# How to give up Wyndham Timeshare



## kiran (Sep 18, 2018)

Hi,

I have the Club Wyndham Access with 289000 points. I have $46000 left on the package. With my monthly dues of about $825 and $155 for monthly maintenance, I am planning to give it back. It is hitting me financially. I am looking for directions on how to give it back or sell it. Most of the selling firms ask for upfront fees for advertisement. Cant trust them. 
Not sure if it is worth keeping it either. Thanks for your time.

Kiran


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## harveyhaddixfan (Sep 18, 2018)

Unfortunately there is little to no resale value in what you’ll have. It’s not likely that you’ll find anyone to buy it and Wyndham won’t “take it back” unless it’s paid for.


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## chapjim (Sep 18, 2018)

Unless you are still within that short period during which you can rescind, I can't think of any good way to do this still owing $46K on the purchase.


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## ecwinch (Sep 18, 2018)

I would be walking away. Especially given the high balance and since it sounds like you are still on Wyndham’s financing with 12%+ APR. That is too big of a hole to be in for 7-10 vacation days a year. When is the loan paid off - in 8-10 years?

And most of the upfront companies take your money and leave you with same outcome - in default.


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## kiran (Sep 18, 2018)

I was thinking about walking away but again it will be reported to credit bureau and a foreclosure will follow for which i would have to pay for the tax on the remaining balance to IRS. APR is very high about 16.5%. I thought of paying it of by refinancing my home to avoid the high interest rate. It is a 10 year loan which started in Jan-2018. Since my refinance got rejected, i am thinking of other options.


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## harveyhaddixfan (Sep 18, 2018)

I hate to say it, but the best option might be bankruptcy. It’s a better option than foreclosure. And I’d highly doubt they’d do something like a deed in lieu of foreclosure.


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## kiran (Sep 18, 2018)

I already have a bankruptcy on me before. so that is out of question. when i checked with wyndham, that is what they mentioned. They would wait for 150 days before they go for foreclosure and then the IRS would send the pending tax on the amount pending. Maybe they try to write it off.


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## Passepartout (Sep 18, 2018)

You are clearly between a rock and a hard place. Bankruptcy is designed to give debtors a second chance. An opportunity to learn how to manage debt. Somehow, you missed the message. Wyndham won't take it back. No one will buy it - or even just take it over while there is a 16% note against it. Have you looked on eBay to see what similar ownerships to yours are worth- even paid off? Darn little is what!

I don't have advice, because you've really left yourself no way out. Well, ONE- and here it is.

Get another job-or two, and pour every penny you make into paying down that note. Not the minimum monthly payment, but EVERY CENT! It will hurt, and your social life will be messed up, but that's the only way out. Oh, and cut up your credit cards, and DON'T BORROW ANYTHING MORE!

I'm sorry to come off as harsh, but my wife practices family law- and a significant number of her clients have been bankruptcy clients. Her object was, and is, to never see them in her office again for that. 

I wish you luck- and success. You have some serious wood to chop, but with work, you can do it.

Jim


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## bnoble (Sep 18, 2018)

kiran said:


> I already have a bankruptcy on me before. so that is out of question.


Maybe you should stop borrowing mid-five-figures to buy discretionary items.


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## kiran (Sep 18, 2018)

Thanks for the advice. Just wondering how bad the credit will hit if i give it up without making further payments. My score is already in low 600. Would have been lower if not for mortgage and car payments.


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## Silverdollar (Sep 18, 2018)

I agree with the advice already given, but I would also suggest a 1 on 1 financial coach to help you sort through this situation. I highly recommend Dave Ramsey's organization. I personally know of individuals that have overcome big financial messes by following their advice. Here is the link: https://www.daveramsey.com/coaching/?snid=classes.1on1coach


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## kaljor (Sep 18, 2018)

You only have two choices; either keep paying it or stop paying it.  Before you do either, you should speak to the attorney who handled your last case.  

You caught a break when you were denied that home refinancing option.  I would never risk my home just to try to pay off a timeshare.  For that reason, I wouldn't try to refinance by taking a personal loan either.  As long as Wyndham or their bank partner is the loan holder, they have motivation to deal with you.

You talk about foreclosure and the tax on the remaining balance.  I assume you're referring to income tax owed if they forgave the loan.  That would be the last of my concerns.  If somehow they forgave the remaining loan balance and let me out my obligations, I would be thrilled to only have to pay the tax on that, no matter what it came to.  If you can get out of this, there will always be some cost, even going through bankruptcy has costs.

