You're timing out because the game host cannot connect back to your computer. The following image may help:
You have to open ports 10052 TCP and UDP on your firewall software or router to let the game server connect back to your computer. Opening the ports will also let you host games.
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With our extreme gelatinous apology,
We beg to inform your Imperial Majesty,
Unto whom be dominion and power and glory,
There still remains that strange precipitate
Which has the quality to resist
Our oldest and most trusted catalyst.
It is a substance we cannot cremate
By temperatures known to our Laboratory.
~ E.J. Pratt
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