Timeshare owners, beware of rising scams

We get many questions from readers on timeshares and, by far, the most common issue is how to get rid of the timeshare. There are many reasons why an owner would want to sell a timeshare.

For some, ownership can be measured in decades. But now, no one in the family uses it. They don’t want it and can’t imagine paying for it. Some of our older readers are trying to tie up loose ends in their estate and don’t want to saddle their kids, grandkids or other heirs with future payments tied to a timeshare bought years earlier.

Almost all of our questions boil down to one issue: How difficult it is to get rid of a timeshare? If you’ve spent weeks trying to “dump” a timeshare, without success, you’re much more likely to pay anyone who says they can unload it for you. But now a new worry is creeping into our mailbox: Timeshare scams.

Before we get there, let’s review how people wind up buying timeshares. Travelers who frequent tourist locations, will often find themselves whipping out a checkbook after eating their free breakfast, lunch or dinner. These “free” meals are followed by a timeshare presentation that is so compelling, travelers can’t help themselves.

The presentation extols the purchaser’s ability to “lock in today’s prices for tomorrow’s vacations.” They can stay at a specific property for a specific week every year or perhaps transfer their week within the property or within a group of properties. There are lots of possible options, depending on the timeshare owner. If you are buying from a hotel chain, you might get points to use within a certain group of hotels. You see lots of pretty pictures of beautiful new places to stay with all the amenities you could imagine.

What purchasers don’t realize (in the rush of learning how they can “save” all this money on future Instagram-ready vacations), is that timeshares come with annual maintenance expenses. Frequently, you have to pay additional taxes and fees. Let’s say, you paid $20,000 for the timeshare 20 years ago. And, you started out paying $2,000 per year in fees. Those fees typically increase each year, so the cost goes up annually. And while you might have enjoyed the timeshare over those 20 years, it’s not your jam now. Worse, your kids want to have nothing to do with it.

We’ve frequently addressed the issue of how to get rid of a timeshare. But scams are on the rise, and they’re particularly frightening because of recent advances in artificial intelligence. One in particular is targeting elderly timeshare owners.

Former Washington Post reporter Brian Krebs recently posted a warning on his website, KrebsonSecurity.com, about a telemarketing scam involving violent Mexican drug cartels that target timeshare owners. There may be different variations on this scam, but in essence, the timeshare owner receives a call or an email from someone who says they want to buy that owner’s timeshare unit. From there, the scam runs its course to extract money from the timeshare owner to assist in the sale of the timeshare or for purported fees that the owner must pay to sell the timeshare.

The flip side of the scam is you get a call telling you there is a timeshare for sale in a hot Mexican resort. Are you interested? There are only a few units left to sell, you’re told. The scam runs its course and the victims wind up handing over their charge cards, PIN numbers and other personal financial information. The FBI and the Financial Crimes Enforcement Network are working together to get the word out about the scam and alert timeshare owners of the potential for fraud in unsolicited offers for the purchase of timeshare units in Mexico.

The basic principle here is if you didn’t request the call or if you receive an unsolicited call from someone inquiring about your timeshare, you have to treat it as if it was a scam.

If you’re a timeshare owner and receive a call from a person claiming to be looking to purchase your timeshare unit, ask yourself why you’re getting this call. If you didn’t advertise the unit for sale, how would someone know to call you to purchase the unit? And how would they have gotten your information to contact you?

Our advice is to hang up, unless you know the person calling or you are having the cash sent to you upfront. Also, you shouldn’t have to send money to anyone to sell your timeshare. And, don’t deal with anyone other than a reputable international timeshare management company that handles the purchase and sale of timeshares for their owners.

And whatever you do, don’t click on anything online unless you know the sender. Even then, be cautious and take steps to verify the links are legitimate.

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(Ilyce Glink is the author of “100 Questions Every First-Time Home Buyer Should Ask” (4th Edition). She is also the CEO of Best Money Moves, a financial wellness technology company. Samuel J. Tamkin is a Chicago-based real estate attorney. Contact Ilyce and Sam through her website, ThinkGlink.com.)