Our RCI Timeshare CANCELED....

Ok, we were behind on our payments(about 5 months), not to my knowledge, an my fiancee called today to make that payment and they said we were canceled. They said we could speak to a manager to see what could be done. The manager called back and said he would call back tomorrow and tell us what we could pay to get it back.

Now the question. Is it worth it keep paying toward this? We have owned this since 2005. It hs a 14% interest and total payments(with finance charges) will be $18,417.00. It is a points system and our home resort is Divi Aruba Phoenix and we have 77,000 points per year. I can't even explain how upset/p.oed I am that we were canceled. I mean I understand them cancelling us but I had no idea.

Also, if we have a way to keep this and we don't use our points can't we rent them out or something like that.

THANKS very much for any input/help.

If canceling your membership also cancels your loan to buy the membership, that sure is an easy way to walk away from a big loan with a huge interest rate. Somehow I don't think that's how it's going to work when all is said and done.

horsegoer said:

Ok, we were behind on our payments(about 5 months), not to my knowledge, an my fiancee called today to make that payment and they said we were canceled. They said we could speak to a manager to see what could be done. The manager called back and said he would call back tomorrow and tell us what we could pay to get it back.

Now the question. Is it worth it keep paying toward this? We have owned this since 2005. It hs a 14% interest and total payments(with finance charges) will be $18,417.00. It is a points system and our home resort is Divi Aruba Phoenix and we have 77,000 points per year. I can't even explain how upset/p.oed I am that we were canceled. I mean I understand them cancelling us but I had no idea.

Also, if we have a way to keep this and we don't use our points can't we rent them out or something like that.

THANKS very much for any input/help.

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Perhaps this is a blessing in disguise? It sounds like you paid quite a bit for 77,000 points. I recently bought a timeshare in the RCI point system. I get 82,000 annual points and my total purchase price including closing costs was only $700.

klynn said:

Perhaps this is a blessing in disguise? It sounds like you paid quite a bit for 77,000 points. I recently bought a timeshare in the RCI point system. I get 82,000 annual points and my total purchase price including closing costs was only $700.

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With all due respect that sounds unbelievable.

klynn said:

Perhaps this is a blessing in disguise? It sounds like you paid quite a bit for 77,000 points. I recently bought a timeshare in the RCI point system. I get 82,000 annual points and my total purchase price including closing costs was only $700.

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Ok I looked on EBAy and it's AMAZING. There are really timeshare with around those points for anywhere from $500-3,500. Is this just a one time use? How is this possible and we were charged $11,500 before finance charges. IS there any leverage we have to get out of this if we really paid WAY too much. Thanks.

Yes, there are some amazing deals on eBay, and you do get the points as deeded, own them forever, but you have to pay annual maintenance fees, so get the lowest possible maintenance fees. The goal is to be at < penny a point, according to some here, but that seems a bit unrealistic, unless you contact Scott Riddle through an eBay ad. The price he charges is higher than $700, but he has the best price per point in MF's.

When you buy from the developer, you are paying thousands more than you would on the resale market. In this economy, there are nice timeshares being given away for free. On eBay, there are over 200 TS auctions for $1-100, most with no bids. The difference between the developer price and the resale price has always been significant, and in this economy, it has increased.

My concern is that you are going to lose your ownership, but not the debt.

Ok, we were behind on our payments(about 5 months), not to my knowledge, an my fiancee called today to make that payment and they said we were canceled.

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Why didn't you know you were 5 mos. behind on the payments?

DeniseM said:

When you buy from the developer, you are paying thousands more than you would on the resale market. In this economy, there are nice timeshares being given away for free. On eBay, there are over 200 TS auctions for $1-100, most with no bids. The difference between the developer price and the resale price has always been significant, and in this economy, it has increased.

My concern is that you are going to lose your ownership, but not the debt.



Why didn't you know you were 5 mos. behind on the payments?

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Thanks you Thank you everyone for your responses. It was my fiancee trying to pay for other stuff.....she just called today to make the payment and that's when she found out.

Does anyone know for sure if we can lose the debt.......Thanks again

horsegoer said:

Thanks you Thank you everyone for your responses. It was my fiancee trying to pay for other stuff.....she just called today to make the payment and that's when she found out.

Does anyone know for sure if we can lose the debt.......Thanks again

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No, you can NOT lose the debt, but you can lose your ownership.
By falling in arrears, they can deny your usage BUT YOU STILL OWE ALL THE MONEY and you will ruin your credit rating.

Denise is right, make sure they don't intend to collect anything further from you or otherwise go after you for $ now that you have been cancelled. As long as you are not on the hook financially with the resort, I'm in agreement with whoever said this is a blessing for you. Now you can take advantage of one of ebay's deals and get something you can pay cash for at a much cheaper price. But,again, make sure you are no longer responsible for any portion of fees. Maybe they needed inventory to sell and grabbed your week since it was behind. Good luck! I am sure 1000 people on this board wish they were in your shoes (i.e. That the resort would take back their week under ANY condition!)

alexadeparis said:

Denise is right, make sure they don't intend to collect anything further from you or otherwise go after you for $ now that you have been cancelled. As long as you are not on the hook financially with the resort, I'm in agreement with whoever said this is a blessing for you.....