There are also specialized Timeshare attorneys.  I saw a couple of videos on You Tube and I take them with a grain of salt but there was one woman who seemed knowledgeable and sincere.  I would look her up and check her out and if she offers a free consultation, I would explore that. 

Good luck.


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## kiran (Sep 19, 2018)

Thanks kaljor for your inputs. my last attorney is not worth as they close their shop in my city. lot of complaints against them too.probably i will check out any free consultation around and see where it goes. just wondering how much would the income tax be if the loan is written off.


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## paxsarah (Sep 19, 2018)

kiran said:


> Thanks kaljor for your inputs. my last attorney is not worth as they close their shop in my city. lot of complaints against them too.probably i will check out any free consultation around and see where it goes. just wondering how much would the income tax be if the loan is written off.



Here's the thing. Even if you had to pay income tax on the amount written off, it's by definition a fraction of the entire amount you owe. If you were to pay off the entire $46,000 plus interest, you would not end up with something in your hands that you could sell for $46,000. You would be lucky to be able to sell it for $1,000.

I am not advocating either way for going into foreclosure on the debt, I'm just arguing against the potential income tax hit being a deciding factor. It's still a much smaller hit than the entire $46,000.


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## Skipper Scooby (Sep 19, 2018)

If you don't want to file for bankruptcy, I have a few suggestions. The 1st thing to do is get a loan to pay off the timeshare with Wyndham. I'm sure the interest rate Wyndham is charging you is allot more than the interest rate you could get a loan for. If you are a home owner, maybe you could get a home equity loan. Most of those have no closing costs. Once you don't owe Wyndham anything on your loan, then see if you can give the timeshare back to Wyndham through their Ovations program. If your timeshare is valuable in their eyes, then you could see if it qualifies for the Limited Edition program. That's where Wyndham will give you 3 years of points for free in exchange for your timeshare. The only way you can give the timeshare back to Wyndham with these programs is that you do not owe them anything on your loan with them. Then there will be no more maintenance fees and you will just have to settle your loan with the bank. Good luck to you with this.


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## ecwinch (Sep 19, 2018)

I would agree with those who feel the tax implications of foreclosure should not be the driving factor. We are close enough to the end of the tax year, that you could make this a 2019 tax event. And a year of your current payments would likely cover the potential tax liability.

In terms of the impact of foreclosure - here is one reference.

https://www.nolo.com/legal-encyclopedia/consequences-timeshare-foreclosure.html


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## Dis.Dad (Sep 19, 2018)

What the IRS does is look at it as if you made $46,000 extra this year.  Money that you have not paid the tax on, so that increases your income earned for the year by that much.  How much that affects you personally, check with your tax accountant.  I was in a similar position last year and it flipped me from typically getting a $1000-1500 refund to having to pay out about $3000.  Good luck!


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## breezez (Sep 19, 2018)

kiran said:


> I was thinking about walking away but again it will be reported to credit bureau and a foreclosure will follow for which i would have to pay for the tax on the remaining balance to IRS. APR is very high about 16.5%. I thought of paying it of by refinancing my home to avoid the high interest rate. It is a 10 year loan which started in Jan-2018. Since my refinance got rejected, i am thinking of other options.



I don’t think it would show as a foreclosure you did not buy real estate you simply bought a membership with a fixed number of points no deeds were recorded in your name.

It would show as a consumer default if you walk, but be prepaired for tons of calls.

They have great lawyers and I am sure have a close to air tight contract as possible.   But even great lawers make mistakes.   Some states require sellers of travel numbers to sell travel did you make transaction in one of those states and is the number clearly listed in your documents.  It’s stuff like this that might give you a get out of jail free card.


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## Dave Landry (Sep 19, 2018)

Please avoid a home equity loan at all costs. Right now this loan would not cost you anything except for a hit in your credit score should you not be able to pay. Definitely nice to pay less in interest but is the risk of losing your home worth it?


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## cbyrne1174 (Sep 24, 2018)

Since you already have car payments and a mortgage, I would let it foreclose. It sounds to be like you already have a car and a house and don't need a good credit score for the next 7 years. Keeping an extra 10k handy makes sense in case you run into unexpected problems. Credit scores are only for financing things. If you don't need to finance, you don't need a credit score. Double check that they can't put a lien on any of your other assets before defaulting though.


