# Help!! Desperate!!



## happikatt (Aug 28, 2011)

We can no longer to pay our timeshare loan---a remaining $41k at 11%, or $500/month. We simply cannot do it!! And of course, no one is going to assume our loan, and we can't sell it for $4k and still owe $37k!

Will Wyndham do anything to bargain and get out of paying for a foreclosure?? Cut the interest in half?? Cut the principle in half?? Buy it back?? I'm looking for true stories, not guesses or assumptions, please.

Otherwise, have YOU gone through a foreclosure for a timeshare you couldn't afford?? Personal advice and stories about what Wyndham did to you (and how long this ruined your credit for) would be greatly appreciated. I'm wondering if they actually take people to court over this, or if they send it to collections and eventually give up 1-2 years later after the credit is completely destroyed.

We are newlyweds and feel completely depressed  and hopeless  over this. We don't know what to do other than completely giving up on the payments.  

Thank you.


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## bogey21 (Aug 28, 2011)

If you are as desparate as it sounds, stop making payments right away.  Don't drag it out by making payments for 3 or 4 more months and then stop.  If you do, you will be wasting money.  First thing to do is call Wyndam.  It probably won't help but you never know.

George


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## siesta (Aug 28, 2011)

You seem to have a good understanding of the situation. Selling is not an option because of the loan. Therefore you have two choices, continue to pay and try to get the most value you can out of it. Or default, foreclose, and ruin your credit.

If you truly cannot afford it than it really isnt a choice. Good luck.


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## DeniseM (Aug 28, 2011)

Hi Happikat - First of all, I'm sorry for your troubles.

You will probably not find personal stories here on TUG, because most of the regular posters here are current timeshare owners - rather than people who have gone through default.  Once someone gets out of their timeshare, there's not much reason to follow TUG.

Give us a little background - what was your plan when you bought this timeshare?

Has your financial situation changed since you bought this timeshare?  If you are at the point of bankruptcy, this debt would be part of the bankruptcy.

Have you gotten professional financial advice?  

Do you own a home and if so, have you considered using the equity in your home to refinance the timeshare loan?

In general, the timeshare developers have no reason to bargain with defaulting owners - the law is on their side.  They will turn you over to collections to see if they can squeeze the money out of you, and if they can't, they will eventually foreclose and take the ownership back.


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## easyrider (Aug 28, 2011)

If you can't make the payments call the resort to see if they will let you deed it back. The resort loses money if they foreclose because the timeshare week is treated like regular deeded property with the same foreclorsure process.

If they don't take it back and you let it go into foreclosure it will affect your credit score for 7 years by about 150 points. 

If only one of your names is on the deed it might only affect one of you.

good luck


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## vacationhopeful (Aug 28, 2011)

Club Wyndham Plus or Club Wyndham Access? How long have you owned this?
Did you buy it when single or just one of you?


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## am1 (Aug 28, 2011)

If the timeshare is not paid for it will not be up to the resort to accept a feedback.  I think it is quite likely Wyndham sold the debt.  But that may depend on when you bought.  

Denise's option of refinancing at a lower rate is a good one but think it over about attaching your house to this problem.  If you can get  good rate with just a bank loan that may be safest.

Learn how to use your timeshare by either going yourself or renting it. DO NOT attend any more owners updates, sales presentations or whatever you are requested to attend.  Even in your situation the saleswoman will try to sell you mow points saying they will lower or interest rate, mfs or give you more points so you are able to rent.  You may think you would never buy again and want that free dinner, or $100 gift card but lots of people in your situation buy more.


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## RX8 (Aug 28, 2011)

There is no doubt that this will affect your credit score for at least seven years, possibly longer if the bank who foreclosed ends up sending this to a collection agency (you could end up with the bank foreclosure, a collection account for amounts owed AND a judgment if you are taken to court, all on your bureau at the same time).  However, if this loan would be the only blemish on your credit bureau, it may not necessarily be the end of your credit approvals for a minimum of seven years.  Some banks may listen to the individual's story that surrounded the derog credit.  Sometimes a letter explaining your credit can be submitted along with the credit application.  This may not work for all lenders but worth a try.  

As another poster noted, if your spouse was not on the loan he/she would not be affected at all.


