How to get out of a timeshare, Dave Ramsey style

Last updated 2026-07-26

What does Dave Ramsey actually say about getting out of a timeshare?

Ramsey's position, repeated for years on his radio show and in Ramsey Solutions articles, is that timeshares are a bad financial product almost from the moment you sign, and that owners should try to sell first, but if nobody will buy even for $1, stop paying and accept the credit hit. His team has written that timeshares lose most of their resale value immediately and that maintenance fees only go up over time ^[1]. That's not legal advice, and Ramsey isn't a lawyer or a state regulator. It's personal finance advice from someone who thinks of debt and recurring obligations in blunt terms: if an asset is worth less than what you owe on it and it drains cash every year, get rid of it by whatever legal means costs you the least long-term. For a lot of owners, that means selling for a token amount or doing a deed-back. For owners who are truly stuck (no resale market, developer won't take it back, mortgage already paid off but fees keep climbing), his fallback is to stop paying the maintenance fees and let the HOA or resort pursue foreclosure, since a timeshare foreclosure typically doesn't chase you the way a house foreclosure does. The part worth pushing back on: 'stop paying' is a real strategy with real consequences, not a free reset button. It can trigger a deficiency judgment in some states, especially if there's still a loan balance, and it can tank your credit score for years. Treat it as a last resort, not a first move.

How to get out of a timeshare: what actually works, in order

Start with the cheapest, lowest-risk option and only move down the list if the earlier ones fail. Here's the order that makes sense for most owners. 1. Check your rescission window first. Every state gives new timeshare buyers a short window to cancel penalty-free, no questions asked. If you bought recently, this is by far your best option: confirm your state's rescission window and send a written cancellation notice exactly the way your contract and state law require, usually by certified mail. How to get out of a timeshare walks through the mechanics state by state. 2. Ask the resort for a deed-back or surrender program. Many major developers, including some Wyndham and Marriott Vacation Club resorts, run voluntary deed-back programs that let owners hand the deed back, sometimes for a small fee, sometimes free, if the loan is paid off and fees are current. This is the closest thing to a clean, sanctioned exit outside rescission. 3. Try to sell it, even for $1. The resale market for timeshares is brutal, but a working listing on a legitimate resale site or through the resort's own resale program can work, especially for desirable weeks or points-based systems. [How to sell a timeshare](#how-to-sell-a-timeshare) below covers realistic pricing. 4. Consider a licensed real estate attorney or your state bar's referral service if the developer won't cooperate and you have a paid-off deed with no buyer. A one-time consult often costs less than a full exit company retainer and tells you exactly what your state requires to transfer or abandon the deed. 5. Stopping payment and accepting foreclosure is the last resort, only after you've ruled out the above and you understand your state's deficiency judgment rules. Don't skip a step because a phone salesperson tells you to. Timeshare exit companies and timeshare cancellation cover how to vet anyone you hire to help.

Are timeshares scams?

Not usually, but the sales process is aggressive enough that a lot of owners feel scammed even when the contract was technically legal. The Consumer Financial Protection Bureau has pursued and settled cases against timeshare exit companies for deceptive practices, not against timeshare ownership itself as fraud. The product is legal; the pitch is often misleading, and the exit industry that sprang up around buyer's remorse is where most of the actual scams live. Common red flags in the original sales pitch: high-pressure 90-minute presentations, claims that the timeshare is 'an investment' that will appreciate, and pressure to sign same-day to get a 'today only' price. None of those claims hold up. Timeshares are a right to use, not an investment, and resale values typically run a small fraction of the original purchase price. The scams that regulators actually chase tend to be on the exit side: companies that charge $3,000 to $10,000 upfront, promise an exit with no real plan to deliver one, and then do little or nothing, or worse, tell owners to stop paying and funnel the fee into a trust account owners can't get back. The Consumer Financial Protection Bureau sued Reed Hein & Associates, which did business as Timeshare Exit Team, over exactly this pattern of large upfront fees and unfulfilled promises. If someone promises your exit is a sure thing and wants a big check before doing anything, that's the scam, not the timeshare itself.

How much do timeshares cost? (purchase price and fees)

Purchase price (developer, new)	$10,000 to $40,000+
Purchase price (resale)	$0 to $3,000 (many sell for $1)
Annual maintenance fee (avg 2023)	$1,205 [2]
Special assessments	$200 to $5,000+, as needed
Financing APR (developer loans)	12% to 18%+	That resale gap (developer price in the tens of thousands, resale price sometimes $0) is the single most important number for anyone thinking about buying, selling, or fighting to get out of one.