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## kiran (Jan 4, 2019)

It has been over 120 days since i made the payment. Collection calls have already started. Waiting on 150 days before they send it for foreclosure. Is it true that i would be taxed for the deficit amount they ($46000 - amt my points gets sold for) in case of a foreclosure. This being a deeded property, in FL - not sure what are the laws concerning this foreclosure. Waiting for the next steps from Wyndham.


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## 55plus (Jan 4, 2019)

I don't think you will have a tax liability because you will gain nothing.


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## grab (Jan 4, 2019)

kiran said:


> It has been over 120 days since i made the payment. Collection calls have already started. Waiting on 150 days before they send it for foreclosure. Is it true that i would be taxed for the deficit amount they ($46000 - amt my points gets sold for) in case of a foreclosure. This being a deeded property, in FL - not sure what are the laws concerning this foreclosure. Waiting for the next steps from Wyndham.


Your first post said this was Club Wyndham Access which by definition has no deed. 
Your last post says it is deeded in FL. 
Both can’t be true.


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## kiran (Jan 8, 2019)

True, my bad. I do have club wyndham access but i keep hearing these pending mortgage payments from debt collectors. I am confused as to how can it be foreclosed if it is not deeded. It is just a fixed point system/year for lifetime. Not sure what will be the impact other than impacting the credit history. Isnt the impact similar to credit card delinquency ?


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## 55plus (Jan 8, 2019)

kiran said:


> True, my bad. I do have club wyndham access but i keep hearing these pending mortgage payments from debt collectors. I am confused as to how can it be foreclosed if it is not deeded. It is just a fixed point system/year for lifetime. Not sure what will be the impact other than impacting the credit history. Isnt the impact similar to credit card delinquency ?


Basically you'll take a hit on your credit report through the credit card company that provided the funds for the timeshare. You'll also be hounded by bill collectors so learn the laws governing what they can and can't do. If they violate the law you may come out ahead and profit from this ordeal. If you ever want a timeshare again, buy resell!


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## Fredflintstone (Jan 8, 2019)

kiran said:


> It has been over 120 days since i made the payment. Collection calls have already started. Waiting on 150 days before they send it for foreclosure. Is it true that i would be taxed for the deficit amount they ($46000 - amt my points gets sold for) in case of a foreclosure. This being a deeded property, in FL - not sure what are the laws concerning this foreclosure. Waiting for the next steps from Wyndham.



Florida has non judicial, anti deficiency laws for timeshares.This means foreclosure is not court supervised and you do not pay a deficiency. Thus, all they get back is their timeshare. They cannot charge you the difference between what you owe and what they get for the timeshare. Just let them foreclose, take the credit hit, learn a lesson and move on.

https://www.nolo.com/legal-encyclopedia/florida-timeshare-foreclosure-right-cancel-laws.html


Sent from my iPad using Tapatalk


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## Richelle (Jan 8, 2019)

If you already have a bankruptcy on your credit report that was recent, your credit is going to be messed up for years anyway.  Find a lawyer who deals with bankruptcies (since yours closed up shop), and ask if a foreclosure will do anymore damage then you already did with the bankruptcy.  It will depend on how long ago you filed for it.  Whether or not it would actually be a foreclosure, I’m not sure.  It might be listed as a write off which would still affect your credit in normal circumstances.  Wyndham could chose to go after you for the amount you still owe, through the courts.  It is a substantial amount, and depending in how much it would cost to go to court and get your wages garnished, they may chose to do so, so tread carefully. You definitely need to get one of those free consultations.  It probably goes without saying, do not buy any more expensive impulse buys.  In fact, never to go a timeshare resort again because they will all try to get you to buy.   Between this and your bankruptcy, it should be clear to you, that you are not great with money.  Sorry to sound harsh, but you need to hear it. Stick with cash.  If you don’t have the money to pay cash for a luxury item, wait u til you have saved up for it.  Better yet, take that money and invest it.  That investment doesn’t come with monthly fees like a timeshare does and it actually makes you money over time.


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## kiran (Jan 9, 2019)

Thanks for the advice. It was a purchase i regret, thought the point system is different from the regular timeshares where you get a fixed weekly location. I have let it go and taking the hit on my credit as it is already bad. 
As long as they dont garnish my wages as Florida has non judicial, anti deficiency laws for timeshares. I thought only IRS can garnish your wages and come after your assets, not these collection agency.


