# Help! WM canceled my ownership due to nonpayment



## setbrejac (Feb 9, 2012)

My husband and I bought into Worldmark in 2007.  In 2008 my husband was laid off and was not able to find work for 2 1/2 years.  We had to choose between feeding our 3 children or our timeshare.  Apparently Worldmark/Wyndham CANCELED our ownership in 2008.  We are finally getting back on our feet and trying to buy our first home.  Wyndham shows up as "not current."  I called to discuss what we had to do to make it current and was told that they had canceled our contract in 2008 and there was nothing we could do, this would stay on our credit.  How is this possible??? If we somehow figure out how to pay the balance owed, we would not get our contract back, so would own nothing.  

So do we still owe the $$. How can I get this off my credit?? What are my options if any??


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## BocaBum99 (Feb 9, 2012)

Why do you think this should be removed from your credit report?  Lenders need to know your track record of meeting your payment obligations.  That's what a credit report is supposed to tell potential creditors.


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## setbrejac (Feb 9, 2012)

I understand that but I was never notified that the account was "canceled" and if I was able to maintain ownership by bringing the account current I would do so.  To be told there is nothing I can do to make the situation right just seems wrong.


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## rrlongwell (Feb 9, 2012)

setbrejac said:


> I understand that but I was never notified that the account was "canceled" and if I was able to maintain ownership by bringing the account current I would do so.  To be told there is nothing I can do to make the situation right just seems wrong.



You can challege the credit report entry and that places the burden on Worldmark, et. al. to reverify the information.  If they do not do so, I believe within 30 days, then it comes off the resport.  You would need to challege it with all three credit bureus.  Since the cancellation of membership was so long ago, they may or may not respond in a timely manner to the credit bureas.


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## DeniseM (Feb 9, 2012)

Let me ask you a question - if you defaulted on your mortgage in 2008, would you expect them to give you the house back in 2012?   

I'm sorry, but your expectations are unrealistic.


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## Passepartout (Feb 9, 2012)

I have sympathy for you, but you have no idea how many people find TUG and ask if they can simply stop paying their TS obligations and end their ownership. Many have said they wouldn't even mind a credit hit. You may be more fortunate than you know. 

Somehow, I think that after the economic turmoil of the last 3 or so years, a letter of explanation that, as you said, was either feed the kids or pay the TS, would be well understood by a creditor. This too will pass.

Best wishes..

Jim


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## simpsontruckdriver (Feb 9, 2012)

PLUS, there are PLENTY of Wyndham timeshares on eBay (not talking about Worldmark) that you can buy for $1, or $1 + $299 transfer + closing on eBay. I personally have TERRIBLE credit due to the economy since 2007, but going through a timeshare transfer company, Wyndham still let me enter into a timeshare!

If you can pay the Maintenance Fees, as well as your own bills, Wyndham (and a reputable transfer company) can get you into one.

TS


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## setbrejac (Feb 9, 2012)

Denise - a foreclosure should apply to real property and not some virtual vacation points. Walking away from a house is completely different than walking away from a vacation timeshare.  And had we been notified that they canceled it way back when maybe I wouldn't be so upset now.


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## timeos2 (Feb 9, 2012)

setbrejac said:


> I understand that but I was never notified that the account was "canceled" and if I was able to maintain ownership by bringing the account current I would do so.  To be told there is nothing I can do to make the situation right just seems wrong.



You may have missed the notice when you were so preoccupied with other issues - the letters they tend to send out look just like any other mail from them. They don't have to - and may not - have to send out registered type mail but rather they meet the requirements of notice by posting in accepted publication(s) - usually something local. 

If they really have foreclosed or canceled your membership/ownership then that IS your credit record with them. You didn't pay what you owed when it was due and they took the legal actions they could to collect & then terminated your account.  Challenging that is a fight you're not likely to win as those are the simple facts. You could get a statement as to why it occurred added to the report(s) but that may not help your score much if at all.  

Being that it's over 3 years ago the damage is likely done & over now.  You may be best advised to simply forget it and move on.  Good luck to you and your family - I'm glad to hear things are turning around again for the better for you all now.  