The average timeshare buyer paid about $23,940 per interval as of the American Resort Development Association's 2023 owner survey, though prices range from a few thousand dollars for older weeks-based resale units up to six figures for new points-based fractional purchases at branded resorts ^[2]. That upfront number is only the start. Annual maintenance fees averaged $1,205 in 2023 according to the same ARDA survey data, and those fees climb almost every year regardless of whether you use the week ^[2]. Special assessments (one-time charges for a new roof, storm damage, or renovation) can add hundreds or thousands more in a bad year. Financing makes it worse: timeshare loans commonly carry interest rates in the 12% to 18% range, so a $20,000 purchase financed over 10 years can cost close to double the sticker price by the time it's paid off. | Cost component | Typical range |

How to sell a timeshare

Selling is legal, straightforward in mechanics, and slow in practice. List with a licensed timeshare resale broker or on an established marketplace, price it based on comparable recent sales (not what you paid), and expect it to take months, not weeks. Pricing reality check: most weeks-based timeshares resell for a small fraction of the original price, and plenty list for $1 just to get the maintenance fee obligation off the original owner's back. Points-based systems at strong brands (Marriott Vacation Club, Disney Vacation Club, Hilton Grand Vacations) hold value better and sometimes sell for 30% to 60% of original price, but that's the exception, not the rule. Never pay an upfront 'listing fee' of more than a modest, flat amount to a company that also claims it already has a buyer lined up. That's one of the oldest resale scams in the industry: a caller says they have a buyer ready today, just pay a transfer fee or closing fee first. If they had a real buyer, that fee would come out of the sale proceeds at closing, not before. If you decide to transfer or gift the deed instead of selling, get a real estate attorney to prepare the deed and confirm the resort will accept the transfer and update HOA records. An unrecorded or rejected transfer can leave you liable for fees years later.

How to get rid of a timeshare when nobody will buy it

If resale attempts go nowhere and the developer's deed-back program says no (common if you still owe money or fees are behind), your remaining legal options narrow to three: keep paying, negotiate directly with the resort, or default and let it foreclose. Negotiating directly costs nothing but time. Call the resort's owner services line, explain the situation honestly, and ask specifically about a deed-back, surrender, or 'exit program.' Some resorts created these programs specifically because they'd rather take a paid-off unit back than chase a defaulting owner through foreclosure, which costs them money too. Wyndham's Cancellation Program and Marriott Vacation Club's programs are examples that exist for exactly this reason, though eligibility rules (loan must be paid off, fees current) vary and change over time, so ask the resort directly for current terms. If that fails and you truly cannot sell or give it away, understand what happens if you stop paying: the HOA or resort will eventually foreclose (often non-judicially, faster than a home foreclosure), report the delinquency to credit bureaus, and in some states can pursue you for a deficiency (the gap between what you owed and what the foreclosure sale recovers) or send the debt to collections. Rules differ sharply by state, so this is a case where a one-time consult with a local real estate attorney is worth the money before you make a decision you can't undo.

Is it ever okay to just stop paying, like Ramsey suggests?

Stopping payment is a real, sometimes rational choice, but it's not risk-free and we're not going to tell you it's a clean exit with no downside, because it isn't. Ramsey's advice assumes you've already exhausted selling and deed-back and that you're financially and legally clear to take the credit hit. Before you stop paying anything, confirm three things with a local attorney or your state AG's consumer division: whether your state allows a deficiency judgment against timeshare owners after foreclosure, whether the resort or its debt collector can and will sue you personally (as opposed to just foreclosing on the interest), and what the credit score impact timeline looks like given your other credit needs (a mortgage refinance in the next few years, for instance, makes a foreclosure mark much more expensive). We're not going to advise you to stop paying money you legally owe, and neither should anyone else without knowing your state's specific rules. What we will say: if you're going to walk this path, do it deliberately, with a lawyer's read on your state's foreclosure and deficiency law, not because a company on the phone told you it's simple.

How do I know if a timeshare exit company is legitimate or a scam?

Legitimate help exists, but the exit industry has a genuinely bad reputation for a reason. The Consumer Financial Protection Bureau's complaint against Reed Hein & Associates, which operated as Timeshare Exit Team, alleged the company collected large upfront fees while telling consumers it would obtain their exit, then failed to deliver in a large share of cases. That single case is a good template for what to watch for anywhere. Red flags that show up in nearly every enforcement action: a large upfront fee (often thousands of dollars) before any work is done, a promise that your exit is basically assured ('100% money-back guarantee' is common bait), pressure to stop paying your maintenance fees during the process, and cold-call solicitation ('we already have a buyer for your week'). The CFPB's action centered on exactly these patterns: upfront fees and advice to stop paying, with little follow-through. Check timeshare exit companies for a fuller vetting checklist, and check timeshare call list if you're getting repeated solicitation calls and want to know how to get off those lists. If you want a structured, flat-fee way to organize your own exit paperwork instead of paying a company thousands upfront, our $149 Timeshare Exit Kit at exit-kit-builder is built for exactly that: a one-time cost, not a percentage or open-ended retainer.

What if I inherited a timeshare I never wanted?

You generally have the right to disclaim (formally refuse) an inheritance, including a timeshare, before you accept any benefit from the estate. Once you've accepted it, taken a deed, or used the unit, disclaiming gets much harder and state-specific. If the estate is still in probate, tell the executor in writing that you disclaim the timeshare interest before probate closes; most states follow some version of the Uniform Disclaimer of Property Interests Act, which generally requires the disclaimer be in writing, signed, and delivered within a set time (often nine months from the decedent's death for federal tax-related disclaimers) to be effective . Talk to the estate's attorney, more than a timeshare exit company, since this is a probate law question first and a timeshare question second. If you've already taken title, you're back to the same menu as any other owner: deed-back, resale, negotiate, or in rare bad cases, default. How to get out of timeshare covers the step-by-step for owners in this exact spot.

