Victims of two recent timeshare reselling schemes have been defrauded to the tune of more than $40,000, according to the Better Business Bureaus of both Minnesota and North Dakota.  The BBB offers helpful tips to make sure you don't fall into a similar circumstance.

In most cases the fraud started with a phone call.  They were told there would be no upfront fees, but that wasn't the case.  After they received their contracts they found that money was needed to be wired to escrow funds in Mexico or money was need for closing costs, taxes or to close the deal.

According to the NNCnow.com, they use a Twin Cities address but in reality they are not from our area.

The Better Business Bureau offers important information you should know:

  • "Be wary. If you currently own a timeshare and are approached by a company saying they have buyers or renters lined up, exercise caution.
  • Investigate. Don't be dazzled by a fancy website or one that has photos of exotic locales. Creating websites is fairly easy. Use a business you can trust by accessing free BBB Business Reviews at bbb.org.
  • Look for an established track record. Does the company have a history or did they just "pop up on radar"?
  • Watch out for upfront fees and requests to wire funds. Remember, unless it's negotiated into the purchase agreement, only buyers pay closing costs. Many complaints to the BBB regarding supposed timeshare reselling entities involve situations where people were told they needed to wire "escrow funds," or that they just had to pay taxes or closing costs and their timeshare would be rented or sold. Never wire money to someone you don't know.
  • Confirm licensing requirements – Verify where the company is located and in what states it does business. Ask if the company's salespeople are licensed to sell real estate where your timeshare is located. If so, confirm that with the state licensing board.
  • Get the facts on the figures – Find out if the business charges a commission. Do they handle the entire closing and provide escrow services? Do they charge an upfront listing or advertising fee? What does it cover and is it refundable?
  • Don't fall for an offer that sounds too good to be true – Don't agree to anything over the phone but instead ask the salesperson to send you written materials; take the time to do your research and don't allow yourself to be pressured. Remember, scammers have gotten very good at creating official–looking contracts.
  • Watch out for third–party companies. Fraudulent timeshare reselling entities often associate with alleged third–party title or escrow services in an effort to appear more legitimate. Be sure to research those companies as well. If you can't find any information on them, it could be a sign there's a problem.
  • Be realistic. In regard to timeshares, it's generally a buyer's – not a seller's – market. Unscrupulous timeshare resellers may claim that your property is in demand and they can sell it immediately; unfortunately, these promises often prove to be false."
  • Some of the fraudulent bodies which are claiming addresses in our area, have been uncovered in recent months: Business Events International, Century Title Escrow Inc., Corporate Services International Group and Financial Planning 2Go.
  • Also, Minne Realty Services and NSR Services, Inc. are not legitimate timeshare resellers.

Info via:  NNCnow.com/Ramona Marozas

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