Selling vacation timeshares can be anything but a holiday

Q: I own a luxury timeshare in Florida. I owe about $15,000 on the mortgage, having already paid about $10,000. The monthly payments are killing me.

I've been told I can walk away, but I am guessing that only applies to maintenance fees.

Can I walk away from an outstanding mortgage? I cannot sell this thing after listing with two timeshare sales offices.

I could buy the identical unit free and clear on eBay for $500 to $1,000. -- E.S.

A: Yes, there are consequences if you walk away from a mortgage, and they're not pretty.

A trashed credit rating could be the least of your problems.

Contact your lender and discuss the situation to see if they're willing to work with you in some fashion.

Beyond that, I'm afraid all I have to offer you is sympathy.

They Buy Timeshares

Q: I wrote you before that the developer won't take back our timeshare and we can't seem to sell it.

Meanwhile, we went to a gathering at the Marriott, where an outfit was making a presentation to buy timeshares.

Why they would be interested in our unit is beyond me, but they were anxious to do it.

We had to pay $1,000 for the transaction and they would take care of all costs, and it would be a done deal. We can deduct the $1,000 fee on our taxes, as well as the loss of the value of our timeshare. -- via e-mail

A: I don't think your loss will be tax-deductible. It's better not to depend on what that "outfit" told you. After all, they said they were buying your timeshare, but you ended up paying them.

As for the value of your unit, if you couldn't sell it or give it away, by definition the value was zero. Perhaps you mean you'd try deducting the original cost? I'll be interested to hear what your accountant says.

One More on Timeshares

Q: I'd like to add to the list of timeshare sellers in your recent column. I've had success with a company that takes no money up front and gets a commission only if the timeshare is sold. They are timesharestogo.com. I hope this helps someone. -- E.J.P.

A: I looked at their Web site, and it does seem good. They take a flat fee of $1,500 only after a successful sale. If the place brings less than that, they take the whole proceeds -- but I've heard from discouraged owners who would have been happy to settle for that.

Two things I liked about this company: They were upfront with a warning that resale timeshares usually go for less than half the original price, and they are licensed real estate brokers who can legally sell.

That's much better than the companies that charge hundreds of dollars upfront for listing in useless advertising publications.

Think of Them As Used Cars

Q: Why do companies that sell timeshares not want to buy them back? You would think it would be to their advantage. Sure, the Internet is a place to sell, but you get 25 cents on the dollar. -- J.Q.

A: I can't say why certain developers won't buy back timeshares, and I certainly don't know why some refuse even to take them for free.

But you're looking at this the wrong way. Instead of comparing timeshares to investment real estate, try to think of them as used cars.

Automobiles are bought for use and enjoyment, and when the owners are done, it's taken for granted that their value has dropped.

Yes, there are occasional exceptions for outstanding timeshare units in choice locations, just as there are with rare collectable autos.

But in general, a new timeshare should be purchased for one's own convenience, assuming that it will probably depreciate just as a car would. As with automobiles, if you want to find a bargain, look at resales.

Absolutely Last Timeshares

Q: We owned several timeshares and enjoyed vacations for almost 30 years, then needed to sell because of failing health.

I found the services of the Timeshare Users Group to be top notch.

For a small fee to join (which included a free ad) I sold property in Florida and South Carolina.

There is a wealth of free information available on their Web site at tug2.net.

No resale will bring back the original cost, so one must be willing to accept much less.

I was able to get approximately 20 cents on the dollar, but had a lot of great vacations over the years. -- W.P.

A: Thanks for the information. Mentioning the word "timeshares" seems to hit a nerve and always brings a slew of mail.

Enough is enough, so I propose that we all stay off the subject for at least the next year.

Edith Lank will personally respond to any questions sent to her at 240 Hemingway Drive, Rochester, N.Y. 14620 (please include a stamped return envelope), or readers may e-mail her at ehlank@aol.com. Please visit her Web site at www.askedith.com.