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## Fredflintstone (Jan 9, 2019)

kiran said:


> Thanks for the advice. It was a purchase i regret, thought the point system is different from the regular timeshares where you get a fixed weekly location. I have let it go and taking the hit on my credit as it is already bad.
> As long as they dont garnish my wages as Florida has non judicial, anti deficiency laws for timeshares. I thought only IRS can garnish your wages and come after your assets, not these collection agency.



A collection agency can only garnish (and not in every state) if they sue you and win a judgement. As you pointed out Florida has a non judicial, anti deficiency system for timeshares. So, as long as you don’t contest a foreclosure, they cannot go after you for any losses incurred. They just get their timeshare back.

You are correct...you will most likely take a hit in your credit that lasts 7 years.  


Sent from my iPad using Tapatalk


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## kiran (Jan 11, 2019)

I did get some calls regarding settlements with timeshare and the lies they say for their sales and they would help in getting out of wyndham. they even mention that club wyndham access is deeded and is a mortgage. had one experience 3 months back where the guy wanted 10000 to get me out of wyndham. some how feel all these are connected trying to make money.


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## 55plus (Jan 11, 2019)

They are all scams. Never pay any money upfront to anyone to sell a timeshare.


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## kiran (May 3, 2019)

Finally i get a call from Pinnacle recovery firm for my Wyndham timeshare asking for arrangements to my $50,000.00 debt or else i would end up paying the taxes on it. Wonder if i have to pay these taxes to IRS.


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## dgalati (May 3, 2019)

Stop paying!


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## wjappraise (May 3, 2019)

Two things. 

1. Worry more about the $46,000 debt than the tax which might be 15-25% of that.  Look at it like 75-85% of your debt went away.  

2. Talk to a tax professional.  IRS.gov states there are five exceptions to needing to pay tax on a 1099C (reporting of canceled debt as income).  The most likely one for you is the one “Debts canceled during insolvency.”   Unless you are “solvent” by at least $46,000, you may need to pay tax on only the portion of the debt that equals your net worth, or “solvency.”  IRS publication 4681 contains the explanations and requirements for this exception.  

Wes.


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## dgalati (May 4, 2019)

Purchase price $46,000 and the resale value on the open market is only $400-$500.  As Wes stated paying the 15-25% in taxes on a 1099C looks much better then paying off debt that is only worth pennies on the dollar.


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## 55plus (May 5, 2019)

kiran said:


> Finally i get a call from Pinnacle recovery firm for my Wyndham timeshare asking for arrangements to my $50,000.00 debt or else i would end up paying the taxes on it. Wonder if i have to pay these taxes to IRS.


This in itself might be a scam. It could just be a line to get into your pockets.


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## scot111 (Aug 19, 2019)

Kiran, what is the status of your Wyndham issue? 
has anything appeared on your credit report?


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## Grammarhero (Aug 19, 2019)

scot111 said:


> Kiran, what is the status of your Wyndham issue?
> has anything appeared on your credit report?



If there is a recovery or collection agency involved, there is a credit report.  I will add this to my list.  For the latter, the recovery or collection agency takes half.  For the credit report, it only takes one hour.


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## scot111 (Aug 19, 2019)

Grammarhero said:


> If there is a recovery or collection agency involved, there is a credit report.  I will add this to my list.  For the latter, the recovery or collection agency takes half.  For the credit report, it only takes one hour.



---
I think Pinnacle Recovery is Wyndham ... and they don't report.


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## Grammarhero (Aug 19, 2019)

scot111 said:


> ---
> I think Pinnacle Recovery is Wyndham ... and they don't report.


Thanks for letting me know


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## Grammarhero (Sep 18, 2019)

kiran said:


> Finally i get a call from Pinnacle recovery firm for my Wyndham timeshare asking for arrangements to my $50,000.00 debt or else i would end up paying the taxes on it. Wonder if i have to pay these taxes to IRS.


@kiran to let others in your situation benefit.  Would you kindly update us and let us know if there was an affect on your credit score?


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## Grammarhero (Jan 9, 2020)

kiran said:


> Finally i get a call from Pinnacle recovery firm for my Wyndham timeshare asking for arrangements to my $50,000.00 debt or else i would end up paying the taxes on it. Wonder if i have to pay these taxes to IRS.


Haven't heard from you in a while.  Would you kindly PM me or let us know if your credit got affected??


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## SNA27 (Jan 9, 2020)

- deleted - didn't realize this is an outdated post -


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