Question from a new Worldmark owner looking to sell...

Hi all - I hope someone can guide me in the right direction.

Me and the wife bought our Worldmark/Wyndham timeshare thing in May 2007, and have a 10 year payment plan. No problems with the timeshare.

Anyway, looks like me and missus are on our way to splitsville (seperating), and neither one of us wants to, or can afford to, keep the payments going on the plan.

What are the options of selling/getting rid of the timeshare, when we owe the remaining 8 years of payments or whatever...where do I turn, who should I talk to. I don't really care about re-couping the money we have already spent, just want to avoid paying any more!

Thanks in advance for any realistic advise!

I'm sorry to hear about your divorce. Unfortunately, there is no option to sell when you still owe 8 years payments and bought from the developer.

Buyers can buy the exact same thing on the resale market for pennies on the dollar, so no one is going to be willing to pay what you owe.

You will have to negotiate the debt in your divorce agreement. If you simply stop making payments you will be turned over to collections and it will damage your credit rating.

I wish I had better news for you.

Good luck!

Unfortunately, the market is very depressed right now and the value of WorldMark credits has dropped significantly over the past couple of years. Resale credits are going for about 50 cents a credit.

This means if you own 10,000 credits, you can't expect to get more than $5,000 for your membership...possibly even less. Memberships with assumable loans often sell for a bit more than those that are paid in full...but not a lot more.

If you have only paid for two years of a ten year contract, then you'll probably have to bring money to the table to close. You're likely looking at a substantial loss over and above what you have already paid. It's very tough to sell right now.

Steve

Jefferson001 said:

where do I turn, who should I talk to.

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Try the folks at the WorldMark Owners Community website: http://www.wmowners.com/

Judy said:

Try the folks at the WorldMark Owners Community website: http://www.wmowners.com/

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It's not a good site to seek advice for selling. I think either of you should keep the TS. The value of your WM account would be worth way lesser the amount you own, so the one who doesn't want the TS have to pay the one who want the TS. In general, if you sell you get around 30-40 cents/credit , if you buy you have to pay around 50-60 cents/credit. There are many factor affect the price such as the anniversary date, credits available etc Work out each other.

Steve said:

Memberships with assumable loans often sell for a bit more than those that are paid in full...but not a lot more.

If you have only paid for two years of a ten year contract, then you'll probably have to bring money to the table to close. You're likely looking at a substantial loss over and above what you have already paid. It's very tough to sell right now.

Steve

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Steve - I think you mean a bit less...

Jefferson01 - you might want to go e-bay and do a search for Worldmark and assumable or take over, to get a better picture of what some of the sellers are offering. As you can see - it is a tough market out there. As the other poster said, your best bet might to be tough it out and hope the market improves the future. Like all real estate, prices have fallen by out 30-50% in the past six months.

Jefferson001 said:

Hi all - I hope someone can guide me in the right direction.

Me and the wife bought our Worldmark/Wyndham timeshare thing in May 2007, and have a 10 year payment plan. No problems with the timeshare.

Anyway, looks like me and missus are on our way to splitsville (seperating), and neither one of us wants to, or can afford to, keep the payments going on the plan.

What are the options of selling/getting rid of the timeshare, when we owe the remaining 8 years of payments or whatever...where do I turn, who should I talk to. I don't really care about re-couping the money we have already spent, just want to avoid paying any more!

Thanks in advance for any realistic advise!

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You have many options:

1. One of you keep it as is. One would have to pay the other, either in lump sum or payments.
2. Sell it yourself on public venues. Post questions on www.wmowners.com's (WMO) forum and ask for advice from one of the buy/sell experts there on how to sell it yourself.
3. Sell it to a friend/family member at market value or less, if they would assume the loan. This would probably still be more than what you could get from a broker. Ask to be on a payment schedule on what you owe them.
4. Sell it to a broker. You would get the least amount from this option. But you would have to do the least work. Ask for reputable names on WMO.
5. Renegotiate the payment schedule with Wyndham. This is very unlikely to happen, but it doesn't hurt to try in this hard economic climate. They would try to sell you more credits.

Good luck.

ecwinch said:

Steve - I think you mean a bit less....

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No, I think he meant a bit MORE.

Steve said:

This means if you own 10,000 credits, you can't expect to get more than $5,000 for your membership...possibly even less. Memberships with assumable loans often sell for a bit more than those that are paid in full...but not a lot more.

Steve

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I know it doesn't seem right that "Memberships with assumable loans often sell for a bit more" but that is true.

6 months ago, There are many examples of memberships with loans selling for $1./pt vs paid off memberships selling for $0.70/pt. ( no idea what the current prices are) I think it is because for a paid off membership, the buyer had to come up with the cash. For a memberships with a loan, there was little or no "up front" money and WM seems fine with the buyer assuming the loan.

Yes, as others have stated, I did indeed mean that memberships with assumable loans sell for a bit MORE than those that are paid in full. Some people will pay more if the financing is already in place and they don't have to come up with much (or any) cash.

Steve

Thanks for the explaination - that makes more sense.

I can see how someone would take over a 6000 pt contract with a balance of $5000 for a $1, rather then paying $4500 for a outright purchase.

Unfortunately most of the assumable contracts on e-bay seem to be priced at $1 to 1.50 a point (purchase price + loan value).

ecwinch said:

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Unfortunately most of the assumable contracts on e-bay seem to be priced at $1 to 1.50 a point (purchase price + loan value).

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They are unrealistic and they are never sold.