# Trying to get my girlfriend out of her Diamond Resorts Points



## douglasmhines (Aug 12, 2021)

My girlfriend bought 4500 points per year around 2015.  She has only used it one time.  She was so frustrated with the lack of good resorts that she just stopped paying the loan and the fees.  It wasn't until recently that she told me about this, so I started looking into it.  Between the lost points and late fees, I don't see how she will ever get out of this contract.

What is the worst they can do if she just stops paying?  she owns a home, can they put a lean on it?  I tried to talk with someone at diamond to come to a common sense middle ground, but they were completely inflexible; all I was looking for was a waiving of late fees and reinstatement of points if large amounts of money were paid to get the MF and loan current.

Does anyone have any advice?  per what I understand, she is about $6k in the hole right now (due), and that isn't counting the full loan amount, just missed payments and fees.


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## Ty1on (Aug 12, 2021)

They'll eventually foreclose


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## douglasmhines (Aug 12, 2021)

and after foreclosure that will be a permanent hit on her credit report, nothing else, correct?


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## RX8 (Aug 12, 2021)

Diamond has a deedback program but it is only good if the dues are current and no outstanding loans. Sounds like she has a loan.

Only a couple of choices that I can see:

(1) Don’t pay any more money towards the dues or loan payments. They will foreclose. Depending on what state she may or may not be liable for any deficiency balance. Her credit may, or may not, be impacted with a negative reporting.
(2) Pay the $6K in past due fees, pay the loan off and then deedback to Diamond (certainly check with Diamond first). 
(3) Pay the past due fees and then learn to use what she has. Many Diamond owners here that can help. One key aspect to making it work is being able to plan in advance. Last minute attempts will lead to frustration since most everything had been booked well in advance


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## Iggyearl (Aug 12, 2021)

Douglas, here is a thread regarding state timeshare laws and how they might affect your girlfriend's situation.  It all depends on which state the timeshare was sold in.  If the timeshare was sold in an "anti-deficiency" state, the most the company can do is take back the points, and report her to the credit agencies.  If is is not an "anti-deficiency" state, they can play hardball and sue her for the balance owed. People who got out of their timeshares usually don't come back to Tug, so there will not be too many first hand accounts.  Here is the link: https://tugbbs.com/forums/threads/links-to-official-state-timeshare-laws-and-guides-manuals.298554/

Additionally, here is a link that a Tug member put up showing how much the timeshare companies pursued defaults. Not a ton, but you don't know until you get into it.
By looking at post #4, you can see that timeshare companies don't go a long way other than credit reporting. https://tugbbs.com/forums/threads/2020-timeshare-default-credit-report-collection-tracking.304138/

Find out where she bought the timeshare points.  DON'T hire any "Get out of your timeshare" companies.


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## douglasmhines (Aug 12, 2021)

RX8 said:


> Diamond has a deedback program but it is only good if the dues are current and no outstanding loans. Sounds like she has a loan.
> 
> Only a couple of choices that I can see:
> 
> ...


First I would like to say thanks for the replies on this thread.

RX3, you hit the nail on the head.  my gf is dreadfully awful at planning ahead for vacations.  I have tried to work with her on this, but this is who she is and I accept it.  That said, it seems here personality doesn't work well with Diamond points.  In fairness to her, she says her job makes it rather impossible to plan ahead.

I have tried to look at diamond resorts, and maybe if I could get an understanding of how it works, how to get the best deals, etc . . .  maybe I could motivate her to get and stay current.


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## douglasmhines (Aug 12, 2021)

Iggyearl said:


> Douglas, here is a thread regarding state timeshare laws and how they might affect your girlfriend's situation.  It all depends on which state the timeshare was sold in.  If the timeshare was sold in an "anti-deficiency" state, the most the company can do is take back the points, and report her to the credit agencies.  If is is not an "anti-deficiency" state, they can play hardball and sue her for the balance owed. People who got out of their timeshares usually don't come back to Tug, so there will not be too many first hand accounts.  Here is the link: https://tugbbs.com/forums/threads/links-to-official-state-timeshare-laws-and-guides-manuals.298554/
> 
> Additionally, here is a link that a Tug member put up showing how much the timeshare companies pursued defaults. Not a ton, but you don't know until you get into it.
> By looking at post #4, you can see that timeshare companies don't go a long way other than credit reporting. https://tugbbs.com/forums/threads/2020-timeshare-default-credit-report-collection-tracking.304138/
> ...


