Approximately 3% of American households own a timeshare, which may not be surprising considering that 37% of families report that vacations make them happy. Yet timeshare mortgages can quickly take all the fun out of owning a timeshare.
Many timeshare owners believe a timeshare mortgage may be the same as a home mortgage when they first sign a timeshare contract. But there are actually quite a few differences between timeshare and home mortgages.
Timeshare Vs. Home Mortgages: What’s The Difference?
One of the key differences between home and timeshare mortgages is that, in the case of home mortgages, the relationship between the borrower and the lender doesn’t end after a single meeting.
In a home mortgage, the lender will conduct background checks and employment verifications in a thorough process to ensure the borrower is capable of affording the mortgage. This is to protect the lender and the borrower from liabilities.
In a timeshare mortgage, consumers are often tricked into a four-to-five hour-long presentation meeting about a resort. The consumer typically ends up signing a contract for a timeshare mortgage they may not be able to afford in a haste rather than taking the contract to read over later.
Timeshare mortgage applications don’t require the same process as home mortgages do and the result is often a financial blow to the borrower.
Home mortgages are, in most cases, more expensive than the average timeshare mortgage. The average price of a timeshare is $20,040.
Yet home mortgage lenders will work with borrowers to ensure they’re able to afford the home over time and will set up a payment process to make it affordable. Timeshare mortgages, in comparison, have high interest rates that create a greater threat of bankruptcy and foreclosure.
Want to cancel your timeshare contract?
A home mortgage can be intimidating, but a timeshare mortgage can make you regret ever buying a timeshare in the first place. If you’re wondering how to cancel your timeshare contract, it may be in your best interest to hire a timeshare cancellation attorney. To learn more about how to cancel your timeshare contract or how to get a deed in lieu of foreclosure, contact the law offices of Susan Budowski today.