If you buy a timeshare and regret it, most states have "cooling-off" laws; these laws let you get out of a timeshare contract if you act quickly, usually within three to ten days. In Alaska, the cooling-off period is usually 15 days after you receive the public offering statement. However, you don't get a right to cancel the contract if you get the public offering statement more than 15 days before signing the sale agreement.
Still, you need to be cautious when buying a timeshare. And you should understand that if you take out a mortgage loan to buy a deeded timeshare and stop making the payments, the lender, usually the resort developer, will probably foreclose. Also, timeshare owners typically must pay annual maintenance fees and special assessments. If, as an owner, you don't pay the fees and assessments, you might face a lawsuit for a money judgment or a foreclosure of your timeshare. (With a right-to-use timeshare, people generally sign a contract and agree to make monthly payments. While a developer may foreclose a deeded timeshare, a right-to-use timeshare is typically repossessed, which is a different legal process than a foreclosure.)
How Do I Cancel an Alaska Timeshare?
Again, you can generally, before conveyance, cancel a timeshare contract within 15 days of receiving the public offering statement. But if you get the public offering statement more than 15 days before signing a contract, you can't cancel the purchase. (Alaska Stat. § 34.08.580(a).)
Steps to Cancel a Timeshare Deal in Alaska
To cancel your timeshare purchase, you must:
hand-deliver notice of the cancellation to the seller, or
mail notice of the cancellation by prepaid United States mail to the seller or the seller's agent for service of process. (Alaska Stat. § 34.08.580(b).)
The seller can't charge you a cancellation penalty and must refund your payments promptly. (Alaska Stat. § 34.08.580(b).)
Timeshare Foreclosures in Alaska
In Alaska, if you take out a loan to purchase an interest in a deeded timeshare and fail to make your mortgage payments, the lender (again, typically, the developer) might foreclose. In addition to monthly mortgage payments, timeshare owners are ordinarily responsible for maintenance fees, special assessments, utilities, and taxes, collectively referred to as "assessments." You might also face a foreclosure if you fall behind in the timeshare assessments.
negotiating with the developer to reduce the amount you owe
selling the timeshare
donating the timeshare to a charity (not all charities will take a timeshare, but some might, and you'll have to get current on payments first)
arranging a repayment plan, or
working out a deal to give the timeshare back to the resort (called a "deed in lieu of foreclosure" or "deedback").
Talk to a Lawyer
If you want more information about timeshare laws in your state or need assistance canceling a timeshare, consider talking to a real estate attorney. If you're facing a timeshare foreclosure and have questions about the process or your options, contact a foreclosure attorney.