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 Nebraska, the cooling-off period is three business days after you receive the public offering statement (see below). Also, Nebraska law provides consumers with some protection for timeshare purchasers. For instance, state law requires timeshare sellers to use an escrow account in timeshare transactions.
But you still 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.)
Again, under Nebraska law, you can cancel a timeshare purchase contract within three business days after receiving the public offering statement. (Neb. Rev. Stat. § 76-1716(1)).
You can cancel a timeshare purchase in Nebraska by:
If you choose to cancel the contract, the developer must refund all payments, without penalty, within 30 days after receiving your notice of cancellation. (Neb. Rev. Stat. § 76-1716(1).)
When you purchase a timeshare in Nebraska, the timeshare developer must put any money you pay in connection with the purchase into an escrow account. (Neb. Rev. Stat. § 76-1715(1).) The funds must be released:
The purpose of requiring an escrow account is to protect your right to get a refund if you cancel the deal.
One of the common features of timesharing is the ability to exchange your timeshare week or another designated period for someone else's.
In Nebraska, if the timeshare purchaser is permitted or required to be part of an exchange program, the public offering statement must make certain additional disclosures, including:
In Nebraska, 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." In Nebraska, you might also face a foreclosure if you fall behind in the timeshare assessments.
A few of the various options to avoid a timeshare foreclosure include:
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.
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