Is it possible to cancel after grace period?

[B.O.B.]

I purchased a Sheraton Flex Vacation package and I'm now having major second thoughts. According to your forum I had 10 days to rescind the contract at no penalty.

I'm about a week past that point. Is there a way to cancel the contract at a penalty? Or am I stuck with a bad financial decision?

They did mention something about being able to resell my hoa/Poa (?) - but I'm guessing I'll take a huge loss on that. Even so if that is my only option, how would I go about that?

Thanks for any advice on my current situation.

 

[B.O.B.]

PS I apologize if this is the wrong sub forum. I wasn't sure which one to post my question in.

 

[DeniseM]

It is not possible, unless you are willing to default on the loan, and go through foreclosure.

Unfortunately, Sheration Flex has little or no resale value, and you would have to pay the loan off to sell it.

 

[B.O.B.]

It is not possible, unless you are willing to default on the loan, and go through foreclosure.

Unfortunately, Sheration Flex has little or no resale value, and you would have to pay the loan off to sell it.

Thanks. That's what I was afraid of. Once the loan is paid off, is there a way to cancel/escape the lifetime hoa maintenance contract? Or do you have to sucker someone else into buying that off you? I don't want to actually sucker someone else into - I dislike how basically they sell you on you supposedly getting points for free for the rest of your life once the loan is paid off, but then spring this yearly hoa fee your responsible for for the rest of your life. So basically I don't want to dump the hoa on someone else - if it means I don't get points after the loan is paid off but I have no hoa yearly fee and just chalk it up to my own stupidity I'm fine with that.

 

[Luanne]

Once your loan is paid off you do have the maintenance fees forever (or at least as long as you own the timeshare/points). If you sell to someone else, they would assume the maintenance fees. And yes, most likely you would take a loss if you sold.

 

[DeniseM]

You don't have to sucker anyone - just offer it honestly for free.

We have a whole forum for that: http://www.tugbbs.com/forums/index.php?threads/how-can-i-give-away-my-timeshare-on-tug.132509/

At developer prices, it's not a good value - for free, it's an OK deal.

As far at the maintenance fee goes - all timeshares have maintenance fees, and they pay to maintain the resorts: Management, staffing, housekeeping, landscaping, furniture replacement, renovations, repairs, insurance, etc.

Without maintenance fees - it would be impossible to run and maintain the resorts.

 

[dioxide45]

Unfortunately, once the rescission period is over you are stuck. Especially if you signed up to finance the timeshare. It could be possible to get out if you were willing to lose the deposit, but that is a long shot. Best now to just learn how best to use what you purchased and make the best of it. Many Tuggers bought their first timeshare from the developer. If you ever look to add more StarOptions with Vistana, look to resale first.

 

[Go2Hal]

There is one drastic option that no one here ever talks about. Namely the mods.
You could always file Bankruptcy.
Often when you purchase a deeded interest timeshare, you take out a loan to pay for the timeshare. Your lender will have a security interest (mortgage) in the timeshare, which means that if you don’t pay, the lender can foreclose on your interest in the timeshare.

Many people take out a home equity loan to pay for their timeshare. In this case, the lender has a mortgage on your home, not on the timeshare. That loan is not connected to the timeshare, and is treated like any other mortgage in bankruptcy.

If you borrowed money to purchase a right to use timeshare, your lender will not have a mortgage on any real estate interest, and the debt is normally considered to be unsecured. Like other unsecured debts, you can discharge it in bankruptcy.

In a points based system, the lender may have a security interest in the points themselves. In this situation, it would be treated in much the same way a car loan or any other secured loan is treated in bankruptcy.

 

[VacationForever]

There is one drastic option that no one here ever talks about. Namely the mods.
You could always file Bankruptcy.
Often when you purchase a deeded interest timeshare, you take out a loan to pay for the timeshare. Your lender will have a security interest (mortgage) in the timeshare, which means that if you don’t pay, the lender can foreclose on your interest in the timeshare.

Many people take out a home equity loan to pay for their timeshare. In this case, the lender has a mortgage on your home, not on the timeshare. That loan is not connected to the timeshare, and is treated like any other mortgage in bankruptcy.