These recent posts about the considerable consequences of failing to stay current on timeshare fees should serve to answer those that think it is a minor thing.  A past due fees or foreclosure on your record isn't treated lightly.  Those who advise that resorts will just look the other way or suffer losses without taking action are not giving good advice.  They do report it, they do attach bank accounts and any other actions they can take to hopefully get people to pay what they owe.


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## LLW (Feb 9, 2012)

setbrejac said:


> My husband and I bought into Worldmark in 2007.  In 2008 my husband was laid off and was not able to find work for 2 1/2 years.  We had to choose between feeding our 3 children or our timeshare.  Apparently Worldmark/Wyndham CANCELED our ownership in 2008.  We are finally getting back on our feet and trying to buy our first home.  Wyndham shows up as "not current."  I called to discuss what we had to do to make it current and was told that they had canceled our contract in 2008 and there was nothing we could do, this would stay on our credit.  How is this possible??? If we somehow figure out how to pay the balance owed, we would not get our contract back, so would own nothing.
> 
> So do we still owe the $$. How can I get this off my credit?? What are my options if any??





setbrejac said:


> I understand that but I was never notified that the account was "canceled" and if I was able to maintain ownership by bringing the account current I would do so.  To be told there is nothing I can do to make the situation right just seems wrong.



Did you move? Normally they would have gone after you numerous times before they stop bugging you for non-payments.

How much do you still owe on it? If you bought in 2007 and stopped paying in 2008, it must have been a huge balance still. If you want the ownership, it would probably be cheaper to buy another account on the resale market. Resale accounts may be found on ebay and other outlets for around 40 cents per credit.


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## DeniseM (Feb 9, 2012)

setbrejac said:


> Denise - a foreclosure should apply to real property and not some virtual vacation points. Walking away from a house is completely different than walking away from a vacation timeshare.  And had we been notified that they canceled it way back when maybe I wouldn't be so upset now.



I'm sorry, but that's not true.  You had a loan, and a contractual obligation to make the payments.  

What steps did you take in 2007 to mitigate this isssue?

When your husband was off for 2.5 years, was this the only thing you defaulted on?


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## setbrejac (Feb 9, 2012)

I was current on my payments until 2008 when my husand lost his job. It just sucks that on top of basically losing everything we owned and going through hell the last several years, this stupid timeshare that we were basically forced to purchase is having such a huge impact on our future.  We have worked so hard to get caught up on everything and get back on our feet in the last 6 months and it's like being kicked and knocked down again.


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## DeniseM (Feb 9, 2012)

setbrejac said:


> I was current on my payments until 2008 when my husand lost his job. It just sucks that on top of basically losing everything we owned



If you lost everything - that means that you also defaulted on other loans - correct?



> basically forced to purchase



Forced to purchase???


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## setbrejac (Feb 9, 2012)

No.  We did not have any other loans. I mean by losing everything that we literally sold everything we owned, moved into a small apartment, got rid of our pets, etc to make what little income I had and his unemployment brought in work so we never had to go on any kind of public assistance. Luckily our vehicles were paid for and we don't have any credit cards.


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## setbrejac (Feb 9, 2012)

yes, basically forced to purchase.  It was sign here or be tortured more by the sales people.  After sitting through the presentation and then being hounded for HOURS to purchase I felt like I was basically coerced into signing on the dotted line.

And we did have some medical bills we defaulted on for emergency surgery but other than that, nothing else. We didn't have anything else to default on.


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## ronparise (Feb 9, 2012)

timeos2 said:


> Being that it's over 3 years ago the damage is likely done & over now.  You may be best advised to simply forget it and move on.  Good luck to you and your family - I'm glad to hear things are turning around again for the better for you all now.
> 
> These recent posts about the considerable consequences of failing to stay current on timeshare fees should serve to answer those that think it is a minor thing.  A past due fees or foreclosure on your record isn't treated lightly.  Those who advise that resorts will just look the other way or suffer losses without taking action are not giving good advice.  They do report it, they do attach bank accounts and any other actions they can take to hopefully get people to pay what they owe.



