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Warranty deed in lieu of foreclosure

Discussion in 'Buying, Selling, Renting' started by Eothaina65, Nov 17, 2010.

  1. Eothaina65

    Eothaina65 Guest

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    Hi Everyone,

    I am new here and I hope I can get some help. I have a Westgate Miami Beach timeshare(TS) that I never used and I am in the pre-foreclosure stage right now. The TS rep. offered me the option of the Warranty deed in lieu of foreclosure(WDLF). She said first they have to run my credit report and the cost is $1000-$2000 for the lawyer processing fees to determine if I am eligible or not for the WDLF.

    Is this information true? Why does the TS need my credit report? Why do I have to pay a fee?

    If I am denied the WDLF I guess the TS goes into foreclosure. Should I just let the TS foreclose?

    Thank you.
    Eothaina
     
  2. DeniseM

    DeniseM Moderator

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    This sounds like a total scam to me.

    Is WESTGATE offering this to you, or another company?

    Did you contact them, or did they contact you?
     
  3. Eothaina65

    Eothaina65 Guest

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    Hi Denise, thanks for responding.
    Yes, Westgate is offering this to me. I received a letter from them about the foreclosure and then I called the TS rep. at Westgate about my options. She said if my credit report shows that I can make payments or have paid off other debts then mostly likely I would be denied the WDILF. She also said that the $1000-$2000 fee is for the lawyers because they have to be paid to process the paper work. I think this is if the WDILF goes through.

    The other option is to reinstate the monthly mortgage by paying half of the amount of the total deliquent payments for 2010.

    Yes, the request for the credit report and fee sounded like a scam to me also.
     
  4. DeniseM

    DeniseM Moderator

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    My guess is that if you don't qualify, you lose the fees paid? This is inherently wrong - why would they ever qualify anyone when they've got a money maker like this?
     
  5. Talent312

    Talent312 Tug Review Crew: Rookie TUG Member

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    What they want to do is brow-beat you into paying them $1000 and then, they'll say,
    "Oh, but you can pay what you owe, so no deed ILOF. Now pay us more." Its a rip-off.

    Offer them a deed-ILOF... send them one. Just take the deed they gave you and trade
    the names of the Grantor+Grantee, or have a lawyer write one (it should cost <$200),
    and tell them to "Take it or leave it."

    If they proceed with the foreclosure, they'll have to front legal fees, a title search and
    filing fees. It'll cost them about a $1000 to file (which hopefully you did not pay).
    However, just B4 they get a judgment, you could file Bankruptcy (for less than $1000).
    The case will be stayed for about 90 days and any personal liability will be discharged.

    I'd point this out in my offer of a deed-ILOF.
     
    Last edited: Nov 17, 2010
  6. vacationhopeful

    vacationhopeful TUG Member

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    Slick! Get you to pay the deposit for the lawyers to foreclose on yourself. HA, HA ... why did they think you rode around in a turnip truck? Just by sending them $1,000, they have proof (and your bank account number) that you have money. Remember, to them any money you have is and should be their money - shelter, food, medicine, transportation to work, is NOT their problem. You OWE them! And they will be happy to scream that to you at the top of their lungs (plus they get paid a percentage of any $$$ they collect).

    STOP TALKING TO THEM. And if they are calling you at work, tell them to STOP harressing you at work.

    Do you owe a balance on the original loan to buy this TS or just MFs? If there is a balance, spend the money either to get the loan caught up to date or to consult your own LAWYER.
     
  7. FrugalFrank

    FrugalFrank Guest

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    Cart Before The Horse

    Doesn't make sense to retain the lawyers for processing the paperwork before WG determines your ability to pay or not pay.

    If you chose to not take pursue Talent312's worthy advice then perhaps you might like to run your own credit report for free, and send them a copy without any accompanying funds. In NJ you're entitled to one free annual report from each of the (3) major credit reporting agency.
     
    Last edited: Nov 19, 2010
  8. Conan

    Conan TUG Review Crew: Elite TUG Member

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    Just a side-note - - the "warranty" that goes with a warranty deed in lieu merely means you're telling them you have the legal title you say you have, for example there's no other mortgage against the deed that you haven't told them about.

    So don't be concerned about that. But given Westgate's particularly poor reputation for ethics, do listen to what TUG is telling you about the money issue.
     

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