# Still Owe and Want To Get Out



## nicemann (Sep 28, 2016)

My sister still owes a good bit on her timeshare with Diamond.  Problem is she still owes money on the agreement and has to pay the $5,200 a year maintenance fees.  33,000 points annual

I myself just bought a Wyndham resell and I did not see many diamond ones listed.  Looks like she may be out of luck and stuck with this for a really long time.  Other then just taking out a cheaper interest loan any other advice?


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## DeniseM (Sep 28, 2016)

She could offer a deed back in lieu of foreclosure.

Sho could let it go into foreclosure.


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## nicemann (Sep 29, 2016)

DeniseM said:


> She could offer a deed back in lieu of foreclosure.
> 
> Sho could let it go into foreclosure.



Thanks we recommended foreclosure and of course it will take a hit on her credit.  Not something she really wants to do.  Recommended airbnb to start renting out her weeks to get it paid off.  Let's see if that will work for her.


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## DeniseM (Sep 29, 2016)

Deed back in lieu of foreclosure is not foreclosure.  It means that the deed is given back to the timeshare INSTEAD of foreclosure.

Air BnB is not an ideal site for timeshare rentals - for one thing, their rules are very liberal and allow the renter to cancel at the last minute - leaving the owner holding the bag.

A better choice would be www.redweek.com - which is specifically for timeshare rentals.


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## artringwald (Sep 29, 2016)

nicemann said:


> Thanks we recommended foreclosure and of course it will take a hit on her credit.  Not something she really wants to do.  Recommended airbnb to start renting out her weeks to get it paid off.  Let's see if that will work for her.



Check the rules, but I don't think DRI lets you rent reservations booked with Club points.


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## artringwald (Oct 1, 2016)

*THE Club® Legal Documents*

I found the place that talks about rentals.



> 2.5 Member Rentals.
> 2.5.1 A Member is not prohibited from periodically renting the
> Accommodation reserved for the Use Period or the reserved Other
> Redemption Opportunity pursuant to these Club Rules. However,
> ...


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## dioxide45 (Oct 1, 2016)

DeniseM said:


> Deed back in lieu of foreclosure is not foreclosure.  It means that the deed is given back to the timeshare INSTEAD of foreclosure.
> 
> Air BnB is not an ideal site for timeshare rentals - for one thing, their rules are very liberal and allow the renter to cancel at the last minute - leaving the owner holding the bag.
> 
> A better choice would be www.redweek.com - which is specifically for timeshare rentals.



The problem is that a lender usually won't allow or do a deed in lieu unless one is already in default. Why be willing to do a deed in lieu from someone who can afford to pay and is paying but just doesn't want to. You have to take the credit hit first by going in to default before they will entertain the option.


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## DeniseM (Oct 1, 2016)

Agreed, but it would be the first thing I would try.

DRI is accepting deedbacks:  http://www.tugbbs.com/forums/showthread.php?t=224859


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## dioxide45 (Oct 1, 2016)

DeniseM said:


> Agreed, but it would be the first thing I would try.
> 
> DRI is accepting deedbacks:  http://www.tugbbs.com/forums/showthread.php?t=224859



The problem with the deedback option is this;



TUGBrian said:


> *In order to qualify, the HOA (MFs) must be up-to-date and the owner must have a zero balance on the loan. *



Contacting DRI is probably the best first step for the OPs sister to start to at least see what options they may have for her. Unfortunately, I think it will be few.


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## LannyPC (Oct 1, 2016)

nicemann said:


> My sister still owes a good bit on her timeshare with Diamond.  Problem is she still owes money on the agreement and has to pay the $5,200 a year maintenance fees.  33,000 points annual...any other advice?



First of all, to clarify, does she owe money on the mortgage or on maintenance fees (MFs) or both?

But another piece of advice that is almost always offered here on TUG to people in situations like your sister's is to watch out for some of these companies and firms that claim to end your TS agreement, cancel your mortgage, end your MFs, sue the developer sales people, donate your TS to charity, etc.  They will charge her thousands of dollars and then may or may not do what she paid them to do.


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## nicemann (Oct 1, 2016)

LannyPC said:


> First of all, to clarify, does she owe money on the mortgage or on maintenance fees (MFs) or both?
> 
> But another piece of advice that is almost always offered here on TUG to people in situations like your sister's is to watch out for some of these companies and firms that claim to end your TS agreement, cancel your mortgage, end your MFs, sue the developer sales people, donate your TS to charity, etc.  They will charge her thousands of dollars and then may or may not do what she paid them to do.



