# Walking away from HGVC retail purchase



## briansee (Feb 10, 2010)

Hello, TUGgers.  My parents went to an HGVC retail presentation in December, signed the contract and put down a deposit.  It was well past the 10-day recission period when they realized their....error.  (There were comments made in the sales presentation which led them to believe that they had much more time to change their mind.)

They contacted HGVC to try to back out of the contract, but since it was past the 10-day recission period, HGVC took a hard-line stance.

The "mortgage" payment is now due and HGVC is sending payment notices and is starting to make collection calls.  

Can anyone share experiences with "backing out" of HGVC purchases?  My parents assumed that they would be able to forfeit their deposit and walk away.  The no-longer-friendly HGVC people are indicating that this is not an option, and that they must go through with the purchase.

(I apologize if this post is duplicative of other threads; I located a recent thread about whether to walk away from a retail purchase.  My parents already decided to walk; it's just a question of what to do now.)


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## Talent312 (Feb 10, 2010)

It all boils down to three choices:
(1) Suffer the indignity of harassing phone calls, threatening letters, a major hit to credit scores+reports resulting in credit denials, and being sued for foreclosure; or
(2) Deed it back to HGVC* for peanuts and pay the deficiency; or 
(3) File Bankruptcy and start over, financially.

There is a fourth choice: Learn to use and enjoy what they bought.

*_Added:_ Instead of returning it to HGVC, they could try to sell, but either way,
they'd still have to pony up the difference between the sales price and balance due.


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## scrapngen (Feb 10, 2010)

Or the 5th choice, 

Try to sell it on the market and still take a big hit ($)


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## pianodinosaur (Feb 10, 2010)

I purchased all my units retail and have honored my obligations under the contracts that I signed. HGVC is a very user friendly system and we have enjoyed timesharing. There is no question that your parents could have saved a great deal purchasing resale.  Many of us in the TUG community have purchased retail before learning about the resale market. 

My personal advice is that your parents learn the HGVC system and enjoy their purchase.  Failure to honor their contract could have a very adverse effect on their credit.  Furthermore, if your parents do not pay what they owe, they could very legally be given a Form 1099 and be forced to pay taxes on what they owe Hilton.


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## ricoba (Feb 10, 2010)

Unfortunately, as you realize your parents buyers remorse hit way too late.  They signed a legal and binding contract with HGVC and walking away while possible is really a bad option.  As others have stated failure to live up to the contract will get your parents into some really hot water financially credit wise.

As pianodinosaur suggested, encourage your parents to learn how to use and enjoy HGVC.  

Many many of us here on TUG bought our timeshare retail from the developer (me included with HGVC).  So while we regret that now, we didn't know about TUG then and resale, so, we have learned to make the best of our ownership.

HGVC is a great system, so hopefully they can learn to use it and enjoy it like many of us do.

Best of luck.


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## yumdrey (Feb 10, 2010)

First, I am sorry for your parent's situation.
The best option is, learn HGVC system and enjoy the vacation time with friends and family. 
Or they can contact Hilton and ask to take the deed back and forget about deposit. Maybe they should pay $$ to do that, but if Hilton accept it, your parents can be free from future payment and save credit.


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## toontoy (Feb 11, 2010)

What did they purchase. The hilton system can save you money on traveling if done right. I would say if a disney vacation is wanted you can somehwat easily exchange into Disney vacation club and save on your Disney trip. If they stay at regular Hiltons you can use the HHonors points to save you money. I have a week I use for business and I have saved 2900 in the past 2 years and this is even off the convention rates which are lower than regular. If you look at the positives it can work to be a better deal. My first week was purchased at the retail level and while I paid too much it still has paid for itself.

 I would look at what was purchased where and how many points and what the fee's are. If you travel it will work for you and if you sell it you will loose a lot of money that I can basically guarantee. 

Hilton has the right as a debtor to basically take you to collections, then to court and get a judgment and can make you declare bankruptcy just to eliminate it. If you have no assets it may be a way out but for most people its much better to pay it and use it, or sell it. You have to think about it as its not too easy to get off the collection list for a note that is used. They are not typical notes.


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## ecwinch (Feb 11, 2010)

From your description it sounds like HGVC has a legally binding contract. Unless your parents can introduce some verifiable evidence that they were misled or deceived, it would be difficult to breach that contract. 

It is a long shot, but if HGVC misrepresented some material aspect of the timeshare -  for instance, that the unit could be easily rented out and they would recoup their m/f+. 

Other than that or some mistake of HGVC in complying with state law regarding timeshare sale (i.e. failure to provide the public offering statement), I think walking away would definitely be a challenge. 

Most developers are well-versed on how to deal with buyer's remorse, and rarely take back a sale.


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## Talent312 (Feb 11, 2010)

ecwinch said:


> ... it would be difficult to breach that contract.



Breaching a contract is not difficult at all. What's difficult is facing the consequences.
They might do nothing, or they might make your life miserable. That's the dice you roll.
Many folks roll that dice, not becuz they want to, but becuz sticking with it would be far  worse.


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## flexonguy (Feb 11, 2010)

Not knowing what dollars you have at steak, you may do what most tuggers are recommending and going along with the purchase if it is not a financial windfall or Major set back.  You may even buy a few resales to add to your purchased points to make it more flexible for them.  They are at historical lows right now.  Maybe with more points the family can share them and you may start a tradition that your family you will never forget or regret.  The resale points that you buy now will off set the cost of the original purchase and give you much more opportunity.  And maybe; just maybe, someday the resale market may come back a little to recoup some of your costs.  In the mean time live the good life 

If you fight it; unless they misrepresented something or there is an error on the contract, you will probably run up huge lawyer fees and be right back where you started. 

Best of luck to you.


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## ecwinch (Feb 12, 2010)

Talent312 said:


> Breaching a contract is not difficult at all.
> What's difficult is facing the consequences.
> 
> Anyone can choose to default, but as with any human behavior, there are or may be consequences.
> They might do nothing, or they might make your life miserable. That's the dice you roll.



Good point. It would have been better to say:

difficult to void or invalidate that contract.

Thanks for pointing that out.


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