# Timeshare foreclosure for maintenance fee nonpayment



## kronersc (Apr 19, 2013)

I have a Marriott SurfWatch (week 38) that is about to foreclose due to nonpayment of maintenance fees.  Balance of $6200 will keep it from foreclosure.  Loan is paid in full (originally approx $22000).  

I really don't want the hassle involved in scheduling each year and invariably having to change weeks due to kids at school, etc. but I also don't want to throw more money at this.  

Discussed with donation for charity organization but they require fees paid before they will take it and after all that plus their fees it doesn't help materially for tax purposes.

Any other options? 

Thanks


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## Passepartout (Apr 19, 2013)

How long does it take to accumulate $6200 in MF? And you are just today getting around to finding a solution?

In order to sell it- or even give it away, the MF payment will have to be brought current. 

We are asked here almost daily, "What if I just don't pay my MF? What can they do? How will it affect my credit?" We are simply at a loss of what to tell them, because nobody that experiences it comes back to tell us what actually happens. We usually tell them that they can expect to be turned over to collection. They will get letters and phone calls at all hours. They obviously won't be able to book any vacations at their resort or deposit it to an exchange company- but you are probably beyond that point anyway- even if you have kept up your II membership.

So, why not let the TS outfit foreclose, then come back and post what happened and how much of a hit your credit score takes, so we can tell others?

It might be that a timeshare foreclosure is something that a letter in your file at the credit reporting agencies makes it no big deal. We just don't know. I mean no disrespect here, but you are simply further along in the process and in order for us to inform others, we'd like to have a first hand response.

TUG is all about providing timeshare owners and users complete information. Welcome to TUG and we need your help in order to help others.

Keep in touch.

Jim


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## VegasBella (Apr 19, 2013)

kronersc said:


> Any other options?


You can try selling it yourself for the amount you owe plus closing costs. It's unlikely but it might be worth a try. If you really try maybe you can find a buyer.

But if foreclosure has already started I'm not sure how much you can do other than let it foreclose or pay the balance. Have you tried negotiating at all to get the balance lower? 

If it does foreclose please do let us know how it went. Your experience could help others.


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## buzglyd (Apr 19, 2013)

Depending on the state, foreclosure can take some time for a TS property. Is Surf Watch in SC? I believe they have non-judicial foreclosure.

Going foreword, your credit will be dinged. It's up to the next lender you contact whether a TS foreclosure is significant enough to deny you credit.

Lots of bad credit out there these days. People still seem to get loans.


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## Bill4728 (Apr 19, 2013)

Marriott has been buying back TS.  If they contact Marriott maybe Marriott may buy it back. BUT you will have to make the MFs current. 

OR if Marriott will not buy it back then IMHO, since you are already in the rear $6000, your credit has already been harmed.  So I'd just let them take it via foreclosure. I don't think that it was be much more harm to your credit and you get rid of the TS.


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## theo (Apr 19, 2013)

*Maybe not so...*



Bill4728 said:


> <snip> ...since you are already in the rear $6000, your credit has already been harmed. < snip>



Not necessarily true. Marriott may very well have not reported anything at all to the credit agencies as previous maintenance fees have gone unpaid (...although they will almost surely do so if / when they actually have to undertake the time and expense of foreclosure proceedings).


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## post-it (Apr 19, 2013)

Bill4728 said:


> since you are already in the rear $6000, your credit has already been harmed.



If the OP request a credit report, wouldn't it already show up?


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## theo (Apr 20, 2013)

*To repeat...*



post-it said:


> If the OP request a credit report, wouldn't it already show up?



Not necessarily true. Marriott may very well have not reported anything at all to the credit agencies as previous maintenance fees have gone unpaid (...although they will almost surely do so if / when they actually have to undertake the time and expense of foreclosure proceedings).


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## Passepartout (Apr 20, 2013)

OP might well be a 'drive by.' S/He made the initial post and has not been back. I'm pretty comfortable that even if this person checks back, the replies provided are not what they want to hear.

After all, we are Timeshare Users Group, not timeshare obligations ducking group.

Surprised? Not so much.

Jim


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## csxjohn (Apr 20, 2013)

Passepartout said:


> OP might well be a 'drive by.' S/He made the initial post and has not been back. I'm pretty comfortable that even if this person checks back, the replies provided are not what they want to hear.
> 
> After all, we are Timeshare Users Group, not timeshare obligations ducking group.
> 
> ...



It hasn't even been one day yet so let's not throw this poster under the bus with the other drive by posters  just yet.

There is not much he can do at this point and that's what he was trying to find out.

Like you, I hope he does report how it goes and if the foreclosure goes through, how it affects his credit.


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## ampaholic (Apr 20, 2013)

csxjohn said:


> It hasn't even been one day yet so let's not throw this poster under the bus with the other drive by posters  just yet.
> 
> There is not much he can do at this point and that's what he was trying to find out.
> 
> Like you, I hope he does report how it goes and if the foreclosure goes through, how it affects his credit.



+1 = I too think we should give it some time and see.

I think the creditor may do nothing (30% chance) or the "ding" may be minor (20% chance) or it may be the same as a "regular" foreclosure and knock the credit score down from 50 to 250 points.

Quoting Linda Ferrari



> A foreclosure can drop credit scores from 50-250 points (this includes points already lost due to delinquent payments). The difference in point loss depends on how many points someone has to lose in the payment history factor of his or her credit report. Thus if someone has a 750 credit score and they opt to foreclose, their score could drop up to 250 points. However, if someone has a 600 credit score, they may only lose 100 points for the same derogatory.


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## Passepartout (Apr 20, 2013)

I'm not giving up on them, just saying that I would not be surprised if there was not a lot (or any) back-and-forth conversation. We've pretty much heard it before- and it really might be months before there is a final outcome. Certainly more than a day.


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## bogey21 (Apr 20, 2013)

Passepartout said:


> So, why not let the TS outfit foreclose, then come back and post what happened and how much of a hit your credit score takes, so we can tell others?



I like it.  All we get here are opinions  as to what can happen.  We never seem to hear what actually happened to someone.

George


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