How much is a timeshare really worth once you own it?

Almost always far less than you paid, often close to zero on the open resale market. ARDA's own industry data puts the average original purchase price near $24,000, but resale listings for the same or comparable weeks routinely show asking prices under $2,000, and a meaningful share list for $1 ^[2]. This isn't unique to any one brand. It's structural: developers sell new inventory at a large markup that funds sales commissions and marketing, and there's no efficient secondary market pushing prices back toward replacement cost the way there is for houses or cars. Once you understand that gap, two things follow. First, never buy a timeshare as an 'investment' or expect to sell it for what you paid. Second, when you're trying to exit, don't hold out for a price close to your purchase price; that offer is not coming; price realistically or use a deed-back program instead.

Frequently asked questions

How to get out of a timeshare fastest?

The fastest legal exit is canceling during your state's rescission window, typically a matter of days after signing, by sending written notice exactly as your contract requires. After that window closes, deed-back programs and resale are your quickest remaining options; both can still take weeks to months.

How do you get out of a timeshare if the developer won't take a deed-back?

Try resale (even for $1), consult a real estate attorney about your state's deed abandonment or transfer rules, or, as a genuine last resort, stop paying and accept that the resort will pursue foreclosure. Confirm your state's deficiency judgment rules with an attorney before choosing that path.

How to sell a timeshare without losing money on fees?

List through a licensed resale broker or established marketplace, price near recent comparable sales rather than your purchase price, and never pay a large upfront fee to anyone claiming they already have a buyer. Legitimate closing costs come out of sale proceeds, not before.

Are timeshares scams or legal products?

Timeshares are legal financial products, not scams in the legal sense, but the sales tactics are often aggressive and misleading. The bigger scam risk is on the exit side: the CFPB sued Reed Hein & Associates (Timeshare Exit Team) for an upfront-fee scheme that delivered little for many consumers.

How much do timeshares cost on average?

ARDA's 2023 owner survey put the average purchase price at roughly $23,940 per interval, with average annual maintenance fees of $1,205. Costs vary widely by brand, unit size, and whether you buy new from a developer or resale.

How much are timeshares worth when you try to resell?

Often a small fraction of the purchase price, and many weeks-based timeshares list for $1 just to transfer the maintenance fee obligation off the seller. Points-based systems at strong brands hold more value but rarely approach the original price.

What does Dave Ramsey recommend for getting rid of a timeshare?

Ramsey recommends trying to sell first, even for a token amount, and if there are truly no buyers, stopping payment and accepting the credit damage from foreclosure rather than paying an exit company thousands of dollars. This is personal finance advice, not legal advice specific to your state.

Can I just stop paying my timeshare maintenance fees?

You can, but it's a decision with real consequences: credit damage, possible foreclosure, and in some states a deficiency judgment for the remaining balance. Confirm your state's foreclosure and deficiency rules with an attorney before stopping payment on purpose.

How do I cancel a timeshare during the rescission period?

Send written cancellation notice by the method your contract specifies (usually certified mail) before your state's rescission window closes; confirm your state's exact window since it varies and is typically short, often measured in days, not weeks.

Is a timeshare exit company ever worth hiring?

Sometimes, but vet carefully: check the state attorney general's office and Better Business Bureau first, avoid large upfront fees, and never work with a company that tells you to stop paying your resort during the process. Flat-fee, do-it-yourself paperwork tools cost far less than typical exit company retainers.

What happens if I inherit a timeshare and don't want it?

You can generally disclaim the inheritance in writing before accepting any benefit from the estate, following your state's disclaimer statute and often a nine-month deadline tied to federal tax rules. Talk to the estate's probate attorney before taking title if you want to avoid inheriting the obligation.

Do timeshare maintenance fees ever go down?

Rarely. ARDA survey data shows average maintenance fees have trended upward year over year, and special assessments for repairs or renovations add further one-time costs on top of the regular annual fee.

Sources

1. Ramsey Solutions, 'How to Get Rid of a Timeshare': Ramsey's advice to sell first and, failing that, stop paying and accept the credit hit
2. Consumer Financial Protection Bureau, action against Reed Hein & Associates (Timeshare Exit Team): CFPB enforcement over upfront fees and unfulfilled exit promises
3. American Resort Development Association, 2023 State of the Vacation Timeshare Industry: Average purchase price of roughly $23,940 and average annual maintenance fee of $1,205
4. Uniform Law Commission, Uniform Disclaimer of Property Interests Act: Requirements for a written, signed, timely disclaimer of an inherited property interest
5. U.S. Department of Justice: Owners of fraudulent timeshare exit companies have faced criminal prosecution for defrauding consumers.
6. Consumer Financial Protection Bureau: The CFPB explains what a timeshare is and the financial obligations that come with owning one.