Kenneth Keller thought he’d made a smart investment when he bought a timeshare back in 1997. He and his wife paid $18,700 for a platinum week at Ford’s Colony, a timeshare in Williamsburg, Va.
The trades and points system worked, and annual maintenance fees were an affordable $550 a year back then.
Fast forward to the present. Keller says his maintenance fees have ballooned to $1,875 a year. His timeshare company has changed owners, and the points system has been devalued.
“”It’s become a burden,” says Keller, now retired from federal service in Springfield, Va. “I no longer have the same level of broad access to quality properties that I had when I first bought my timeshare.”
So he asked his timeshare company if he could sell.
He’s not alone. Roughly 10 million American households own timeshares, and a growing number will be looking for a way out in 2026.
“If your timeshare isn’t fully paid off, selling it is nearly impossible,” says Brandon Barron, vice president of marketing at Linx Legal, a timeshare exit company in Myrtle Beach, S.C.. “Many owners end up listing their properties on sites like eBay for as little as $1 — yet still struggle to find a buyer. The problem? Few people want to take on the burden of costly annual maintenance fees, even if the timeshare itself is free.”
That’s what happened to Keller. His timeshare company agreed to take back his week for nothing — but only if he paid next year’s maintenance fee.
The $22 billion industry that won’t always let go
The timeshare industry is booming. The worldwide timeshare vacation ownership industry is projected to reach $19.23 billion this year, a 7 percent increase over 2024. But now, during what’s commonly called Timeshare Maintenance Fee Season, owners are getting hit with higher maintenance fees. The average maintenance fee rose 17 percent last year, to $1,480.
No wonder the timeshare exit industry has exploded. But it’s also become its own minefield of false promises and empty guarantees.
Earlier this year, for example, Minnesota Attorney General Keith Ellison announced settlements with three timeshare exit companies that required them to pay more than $200,000 in refunds to consumers. They’d violated debt settlement laws by charging massive upfront fees without proper licensing, according to officials.
In November 2022, the Federal Trade Commission and the Wisconsin attorney general filed a lawsuit against Consumer Law Protection and its affiliated companies, alleging they scammed consumers — primarily older adults — out of more than $90 million through misleading claims and aggressive sales tactics related to timeshare exits.
“The timeshare exit industry has become more sophisticated,” says David Weisselberger, a Miami attorney who’s worked on timeshare disputes. “But it hasn’t become more transparent.”
Change is coming to the timeshare industry in 2026
Jason Gamel from the American Resort Development Association (ARDA), a trade association for the timeshare industry, says the landscape is changing for timeshare exits.
“There are some additional rental options for owners who aren’t looking to permanently exit their timeshare, and some innovative ways for owners with loans to exit,” he notes.
He points to large-scale management companies offering their own vacation club products, giving owners additional choices. There’s also resort repurposing, which involves moving the property from a timeshare structure to full-ownership condos or apartments. (You can find more information about these options at Responsibleexit.com, a site run by the timeshare industry.)
“There are a few companies that have very well-established programs, especially for those who have no loan and are current on their fees,” adds Gamel. “The solutions available to owners will depend on their exact situation.”
What happens if you stop paying your timeshare?
Many owners think they can just walk away and stop paying — just let it go to collections and move on.
That may be a bad idea.
“Walking away from a timeshare without a strategic exit plan invites lawsuits, credit damage, and even foreclosure,” says Chad Cummings, a real estate attorney and law professor at Florida Gulf Coast University. “When an owner stops paying maintenance fees or special assessments, the developer may report the default to credit bureaus, initiate collections, or foreclose.”
Even if your timeshare mortgage is paid off, you can still face foreclosure if you don’t keep up with maintenance fee assessments. The developer can place a lien on your timeshare. Your credit score could tank. Collections agencies may come calling. In some states, they can pursue you for the deficiency balance even after foreclosure.
“I’ve seen credit scores drop 150 points and garnishments pursued years later,” he says. “We’re handling one of these cases in my firm right now.”
The developer’s exit door
So what about going directly to the resort? Surely they want to help, right?
Not really.
“Most developer-sponsored ‘exit programs’ are predatory delay tactics designed to preserve cash flow,” Cummings says.