My advice in these situations  is to always consider whats best for you and your family, and if you must; default...There will be consequences

They didnt attach bank accounts or garnish wages, they only cancelled the account and reported it to the credit bureaus...It would seem the consequences in this case were not such a big deal


FYI mortgage companies are now lending money to folks that were foreclosed 3 years ago


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## DeniseM (Feb 9, 2012)

So I'm guessing you are young and don't have much experience using credit? 

What arrangements did you try to make with the loan holder?


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## Craigvince (Feb 9, 2012)

setbrejac said:


> I understand that but I was never notified that the account was "canceled" and if I was able to maintain ownership by bringing the account current I would do so.  To be told there is nothing I can do to make the situation right just seems wrong.



Please understand, I'm not judging, just answering your question.

  1. Were you notified that you owed the money? (You originally signed an agreement with your payment amounts and due dates, right?) 

  2. Did you stop making those agreed upon payments? (Yes, you said you stopped paying when your husband got laid off)

  3. Did they report accurately on your credit report that you had not made your payments? (Probably)

So what exactly do you want them to do? Lie and say you did pay it, just so you can clean up your credit?


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## setbrejac (Feb 9, 2012)

I'm 35 actually.  We chose not to jump on the must have everything bandwagon that so many consumers did and never got credit cards.  We had vehicles loans and student loans that we paid off in full 2 years prior after receiving some inheritance.  Because mine and my husbands jobs had us traveling and moving fairly frequently, we never bought a home.


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## Passepartout (Feb 9, 2012)

If the TS is the only thing you defaulted on, and that was 3 years ago, you should have little difficulty rebuilding your credit. You have every reason to be proud of having not fallen further into the abyss of debt and assistance. Many people stayed in houses that were and are still underwater, kept buying trinkets and timeshares that are now worthless. You deserve credit, and if it were up to me, I'd extend you a loan.

Welcome to TUG. If you still want a TS, there are plenty of them available for essentially free.

Jim


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## setbrejac (Feb 9, 2012)

I fully accept that we signed an agreement and defaulted on the payments. My problem is that when I called to try and remedy the situation they said there was nothing I could do.  I asked if I could settle the amount due to show as paid in full on my account and they again told me there was nothing i could do.  I asked the person I was talking to what I could do to show the account as canceled, rather than as "past due" and she again told me there was nothing I can do.  Truthfully, she did not even ask me to pay the balance.  She didn't even tell me the balance owed. She just kept saying there was nothing I can do.


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## DeniseM (Feb 9, 2012)

I am sorry for your troubles - congratulations on keeping your head above water.

There is nothing you can do, because the lender foreclosed, and you no longer own it.  The legal proceedings are long over and done with - you no longer have a loan, or a timeshare.

Did you contact the lender in 2008 and try to make any arrangements?


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## setbrejac (Feb 9, 2012)

Thanks Jim.  That is what is so frustrating about all of this! Yes we screwed up and didn't pay it but what choice did we have? Aside from prostituting myself on a street corner I did not have a penny to spare to pay it!!!  I can't tell you how many times we've been told we need to get credit cards and the like to improve our credit.  That's ridiculous.  We do not live above our means. That is how I was raised.  We did not use the broken welfare system to suck all of us hard working tax payers dry. We made the money we did have work.  If that meant eating beans & rice for a month and not turning on our heater or air conditioner that's what we did.  Imagine what the country would be like if people lived within their means rather than either A)abusing welfare or B) extending themselves trying to keep up with the jones.


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## setbrejac (Feb 9, 2012)

I did call them the first month we coudln't make their payment and was basically told I'd better figure out how to pay it.  I definitely should have been more proactive in dealing with the situation. But figuring out how to keep a roof over our heads and feeding our family was way more important!


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## timeos2 (Feb 9, 2012)

setbrejac said:


> I fully accept that we signed an agreement and defaulted on the payments. My problem is that when I called to try and remedy the situation they said there was nothing I could do.  I asked if I could settle the amount due to show as paid in full on my account and they again told me there was nothing i could do.  I asked the person I was talking to what I could do to show the account as canceled, rather than as "past due" and she again told me there was nothing I can do.  Truthfully, she did not even ask me to pay the balance.  She didn't even tell me the balance owed. She just kept saying there was nothing I can do.