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## siesta (Aug 28, 2011)

RX8 said:


> As another poster noted, if your spouse was not on the loan he/she would not be affected at all.


 This is not necessarily true.


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## joycapecod (Aug 28, 2011)

siesta said:


> This is not necessarily true.



Exactly. My sister in law (after separating from my brother) filed for bankruptcy and it also impacted his credit score.

Joy


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## easyrider (Aug 28, 2011)

Might means maybe it will, maybe it won't in regards to credit score.

37k @ 11% is alot of debt. The interest if paid out with a $500 a month payment comes out to about 100k. Add the original 41k and thats 141k for one week a year + add a mf on top of that. In 16 years with a $700 per year mf this person will pay over 152k for 16 vacation weeks or about or $9500 per week. 

One thing for sure, $1350 a day to stay in a ts is ridiculous,imo. 

I know some of you pay this but you have deeper pockets than the op and buy these mostly for braging rights.


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## RX8 (Aug 28, 2011)

siesta said:


> This is not necessarily true.



If the other party did not sign the contract, their CREDIT SCORE will not be impacted because the derog credit will not show on their credit bureau.  A collection agency cannot go after a party not on the contract either so there should be no collection account for the debt.  

That said, if they apply for JOINT credit after the foreclosure, there may be issues due to the one with the derog credit.


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## RX8 (Aug 28, 2011)

joycapecod said:


> Exactly. My sister in law (after separating from my brother) filed for bankruptcy and it also impacted his credit score.
> 
> Joy



This happens most often due to open JOINT credit or even AUTHORIZED USER accounts. Even if your brother wasn't the one paying that partcular bill and he himself didn't file BK, his credit can be impacted.  The joint trade line appears on both party's credit bureaus and if one party files BK, it is noted on that trade line affecting both credit bureaus.


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## Rent_Share (Aug 28, 2011)

Seek the advice of Bankruptcy Counsel rather than a message board to minimize the impact on your financial future and evaluate the best options considering your total debt and marital/community property issues

The professional advice will be less than one month's payment on a timeshare that you will not own in another year no matter what path you take


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## RX8 (Aug 28, 2011)

Rent_Share said:


> Seek the advice of Bankruptcy Counsel rather than a message board to minimize the impact on your financial future and evaluate the best options considering your total debt and marital/community property issues
> 
> The professional advice will be less than one month's payment on a timeshare that you will not own in another year no matter what path you take



I agree with your statement 100% that one should seek professional advice if they were considering BK as an option.  However, the OP never mentioned BK. I was responding to another poster's statement about credit being impacted by a BK.


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## ronparise (Aug 28, 2011)

I have a true story

My friend..the one that introduced me to Wyndham and timeshares...Well call her Jane Doe. bought a retail package of points. At an owner update they offered to help her refinance to get a lower interest rate...They did that but also sold her more points. She didnt know what happened until the bills started coming.

Several months later, once she realized what she had done (or had been done to her) she went to work. Ultimately Wyndham agreed to undo the second transaction and leave her with the original package.


This is somewhat different than your situation in that she is still an owner and still has some points and debt to Wyndham. But it shows you that something can be done

I work with foreclosed real estate every day; not timeshares, but I think there are enough similarities that some of this might work.....

Call Wyndham, and keep calling, you probably wont find any one with any authority right away. Tell them what you told us...you cannot and will not make any more payments. They will either have to foreclose, accept a deed back and mortgage forgiveness, or a short sale.

Good luck..$500 a month is enough that my usual advice is not relevant..(ie pay your bills protect your credit and learn to enjoy your timeshare) You will probably take a hit to your credit..but Id stop paying and start working on this right now.


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## memereDoris (Aug 28, 2011)

Another true story.

A few months ago, a friend came to me for advice.  They owed on a timeshare (Westgate, not Wyndham).  Their payments were $450/month and they were in arrears by about $3000 plus their annual maintenance fee. 

 It took a bit of time to find the right person to talk to but we finally did.  I made all the calls for her (with her consent) and the rep agreed to let me handle this.  We could not get her out of the purchase without ruining her credit but we were able to get them to take her purchase in trade for a less expensive one with Westgate.  Her payments are now $140/month.  She did not have to pay the arrears and maintenance for the other unit, it was all covered in the new purchase.

