October 16, 2025
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Getting out of a timeshare can be confusing, but it doesn’t have to be. Whether you’re facing rising maintenance fees or misleading contracts, this 2025 guide explains four critical things you need to know before making your move.
By the end, you’ll understand your rights, your risks, and your real options for a clean exit.
Timeshare contracts are legally binding agreements that often span decades. The American Resort Development Association (ARDA) reports that understanding your rescission period is critical, this 3 to 15 day window after purchase represents your only guaranteed cancellation opportunity.
Your rescission period, also called the cooling-off period, varies by state. Florida offers 10 days, while some states allow just 3 days. This timeframe starts from contract signing, not from when you return home from vacation.
Beyond the rescission window, timeshare ownership becomes substantially more complex to exit. These contracts function similarly to real estate deeds with ongoing financial obligations. Missing this narrow cancellation window means navigating contract law, developer policies, and potentially costly legal processes.
✓ Locate your rescission clause in the original purchase agreement
✓ Calculate your exact cancellation deadline based on signing date
✓ Contact your resort developer directly via certified mail
✓ Document all communications with dates and confirmation numbers
✓ Consult a consumer protection attorney if past rescission period
✓ Review your deed type (deeded ownership versus right-to-use)
✓ Check state-specific timeshare disclosure laws through your attorney general
The Federal Trade Commission (FTC) recommends contacting your state’s real estate division to verify your developer complies with disclosure laws before attempting any exit strategy.
Protect Your Credit and Finances
Exiting a timeshare improperly can devastate your credit score. According to multiple credit reporting sources, timeshare foreclosures can lower scores by 100 to 300 points, with impacts lasting up to seven years on your credit report.
Timeshare lenders often categorize financing as residential mortgages with credit bureaus. When owners default, these appear as mortgage foreclosures—one of the most damaging credit events possible. Late payments begin impacting scores after 30 days delinquent.
Average annual maintenance fees reached $1,480 in 2024, up 17.5% from $1,260 in 2023, according to ARDA’s State of the Vacation Timeshare Industry report. These escalating costs drive many owners to consider exits, but stopping payments without proper procedures triggers collection activity and credit damage.
Sarah and Michael from Arizona worked with a Better Business Bureau (BBB) accredited exit company in 2024. They avoided credit damage by maintaining payments during the six-month exit process. Their contract terminated cleanly, preventing foreclosure and saving them $1,480 annually in maintenance fees going forward.
The mortgage-like categorization means foreclosure consequences extend beyond credit scores. Future lenders view timeshare foreclosures identically to home foreclosures, affecting mortgage applications, rental housing approvals, and even employment background checks requiring credit reviews.
Request written confirmation when your contract officially terminates. This “paid in full” letter prevents collection agencies from pursuing old debts and provides proof if disputes arise later.
The FTC and Wisconsin Attorney General filed suit in November 2022 against timeshare exit companies that defrauded consumers of over $90 million. These scams targeted older adults through high-pressure sales tactics and false promises of guaranteed cancellations.
Exit scams typically involve upfront fees ranging from $5,000 to $80,000 with little to no actual service delivery. According to the FTC complaint, companies used fake nonprofit credentials and false affiliations with major timeshare developers to appear legitimate.
The BBB receives thousands of complaints annually against fraudulent exit operations. Red flags include unsolicited contact, guaranteed cancellation promises, and pressure to stop maintenance fee payments immediately. Legitimate companies cannot guarantee results because exits depend on contract terms and developer cooperation.
✓ Verify BBB rating of A or higher with recent reviews
✓ Confirm ARDA membership or attorney licensing credentials
✓ Require escrow-based payment protecting funds until completion
✓ Check references from clients who exited within past 12 months
✓ Review written contracts specifying services and timeline
✓ Avoid companies demanding full payment before starting work
✓ Research company complaints through state attorney general databases
Wesley Financial Group, Timeshare Compliance, and companies with transparent success metrics represent safer options according to consumer protection agencies. These firms employ licensed attorneys and use escrow accounts protecting client funds.