She was correct unfortunately. It is too late to undo it now.  

Really, the damage was done & over years back now.  Your otherwise good (by todays standards) record should work in your favor and if you need future loans at worst you'd pay a slightly higher interest in all likelihood.  Put it behind you & don't fret over it now.  At least you no longer owe any fees and you don't have to get your name off a timeshare you didn't really want. That may be worth the relatively small credit hit you'll have now. It would be different if this was still the 2008 economy & it was a current default but it's almost ancient history now.  

You learned a tough lesson. Now move on.


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## setbrejac (Feb 9, 2012)

If it was that simple I absolutely would just forget about it and move on but now that we are trying to get our first home loan we are being told that this mark on our credit is going to affect whether or not we can get a mortgage.


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## timeos2 (Feb 9, 2012)

setbrejac said:


> If it was that simple I absolutely would just forget about it and move on but now that we are trying to get our first home loan we are being told that this mark on our credit is going to affect whether or not we can get a mortgage.



The rules and requirements have been toughened considerably since the big collapse.  You'll just have to deal with it as best you can as too much time has passed to "undo" the negative reports now.  Sorry.  Chances are you'll find a lender but maybe not the absolutely cheapest one or rate.  That's the price of a bad decision many years ago.  I really hope you're able to find a lender and get your new home.  Best wishes.


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## RX8 (Feb 9, 2012)

After seven years you can request that this derog credit be removed from your credit report, legally.  If it has been almost four years now, that is three more years.  Doesnt help you now and that is unfortunate.  If you paid it now, it essentially resets the clock and it could remain on your credit report for seven MORE years, albeit as a paid derog.

With the limited credit file it sounds like you have, this derog has more of an effect on your bureau score.  It would be a good idea to establish more credit to build your file and over time, as this derog grows older, it will be less of an issue.  If you open a credit card to two, you DO NOT have to carry a balance to build your credit.  In fact, your score will be higher if you do not carry a balance.


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## slip (Feb 9, 2012)

This is why you were advised to get a credit card, to help your credit. Yes,
people abuse credit everyday and get into trouble. You seem to understand this
so I don't think you would get into trouble by having one and using it 
responsibly. If your going to get a mortgage in this day and age you have to
establish credit and a credit card helps you do that. I don't see the issue in 
getting one and helping your credit situation. I would understand it if that's how
you got into trouble in the first place but you didn't and getting one to help
should be a no brainer.


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## ampaholic (Feb 9, 2012)

setbrejac said:


> yes, basically forced to purchase.  It was sign here or be tortured more by the sales people.  After sitting through the presentation and then being hounded for HOURS to purchase I felt like I was basically coerced into signing on the dotted line.
> .



OMG - :rofl: - I haven't even finished this thread and I almost peeed my pajamas upon reading this.

OMG :hysterical: :rofl: :hysterical:


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## DeniseM (Feb 9, 2012)

I agree - Right now it sounds like you have very little credit history, and that's actually hurting you.  If you had extensive good credit history, with one default, it would look a lot better. 

Example - My husband co-signed on [a] car loan for someone in his family, and she defaulted on the loan.  But, the rest of our credit history is great, so it didn't hurt us it at all.  Since you have very little credit history, the negative really stands out.


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## learnalot (Feb 9, 2012)

I am sorry for your troubles.  You have overcome a lot and I am sure you will also recover from this.    I would like to tell you that the advice to get a credit card to help build a solid credit history is probably a good suggestion for you and there are ways to use it wisely and not live beyond your means.  For example, we have several credit cards we use regularly in order to make the most of rewards programs.  We actually pay for almost everything with credit cards BUT we also pay off the balance every month.  This way, we are essentially paying cash for everything but with a rewards program.  Most people who get into trouble with credit cards do so because they use the credit lines as if they are extending their income and they DO end up living beyond their means and in over their heads.  If you are disciplined with your use of credit, you can make it work for you.

I wish you well.


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## Explorer7 (Feb 9, 2012)

setbrejac said:


> I did call them the first month we coudln't make their payment and was basically told I'd better figure out how to pay it.  I definitely should have been more proactive in dealing with the situation. But figuring out how to keep a roof over our heads and feeding our family was way more important!