Yeah I was afraid of the companys that say they can help.  Afraid she will just go deeper in the hole.  Thanks for the advice.


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## nicemann (Oct 1, 2016)

artringwald said:


> I found the place that talks about rentals.



Not great to hear that but I appreciate the information.


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## artringwald (Oct 1, 2016)

nicemann said:


> Not great to hear that but I appreciate the information.



No wonder timesharing companies get a bad reputation. They ask and get ridiculous purchase prices, overcharge for property management, make resales difficult, and don't allow rentals.


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## cd5 (Oct 7, 2016)

artringwald said:


> No wonder timesharing companies get a bad reputation. They ask and get ridiculous purchase prices, overcharge for property management, make resales difficult, and don't allow rentals.



That statement would be for "THE Club" which is DRI's version of exchanges. For non-members of "THE Club", I don't believe you are prohibited from renting at your home resort.


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## R.J.C. (Nov 8, 2016)

cd5 said:


> That statement would be for "THE Club" which is DRI's version of exchanges. For non-members of "THE Club", I don't believe you are prohibited from renting at your home resort.



To be technically correct, you're are allowed to rent it. You are NOT allowed to advertise it as a rental.


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## bradfordHI (Dec 9, 2016)

R.J.C. said:


> To be technically correct, you're are allowed to rent it. You are NOT allowed to advertise it as a rental.


What collection does she own? 
Hawaii or US? 
I borrowed against my 401 K to pay mine off and now pay myself back. If you use it correctly buying from the developer is always better. 
Resell doesn't work. I hope I didn't buy RCI Points. Those are useless.


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## SmithOp (Dec 9, 2016)

bradfordHI said:


> What collection does she own?
> Hawaii or US?
> I borrowed against my 401 K to pay mine off and now pay myself back. If you use it correctly buying from the developer is always better.
> Resell doesn't work. I hope I didn't buy RCI Points. Those are useless.



Dumbest thing you can do borrowing from your 401K, all that lost compounded growth.  Methinks you are a DRI salesman or a shill.


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## bradfordHI (Dec 9, 2016)

No I'm not. I paid myself back at 5 percent interest. 

Use the system. Don't let it use you. 



SmithOp said:


> Dumbest thing you can do borrowing from your 401K, all that lost compounded growth.  Methinks you are a DRI salesman or a shill.
> 
> 
> Sent from my iPad using Tapatalk


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## SmithOp (Dec 9, 2016)

bradfordHI said:


> No I'm not. I paid myself back at 5 percent interest.
> 
> Use the system. Don't let it use you.



How much compound interest did you lose while paying it back?

You paid it back with after tax dollars, how much income tax did you pay on that?

When you take disbursements you will pay income tax on it again.

This is a dumber move than financing it with the developer.  If you can't pay cash for a timeshare, rent don't buy.


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## bradfordHI (Dec 9, 2016)

Wrong.  See article. Below. 

http://www.forbes.com/sites/learnve...-borrowing-money-from-your-401k/#40b4b2793bbc


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## bradfordHI (Dec 9, 2016)

I Agree that You need to be smart with your money but renting only makes the rich richer. Are you a landlord? 

If you can budget and own. Do it. 
 Owning is always better then renting. 

Do u disagree?


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## SmithOp (Dec 9, 2016)

bradfordHI said:


> I Agree that You need to be smart with your money but renting only makes the rich richer. Are you a landlord?
> 
> If you can budget and own. Do it.
> Owning is always better then renting.
> ...



I agree with the article you linked, its a last resort, but I don't consider using it to buy a timeshare a valid last resort.

Owning a timeshare is not always better than renting, so I disagree with that statement.

I rent some of my timeshare points to offset my annual fees.

You might want to read this article, it does a better job of explaining all the disadvantages of 401K loans.

http://www.marketwatch.com/story/avoid-the-temptation-of-dipping-into-your-401k-2015-06-04


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## TUGBrian (Dec 9, 2016)

i cant imagine anyone who has an owners best interests in mind would ever suggest borrowing from your 401k to pay off a timeshare loan.


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## bradfordHI (Dec 9, 2016)

Yes. I was giving them an option most don't know about. Im not pro timeshare or not. 
I only told her what I did. I don't know her personal finances. But saying it's a bad choice is not smart to say.