Downsizing may or may not be an option, but it may be worth a try.  Wyndham may help you come up with some solution.  We dealt with the collection dept  to do this.

I hope this helps.

Doris


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## GeorgeInNePa (Aug 29, 2011)

RX8 said:


> This happens most often due to open JOINT credit or even AUTHORIZED USER accounts. Even if your brother wasn't the one paying that partcular bill and he himself didn't file BK, his credit can be impacted.  The joint trade line appears on both party's credit bureaus and if one party files BK, it is noted on that trade line affecting both credit bureaus.



An Authorized User cannot be held responsible for a debt. Nor can an AU have their credit score impacted.

There are laws that cover this.


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## loafingcactus (Aug 29, 2011)

GeorgeInNePa said:


> An Authorized User cannot be held responsible for a debt. Nor can an AU have their credit score impacted.
> 
> There are laws that cover this.



Exactly.  It's that wedding ring that gets ya.  In my state you are liable for debts incurred until the day of the divorce, even if it is during the one year required separation.  You can write in your separation agreement that no one should incur new debts during that year, but that doesn't affect the rights of a third party debtor if they do.  And I guess it is the same in federal law as there is a big issue with separated people getting hit with tax issues.

<-- cured of marrying


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## RX8 (Aug 30, 2011)

GeorgeInNePa said:


> An Authorized User cannot be held responsible for a debt. Nor can an AU have their credit score impacted.
> 
> There are laws that cover this.



Let's call us both correct.  While authorized user accounts are not scored with VantageScore, the most well known credit scorer is FICO and they do indeed utilize authorized user payment histories in their credit score.

http://www.bankrate.com/brm/news/cc/20080812-authorized-users-a1.asp

Even if an authorized user account is not scored with VantageScore, the account may still be listed on the bureau.  If it is a derog account, this may result in an adverse credit decision by a Credit Analyst regardless of the credit bureau score.  

Individuals are eligible for a free credit report annually from each of the credit reporting agencies (Experian, Trans Union and Equifax).  

http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre34.shtm

One should check their credit bureaus annually for discrepancies.  If there is an authorized user account on the bureau, and it is a derog trade line, one can request the bank to have it removed from their credit bureau.


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## yoohoo (Aug 30, 2011)

Wyndham has or had a program where they will find a buyer for a contract in arrears.  I got my contract from this program.  Your equity is transferred to the new buyer; the new buyer catches up on the loan and all fees.  By the way these points will count towards VIP.  I dealt with Joanne Ziegler with Wyndham Corporate Direct; her direct number in Orlando is 407-626-6932.  She can also contacted at 800-786-6764 ext 6932.  This program was available a couple of years ago; I hope it is there for you.


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## happikatt (Sep 3, 2011)

Thank you for your responses, everyone. We will contact someone at pre-paid legal when we return from our honeymoon.

My primary concern is, will Wyndham or their collection agency take us to court over this??????? That really worries me.


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## Rent_Share (Sep 3, 2011)

happikatt said:


> My primary concern is, will Wyndham or their collection agency take us to court over this??????? That really worries me.


 
Eventually to obatain a judgement for the costs of foreclosing and all the unpaid maintenance fees

You do need legal counsel to advise and get you out of this contact one way or another up to and including bankruptcy


Prepaid Legal is a Multi Level Marketing Program


You need counsel familiar with real estate lending law


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## vckempson (Sep 3, 2011)

happikatt said:


> Thank you for your responses, everyone. We will contact someone at pre-paid legal when we return from our honeymoon.
> 
> My primary concern is, will Wyndham or their collection agency take us to court over this??????? That really worries me.



Do you make your payments Wyndham?  If yes, then they might either work something out with you or go to collections and forclose.  If they sold the loan off, then they most certainly be out money if you default.  In that case, they would likely go to collections and sue.  

If someone owed you $40,000 and tried to walk away, would you sue?  I know I would.


