Bad news continues to plague the timeshare industry.

The recent financial failure of Ultimate Escapes is followed by another bankruptcy by another timeshare related company in Orlando – Island One Resorts. Together with its affiliate Island One Resorts Management Corporation, the company had just filed for protection under Chapter 11 in the US Bankruptcy Court for the Middle District.

According to the CEO of Island One Resort, Deborah Linden, the move lets the company to fulfill its restructuring plan, started out in the late 2008 to balance the company’s debt and equity components. She added that the filing of bankruptcy will facilitate the company’s capability to carry out an equity transaction within 3 months with their equity partner. Restructuring puts the company in a good position to push forward with the sufficient capital for long-term stability.

Island One suffered a huge blow during the peak of the economic recession, as seen in the sharp decline of its revenues and shortage of business capital. The company at its peak is proud to proclaim that it has 65,000 members and access to 29 resorts in North and South America, Europe and the Caribbean.

Linden also asserted that the company will continue to offer incredible vacation experience adhering to its core values of Caring, Passion, Innovation and Integrity. For almost thirty years, Island One Resort had given owners and guest with remarkable vacation memories and will maintain and establish upon that record. The company relies on its team in place in all aspects of their operations as they will go forward in developing vacation products, amenities and services.


The struggling company emphasized that its vacation club, Club Navigo, not affected by the restructuring. Operations of the company at its Orlando headquarters continue as normal together with its nine resorts scattered along Florida and the Caribbean. The resort associations will go on as before and remain entirely unaffected. Sulyn Stumbras, president of IORMC and Club Navigo, stated that they are looking look forward to continuing to provide outstanding hospitality and service to our owners and guests.

The two recent timeshare companies’ financial downfall is an indication of the continuing struggle of the industry. Despite the company’s emphasis on being unaffected, it is undeniable that many timeshare owners are seeking for timeshare exit solutions. One company that genuinely helps people having this problem is Timeshare Relief, Inc. This is no timeshare resale company but it helps people get out of their timeshare contract through a guaranteed transfer system.

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Sometimes we tend to deceive ourselves that it is still alright to pay for the maintenance fees that keep on increasing. With this kind of thinking, we disregard the option of getting rid of timeshares when in fact this should be done as quickly as possible. We know for sure that the economy isn’t working well and the industries are taking all steps to reduce costs and expenses. And we in our households should be like them—taking all the precautionary actions so we wouldn’t lay flat on our stomachs when the time comes when we no longer can afford those hefty fees.

The necessary actions that needs to be done are first to realize that we don’t need timeshares as an option for vacation. Right now for sure you don’t have the luxury of time. Before, you can go on vacation on the dates you have specified in the contract. But not this time since you are working hard in order to finance all other necessary expenses you have at home. In short, your schedule is unpredictable and it is most likely that you don’t get to at least unwind a little bit in your unit. Wouldn’t that be a waste of money? Don’t forget the increase in fares, and other services. Why don’t you just choose other vacation options? At least the payment schemes are much safer since you’re not under any contract.

Second, when you are able to realize how much money you’ve wasted for that unit, then the next thing to do is to determine the right timeshare exit solution. There are various methods that may suit your situation best. All you have to remember is your goal to put an end to all those unnecessary fees. So for sure, you’ll go for resale.

But there is a problem with resales. Most of the timeshare owners have become victims of the unethical practices of resale companies. The latter ask for upfront fees without reimbursing it even after an agreement has been made. Some companies were regarded as ghost companies because they don’t exist at all in the first place. With all these, you can’t just afford to throw away another buck.

Guard your cash. To do this, you must select the service that will guarantee you of a sure way exit from timeshares . It is through transfer title system. Secure your units fees from the start until the present so you can avail of the service.

Most timeshare owners no longer found their properties no longer beneficial maybe because of financial problems, change of vacation schedule, resort to selling their timeshare property. This is their method of getting rid of their properties and their contract completely. However, timeshares that are for resale is difficult to sell. Aside from the fact that there are far too many competitors, only a few people are interested in buying a timeshare.

Reports indicated that there are more people selling their own timeshare properties than people who are buying new and used timeshares in the market. Advertisement and marketing may not even work at this point. Getting your price so low does not also guarantee a buyer.

People who sell their timeshare properties are also at the risk of getting scammed. There have been several cases of timeshare victims who found themselves more in trouble in their effort to sell their timeshare.