I am so sorry that you have hit what appears to be a dead end in attempting some form of settlement.
Your verbiage sounds a lot like a Dave Ramsey follower. Where the advice during hardship would be to focus on taking care of your 4 walls, food, clothing, shelter and transportation as a baseline then as you get some traction go after cleaning up the mess like it sounds like you are trying to do now.

I am thinking with your story a small local bank or credit union would be your best bet at working towards obtaining an affordable mortgage while you are debt free and hopefully have a 3 to 6 month emergency fund (maybe more depending on the job market). 
If you are a Dave Ramsey listener you would not be interested in any other form of debt moving forward.
Best wishes to you and your family, you really do sound like you and your husband have the resolve to fully recover and win in life.


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## sue1947 (Feb 9, 2012)

The other lesson you should take from this is to NEVER finance a timeshare.  If you can't pay for it outright, you can't afford it.  When you decide to purchase again, DO NOT buy from the developer and NEVER sit in on an 'update'.  If you can't say no and walk away when they keep the pressure on, don't agree to go in the first place, no matter how tempting the money/incentive.

Now that you want to buy a house, your best option is to take the next few years while your credit is repaired to SAVE a downpayment.  Come to the table with a 20% downpayment and some of your bad credit history will not look so bad.  But only if you demonstrate good credit from now on.  Get a credit card and pay it off each month; i.e. demonstrate your ability to handle credit responsibly.  

Frankly, WM/Wyndham did you a huge favor.  The loan was probably for way more than the account was worth and you no longer have to pay it.  If you had a loan, you bought from the developer at what was probably about $1.60-$1.80/credit.  In 2008, they were selling for about 0.70/credit and now 0.40 cents per credit.  The penalty is having to wait a little longer to get another loan, but that is not such a bad thing.  

JMO
Sue


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## Timeshare Von (Feb 9, 2012)

Some would view this as a blessing in disguise as you are out from under a loan and MF's and can buy again via resale, if you're really sure TS ownership/use is for you.


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## Amy (Feb 10, 2012)

I just want to echo other TUGgers' advice for you to seriously consider opening a credit card.  This one bad debt a few years ago is having such a large impact on your credit BECAUSE you don't have an established positive credit history.  If you have only one record that tells lenders that you defaulted on a loan with no other record that shows you are able to borrow money and pay back your debt on a timely and regular basis, then why should a lender take a chance on you in this day and age?  You and your partner are to be commended for turning your lives around and living within your means even during the toughest of times.  There is no reason that has to change just because you get a credit card.  Many of us make it a practice to pay off our credit card balances every month because we believe in living within our means.  There is no reason why you can't do the same and at the same time start establishing and maintaining a good credit history.  Best of luck to you and your family on securing a mortgage some day.


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## Passepartout (Feb 10, 2012)

Add me to the 'get a credit card' chorus. Only, use it as a CHARGE card. Pay it off religiously every month. My primary card- that I got over 20 years ago because it guaranteed no annual fee FOR LIFE, I have never paid a cent of interest on. It has been paid off every month for more than 240 months. It doesn't give me many perks like air miles or free gas, but over the years, it's been 'ordinary', then gold, then platinum, which extends warranties and guarantees car rental insurance. The provider raised the limit to scary levels. It has gotten me an over 780 credit score. So truly, this is the easiest and best way to build your credit.

You can do it...

Jim


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## Amy (Feb 10, 2012)

Passepartout said:


> The provider raised the limit to scary levels.



Whenever one of our credit card issuers raise the limit to such levels, we call and ask them to bring the limit back down.  We have done that a few times over the past decade.  As far as we can tell keeping the limits to what we feel are reasonable levels have not hurt our credit.


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## BocaBum99 (Feb 10, 2012)

Amy said:


> Whenever one of our credit card issuers raise the limit to such levels, we call and ask them to bring the limit back down.  We have done that a few times over the past decade.  As far as we can tell keeping the limits to what we feel are reasonable levels have not hurt our credit.



