NerdWallet's Smart Money PodcastNerdWallet Personal FinanceGet Out of a Timeshare and Find Down Payment Help to Buy a Home
In short
This episode of NerdWallet's Smart Money podcast delves into two distinct financial topics: the complexities and challenges of exiting time share agreements, and the landscape of down payment and closing cost assistance programs for prospective homebuyers. Experts discuss the high-pressure sales tactics and financial burdens associated with time shares, offering insights into various exit strategies. The latter half of the episode focuses on the current housing market, detailing the types of assistance available for homebuyers, the qualifications, and the potential trade-offs involved, including employer-sponsored programs and the importance of understanding loan terms.
Key takeaways
- Time shares are often difficult to exit due to restrictive contracts and illiquidity, with high-pressure sales tactics being common.
- Down payment and closing cost assistance programs for homebuyers are plentiful, but buyers must carefully review terms, conditions, and potential repayment obligations.
- Employer-sponsored housing assistance is an emerging trend, offering a new avenue for potential homebuyers.
- While assistance programs can significantly reduce upfront costs, they may come with trade-offs like limited lender choices or impact future refinancing options.
- Thorough research and understanding all financial implications are crucial before committing to either a time share or a home purchase with assistance.
Chapters
Introduction and Sponsor Spotlights
The episode begins with a disclaimer about the paid sponsorship and introduces Built, a loyalty program for renters and homeowners, highlighting its new features for earning points on housing payments. It then transitions to Vinted, a second-hand marketplace app, emphasizing its mission to make second-hand fashion a first choice and its benefits for users and the planet.
Time Share Dilemma
The hosts introduce a listener's question about how to get out of a time share that their parents own but no longer use, despite paying yearly fees and having access every two years. The listener is not interested in the property, which is located in Orlando, Florida, while they live on the West Coast.
Understanding Time Shares
Craig Joseph, a time share expert, defines a time share as a type of vacation property with a lease or ownership model where an upfront purchase price grants access to a property or collection of properties for a set amount of time each year. He notes the industry sometimes uses terms like 'vacation ownership' or 'vacation club'.
Time Share Industry Scale and Sales Tactics
Craig discusses the massive scale of the time share industry, citing $10.7 billion in new sales in 2025. He describes the high-pressure sales tactics used, including offering incentives like discounted hotel rooms and points for future stays in exchange for attending presentations, which can be lengthy and uncomfortable.
Financial Implications of Time Shares
The financial aspects of time shares are explored, including an average purchase price of $25,000 in 2025 with an average interest rate of 15% for financing, significantly higher than traditional home loans. The discussion highlights the ongoing monthly and annual fees that add to the cost.
Types of Time Share Ownership Structures
Craig explains the two main types of time share contracts: 'shared deed,' where you own a fractional stake in the property, and 'right-to-use lease,' where you have the right to use the property for a set number of years, after which the contract expires. He notes that shared deeds can be difficult to sell and may not retain value.
Challenges of Exiting a Time Share
The difficulty of selling or exiting time shares is emphasized due to their illiquidity and the restrictive nature of contracts. The conversation touches on the existence of 'time share exit' companies, which are often described as shady and may charge high fees without guaranteed results.
Options for Time Share Exit
The hosts discuss potential exit strategies, including contacting the time share company directly to discuss options, selling the time share (though difficult), renting it out, or simply stopping payments (which is strongly advised against due to credit score implications). The concept of a 'cooling-off' or 'rescission' period after signing is also mentioned as a potential way to cancel.
Time Share Presentations and Buyer Beware
The aggressive nature of time share sales presentations is reiterated, with a focus on how they prey on aspirations and create a sense of urgency. The hosts advise caution and emphasize the importance of being prepared to say 'no' firmly.
Housing Market Update and Assistance Programs
The podcast shifts to a discussion about the current housing market, noting high mortgage rates and limited help for buyers. Anna Hill Hosky, Abby Doyle, and Kate Wood join to discuss down payment and closing cost assistance programs, highlighting that while 'free money' exists, it often comes with conditions and limitations.
Navigating Down Payment Assistance
The experts explain that over 2,700 assistance programs exist nationwide, often run by state and local governments. They detail how these programs work, including grants, tax credits, and second mortgages, and emphasize the importance of understanding the terms and potential trade-offs, such as limited lender choices or the need to repay the assistance if the home is sold too soon.
Trends in Homeownership Assistance
A key trend discussed is employer-sponsored down payment assistance programs, which are becoming more common. These programs are seen as a way for companies to attract and retain talent in a challenging housing market.
Conclusion and Listener Engagement
The hosts wrap up the episode, reiterating the importance of thorough research when considering time shares or homeownership assistance. They encourage listeners to submit their own money questions for future episodes.
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Summary by InboxHiive. Not affiliated with NerdWallet's Smart Money Podcast. Written with AI from the episode audio; check the episode for exact quotes.