# Soon to be divorced--Timeshare ..foreclosure bad on credit?



## JennieLynn (Sep 17, 2013)

Hi,
Soon to be divorced ...like an idiot I bought a timeshare with my soon to be ex. If we let it go to foreclosure--does it affect our credit? Please let me know asap. Thank you!


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## DeniseM (Sep 17, 2013)

Yes it does - they will turn you over to a collection agency, and report it to the credit bureaus.  This is a contractual obligation.  It should have been addressed in your divorce settlement.


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## JennieLynn (Sep 17, 2013)

*Divorce*

Hi,
Divorce court is this week.


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## csxjohn (Sep 17, 2013)

JennieLynn said:


> Hi,
> Divorce court is this week.



What resort is it, there may be people here looking for one like it?


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## DeniseM (Sep 17, 2013)

csxjohn said:


> What resort is it, there may be people here looking for one like it?



#1 - That would violate the no-advertising rule.

#2 - No one is going to want to take over payments on a developer purchase.


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## JennieLynn (Sep 17, 2013)

*Divorce/Foreclosure*

Hi,
I was told by the time share co. since it's an open loan ..we are not allowed to sell it. Unless, its paid off then its transferable?


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## JennieLynn (Sep 17, 2013)

*Divorce/Foreclosure*

Hi,
Thanks for replying.. 
Do Timeshares report to the credit bureaus?
I had told my lawyer that I would take over payments but because its an open loan his name can not be taken off of it. Supposeably, he is writing a statement saying that he will not use it.. 
Does that sound right?

Jen


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## DeniseM (Sep 17, 2013)

Yes - You signed a contract - just like any other credit purchase.

Unfortunately, selling it is impossible, because no one will pay developer prices, when you can buy the same thing on the resale market for a fraction of the developer price.  The only way to sell it, is to pay it off.


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## Passepartout (Sep 17, 2013)

We are sorry about the dissolution of your marriage. Unfortunately as far as the timeshare goes, your soon-to-be ex is getting the better deal. He's in effect signing his responsibility over to you. Too bad it couldn't have been the other way round.

Well, if you want it, keep up the payments, knowing it's only out of obligation and to keep your credit rating. Drop around TUG from time-to-time and find how to use it to your best advantage. You may even be able to rent it to help recoup some of your expenses, but know that there is no way to charge enough rent to cover MF AND a loan payment at the rates they charge.

Best wishes.

Jim


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## JennieLynn (Sep 17, 2013)

*Divorce/Foreclosure*

Is it that hard of a hit on credit? 
Does having a timeshare and paying until owned look good on ones credit?


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## DeniseM (Sep 17, 2013)

You are considering defaulting on a loan of several thousand dollars - of course it will impact your credit.  How important that is to you depends on how good/bad your credit is now, and if you will need good credit in the near future.  If you are already in financial trouble, maybe this is just one more thing on the pile.  If however, you have good credit, this could have an impact on your lifestyle as a single person.


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## JennieLynn (Sep 17, 2013)

*Divorce/Foreclosure*

Hi again

Thanks for all the replies. My credit is poor. Would it help it to have this timeshare and pay on it? Making payments is going to be really hard.. But, is it worth it --would it help my credit?


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## DeniseM (Sep 17, 2013)

If your credit is already poor, it's unlikely to make any difference.  You should consult a financial planner about your whole situation, before you make a decision.


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## Passepartout (Sep 17, 2013)

If your credit is already poor, there is only so much they can throw at you. You might be better off to default (not pay) on the timeshare and use that money to pay down other debt. Not to mention living expenses. After a few months of not paying, offer the deed back to them in lieu of foreclosure- of course, your ex (who is still on the deed/contract) will also be getting his credit dragged down too.

Another thing to consider might be a bankruptcy. The timeshare can be eliminated that way and a schedule to repay your other debts. A fresh start is what BK is all about. often times people come out of bankruptcy much stronger financially than they entered it. 

Imo, your attorney could/should have included the timeshare in the divorce settlement, and offered advice on your particular situation. 

Good Luck. It must feel like the world is crashing down around you. It WILL get better. I promise.

Jim


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## JennieLynn (Sep 17, 2013)

*Divorce/Foreclosure*

Yeah, my lawyer wasn't too much help. He said you 2 have to figure out what you are going to do with it. (Like I really want to talk to the ex) .. I spoke to the   Timeshare people and they told me that his name will be on the deed until its paid off. He told my lawyer that he would sign something stating he will not use it and will sign off the deed once its paid for..
But, if its not going to help my already poor credit--I will def listen to you guys.. thanks.