But the good news is there are other timeshare exit solutions that people can go for. One of the options is timeshare renting. It does not really leave you out of the contract but at least it can lessen your financial problems. If you want to lessen the burden of annual fees, then this option can at least help you a bit. All you have to do is to set rental fee and advertise it. You can advertise your timeshare for rent online or through word of mouth. But do not expect to have it rented right away for there are still many competitions.

If you have a trouble with your schedule or if you’re already uninterested with your property but you still want to avail of another timeshare, the best option for you is to exchange your timeshare property. There is a program that allows you to exchange your timeshare to another timeshare owner. In that way, you can save up on timeshare resale fees and you can benefit from new amenities.

Another option is for you to find a company who does title transfer. These companies specialize in helping people get out of their timeshare contract. You can count of them to offer you with the best timeshare exit solution there is. But first you must settle all your financial obligations with your timeshare property. You can get rid of your timeshare effectively and with little cost as long as you do research and seek help from the right people.

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Contractual Obligations of Timeshare Agreements

Timeshare sales contracts should be read thoroughly to avoid being surprised with what entails once you are bound to the contract. A lesson that should be learned is that not all promises and claims made during presentations and sales pitch are true. Before signing make sure you know what you are getting into. It would be better if you have a lawyer to review the contract because at times some prospective purchasers who identify differences between what is in the contract and what was promised by the agent are likely to be told that the contract is only a "legal jargon."

Make sure that every promise and deal you have with the timeshare salesperson is written on paper.

Timeshare Maintenance Fees

You might not have been told of all the fees you have to pay when owning a timeshare. One thing you should know about timeshares is that annual maintenance fees will increase over time. Maintenance fees are necessary and will likely increase so the properties will not be run-down by time. Aside from maintenance, there is also what you call special assessment fees that you are obligated to pay.

Secondary Market for Time Shares

As far as timeshares for investments: they more likely depreciate in value.

There are a lot of people these days who think of selling their unit as the timeshare exit solution or maybe make a profit out of it to compensate all the maintenance fees but the reality is you will lose money on the sale of a timeshare. The original price typically covers 40% sales costs thus its value is lesser than you bought it. As a result, a resale will yield as low as 60% of the purchase price. Then you will have to pay a new commission as much as 20% to the broker who sells the property for you. Plus you shall also be careful of who will sell it for you for there are many resale agents and companies who are into frauds.

So when you decide to buy a timeshare or membership in a vacation club, you should know by now that resales are difficult. In general the market for resales is very small and full of competition. One survey stated that only 3.3% of owners were able to resell their timeshares the past 20 years. It would be better if you seek for a company who does not necessarily into reselling but those that specialize only in timeshare exit solution.

Over the last three years, the resale companies have advertently gained too much profit from timeshare owners who badly wanted a release from their timeshare fee obligations. And these companies have been searched by the concern agencies to face the complaints filed by timeshare owners against their unsound business practices.

Timeshare owners complained about resale companies’ inability to honor their reimbursement agreement. It has been said that if the unit is not yet sold within the specified duration of time then, a refund must be given to the owners. Owners kept on calling the company but the latter don’t call back. Some couldn’t even locate the resale companies anymore. The profits gathered by these deceitful companies have affected the timeshare industry alongside the recession that hit in 2008.

The example above shows us why timeshare owners became instant victims of the frauds surrounding the timeshare community. They have engaged themselves in the reselling process without setting aside time to research on the reputation of the resale company and the procedures they implement.

To avoid all these, owners must therefore conduct a background check on the financial status of the resale company over the last few years. Check whether they were issued significant number of complaints. This can be easily accessed with the help of Better Business Bureau’s (BBB) list. BBB is responsible for listing the resale companies that have violated the consumers and states’ laws because of their unethical business practices.

A resale company must not ask for upfront fees. It must do its part first like advertising it to all networks. This will give owners an assurance that the resale companies are really doing their best to resell the unit. If they ask first of fees, then you might as well turn it down. Chances are, they might just collect the money and disappear with no traces at all. Even if you haven’t agreed on this term, you must report to the Attorney General on the kind of practices this company have. It will help lessen the number of timeshare cases.

Why should you engage with reselling still when in fact the examples above clearly states how harsh circumstances could be? For a sure timeshare exit solution, try to look for other services such as the transfer title system that holds no fees at all.