# not enough money anymore



## sarahsliefie (May 24, 2022)

a couple of years ago we made the mistake of buying 30K points at face price at a meeting for $70,000 and we have been paying almost $1500 a month ever since. and we will be for the next 8 years. no company we have found can refinance it as it is more than $40K we do not have enough equity in the house to cover it either. On top of that our finances just talk a hit and we can not afford it anymore. is there any way we can walk away from it even though we still owe around $60k on the loan?


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## dioxide45 (May 24, 2022)

Keep in mind, this is not to be considered financial, tax or legal advice.

Sure, you can walk away in the same way you can walk away from your home. You will receive collection calls and there is a good chance that it will negatively impact your credit scores. At some point Diamond will foreclose on the loan and take back the timeshare. Depending on the state the timeshare is in, they may have recourse on the unpaid balance but it is doubtful that they will ever take additional action to collect on that. They may file a 1099-C to report the amount of credit written off as income. So, as I say, you can walk away but just understand the repercussions.

I personally think refinancing your house for it is a bad idea, the loan is as good as an unsecured loan (like a credit card). Chances are they can't take anything more than just the timeshare. They won't come for personal assets. If you refinance your house, then your house is now on the line instead of just the timeshare.


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## Janann (May 24, 2022)

sarahsliefie said:


> a couple of years ago we made the mistake of buying 30K points at face price at a meeting for $70,000 and we have been paying almost $1500 a month ever since. and we will be for the next 8 years.


Yikes.  Just out of curiosity, what is the interest rate?  If the terms are $70,000, 10 years, and $1,500 per month, it is around 23%.


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## Passepartout (May 24, 2022)

If you truly cannot afford this, then stop paying. Pay for the necessities- Y'know, like a roof over your head, groceries, clothes, schooling, but not timeshares. Yes, they may foreclose and there may be a credit score hit It's unlikely they will pursue a judgement that could allow them to seize property other than the TS, or garnish funds. 

You should really have a discussion with legal counsel in your area who has experience in consumer protection. 

Good Luck!

Jim


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## dioxide45 (May 24, 2022)

Janann said:


> Yikes.  Just out of curiosity, what is the interest rate?  If the terms are $70,000, 10 years, and $1,500 per month, it is around 23%.


Perhaps the $1,500 also includes maintenance fees billed monthly.


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## CalGalTraveler (May 24, 2022)

This a a good case study as to why buying points in a land trust is a bad idea. Circumvents or limits state timeshare and deed laws because trusts hold land from multiple states. The developers who push this crap on unknowing consumers know it.

Good luck with your decision. It is not proven in the courts yet, whether land trusts are covered under state anti-deficiency laws in Florida and whether they can come after your home. Before you decide to walk, please consult legal counsel and let us know how it turned out so others in a similar situation can learn from it.


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## sarahsliefie (May 24, 2022)

Janann said:


> Yikes.  Just out of curiosity, what is the interest rate?  If the terms are $70,000, 10 years, and $1,500 per month, it is around 23%.


interest rate was 16% I was adding in the maintenance fees


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## CalGalTraveler (May 24, 2022)

BTW...do not pay any exit companies fees upfront to get out of your timeshare. They are scammers.


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## WManning (May 25, 2022)

sarahsliefie said:


> a couple of years ago we made the mistake of buying 30K points at face price at a meeting for $70,000 and we have been paying almost $1500 a month ever since. and we will be for the next 8 years. no company we have found can refinance it as it is more than $40K we do not have enough equity in the house to cover it either. On top of that our finances just talk a hit and we can not afford it anymore. is there any way we can walk away from it even though we still owe around $60k on the loan?


@Grammarhero may have some advice that can help.


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## dougp26364 (May 26, 2022)

Have you considered a debt relief company that negotiates your interest rates down or eliminates the interest rate on unsecured loans? There are restrictions such as cutting up all your credit cards and agreeing to not take out any more debt until the plan is comoleted, but it keeps you out of bankruptcy.

the other option is bankruptcy, which will protect your assets but kill off your credit rating. Sounds to me as if your credit rating might not be so great right now anyway. I would think this would be one way to get rid of an unwanted timeshare plus give you breathing room to out your finances back in order.


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## timsi (May 26, 2022)

What you paid so far is water under the bridge, DO NOT factor  in your decision the 30k you gave them already since you bought. With a small fraction of the 40k balance you can buy resale, you can have the cake and eat it too in terms of future vacations. Your decision is just a matter of comparing  the huge saving if you cancel with the potential damage to the credit score.


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