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## VivianLynne (Sep 3, 2011)

Oh, please. OP is going on her honeymoon. That is soooo much more important than cleaning up the some messy outstanding bill. And someone suing her for $40K plus back MFs and legal costs would just ruin her plans to buy her dream castle? How horrible! :ignore: 

My suggestion is "Get an additional parttime job and pay off your debt as quickly as possible". No, that is not fun. But it won't destroy your credit for 7-10 years, will help you to control your impulse buying, and teach you what a budget is. You can also try to rent this vacation time out to pay off the loan faster. And you can ask that your Xmas and birthday gifts be checks to pay Wyndham off as fast as possible.

If you truly work at paying this off as FAST as possible, you might get this paid off in 5-7 years. If you make the loan payment each month, it will take the full 15 years of you being choked financially.

PS I suggest you cut up your credit cards as you shouldn't  have any FUN money until you pay off this Wyndham timeshare.


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## am1 (Sep 3, 2011)

VivianLynne said:


> My suggestion is "Get an additional parttime job and pay off your debt as quickly as possible". No, that is not fun. But it won't destroy your credit for 7-10 years, will help you to control your impulse buying, and teach you what a budget is. You can also try to rent this vacation time out to pay off the loan faster. And you can ask that your Xmas and birthday gifts be checks to pay Wyndham off as fast as possible.
> 
> If you truly work at paying this off as FAST as possible, you might get this paid off in 5-7 years. If you make the loan payment each month, it will take the full 15 years of you being choked financially.
> 
> PS I suggest you cut up your credit cards as you don't have any FUN money until you pay off this Wyndham timeshare.




Very good advice.  

Wyndham needs to send a strong message to others in your situation that people need to pay.  They may decide to make an example out of you.  I am sure there are 1000's a year that are in your situation or worse.  

It is good that you know that no one will assume your loan. A lot of people think the timeshare they owe $37k on and willing to sell at 37k think they are doing the buyer a favour.  

Whatever you choose you have to stick to it. If you decide to walk away, set money aside each month to pay for and judgement against you and higher financing charges in the future.


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## vckempson (Sep 3, 2011)

VivianLynne said:


> Oh, please. OP is going on her honeymoon. That is soooo much more important than cleaning up the some messy outstanding bill. And someone suing her for $40K plus back MFs and legal costs would just ruin her plans to buy her dream castle? How horrible!
> 
> .



I didn't post the question before her honeymoon.  She did.  I presume she wanted an honest answer, not just fairy dust spread around to make her feel better.   You can't walk away from a $40,000 loan without repercussions.  There's really no way to sugar coat that.  You definitely will be hounded by collections and might well be taken to court.  

A tough pill to swallow?  You bet!  But it is what it is unless you find another solution, i.e. refinance, renegotiate to a different contract, sell it through Wyndham, or make more money to pay it off.  She took out a $40,000 loan, not me, so save me the indignation.  Telling her to get another job, while good advice, doesn't answer her question about getting sued or what consequences might be faced.   I answered her question in a straight forward manner; you did not.


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## happikatt (Sep 5, 2011)

VivianLynne said:


> Oh, please. OP is going on her honeymoon. That is soooo much more important than cleaning up the some messy outstanding bill. And someone suing her for $40K plus back MFs and legal costs would just ruin her plans to buy her dream castle? How horrible! :ignore:
> 
> My suggestion is "Get an additional parttime job and pay off your debt as quickly as possible". No, that is not fun. But it won't destroy your credit for 7-10 years, will help you to control your impulse buying, and teach you what a budget is. You can also try to rent this vacation time out to pay off the loan faster. And you can ask that your Xmas and birthday gifts be checks to pay Wyndham off as fast as possible.
> 
> ...




Wow, what a jerk!

Just so you know, the honeymoon was PAID FOR by my father as a WEDDING GIFT, so of course I am going. I work full time as does the fiance (up to 60 hours/week most weeks). We do NOT use credit cards and are NOT impulse buyers. All of our furniture and cars are used, and we don't even subscribe to cable/satellite TV. Dream castle? Try mobile home. And we are HAPPY here. Can you say any of these things about yourself?? Doubt it.


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## DeniseM (Sep 5, 2011)

Hi Happikat - You received a lot of good advice in this thread, in addition to the post that you found offensive, several people took quite a bit of time to try to help you.  

Please take a minute and answer these questions, so we can understand your situation better:

Give us a little background - what was your plan when you bought this timeshare?

Has your financial situation changed since you bought this timeshare? If you are at the point of bankruptcy, this debt would be part of the bankruptcy.