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## T_R_Oglodyte (Sep 17, 2013)

Rather than go striaght into default you might communicate with the developer, appraising them of the situation and asking that they accept a surrender.  Of course, check in with your attorney before doing anything.  But you might luck out and get some relief that wont' affect your credit as much.


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## bogey21 (Sep 17, 2013)

Passepartout said:


> If your credit is already poor, there is only so much they can throw at you. You might be better off to default (not pay) on the timeshare and use that money to pay down other debt. Not to mention living expenses. After a few months of not paying, offer the deed back to them in lieu of foreclosure.....



This makes more sense to me than spending money as Denise recommends to consult a financial planner or Steve recommends to consult an attorney.  I mean why spend your money on people who aren't going to help to resolve your problem?

George


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## JennieLynn (Sep 17, 2013)

*Divorce/Foreclosure*

Ok , thank you! I didn't know if it was considered like a house payment and it would help build up my credit... 
Thanks again for all the advice.


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## BJRSanDiego (Sep 17, 2013)

If your ex doesn't read Tug, it would be great if your ex would want to keep the timeshare.  If he has an interest, just give it to him.  In fact, be willing to "give" something to let him assume the loan/timeshare.

If he assumes the unit, your name will probably stay on the mortgage until he pays it off.   That is kind of a bummer because if he defaults, I think that it drags you back into the picture.  If you and your attorney can figure out a way to get you off of the mortgage, that would be good.

Timeshares with a mortgage are a liability.  Without a mortgage most (except name-brand units in places like Hawaii or Aruba) are virtually worthless.  So when you figure the "value" to be equal to zero minus a mortgage, it is a liability.


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## T_R_Oglodyte (Sep 18, 2013)

BJRSanDiego said:


> Timeshares with a mortgage are a liability.  Without a mortgage most (except name-brand units in places like Hawaii or Aruba) are virtually worthless.  So when you figure the "value" to be equal to zero minus a mortgage, it is a liability.



It very well be a personal loan in both names rather than a mortgage.  Again, whatever is done. That may make it trickier, as there really isn't any reason for a creditor to remove one of the names from the loan unless they get something in return.


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## JennieLynn (Sep 18, 2013)

*Divorce/Foreclosure*

He kept everything that belonged to the Timeshare when i moved out of the house.Little did I know he hasn't been paying on it and its about to go into foreclosure. The resort mgr said they could possibly work wit me to bring it up to date so it doesnt get foreclosed on. He doesn't want it that's why he hasn't paid on it. 
But, you guys are right. It doesn't make any sense to try to save my credit which already stinks. 
Both ours can now. But, he had a short sale about a year ago.. so, his is already shot anyways, bc of that?


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## Bill4728 (Sep 18, 2013)

JennieLynn said:


> .. I spoke to the   Timeshare people and they told me that his name will be on the deed until its paid off. He told my lawyer that he would sign something stating he will not use it and will sign off the deed once its paid for..
> But, if its not going to help my already poor credit--I will def listen to you guys.. thanks.


What the TS people told you just is not true!!

Anyone can sign over their TS to someone else even if they owe money on it.  BUT the loan will still be in both your names. 

I'd offer to sign a "quit claim" deed over to your soon to be ex and if the loan goes into default so what??  you already have poor credit. 

DO NOT try and work something out with the TS people since they are already lying to you.


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## geekette (Sep 18, 2013)

JennieLynn said:


> He kept everything that belonged to the Timeshare when i moved out of the house.Little did I know he hasn't been paying on it and its about to go into foreclosure. The resort mgr said they could possibly work wit me to bring it up to date so it doesnt get foreclosed on. He doesn't want it that's why he hasn't paid on it.
> But, you guys are right. It doesn't make any sense to try to save my credit which already stinks.
> Both ours can now. But, he had a short sale about a year ago.. so, his is already shot anyways, bc of that?



I'd reverse things - x is the one quit paying on it, make it his responsibility and YOU sign the bogus "I won't use it" thing (really, there is no value to such a document, but you can play along with His Plan).  Sounds like he's the one that created the mess.

If your credit is already poor, but you have a good job and will be able to afford living on your own, I'd consider foreclosure if resort won't take it back.  

You can work to rebuild your credit later.  