Your credit score is in part determined by the percentage of available credit used.  So, the higher your credit limit and the more cards you have the better as long as the outstanding balance is less than 7-10% of available credit on each card.

The idea that not having a credit card is a good thing just means that the card holder has no self discipline.


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## antjmar (Feb 10, 2012)

Timeshare Von said:


> Some would view this as a blessing in disguise as you are out from under a loan and MF's and can buy again via resale, if you're really sure TS ownership/use is for you.



Setbrejac, I agree with the above post.
Try to have a positive outlook, you cant change what has happened IMO you had your priorities in the right order (family first) and I would have done the same. At this point if you still owned the TS it would hurt you financially too.  You would still have a monthly payment and the MF payment which together would be a  few hundred dollars! This would also impact how large a  mortgage you would qualify for and you would be paying for something that is worth peanuts!  
Take some time to improve your credit score. Renting may actually make sense in some markets! When your credit score improves, buy a house and then buy a timeshare for a few dollars!


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## rickandcindy23 (Feb 10, 2012)

Another mortgage underwriter with another company may see this hit on your credit report as a minor thing and may disregard it because it was a timeshare purchase.  Some underwriters see timeshare purchases differently.  I would try another mortgage company.  

Off subject, I realize, but ironically, you can own dozens of timeshares and pay all fees in full every year, and no one will count a timeshare as an asset.  If you owned 52 weeks in the same unit, the mortgage company would never think of you as a landowner of that week, because it is a timeshare.  If you have a 2003 Toyota Camry paid off, they consider it an asset. 

Someone above commented on the possibility of getting this taken off of your credit report by disputing it with the credit report agencies.  I did that once, and the company never responded, so it was taken off of my credit report.  This was about 15 years ago.  I would hope it works the same way today. 

Good luck to you.  Others here don't seem to get that the timeshare purchase is not what you want back--it's the credit score for your mortgage.  I wonder why WorldMark wouldn't just take your money, since you offered to pay?  It's just a club.  I would tell the mortgage underwriter that it is just a club.


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## Passepartout (Feb 10, 2012)

rickandcindy23 said:


> It's just a club.  I would tell the mortgage underwriter that it is just a club.



Since there is no underlying deed, this is true. A letter to any possible creditor who questions your rating should include this information.

Good Luck and best wishes.

Jim


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## DeniseM (Feb 10, 2012)

rickandcindy23 said:


> It's just a club.  I would tell the mortgage underwriter that it is just a club.



It's too late - they no longer own a TS, nor have a mortgage on it, since this started back in 2008.  Their Acct. is closed and done.

At this point, I think it would be a big mistake for the OP to even try to open this mess again:

1.  Can you imagine how much 4 years of back payments and fees would be?
2.  They'd still have years of payments ahead of them.
3.  They'd own a TS that they don't want.


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## Tia (Feb 10, 2012)

I agree the original poster is _lucky _ Worldmark/Wyndham  took it back and just doesn't realize how lucky. Trying to get it back now does not make sense to me.


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## Passepartout (Feb 10, 2012)

Exactly what I was trying to say waaaay back in #6. Time to thank the lucky stars. Maybe it was karma- or something for the OP being conscientious.

Jim


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## BocaBum99 (Feb 10, 2012)

This thread reminds me of crocodile dundee.  He goes on walk about for 4 months and he is surprised that when he returns, his wife is gone.


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## GeorgeInNePa (Feb 10, 2012)

setbrejac said:


> *yes, basically forced to purchase.  It was sign here or be tortured more by the sales people.  After sitting through the presentation and then being hounded for HOURS to purchase I felt like I was basically coerced into signing on the dotted line.*
> 
> And we did have some medical bills we defaulted on for emergency surgery but other than that, nothing else. We didn't have anything else to default on.



I know what you mean.

The restraints were very tight and don't get me started about the rubber hose and thumb-screws...


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## setbrejac (Feb 10, 2012)

Thanks for all of your comments.  I appreciate the good and the bad! Obviously i need to suck it up and get a CC and suffer the lovely consequences of not being able to pay this stupid thing!