Have you gotten professional financial advice?

Do you own a home and if so, have you considered using the equity in your home to refinance the timeshare loan?


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## ronparise (Sep 5, 2011)

I agree with the op. I will stop short of calling anyone here a jerk, but there is some fairly condescending  and jerky advice here

I see foreclosures every day. I live and work (real estate sales) in the foreclosure capital of the world, South West Florida, and I have seen that a foreclosure is not the end of the world, even when its your personal residence, let alone if its a timeshare. Consequences, sure; bankruptcy perhaps; but I have helped people buy a new home after both. A good credit report for two years is usually all it takes to get back into the game, and qualify for a new mortgage.

There is another option to foreclosure however, and that is a negotiated settlement.(Deed in lieu, short sale, or restructure the loan. Is this likely? I think so, I doubt that this is the first case like this that Wyndham has ever seen. There is someone in Wyndham that can make a decision like this. Find that someone and find out who owns the debt, and talk to them.

I know someone who did this, I know it can be done, but she was sworn to secrecy, so I dont know who she worked with


Wyndham still has a sales force in SanFrancisco if you give it back to them, or they take it back, it doesnt make any difference, it will go back on the shelf as inventory for them to sell. All that they will lose is a few months of interest


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## 1950bing (Sep 5, 2011)

This is an example of just how hard things are today.
You are young and just starting a life together. What ever the outcome this will come to an end. It may be a hardship now but not all is lost. Learn from this.
Many here who know a lot more than I do about how to deal with this have sound ideas. I believe in the power of prayer so I can do that for you. It sure can't hurt ! Keep us up to date. How you make your way through this will guide others.


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## vacationhopeful (Sep 5, 2011)

So what is the income level for people who tour Wyndham? Fraud by the Wyndham sales staff on your annual income? Last I heard it was about $75K for a married couple. Has it been posted on TUG of people who got to turn back their deeds because of "corrected application" by Wyndham sales staff?

And where I live the 3 of the local mobile home parks (or manufactured housing parks), their lot rent is UNDER $495 per month which includes their water & sewer, outdoor pool, property taxes, and trash pickup. 

Why did you ever sign up for a 15 year loan for a luxury product, as you have such financial discipline?


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## Rent_Share (Sep 6, 2011)

happikatt said:


> and are NOT impulse buyers


 
Your 40K Timeshare debt was certainly a impulse buy


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## bogey21 (Sep 6, 2011)

I know that the following will be upsetting to most Tuggers but I am tying to be realistic based on the facts in this case.


Based on your situation as you explain it I would (1) stop making payments, (2) try and work it out with the Resort, and (3) if that fails declare bankruptcy. If you can't resolve this, the $40K debt will overwhelm every thing else in your financial lives.  You are young enough to overcome the bankruptcy.

George


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## Margariet (Sep 6, 2011)

Always contact the company first, in this case Wyndham. Who knows what is possible and time can help as well. Blaming, regretting, looking back, it's no use now. Try to be positive and creative.


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## am1 (Sep 6, 2011)

I think they are smart enough to avoid having to default and declare bankruptcy.  No credit cards, impulse buys, used cars and furniture.  Try to refinance the loan and pay it off as soon as you can.  Maybe rent out your points for more than mfs for a few years.


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## RX8 (Sep 6, 2011)

bogey21 said:


> I know that the following will be upsetting to most Tuggers but I am tying to be realistic based on the facts in this case.
> 
> 
> Based on your situation as you explain it I would (1) stop making payments, (2) try and work it out with the Resort, and (3) if that fails declare bankruptcy. If you can't resolve this, the $40K debt will overwhelm every thing else in your financial lives.  You are young enough to overcome the bankruptcy.
> ...



I am not an expert on BK but I don't think it is as easy as just filing BK to get rid of a debt.  First, the overall debt and income of the filer comes into play.  The court may *dismiss* the BK filing if it is determined that the ability to repay the debt is there, leaving the filer to fend for themselves once again. 

Also, I read somewhere else that maintenance fees (HOA type fees) are NOT discharged through a Bankruptcy if they come due after the BK filing.  Unless the resort or bank forecloses on the timeshare, those fees would continue to be the responsilbility of the owner even if the BK debts are discharged.