The FTC advises researching any company by searching its name plus “scam” or “complaint” online. Consumer protection websites and BBB complaint databases reveal patterns of deceptive practices that marketing materials won’t disclose.
Never wire money or pay with gift cards. Legitimate exit companies accept credit cards or escrow payments that provide consumer protection and recourse if services aren’t delivered as promised.
When contracts remain valid but financially burdensome, developer deed-back programs and legitimate resale channels offer alternatives to default. ARDA maintains resources connecting owners to official developer exit departments many don’t realize exist.
The timeshare resale market struggles significantly. Properties typically sell for 40 to 80% below original purchase price, with many having zero resale value. Resale success depends heavily on brand reputation, location desirability, and current vacation trends favoring flexibility.
Major brands like Disney Vacation Club, Marriott Vacation Club, and Hilton Grand Vacations retain better resale values than lesser-known developers. Even premium brands face challenges though—average resale timeframes extend 12 to 24 months when successful sales occur.
RedWeek and Timeshare Users Group represent legitimate resale platforms with BBB accreditation. These sites charge listing fees but connect owners with actual buyers rather than scam operations promising nonexistent purchasers.
Mini-Case: James, a 68-year-old retiree, struggled with $3,200 annual fees after 18 years of ownership. He contacted his developer’s owner services department and qualified for their exit program with a $1,500 transfer fee. Within 90 days, his deed transferred back to the resort, eliminating all future obligations.
Developer deed-back programs expanded significantly in 2024 as companies recognized exit demand. Marriott Vacation Club, Wyndham, and Hilton now offer structured exit options for paid-off ownerships meeting specific criteria like zero outstanding loans and current fee payments.
Expert Tip: Document every communication with developers and exit companies through certified mail or email confirmations. Recent successful exits in 2025 required extensive proof of attempts to resolve issues through official channels before courts granted cancellations.
How long does it take to exit a timeshare?
Exit timelines range from 3 to 9 months depending on contract complexity, developer cooperation, and chosen exit method. Rescission period exists completely within 10 to 15 days.
Will exiting a timeshare hurt my credit?
Not if done properly through verified legal channels or developer programs. Maintaining payments during the exit process and obtaining written confirmation prevents credit damage.
What’s the difference between cancellation and resale?
Cancellation terminates ownership entirely through legal processes or developer buy-back programs. Resale transfers ownership to another buyer through the secondary market.
Are timeshare exit companies legit?
Some are legitimate while others operate scams. Only trust BBB-accredited companies with A+ ratings, escrow payment protection, and verifiable attorney involvement. The FTC warns against companies guaranteeing results.
Can I just stop paying maintenance fees?
No. Stopping payments without properly exiting leads to collections, late fees, foreclosure, and severe credit damage lasting seven years. Always maintain payments until ownership officially terminates.
How much do maintenance fees increase annually?
ARDA data shows maintenance fees increased 17.5% from 2023 to 2024, with average fees reaching $1,480 annually. Some resorts plan increases exceeding 10% in upcoming years.
Exiting a timeshare in 2025 requires understanding your legal rights, protecting your credit score, avoiding fraudulent exit companies, and exploring legitimate options through developers or certified professionals.
The FTC’s $90 million fraud case demonstrates why thorough research remains essential before hiring exit services. Maintenance fees averaging $1,480 annually and increasing 17.5% yearly create urgent financial pressures, but hasty decisions lead to worse outcomes.
Contact your timeshare developer first. Many now offer structured exit programs that previous owners didn’t know existed. Document everything in writing and maintain fee payments until contracts officially terminate with written confirmation.
BBB-accredited exit companies with escrow protection provide safer alternatives when developer options fail. Never pay large upfront fees to unverified companies promising guaranteed cancellations—these represent the primary scam pattern the FTC warns against.
Your credit score, financial health, and peace of mind depend on executing exits properly through legal channels with proper documentation and patience throughout the process.Get your free timeshare exit consultation at TimeshareExitToda
