What’s the most important option you can receive from an exit company? Is it a low cost exit fee? Is it a 100% Money-Back Guarantee? Yeah that’s got it be it, right? Nope. Our team believes the most important exit option you can receive is a no up-front fee escrow payment option.

Let’s dig deeper into the specifics of escrow and find out why it’s important when you’re exiting your timeshare.

What Is Escrow & How Does It Work?

Escrow is a financial agreement that involves a third party account, that is not connected to the timeshare, to temporarily hold your money while the exit company works on your case. Think of Escrow as a middleman or a mediator that helps reduce the risk of a timeshare scam by eliminating all up-front fees paid directly to the exit company. Escrow can be handled by an escrow company, escrow agent, or even in some cases a mortgage servicer.

Our team likes to recommend exit companies who offer an escrow payment option because it holds the exit company accountable if they fail to help you cancel your timeshare. You see, the exit company does not receive payment until they have successfully helped you cancel your timeshare. This gives the exit company an incentive to work a little harder on your case versus paying the exit company up-front. 

Escrow vs 100% Money-Back Gurantee

Escrow adds an extra layer of protection compared to its counterpart, the 100% Money-Back Guarantee. Now we do not want to completely discredit the 100% Money-Back Guarantee either, it still can be beneficial if the company you’re considering has a strong positive presence in the cancellation industry. This option can actually be a lot cheaper because with Escrow, typically you have to pay an additional fee for this option. So this option could be quite beneficial if you work with a reputable company who has secured financial assets to back up this claim.

Many exit companies can boast they’ll succeed or they’ll refund you 100% of your money back, but not all of them can truly back up this statement. What happens if the company decides one day to stop answering all your phone calls, emails, texts and next month they file for bankruptcy? They’re not going to refund you your money, they went broke! Even on a moderate level our team has seen exit companies take years to refund you your money because they claim they’re “still working on your case.”

A recent example of this scam can be found if you Google an exit company by the name of “Resort Release.” As our team looked closer on the situation, we found many upset timeshare owners who complained they never received their refunds back. Thousands of dollars lost because the company filed for bankruptcy on April 4th, 2019. 

Not only did the owners lose all their money, but they still bear the burden of their timeshare payments since they never successfully canceled their timeshare contract. Resort Release wasn’t the only exit company to pull such an elaborate scheme. If you search for “Asconsumercredit, Mutual Release Corporation, Vacation Consulting Services, UDI Consulting, & Castle Law Group”, you’ll find similar scenarios. To learn more about what happened to these owners, click here.

Escrow and Why It's Important

Final Thoughts

Since Escrow involves a third-party to hold onto your money until the terms of the agreement have been met, paying a little extra to gain a peace of mind can sometimes be worth it. Although this may be a better option, most exit companies don’t like to mention they offer Escrow. You see, involving a third-party can be very expensive. So if the exit company wants to make a profit, presumably they’re going to increase the cost of their services. Our team has seen a standard duration to exit your timeshare can take around 6-12 months depending on your situation. If an exit company has to wait about a year to receive payment for their services, typically they’re going to want to charge more

In conclusion, Escrow protects both the timeshare owner and the exit company during the cancellation process. If the owner is protected by receiving reassurance their money will only be released once their timeshare has been cancelled. The exit company is protected by knowing they’ll receive payment once the cancellation process is complete. Ultimately, our team recommends working with reputable timeshare exit companies that offer escrow so you do not risk losing thousands of dollars. Read over our website and fill out the form on the right or contact us through Live Chat for a free personalized consultation for your situation. 

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We are America’s #1 Timeshare Exit Resource. Our mission is to help timeshare owners connect with the best timeshare cancellation company so we can eliminate scams in the timeshare industry. We review timeshare exit companies so owners can make an informed decision. 

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