The recent misfortune of the timeshare industry is due largely to the huge drop in timeshare sales last year. Many timeshare owners are disappointed over their timeshare purchases; securing the services of timeshare relief companies to help free them from their timeshares. One of the major reasons prompting owners to free themselves of their timeshares is the periodic expenses of maintenance fees as well as interests on any loan secured to finance the purchase of the timeshare.

Most timeshare purchases in the industry today are funded by loans from financial institutions. Timeshare vacation packages do not meet the criteria for a standard housing loan; hence, interest rates for timeshares are more expensive. The average interest rate for a timeshare property loan is 20% more than a standard housing loan. The annual interest due to the financial institution funding the loan in addition to the standard maintenance fees and special assessment charges of timeshares poses significant expenses for the timeshare owner each year.

In some cases, banks and financial institutions will refuse to finance loans for the timeshare purchases of vacationers. Hence, the developer himself will have to fund the loan for himself, and he in turn secures a loan from the bank or financial institution. This type of arrangement will increase the interest rate due the owners as the developer himself is forced to pay interest to the financial institution. With this type of arrangement, owners are better off getting rid of their timeshares than shoulder the high expenses connected with its ownership.