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## funtime (Sep 6, 2011)

Sorry to hear of your troubles.  Ironically, in my opinion, the sooner you stop paying, the more leverage you may have with Wyndham as you will then be a non performing loan.  This calls for a negotiated exit with Wyndham and you might want a trusted family friend or relative who is somewhat more experienced with negotiations to help you here.  Ironically while many posters say that they will get foreclosed and/or enmeshed in a lawsuit and/or a list of other horribles, the OP asked for personal experience re this happening and no one had an example.  Good luck in finding a solution.  And, by the way,  you are to be commended - now - for trying to get more information and trying to find a solution.  While it would have been better to do that before the contract - that sort of action will come with more life experience.  Good luck with attempting a negotiated solution.  Funtime


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## happikatt (Sep 8, 2011)

funtime said:


> Sorry to hear of your troubles.  Ironically, in my opinion, the sooner you stop paying, the more leverage you may have with Wyndham as you will then be a non performing loan.  This calls for a negotiated exit with Wyndham and you might want a trusted family friend or relative who is somewhat more experienced with negotiations to help you here.  Ironically while many posters say that they will get foreclosed and/or enmeshed in a lawsuit and/or a list of other horribles, the OP asked for personal experience re this happening and no one had an example.  Good luck in finding a solution.  And, by the way,  you are to be commended - now - for trying to get more information and trying to find a solution.  While it would have been better to do that before the contract - that sort of action will come with more life experience.  Good luck with attempting a negotiated solution.  Funtime



Thank you. Unfortunately, the debt was there before I came into the picture. Funny how people want to blame me for everything, call me an impulse buyer, when I had nothing to do with this! He and his ex made the decision. He was making $20k more per year and thought he could pay it off quickly. He was wrong, because he lost his job shortly thereafter. This was 2 years ago. I have only been in the picture for 10 months. He knows what he did was IDIOTIC, but with me around he won't be suckered into anything like this ever again!

We are trying to decide whether to completely empty his 401k (he would have to start all over at age 40 when he graduates...ugh) or just stop paying all together, which would risk a lawsuit and ruin his credit, which he fears will prevent him from getting a job in the future because everyone pulls that report now.


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## Htoo0 (Sep 8, 2011)

You know what they say about assume... but then you did leave a lot to be assumed. Not that any of it matters if one only concentrated on the actual question. I think the main problem is that most of the people here on Timeshare *USERS* Group are pro timeshare so asking us how to default on one is bound to generate some negative responses. What you want to do chips away at an all ready fragile system. I'm certainly not qualified to answer your question but it does appear you've found yourself between that proverbial rock... I would think a serious discussion with the 'right' person at Wyndham would be a start but from there you probably need to find the money to consult with a qualified attorney. Does defaulting on a timeshare really carry the same weight as other debt? Will a bankruptcy just for a t.s. really affect future employment opportunities? I don't think simply refusing to pay is the best choice but if you can show you made every effort to mitigate an unfortunate situation it 'might' help. I think you are allowed to submit a response to any negative reports on your credit. Whether that would be helpful would be beyond my determination. Best of luck and I do hope you find the best possible solution for your circumstances.


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## Rent_Share (Sep 8, 2011)

bogey21 said:


> I know that the following will be upsetting to most Tuggers but I am tying to be realistic based on the facts in this case.
> 
> 
> Based on your situation as you explain it I would (1) stop making payments, (2) try and work it out with the Resort, and (3) if that fails declare bankruptcy. If you can't resolve this, the $40K debt will overwhelm every thing else in your financial lives. You are young enough to overcome the bankruptcy.
> ...


 

X 2   

At 14 %  It's a 100,000 Mistake plus Maintenance Fees of 15,000 during the term of the loan.

Try to get out without filing if you can, but the reality is this debt has to go away or you will never get out of the hole you are in


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## alexadeparis (Sep 8, 2011)

Is this timeshare joint with the OP's Boyfriend's Ex-GF? If so, she would be half responsible also. Maybe she can pay it.

I would advise against liquidating a 401k, as that would be exempt in a bk. Why liquidate your retirement over a timeshare? As a bankruptcy attorney, I can tell you that when looking for work, filing a bankruptcy and having no debt usually looks better on a credit report than not dealing with the debt and letting negative dings accumulate, plus foreclosure, etc.  Try the deed back route or smaller unit downtrade method first. If that doesn't work, consider bankruptcy. 

