Time Share foreclosure

We have a Wyndham timeshare at Panama City Beach. We still owe on it. Financially, we can no longer pay for it. Can anyone help in providing information regarding what happens if we must foreclose or how we can get out of the deal. We have had the timeshare for three years and owe more than it is worth. One group, Sell Your Time Share Now, has contacted us, does anyone know anything about this group?

Advice needed,
Kizzy1

Hi and welcome to TUG!

Unfortunately, it is impossible to sell your timeshare, if you have a large loan against it, because you owe far more than the timeshare would sell for. Right now, Wyndham timeshares, and most timeshares, are selling for pennies on the dollar.

If you let it go into foreclosure, they will eventually take it back, but before they do that, they will turn you over to collections and report you to the credit bureaus - which will damage your credit.

Sell Your Timeshare Now wants to charge you a large upfront fee to advertise your timeshare. They may even tell you that they have a buyer who is willing to pay thousands of dollars and get you out of debt. Don't believe it!

ANY company that charges a large upfront fee is going to scam you - period.

you can contact wyndham and ask if they will take it back ("deedback") in exchange for letting you out of the loan and annual dues commitment, but since you agreed to the original contract, they are not obligated to do so.

as stated above, stay away from firms that offer to help you out in exchange for cash upfront - that will only make things worse.

you can try to rent your timeshare to recover some money, but you would probably need to do some research to understand the ins-and-outs of that process.

but you may have no choice other than to be foreclosed on and have your credit dinged. there's not really an easy out...

Recourse Mortgage

Sorry to bring bad news, but you should probably talk to an attorney to determine if your debt is recourse or non-recourse - particularly important now that you're upside down in loan to value.

In short, non-recourse means that Wyndham can foreclose and sell the timeshare, and they eat the difference between what they sell the unit for and the greater loan value.

Recourse means the opposite. When they foreclose and the sales proceeds don't cover the loan, they come after your other assets for the deficiency.

The answer depends on the state.

As stated above, the best option for you would be if Wyndham agrees to take back the deed in exchange for cancelling the contract.

I maintain a list of Florida real estate and probate attorneys who are familiar with timeshare transations OY.. The link is HERE.

You may want to contact an attorney from this list to see if they'll give you some free advice as to what actions a resort or collection agent can actually take after a timeshare property has been foreclosed.

It will at least help you to make an informed decision. You may also want to check with a local real estate attorney in your area. (As always, even with attorneys- avoid any type of upfront fee for a timeshare related transaction.)..

It would be very hard to rent your timeshare to cover your mfs as well as the loan payments.