Most people don't know that option is available. It saved me $9,000 dollars in interest alone. So it was perfect for me. 

I paid it back and now only have Maintenance fees. I have done it on both of my 2 most recent purchases so it's worked for me perfectly. 

Brad 

QUOTE="SmithOp, post: 1949309, member: 44697"]I agree with the article you linked, its a last resort, but I don't consider using it to buy a timeshare a valid last resort.

Owning a timeshare is not always better than renting, so I disagree with that statement.

I rent some of my timeshare points to offset my annual fees.

You might want to read this article, it does a better job of explaining all the disadvantages of 401K loans.

http://www.marketwatch.com/story/avoid-the-temptation-of-dipping-into-your-401k-2015-06-04


Sent from my iPad using Tapatalk[/QUOTE]


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## DeniseM (Dec 9, 2016)

> It saved me $9,000 dollars in interest alone.



If you are comparing borrowing from your 401K, to financing it through the developer, you are talking about the lesser of 2 evils - not a good deal.  It almost never makes sense to finance a timeshare.


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## bradfordHI (Dec 9, 2016)

I was implying owning real estate is almost always better then renting. 
Not timeshare specific. Again, I meant owning real estate. Not owning timeshare. 
General statements are not wise. Also message boards are hard to fully understand my intent or anyone's intent 






QUOTE="bradfordHI, post: 1949311, member: 89867"]Yes. I was giving them an option most don't know about. Im not pro timeshare or not.
I only told her what I did. I don't know her personal finances. But saying it's a bad choice is not smart to say.

Most people don't know that option is available. It saved me $9,000 dollars in interest alone. So it was perfect for me.

I paid it back and now only have Maintenance fees. I have done it on both of my 2 most recent purchases so it's worked for me perfectly.

Brad

QUOTE="SmithOp, post: 1949309, member: 44697"]I agree with the article you linked, its a last resort, but I don't consider using it to buy a timeshare a valid last resort.

Owning a timeshare is not always better than renting, so I disagree with that statement.

I rent some of my timeshare points to offset my annual fees.

You might want to read this article, it does a better job of explaining all the disadvantages of 401K loans.

http://www.marketwatch.com/story/avoid-the-temptation-of-dipping-into-your-401k-2015-06-04


Sent from my iPad using Tapatalk[/QUOTE][/QUOTE]


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## TUGBrian (Dec 9, 2016)

should probably make a better attempt to be more clear in your comments if you find that so many people are "unable to understand your intent"...


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## dioxide45 (Dec 9, 2016)

SmithOp said:


> I agree with the article you linked, its a last resort, but I don't consider using it to buy a timeshare a valid last resort.
> 
> Owning a timeshare is not always better than renting, so I disagree with that statement.
> 
> ...


It seems that this article supports the double taxation myth. There is no double taxation with a 401K loan except on the interest that you pay when paying back the loan.

https://thefinancebuff.com/401k-loan-double-taxation-myth.html


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## bradfordHI (Dec 9, 2016)

developers want you to keep their financing. 14 to 18% 

So for me I did a 401k Loan to pay it off. 42,000 dollars. 
Than I paid myself back at 5% over the year. 
That's what I personally did. I saved a little over $4,000 a month and put all that money back in one year. 
They are called 401b loans or something like that. My financial advisor and CPA set it up for me. I can get more info if you need it. 

Does that make sense? 

I'm sorry, I am one of the happy owners who post.  I was not saying use your 401k for timeshare. 
. But I love what I own. I use the system. Maybe I should write a book because there is a lot of things I have done that others never think of.


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## bradfordHI (Dec 9, 2016)

Good article.  Im not a tax advisor but it worked for me perfectly. Everyone is different. This is my 401 V. LOL. 
And I used my 401K to pay me instead of the developer. 
Don't do if your not a good budget person.  
My maint is now 342 a month but our family traveled 60 days this year using only Points and not renting 1 hotel. It felt great. 
We also rented 2 weeks to somone else and got $4400 from a renter. I'm getting close to breaking even on my maintence and will uodate you when I do. 
I learned a lot from this site. Its been great for me and my wife. 









dioxide45 said:


> It seems that this article supports the double taxation myth. There is no double taxation with a 401K loan except on the interest that you pay when paying back the loan.
> 
> https://thefinancebuff.com/401k-loan-double-taxation-myth.html


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