Timeshare Companies Become More Creative To Remain Afloat – and Cunning
Timeshare companies are using creative ways to remain afloat as savvy consumers have become aware of their illegal and unethical behavior AFTER THE SALE.
Do your own Google search and view the the plethora of lawsuits between timeshare owners and timeshare companies.
According to an article in Redweek.com, quoting Dr. Amy Gregory who spoke at a recent ARDA convention, 85% of timeshare owners are dissatisfied with their purchase. Many are trying to get out and are flooding the timeshare resale market.
So, the timeshare companies must create ways to remain afloat. Otherwise, they will be trampled by Airbnb who is pursuing similar market – the Millennial Generation.
Companies are convincing the elderly, minorities and Millennials into signing long term mortgage contracts with no protection for the purchaser.
Timeshare Contracts Are Now Mortgages
Timeshare companies are separating the timeshare interest with the mortgage. Once the new purchaser signs the paperwork, a mortgage is taken out with a different company.
If the timeshare owner is not getting what was mentioned during the sales presentation, or the timeshare owner cannot go where and when they desire, they are still obligated to pay the mortgage. Some timeshares mortgages are over $50,000.
Unfortunately, new purchasers do not have access to their timeshare websites until weeks after the purchase, making it impossible to determine whether the program is what they were told or if it even works.
If the company goes bankrupt, they are still obligated to pay the mortgage companies.
Some of the contracts have over 50 pages of legal jargon that give the new buyer little, if any time, to review it. The 50 pages focuses more on the mortgage, not the benefits to the member or the obligation of the company.
If the mortgage is not paid, the mortgage companies contact the credit reporting and collection agencies like a dog after a bone.
Read the sad stories featured on Inside Timeshare.
Timeshare Resales Worthless
Many timeshare companies are not recognizing timeshare resales that are flooding the timeshare secondary market by owners who are trying to dump their unwanted timeshares.
When a consumer purchases the timeshare on a resale site, some timeshare companies will not allow the new owner to use them unless they purchase more timeshare points. Their prices are into the thousands of dollars on top of what the new owner has already paid for the timeshare and transfer fees.
Therefore, new timeshare owners are not aware that their timeshares are worthless on the secondary market, and won’t be able to get rid of them or the mortgage. “Buyers beware!”
You Can No Longer Sue The Company – Regardless
When you sign the contracts with the timeshare companies, you agree not to sue them, regardless. You agree to go into arbitration.
Read your contracts before you sign anything.
You Do Not Have Immediate Access To The Website
When you purchase the timeshare with an initial deposit, you will not have access to their website until weeks later. Therefore, you cannot know whether what was stated during the sales presentation is true or not.
I received an email from a gentleman who recently purchased 18,000 credits from Wyndham for $48,000 Australian dollars. He stated that when he tried to access the website after making his purchase, he was unable to log in.
He contacted the company and they informed him that he would not have access until weeks later.
Once he did gain access, he was surprised to discover that the contents on the website was completely different than what was stated to him during the sales presentation.
He was making plans to cancel the timeshare for misrepresentation.
Unfortunately, because the timeshare is separate from his $48,000 mortgage, he is still obligated to pay the mortgage.
Timeshare Contracts Available Now Online
If timeshare companies want to play hard ball with consumers, let’s level the playing field.
If you want to review some of the timeshare contracts before you purchase, click here.
If you are a current timeshare owner please send copies of your contract to me at: email@example.com. Remove your personal information and I will post them on the Internet for free.
Read this report, and learn more sad truths about the timeshare industry from a former timeshare executive.