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## GeorgeInNePa (Feb 10, 2012)

setbrejac said:


> Thanks Jim.  That is what is so frustrating about all of this! Yes we screwed up and didn't pay it but what choice did we have? Aside from prostituting myself on a street corner I did not have a penny to spare to pay it!!!  *I can't tell you how many times we've been told we need to get credit cards and the like to improve our credit.  That's ridiculous.  We do not live above our means. That is how I was raised. * We did not use the broken welfare system to suck all of us hard working tax payers dry. We made the money we did have work.  If that meant eating beans & rice for a month and not turning on our heater or air conditioner that's what we did.  Imagine what the country would be like if people lived within their means rather than either A)abusing welfare or B) extending themselves trying to keep up with the jones.



You can own a gun without shooting up the neighborhood.

You can own a bottle of whisky without drinking it all in a single sitting.

You can own a car capable of 150mph without driving it at that speed in town.

You can also have a few credit cards without spending to their limits and living above your means.





Or maybe not...


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## setbrejac (Feb 10, 2012)

Very true George! We just decided a bazillion years ago to not go the CC route and have stuck with it after watching so many people get sucked into the gimme-can-i-gets as my grandmother always called them!  We have enough financial restraint to use them appropriately and not having any credit cards is doing more harm than good.


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## ampaholic (Feb 10, 2012)

GeorgeInNePa said:


> ...
> 
> You can own a car capable of 150mph without driving it at that speed in town.
> ...
> ...



yea, but you can chirp the tires now and then


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## hypnotiq (Feb 10, 2012)

GeorgeInNePa said:


> You can own a gun without shooting up the neighborhood.
> 
> You can own a bottle of whisky without drinking it all in a single sitting.
> 
> ...



I agree with all but that one...


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## Passepartout (Feb 10, 2012)

setbrejac said:


> We have enough financial restraint to use them appropriately and not having any credit cards is doing more harm than good.



We're sure that you do have the necessary restraint. And as you go forward, you'll find that having a CC opens up many opportunities. Like travel. Even if you DO acquire a $1 timeshare, most, if not all require a card to put incidentals on when you check in. You can't rent a car without one. How do you book airfare without a card? Many employers will check your credit rating. You need a card. Period.

After the recession of the early 1980s, I found myself out of work, in debt, and injured. I cut up the cards and lived on the cash economy, sucked it up, paid all my debts in full, living in a trailer I paid $3,000 for. But after all the bills were finally paid, I found I HAD to re-enter the 'regular' economy. I went to a credit union where I worked and opened a low limit CC. I paid it off every month and within 3 years, I had a down payment on a house. A mortgage banker asked who I owed and I told him, 'no one'. He said I was 'unAmerican', and approved my mortgage.

I have every confidence that if I can do it, you can too.

Jim


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## rickandcindy23 (Feb 10, 2012)

setbrejac said:


> Very true George! We just decided a bazillion years ago to not go the CC route and have stuck with it after watching so many people get sucked into the gimme-can-i-gets as my grandmother always called them!  We have enough financial restraint to use them appropriately and not having any credit cards is doing more harm than good.



If you ever want to rent a car, get the best price on airline tickets, etc., you need to have a credit card.  It's also safer to use a credit card for gas, because then you don't have to leave your car to pay in the station.  

I don't know how people live without them.  Get one that gives great benefits.  We have the Capital One Venture Card and love it.  We also have the Bank of America Alaska Miles Card.  Love it, too.  

Pay it off every month and never put more than 10-15% of your available credit on it at one time.  Also, get a card from Kohl's or Penney's, and make sure you have at least two credit cards to improve your credit.

Funny that you did get credit to pay for a timeshare, and I know you felt coerced, but it's still rather a strange thing to finance after making it a point to never have credit cards.  I don't understand that choice.


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## setbrejac (Feb 10, 2012)

I have always used my debit card for airfare, rental cars, etc. 

As for agreeing to finance the timeshare, definitely one of the most stupid things we've done financially.  My Mother-in-law had worldmark and used it all to heck so we agreed to sit through the presentation thinking it might be a good investment because we have always chosen to make memories with our children rather than buy them a bunch of crap so at the time, we took a lot of weekend mini-vacations each year.  Both of us are usually very strong people but literally we were there for  hours and just wanted to get out of there and get back to enjoying our first vacation without our kids in several years so we gave in and signed.  No excuse for caving but that's what happened. Aside from our vehicles, that is the only thing we'd ever financed.