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I'd want it in writing the resort is taking back the week with no intention of collections for the remaining $ owed. Do not just jump back into a ts until you educate yourselves tons more. Maybe you can't afford it if you were already deliquent on pmts and why did you not know is a very good question imho.

GrayFal said:

No, you can NOT lose the debt, but you can lose your ownership.
By falling in arrears, they can deny your usage BUT YOU STILL OWE ALL THE MONEY and you will ruin your credit rating.

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Actually GrayFal just spoke to someone I know and they lost their Timeshare and they did now owe the debt. Also, it is not on our credit report but I assume you mean that not paying then it will go to collections which we would not let happen. But still curious how this person told me they lost theirs due to non-payment and DID NOT owe the debt...

horsegoer said:

Actually GrayFal just spoke to someone I know and they lost their Timeshare and they did now owe the debt. Also, it is not on our credit report but I assume you mean that not paying then it will go to collections which we would not let happen. But still curious how this person told me they lost theirs due to non-payment and DID NOT owe the debt...

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I would find it hard to believe that they did not owe the money.
If it were as easy as stopping payment to the company, everyone would do it.

Yes, once it goes to collections, it will appear on your credit report.

If they cancelled the OP's "use" due to non-payment, its likely that the debt was self-financed and kept in-house. As such its possible that they may just write it off. OTOH, they could send it to a collections agency.

If it comes to that, the debt could be discharged thru Bankruptcy. However, the matter of "ownership" could still be an issue. The seller might foreclose to terminate the OP's interest, and one way to avoid that would be to offer to deed it back to the seller in lieu of foreclosure.

IMHO, the seller may be doing the buyer a big favor if they mean to cancel the whole deal, and the OP should offer to send them a thank-you card with a deed-back enclosed.

Talent312 said:

If they canceled the OP's "use" due to non-payment, its likely that the debt was self-financed and kept in-house, as such its possible that they may just write it off. OTOH, they could send it to a collections agency.

If it comes to that, the debt could be discharged thru Bankruptcy. However, the matter of "ownership" could still be an issue. The seller might foreclose to terminate the OP's interest, and one way to avoid that would be to offer to deed it back to the seller in lieu of foreclosure.

IMHO, the seller may be doing the buyer a big favor if they mean to cancel the whole deal, and the OP should offer to send them a thank-you card with a deed-back enclosed.

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Okay, I surrender!
From now on when people tell us they bought a TS and they made a mistake and want out, our advice will be 'Just don't pay!'

edit - and I agree with your last statement

The thing that would worry me is that most timeshare loans are bundled and sold as high risk security notes. If that's what's been done, then the debt is tied to the security note and not the resort. The membership may be cancelled but not the financing of that debt.

OTOH, it could be that this particular note was kept in house and both the membership and debt are cancelled. If the non-payment doesn't show up on the credit report as an uncollectable debt that's even better. But I've learned that things that seem to good to be true usually are to good to be true. Has anyone ever heard of anything being financed at 14% with a signed contract and the holder of the contract not attempting to enforce it's collection?

If it were me, I'd be uneasy about this situation. If the entire contract is cancelled along with the debt I agree that I'd be sending them a thank you note for letting me out of the deal without damage.

One thing no one has commented on is that the Original Poster lives in the US, but the timeshare is in Aruba. Being in another country may limit the timeshare's ability to collect on this debt. I'm not sure the credit reporting agencies would accept a report from the Netherlands Antilles. I don't even know if credit ratings exist in the Netherlands Antilles -- my understanding is that personal credit ratings aren't used in Holland itself.

I agree that the timeshare company just giving up and walking away seems to good to be true, but the fact that the timeshare is in another country changes the equation considerably.

The Netherlands Antilles might have a consumer protection agency that can advise you as to whether the timeshare can come after you for the debt. You could search the web to see if their government has a website.

And yes, if you are really being allowed to walk away from this timeshare, then you lucked out!!!

JudyS said:

One thing no one has commented on is that the Original Poster lives in the US, but the timeshare is in Aruba. Being in another country may limit the timeshare's ability to collect on this debt. Snip.....

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I'd bet that the resort sales has a US 'Lender' for it (probably in-house financing) and will still be able to collect.


Horsegoer....I'll tell you my story...

About 15 years ago (easy to time it)...my Wife was pregnant with our first. We went to a timeshare sales spiel...Barrier Island Station Duck. Nice place...they put us up in a hotel a ways from there, then we went to the sales pitch...hard sell. We said we couldn't afford the $15k (wife was then unemployed)...so they found us a Blue Week in a 2 Br for ONLY $10,000. We thought it was a pretty good deal, so we signed (this pre-dates the points system, or at least we didn't know about it then). When we got back to the hotel we started to have second thoughts...we rescinded.

About 1 month ago...I bought a 3 Bedroom Lock-off Red Week (39) in the closest buildings to the ocean. It cost me $2.50 for the week on ebay (I paid this years MFs and closing costs...only $1k out of pocket). I got a much better week in a larger unit, closer to the ocean (without paying the 14% interest on the original loan either).