If OP's boyfriend has to file bankruptcy, that leaves OP's credit intact if they later need to buy a house, etc. And it only takes 2-3 years to rebuild credit after a bk if you have a job and are responsible with new credit. That's a hard conclusion for some to come to, but it really may be the best option.


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## vacationhopeful (Sep 8, 2011)

alexadeparis said:


> If OP's boyfriend has to file bankruptcy, that leaves OP's credit intact if they later need to buy a house, etc.



OP is now new WIFE of the original purchaser.


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## alexadeparis (Sep 8, 2011)

Sorry, about that, no slight intended. As the OP is the new WIFE of the TS holder, my original post still stands. Same advice.


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## loafingcactus (Sep 8, 2011)

alexadeparis said:


> Sorry, about that, no slight intended. As the OP is the new WIFE of the TS holder, my original post still stands. Same advice.




Not in my state.  In my state the OP has up n shot herself in the foot with this marriage.


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## Tia (Sep 8, 2011)

happikatt said:


> ....We are trying to decide whether to completely empty his 401k (he would have to start all over at age 40 when he graduates...ugh) or just stop paying all together, which would risk a lawsuit and ruin his credit, which he fears will prevent him from getting a job in the future because everyone pulls that report now.



 No way would I suggest depleting a 401K, you'd pay taxes and a penalty on the $. A timeshare is not worth what was paid for it retail no matter what. I'd pursue calling Wyndham loan division and get them to take it back for monies paid to date.


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## alexadeparis (Sep 8, 2011)

loafingcactus said:


> Not in my state.  In my state the OP has up n shot herself in the foot with this marriage.



Even if in a community property state, the OP has NO liability for a debt that pre-existed her marriage that is in her husband's name, nor does she have to file a bankruptcy just because he does. So I am not sure what you are getting at here.


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## loafingcactus (Sep 8, 2011)

alexadeparis said:


> Even if in a community property state, the OP has NO liability for a debt that pre-existed her marriage that is in her husband's name, nor does she have to file a bankruptcy just because he does. So I am not sure what you are getting at here.



In North Carolina a debt (or an asset) that can be traced to before the marriage traces out as yours after the marriage if there is a divorce.  But when you are married, a debtor has some right to go after the assets of the spouse, in particular if the asset traces into any joint ownership (joint checking account, joint car ownership, etc.).  So divorce someone before they lose it financially (and hope they don't do anything crazy during the separation- my attorney advised me that just because the separation agreement said the spouse couldn't take on debts, that didn't protect me from the claims of a third party.  This has been in the news because the IRS has indeed gone after separated spouses).  I have something on my credit report that my ex-spouse defaulted on years before he met me.

That's how I understood it from my North Carolina *cough* divorces.  Googling it, I found articles that supported this is the way it is in some states, and go further saying that if there was joint benefit (such as a house both owned but they tried to game the system by only putting it in one name) that can be liable too, so I think I've got it straight.  I guess at the end of the day, the non-debting spouse may or may not win their case, but they are going to have a headache first (such as my credit report item, that maybe I could get off if I wanted to do the hassle).

Eta: Re-reading the thread, yes, if he'll just declare bankruptcy and get it over before they get any further entangled... Le sigh.  This is why I've become a fan of not entangling assets and writing your own contracts instead of letting the state write it for you ("marriage").


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## alexadeparis (Sep 8, 2011)

Yes, what you post about having a joint checking account that can be reached for pre-marriage debts is true, until you file for bankruptcy. Then the innocent spouse (if not filing) gets what is called a phantom discharge. That means no one can touch the joint account because the one spouse filed. It's more complicated than that, but that's basically how it works.


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## ampaholic (Sep 8, 2011)

All this Bankruptcy talk is premature - the OP needs to:

1. Find out (exactly) who the note is owed to.

2. Find out what is the note holders (actual) "reporting" policy (to the three credit bureaus).

3. Consider the available course(s) of action given these facts.

OP - have you pulled your three free credit reports for this year yet?

Without facts she is just rambling around in the dark as are we.


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