If you borrowed money to purchase a right to use timeshare, your lender will not have a mortgage on any real estate interest, and the debt is normally considered to be unsecured. Like other unsecured debts, you can discharge it in bankruptcy.

In a points based system, the lender may have a security interest in the points themselves. In this situation, it would be treated in much the same way a car loan or any other secured loan is treated in bankruptcy.

Filing bankruptcy is extremely drastic.

If you are talking about simply walking from a mortgage, then we are talking about whether you are in a non-recourse state or not.

Only non-recourse states protects your other assets when you walk away from a mortgage loan. Here is the list of the 12 non-recourse states: Alaska, Arizona, California, Connecticut, Idaho, Minnesota, North Carolina, North Dakota, Oregon, Texas, Utah, and Washington.
http://www.financialsamurai.com/non-recourse-states-walk-away-from-mortgage/

 

[DeniseM]

Not to mention - you cannot simply declare bankruptcy just to unload the inconvenience of a timeshare payment. You have to qualify for bankruptcy, and that means that you must have more financial problems than just a timeshare that you don't want.

We absolutely do ask people about bankruptcy when they are in a serious financial situation, and they can no longer afford their maintenance fee - but it's certainly not something to undertake just to get rid of a timeshare. If you are financially stable, but no longer wish to own your timeshare, bankruptcy is not an option.

BTW- Welcome back Hal!

 

[TUGBrian]

dont have anything to lose to try to rescind per the instructions...

 

[Go2Hal]

Not to mention - you cannot simply declare bankruptcy just to unload the inconvenience of a timeshare payment. You have to qualify for bankruptcy, and that means that you must have more financial problems than just a timeshare that you don't want.

We absolutely do ask people about bankruptcy when they are in a serious financial situation, and they can no longer afford their maintenance fee - but it's certainly not something to undertake just to get rid of a timeshare. If you are financially stable, but no longer wish to own your timeshare, bankruptcy is not an option.

BTW- Welcome back Hal!

 

[Go2Hal]

dont have anything to lose to try to rescind per the instructions...

about time you showed up brian i want you to cancel my account on this site.

 

[dioxide45]

about time you showed up brian i want you to cancel my account on this site.

Why wouldn't you have just contacted him directly?

 

[Passepartout]

Bankruptcy is not about financial planning any more than abortion is about birth control. But since this thread is about someone's hurt feelings it will close soon anyway.

 

[TUGBrian]

about time you showed up brian i want you to cancel my account on this site.

click the logout button....its as easy as that.

there is nothing to cancel on the forums...your account wont ever be active again unless you log back in.

bit baffled as to why you would log in...post...then ask for your account to be cancelled...vs just not visiting the site anymore.

 

[B.O.B.]

Thanks for all the advice everyone. I definitely was not/nor planning to declare bankruptcy or even go default on the loan. It's not that I can't afford it, I'm just feeling a bit like a sucker. Was hoping there might be something like forfeiting the down payment and cancel the loan in the first 30 days of something like that that I could pursue.

 

[Passepartout]

B.O.B., we took a poll some time back asking how TUggers bought their first TS. It was almost exactly 50/50 developer purchased vs. resale. So you're in pretty good company. Many of us purchased subsequent weeks as resale, or were able to go through customer service and surrender whatever they'd paid and get out of the purchase. Sometimes they've had hardship, other times, just a sympathetic ear, but there's no guarantee either way.

Jim

 

[Passepartout]

Why do people on here think it is ok to just put their two cents.

Umm, mainly because YOU have 20ish messages on the board, and I have nearly 17,000. It means I just MIGHT know more about timeshares than you do. Sorry you feel 'bullied'. That's not my intention.

 

[MuranoJo]

dont have anything to lose to try to rescind per the instructions...

To the OP, I agree with Brian's post--just give it a try--doubt it would cost anything to at least give this amount of effort, and who knows, it may work.

If not, it appears you'll have to finish off the payments and use the system down the road, or stop the payments and expect a credit hit.

 

[WackyLucy]

From what I've read in these TUG forums, loans for timeshare purchases are often issued by an entity other than the developer that sold the timeshare.
If that is the case, it would seem to me that a "too late, by law" rescission is no longer a decision or option still in the developers's hands at all.