She bought it in Florida and we live in California.  I am trying to understand the provided links and how they apply to her situation


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## Iggyearl (Aug 12, 2021)

Timeshares are not regulated by the federal government.  They are regulated by the individual states.  Florida is a "anti-deficiency" state.  Read the Florida rules regarding defaults on Florida timeshares.  The most a timeshare company can do is "take back the deed" or "cancel the points."  They cannot come after her for any other damages.  They can't sue her for money.  That is what is in the first link.

The second link is a compilation by member "Grammerhero" who has done a survey of the people who defaulted on a timeshare mortgage or their maintenance fees. It shows what percentage of owners have been affected by defaulting.  Some companies have reported to the credit bureaus - others have not.  She will not know what happens until it happens.  You might consider buying an hour of a lawyer's time so that someone in the legal business can define this better for you.  I am not a lawyer.


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## T_R_Oglodyte (Aug 12, 2021)

douglasmhines said:


> I have tried to look at diamond resorts, and maybe if I could get an understanding of how it works, how to get the best deals, etc . . . maybe I could motivate her to get and stay current


4500 points isn't a lot to work but  .....  you said she is dreadful at planning ahead for vacations.  Depending on what the ownership situation, often last-minute inventory is discounted.  (I believe it's half off at less than 60 days before, but I'm not sure the Club rules in front of me.)  Last-minute inventory can include time that was never claimed or cancellations that occur shortly before check-in.

So that can work in your favor, and will double the value of what you own.  For example, if you can snag a last minute cancellation you could land a week at the Point at Poipu on Kauai.

As someone said, learn how to work the system.


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## Passepartout (Aug 12, 2021)

Douglas, this it really two issues. First, the mortgage. The loan she signed up for to buy the TS. That's a separate issue from the annual fees. I think that if she (you both) buckle down and pay off the loan, then you might feel better about telling Diamond to pound sand on the MF part. As you can see in the second linked thread in post #4, if there is no outstanding loan, the chances of a negative credit report goes way down.

While I'm playing 'devil's advocate' here, she obviously saw some value in 'owning' pre-paid vacations in luxury apartments. We took a poll here some time ago, and fully HALF of TUGgers bought their first timeshare at retail from the developer. She's in good company to pay it off, learn to use it to build great memories. Sure, timeshares are an abysmal investment, but they certainly improve one's life. 

Defaulting is a decision not to be taken lightly. The repercussions can take decades to get beyond. Whatever you guys decide, you're not alone. We wish you well.

Jim


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## easyrider (Aug 12, 2021)

Many of the issues related to defaulting on a loan are dependent on age and credit needs. If a person has their mortgage and other debt current, letting a timeshare go into foreclosure probably isn't going to prevent that person from obtaining other loans for the most part. If that person is a senior citizen then they are not likely to have too much of a problem at all.

Bill


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## DesireMore (Aug 13, 2021)

douglasmhines said:


> and after foreclosure that will be a permanent hit on her credit report, nothing else, correct?



Negative hits on credit reports can only be reported for seven years by federal law.

My opinion? Don't pay another dime to this crooked company. Let the consequences be a learning lesson not to do business with the sales side of timeshare ever again. Just rent or buy resale from now on.


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## Grammarhero (Sep 13, 2021)

douglasmhines said:


> My girlfriend bought 4500 points per year around 2015.  She has only used it one time.  She was so frustrated with the lack of good resorts that she just stopped paying the loan and the fees.  It wasn't until recently that she told me about this, so I started looking into it.  Between the lost points and late fees, I don't see how she will ever get out of this contract.
> 
> What is the worst they can do if she just stops paying?  she owns a home, can they put a lean on it?  I tried to talk with someone at diamond to come to a common sense middle ground, but they were completely inflexible; all I was looking for was a waiving of late fees and reinstatement of points if large amounts of money were paid to get the MF and loan current.
> 
> Does anyone have any advice?  per what I understand, she is about $6k in the hole right now (due), and that isn't counting the full loan amount, just missed payments and fees.


