A deed back in lieu of foreclosure for timeshare investments serve as your best option if you wish to return the property to the real estate company.
Most buyers seek a deed back because they could no longer keep up with recurring costs such as maintenance. Not all companies may be willing to accept this arrangement.
As such, it is important to find legal representation for your case. Most people make the mistake of signing a deal too soon without consulting a professional to review the terms and conditions.
While most companies are hesitant to accept a deed back, you may still convince them that it is the better choice than a foreclosure. Plus, you no longer have to worry about future payments once you return the timeshare.
A foreclosed timeshare might not affect your credit score for a long period of time, but it does reduce your chances of getting another mortgage in the future. Hence, it makes sense to avoid it as much as possible.
You should take note that the company is more likely to accept a deed back if you have established a good payment history. The American Resort Development Association said that the average cost of a timeshare in the US amounted to $22,180.
On the other hand, maintenance fees per year cost $980 on average. With these steep prices, you should think carefully if it is a worthwhile investment.
There comes a point when you think timeshares could save you money from accommodation for each of your holiday trips but be aware that your deal should not make it difficult for you to opt out.
Sign a deal only if you completely understood the terms and let a professional review it to make sure it would not be too hard to process a deed back.