Recently, a reporter for USA Today named Roger Yu has described what he claims is a near-panic by the owners of timeshares at resorts all over the world. In one interview with a certain local radio station, Yu pointed out that the current economic downturn has caused so many owners to default on their maintenance fees that obligations for remaining owners are skyrocketing in cost. Such increased payments are unusually high normal yearly increase which amounted last year to 12% and has surprised owners with the costs they never anticipated. That’s why we often hear or read about many owners today who are trying to get out of their timeshares.
In timeshare ownership, you pay not only the purchase price but a yearly maintenance fee also to keep the property up and running. When some of the owners default on their payments due to recession, the others are left to pick up the defaulted amount. But the problems are not only rooted from the failure of other people to pay their maintenance charges. Other timeshare owners who have lost jobs also are unable to handle the yearly maintenance charges they are legally obligated to pay.
Even if your timeshare is in another country, the collection efforts are vigorously pursued by agents in the US. This means, you simply cannot abandon the timeshare without being sued in court. Thus, timeshare owners are offering to sell their units even at very low prices simply in order to get rid of their obligation to pay a yearly maintenance charge. Even in a better economy, people usually find that they can never recover the amount they had originally paid for the timeshare.
Nowadays, timeshares are becoming synonymous with costs that usually increase over time. No wonder why there are several owners today who are trying to get rid of their units. Some of them even hire a timeshare transfer company such as the Transfer Smart. However, it’s also clear that the current economic condition has been tough for most timeshare owners that some finally decide to get rid of such property.