@douglasmhines If your girlfriend made the hard decision to default, please kindly let us know if her credit got affected.  It would help tuggers in similar situations moving forward.


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## pedro47 (Sep 13, 2021)

What is the status of this transaction with the former owner Diamond Resorts? Diamond Resorts was sold to Hilton this year. 

IMHO, Your girlfriend needs to check on her loan status with the new owner. Hilton.
Good Luck


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## Ty1on (Sep 13, 2021)

pedro47 said:


> What is the status of this transaction with Diamond? Diamond Resorts was sold to Hilton.
> IMHO, Your girlfriend needs to check on her loan status with the new owner.
> Good Luck


Any contact may allow them to come up with an excuse to reset the delinquency clock in reference to the 7 year reporting limitation.  The debt still belongs to Diamond, Hilton owning Diamond instead of Apollo is the only difference.


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## geist1223 (Sep 13, 2021)

Many people are not suitable for timeshare. It all sounds wonderful at a sales pitch. But if you do not take the time to learn the system and you can not plan in advance then you are sc***ed. Also 4,500 DRI Points is not much and you can not do a lot with it.

Probably best for her to just walk away and take a possible hit to her credit score.


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## fast58 (Oct 25, 2021)

hmmm...i have a recent mortgage with DRI, made a mistake...from the sounds of it looks like I have little options to getting out other than to stop paying....


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## Passepartout (Oct 25, 2021)

fast58 said:


> hmmm...i have a recent mortgage with DRI, made a mistake...from the sounds of it looks like I have little options to getting out other than to stop paying....


How recent, and where? You may be eligible to rescind.


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## fast58 (Oct 27, 2021)

Passepartout said:


> How recent, and where? You may be eligible to rescind.



Sept 13 this year Diamond resorts Hawaii....missed the rescind by one day when I sent it...The rest of the time been doing research on how to get out with exit companies and realize most of them are a scam to.....


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## Passepartout (Oct 27, 2021)

fast58 said:


> Sept 13 this year Diamond resorts Hawaii....missed the rescind by one day when I sent it...The rest of the time been doing research on how to get out with exist companies and realize most of them are a scam to.....


Sorry. Yes, exit companies are ALL scams, designed to separate you from more of your money. Stay clear of them. Now, there is little you can do but to learn how to use it. If you are not able to use it yourself, busy yourself booking high quality (read: school holiday) weeks and rent them. It will at least help reduce your out-of-pocket expenses. You are unlikely to make a profit, but you can slow the bleeding. 

Good Luck. I'm sure the owners here will have some suggestions too.

Jim


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## fast58 (Oct 27, 2021)

Passepartout said:


> Sorry. Yes, exit companies are ALL scams, designed to separate you from more of your money. Stay clear of them. Now, there is little you can do but to learn how to use it. If you are not able to use it yourself, busy yourself booking high quality (read: school holiday) weeks and rent them. It will at least help reduce your out-of-pocket expenses. You are unlikely to make a profit, but you can slow the bleeding.
> 
> Good Luck. I'm sure the owners here will have some suggestions too.
> 
> Jim


Thank you


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## TUGBrian (Oct 27, 2021)

fast58 said:


> Sept 13 this year Diamond resorts Hawaii....missed the rescind by one day when I sent it...The rest of the time been doing research on how to get out with exist companies and realize most of them are a scam to.....


id attempt to press that issue being only 24 hours late.... explain it on their social media pages as well.


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## bogey21 (Oct 27, 2021)

douglasmhines said:


> My girlfriend bought 4500 points per year around 2015.  She has only used it one time.  She was so frustrated with the lack of good resorts that she just stopped paying the loan and the fees.



How long ago did she stop making payments?  Is Diamond or Hilton dunning her?  If so, for how long?  If it was a long time ago and she hasn't heard from either in a long time, maybe the best course of action is to do nothing. let the sleeping dog lie and see what happens....

George


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## Grammarhero (Feb 3, 2022)

fast58 said:


> Thank you


@fast58 If your girlfriend make the hard decision to default, please kindly let us know if her credit got affected. It would help tuggers in similar situations moving forward.


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