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## Joan-OH (Feb 10, 2012)

Have you tried an FHA loan?  At the very least, google FHA underwriting requirements.   The last time I looked this up for my kids, they can usually accept a collection or judgement on your credit report with explanation (high pressure timeshare salesman/unemployment, etc).  However, they will not overlook tax debt or student loan judgements.

And you might also try a local S&L or credit union.  They tend to look more at "YOU" than your scores.  Sit down and talk to them to see if you can get pre-approval.

I made my daughter get a credit card and had her charge her Verizon bill to it every month and pay it off every month to establish credit history.  Unfortunately, I did not realize she was so anal about debt, that she paid it off the day after Verizon charged her credit card and she never did cycle a bill thus giving her zero credit history.  It did her absolutely no good.  When she went for her mortgage with a 6 figure income in a very stable govt job, underwriting automatically declined her because of her lack of credit.  The Loan officer had to override it.

Good Luck.  In my job I see plenty of people get FHA loans with marginal credit.


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## bnoble (Feb 10, 2012)

> Obviously i need to suck it up and get a CC and suffer the lovely consequences of not being able to pay this stupid thing!


Yes, with one small change:

"suffer the lovely consequences of _not having paid_ this stupid thing"

As for credit cards: they are not, in and of themselves, a problem.  Back in my living-on-a-grad-student-stipend days, I treated CC purchases like checks that I wrote---they went into my checkbook register, (actually, my Quicken records) and were deducted from my bank balance.  Then, when it came time to pay the bill, I *knew* there was money in my checking account to cover the bill, because I'd been "putting it aside" all along.

There is no reason not to have a credit card, as long as you pay off the balance in full every month, on time.  Something like this approach makes that easy.


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## BocaBum99 (Feb 10, 2012)

bnoble said:


> Yes, with one small change:
> 
> "suffer the lovely consequences of _not having paid_ this stupid thing"
> 
> ...



It's better than that.  They give you a transaction log so you don't need to do Quicken.  And, they also give you cash back.  Mine gives me 2%.


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## rifleman69 (Feb 10, 2012)

setbrejac said:


> Denise - a foreclosure should apply to real property and not some virtual vacation points. Walking away from a house is completely different than walking away from a vacation timeshare.  And had we been notified that they canceled it way back when maybe I wouldn't be so upset now.




If you think walking away from a house vs walking away from a timeshare are two different things, then I have 0% sympathy for you.


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## setbrejac (Feb 10, 2012)

I know that on paper they are not, but in reality they SHOULD be.


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## rifleman69 (Feb 10, 2012)

setbrejac said:


> If it was that simple I absolutely would just forget about it and move on but now that we are trying to get our first home loan we are being told that this mark on our credit is going to affect whether or not we can get a mortgage.



My advice:   rent.   Build up your credit score and then go after a home that you can afford.   You'll thank me later.


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## setbrejac (Feb 10, 2012)

the house we're looking at, is way less than what we pay for rent! whatever is meant to happen will happen so i'm done stressing over it and being pissed off!


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## DeniseM (Feb 10, 2012)

setbrejac said:


> I know that on paper they are not, but in reality they SHOULD be.



This statement conflicts with your other comments about financial responsibility.  You signed - you owe.  Under US Law you don't get to decide that you made a bad decision, therefore, you don't have to pay.  

If you can't do the time - don't sign on the line!


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## GeorgeInNePa (Feb 10, 2012)

hypnotiq said:


> I agree with all but that one...



I said "in town", not "never".


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## 1950bing (Feb 11, 2012)

I find it interesting that people don't just get up and walk away from sales pressure. If it gets too bad, call the police.
The only time I ever followed through in doing something I did not want to do 
was in the military ( basic ) and did so because I knew I was smarter than they were and they had no clue how stupid they were plus it was olny short term. They were following rules that they adopted in 1947 ! Tradition I guess.
Take charge of every situation.


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