully and understand your options before choosing one.

First, you must find a timeshare exit company that specialises in helping owners like you get out of their contracts without paying a hefty fee. The best way to find these companies is by looking online and reading reviews from others who have used their services. You could also ask friends and family members for recommendations. Once you have located a few reputable companies, it’s time to compare their prices and services to determine the best option. Remember that choosing the lowest price is not always the best option.

When looking for a timeshare exit company, remember these things:

  • It’s a good idea to find one that is reasonably priced and offers quality services worth the cost. 
  • You should also look for a company offering a money-back guarantee so that you can cancel their service if you are not satisfied. 
  • Finally, make sure that the company you choose has experience working with the type of timeshare you have so that you can avoid dealing with problems in the future.
  • Once you select a timeshare exit company, you must provide some information about the timeshare you are trying to get out of so that they can assess your situation and provide you with a personalised quote. 
  • Most timeshare exit companies will ask you to fill out an online form containing detailed information about your timeshare, including how long you have been a member and what kind of contract you have.

They may also ask you to send them a copy of your timeshare contract so they can analyse it and determine the best way to help you eliminate your timeshare. A representative from the company will then contact you to discuss your situation and provide you with information about their services and the fees they charge. After speaking with a representative from the timeshare exit company, you will need to choose whether or not you would like to proceed with the process.

Read What is the Average Cost to Get Out of Your Timeshare?

Hire an Attorney?

One of the most common questions we get from our readers is whether they should hire a timeshare exit company to help them sell their timeshare or if they should hire an attorney to handle their case instead. Generally speaking, hiring a timeshare exit company is generally more efficient than hiring an attorney to handle your case. However, there are also some important advantages to using an attorney instead of an exit company. Ultimately, this decision will depend on your situation and the type of service you seek.

  • In many cases, hiring an attorney will be the most cost-effective option to get rid of your timeshare quickly and without spending much money. 
  • But the problem is only some attorneys are qualified to cancel a timeshare. In most cases, the qualified ones are already partnered with a timeshare exit company. 
  • This allows them to handle your case more efficiently and at a lower cost than if you were to hire two separate firms. 
  • So, to find out if hiring an attorney would be the right option, you should consider contacting an exit company that offers legal and timeshare exit services to see what they recommend for your specific situation.

Final Thoughts

You should get rid of your timeshare for several reasons. Some people sell their timeshare to free up cash to invest in other things. Others just want to eliminate the hassle of owning a timeshare and not worry about making maintenance payments or paying yearly maintenance fees. But if you owe a substantial mortgage, we understand that can limit your cancellation options.

You can do a few things to increase your chances of successfully cancelling your timeshare. And we’re here to help! If you have any questions about how to get rid of your timeshare, please don’t hesitate to contact us here. Over the years, we have helped thousands of satisfied customers like you get rid of their unwanted timeshares without any trouble. So don’t let your timeshare waste any more of your time. Call us today and get a free consultation with one of our specialists to see how we can help you eliminate your timeshare once and for all!

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By providing my contact information and clicking ‘submit’, I am giving and its partners permission to contact me about this and other future offers using the information provided. This may also include calls and text messages to my wireless telephone numbers. I also consent to use of emails and the use of an automated dialing device and pre-recorded messages. I understand that my permission described overrides my listing on any state or federal ‘Do Not Call’ list and any prior listing on the ‘Do Not Call’ lists of our partners. I acknowledge that this consent may only be revoked by email notification to

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