I got divorced a couple years ago but it is amicable.  I kept the ts, tho they remain in both our names as it has not been worth transfer fees to change that.  Divorce decree says I am responsible, but since I wrote the decree, I know that's basically crap and if something happens to me, they will be looking him up for unpaid maint or whatever.  Joint debts are not so easy to sever.

x-hubs not thrilled about being on the titles, but not ponying up the transfer money, either.


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## SMHarman (Sep 18, 2013)

geekette said:


> x-hubs not thrilled about being on the titles, but not ponying up the transfer money, either.


The quit claim deed is a one page document that needs to be notarized and filed.  Yes there are some costs involved but they are not high.  You can download a quitclaim from the internet or go to the property registry for the TS you own and get a copy of a previously submitted one and get the white out on it.


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## T_R_Oglodyte (Sep 18, 2013)

SMHarman said:


> The quit claim deed is a one page document that needs to be notarized and filed.  Yes there are some costs involved but they are not high.  You can download a quitclaim from the internet or go to the property registry for the TS you own and get a copy of a previously submitted one and get the white out on it.



You need to be sure to obtain a quitclaim form that is correct for the state in which the deed is to be filed.  Then you also have to be sure you complete the deed in the proper format as specified the local Recorders Office.

I would not use a completed one obtained from the local recorder without first assuring that it had been properly completed.  There are many incorrectly filed deeds floating around out there. 

It's easy to do if you know what you're doing. It's easy to mess up and create an invalid deed if you don't. Just because it has been accepted for filing by the local Recorder doesn't mean it's been completed properly.  The Reocrded does not check for content and accuracy.  All the Recorder is concerned with is whether it is formatted correctly.


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## bogey21 (Sep 18, 2013)

geekette said:


> .......Divorce decree says I am responsible, but *since I wrote the decree*.........



I love it.  Another person who expended the effort to handle their own divorce, and I bet to her advantage.

George


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## geekette (Sep 19, 2013)

SMHarman said:


> The quit claim deed is a one page document that needs to be notarized and filed.  Yes there are some costs involved but they are not high.  You can download a quitclaim from the internet or go to the property registry for the TS you own and get a copy of a previously submitted one and get the white out on it.



I am still paying him home equity (I kept the house) so regardless of the cost of transfer, I'm not doing it until the other payments are complete.  If he chooses to pay the cost, Sure, I'll do it right away ....  but he has not chosen to do so and does not seem bothered about it.

It is also extremely convenient when he wants a vacation - I can dock him and he can check in as an owner.   I really have no compelling reason to change this.


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## geekette (Sep 19, 2013)

bogey21 said:


> I love it.  Another person who expended the effort to handle their own divorce, and I bet to her advantage.
> 
> George



Ya know, I was shocked that it was so easy (well, for us, since we agreed on everything, and no children) and we had no reason to involve lawyers.  A friend of mine that had gone the DIY route before assured me that most anything both parties agree to, the court will OK.  Sure enough...    

There were protections in there for both of us - like I keep him as my life insurance beneficiary until house was in my name - protects him if I die and saddle him with the house that he would be unable to afford alone but I was unlikely to refi quickly.  Funds were also transferred from my 401k, which was painful, of course, BUT, that money went to his IRA, and it is required that I remain the sole primary beneficiary on that account.  So if he doesn't use that money, it comes back to me, as it should.  There is no reason I would urge him to use any of that money on timeshare transfers!!!

There is otherwise no benefit to him to extract that money lump sum as he cannot get it back into a tax shelter (no earned income) and would have to pay taxes on it.  He's frugal, not eager to be out of money.  If he does spend it all, well, it was his part of a marital asset, so I can be ok with that, too, and certainly do not wish for his early demise.

I am an extremely fair person and was very generous, but not a pushover.  I would prefer that he think he took advantage of me than that I screwed him over.  I wanted things amicable.  I was the one that wanted out, I was the one with earning power, and I told him to take whatever he wanted from the house.   money and things meant a lot less to me than being free.  

I'm pleased with how we handled it and thrilled that we could set our own terms.  His best friend told him early on to get a lawyer but I reminded him that meant 2 lawyers to pay and that we would no longer be able to decide for ourselves.  There was no fighting in the marriage, none in the end.  I am happy with that.


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## Chrispee (Sep 19, 2013)

geekette, it's refreshing to hear about an amicable divorce proceeding between two fair-minded parties!  If there were more people like you and your former partner, the world would undoubtedly be a better place.


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