Here’s how they typically work: You must be current on all fees. Your mortgage must be paid off. You can’t have any outstanding balances. And you surrender your property with zero reimbursement. The process takes six to 12 months. During that time, you continue paying maintenance fees.
Wyndham Destinations has a certified exit program that lets timeshare holders discuss options like returning ownership if their loan is paid off or applying for a hardship exception. But eligibility is strict.
Gerri Hether, a retired nurse from Mesa, Ariz., deeded back her two Wyndham weeks last year after owning them since 1982. Her resort in Flagstaff had an exit program, but there were a lot of requirements, she recalls.
“It took a few months to receive the final documents showing we no longer owned the properties,” Hether says. “Once we started the deed back process, we were no longer responsible for future maintenance fees.”
But things don’t always go smoothly.
“The fine print usually strips owners of leverage, especially those with claims for fraud, misrepresentation, or unconscionability,” Cummings adds. “I’ve reviewed multiple agreements where the resort retains the right to revoke the release if the owner speaks publicly or posts online.”
Can a timeshare exit company help?
Desperate owners often turn to timeshare exit companies. The ads are everywhere — radio, social media, online. They promise freedom and guarantee results, charging anywhere from $5,000 to $15,000 up front.
The truth is, some exit companies simply send template dispute letters to the timeshare. Others advise owners to stop paying their fees, falsely claiming the timeshare will “go away.” It won’t.
But how do you tell a legitimate timeshare exit company from a fraudulent one?
“Look for consistent 4.5-star or higher ratings across trusted review platforms such as Google, the BBB, Trustpilot, and BestCompany,” says Barron of Linx Legal.
Here’s what actually works
Here’s what the experts agree on:
- Read your contract. Look for surrender clauses, deed-back provisions, transfer restrictions. Many contracts now include foreign legal jurisdiction clauses that gut U.S. consumer protections.
- If you’re having second thoughts, act fast. Most states legally require a rescission or cooling-off period for timeshare sales — anywhere between a few days to two weeks — where you can cancel the contract for any reason and get a full refund. Florida gives you 10 days and Alaska gives 15 days, but Kentucky and Nebraska only give you three. Miss that window, and your options narrow considerably.
- Contact your resort directly. Before paying anyone, ask if there’s an exit program. Get everything in writing. Understand the requirements. Don’t expect a quick fix. Many exits take months, and some take longer.
Gamel says there’s also an option for anyone who inherits a timeshare but does not want to keep it.
“You can always file a Disclaimer of Interest, which will allow the property to not be transferred to you,” he says. “Many third-party companies scare owners with claims that your kids or those in your will have no choice to accept it.”
In 2026, prevention is better than a messy exit
Now more than ever, you have to treat a timeshare like the binding financial instrument it is. Maintenance fees rise every year, and your timeshare obligation passes to your heirs. This is serious business.
You have options: You can approach a timeshare company about a responsible exit, you can hire a lawyer or employ a timeshare exit company.
Cummings’ advice? Engage legal counsel before signing. Just as you would for a mortgage.
“Once an owner recognizes their mistake, the correct course of action is to retain legal counsel experienced in timeshare exits, which invariably requires litigation in many cases,” he says. “These cases are expensive to prosecute. Therefore, as the old adage goes: an ounce of prevention is worth a pound of cure.”
By the time clients reach his office, they’ve usually made several expensive missteps by relying on Google, Reddit, and ChatGPT.
“Unfortunately, at that point, options for mitigation have narrowed substantially,” Cummings says.
Keller, the retired federal worker trying to unload his week in Williamsburg, says he’s choosing none of the above. He’ll try to sell his timeshare online next year. He’s not optimistic about finding a buyer, but after 28 years of ownership, he feels it’s his best option.
“The exchange potential just isn’t there anymore,” he says. “”In the Internet Sge, when I can rent the same timeshare week off TripAdvisor.com at a rate cheaper than my annual maintenance fee, why would anyone ever want to buy a timeshare that carries a lifetime financial obligation?”
For the hundreds of thousands of Americans in similar situations, that feeling is all too familiar. Their timeshare investment is now a trap, and it won’t end easily or cheaply, and sometimes it won’t end at all.