So, I paid a FOUR THOUSANDTH (1/4000) of what the original cost would have been. Developer Sales have gone up in price, but resales have dropped considerably.

I think you might be stuck with the loan....but it's probably a good idea to get some legal advice...probably wouldn't cost more than a month's payment to consult and a couple of months if he has to represent you. I'm not an attorney...but if you signed the contract in Aruba...I have to wonder if that can be used to throw the contract out (even if they do have a US lender).

Buy a resale....for the cost of 1 of your payments or less.

AFARR

You can't be too far from paying it off....

I caught an earlier post...I think you mentioned a $13k purchase price.

14%.

Payments of $300 (roughly) via an amortization table for 60 months gives that final total.

If you've owned it for 5 years...that's almost the 60 months.

Despite the advice I gave above, I'd probably find out if you can catch up the $1500 Past due (5 months)...it's probably close to the payoff...probably not worth the potential hassles on it. Once the loan is current or paid off, then you should be able to rejoin RCI points.

AFARR

AFARR said:

I'd bet that the resort sales has a US 'Lender' for it (probably in-house financing) and will still be able to collect. ..

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I know this is common in Mexico, but I don't know if it's common in Aruba, where the laws are considerably different and a higher proportion of the out-of-country tourists are non-American.

GrayFal said:

No, you can NOT lose the debt, but you can lose your ownership.
By falling in arrears, they can deny your usage BUT YOU STILL OWE ALL THE MONEY and you will ruin your credit rating.

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horsegoer said:

Actually GrayFal just spoke to someone I know and they lost their Timeshare and they did now owe the debt. Also, it is not on our credit report but I assume you mean that not paying then it will go to collections which we would not let happen. But still curious how this person told me they lost theirs due to non-payment and DID NOT owe the debt...

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JudyS said:

I know this is common in Mexico, but I don't know if it's common in Aruba, where the laws are considerably different and a higher proportion of the out-of-country tourists are non-American.

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Judy, DIVI Resorts has US offices

http://www.diviresorts.com/index.html

And they even have job postings on their website

http://www.diviresorts.com/employment.html

3/16/10
COLLECTIONS SPECIALIST, BILINGUAL - Divi Resorts Corporate Office
Chapel Hill-based Caribbean resort headquarters seeks French-speaking team member for resolving delinquent timeshare contract payments 8:30-5:30. Computer, administrative and customer service skills are musts. Collections experience a plus. Please send resume with salary history and requirement to jobs@diviresorts.com or fax to 919-419-2067. EOE/Drug Free Workplace. Pre-employment drug testing required.

Horsegoer - I still think you are responsible for your financial obligation - yes, you have been denied usage due to non-payment ...but it is up to you to contact Divi directly and try and work out your issues.
They obviously take finding deadbeat owners seriously and aggressively pursing them for payment as indicated by the job posting above.
Good Luck

I have been speaking to a DIVI representative and i was told that they reserve the right to go after us for the debt but they have not been doing so for sometime. But I also know there is no guarantee to what he is saying.

And consider this....

Horsegoer..
Don't you just love it when folks post back with how much they have saved by purchasing your exact same time share at re-sale?
As if that somehow will help your situation.

IMO, Walking away from your debt is an option that you can and maybe should consider. You should also consider the consequences carefully.
Legal advice might be best but it will not be free. At risk is a hit on your credit rating and such a hit can hurt you down the line if you want to buy a new car, re-finance your home, or, gasp, apply for a new credit card!
I have read about personal credit rating being used as a consideration for various employment opportunities.
So, be certain that it is your purchase that has been cancelled and not just your RCI membership and find out precisely what you owe and to whom, and then try to negotiate a pay off amount. Maybe, just maybe, you can use some of those re-sale prices as leverage for a favorable pay off.
It is very, very unlikely that your obligation will just go away.
Keep in touch and let us know what happens.

Good luck

horsegoer said:

I have been speaking to a DIVI representative and I was told that they reserve the right to go after us for the debt but they have not been doing so for sometime. But I also know there is no guarantee to what he is saying.

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Did they tell you what it would take for you get back in good standing?
As another poster mentioned, you may be close to paying off this sucker.
Of course, that would leave you with a TS and MF's you may not want.

They've prob'ly realized that obtaining and enforcing jurdgements is not worth the time and trouble, but more like trying to get blood out of a turnip... I am not calling you a turnip, just saying that TS-buyers who don't make their payments are rarely have money sitting around with which to satisfy judgments... and they know this.

Talent312 said:

Did they tell you what it would take for you get back in good standing?
As another poster mentioned, you may be close to paying off this sucker.
Of course, that would leave you with a TS and MF's you may not want.

They've prob'ly realized that obtaining and enforcing jurdgements is not worth the time and trouble, but more like trying to get blood out of a turnip... I am not calling you a turnip, just saying that TS-buyers who don't make their payments are rarely have money sitting around with which to satisfy judgments... and they know this.

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I believe we owe about 5k. What is tough to swallow is the$700 annual dues fee that keeps going up.

Again, I/we really appreciate the feedback.