Maintenance company say there is not foreclosure for not paying maintenance fee...true or false?

[Amberia4308]

I'm trying to get rid of my mother's and I's timeshare as we are experiencing financial difficulty right now. I've contacted the resort and maintenance company by email thus far explaining my situation and that I want to give back our timeshare paying whatever cost are associated with that. They obviously said we don't take back timeshares blah blah blah. I then proceeded to explain we are prepared and willing to take the hit to our credit score and face foreclosure when the time comes. The maintenance company then said "If you have paid the timeshare in full and there is no mortgage, there is no WDIL to do as there is no mortgage to foreclose against. There is no foreclosure for non-payment of maintenance fees - they just continue to accrue, can be sent to collections, etc." Everywhere else I've read they say they will eventually take it to foreclosure but it will take years till that happens? Who is right?

 

[DeniseM]

They will eventually foreclose - but they don't want to tell you that, becaue they don't want to foreclose - they want you to pay.

The other possibility is that you talked to an entry level person who simply doesn't know what they are talking about.

 

[Amberia4308]

Ok figured just making sure I didn't miss something somewhere cause its seeming like that might be our only option going forward if we can find someone to give it away to by then. Thanks!

 

[Talent312]

With deeded TS's, there's an HOA that holds a lien on the TS for the MF's.
It's much like a tax lien. They may delay enforcement of that lien.
It could be years, but eventually, they will do their job and proceed with it.

.

 

[Amberia4308]

They’ve also told me that they don’t have an HOA that it’s just daily management.

 

[VacationForever]

It is just a difference in terminology. Foreclosure is usually for being delinquent on a loan. For maintenance fees, the HOA will send it to collections. Either way, it will show up on the credit history.

 

[TUGBrian]

should move the bottom line where you mention you will cover all closing costs plus pay 2018 MF as the seller to the top! lead with that =)

best of luck!


(also make sure you post it here with those details in the bargain deals forum)

 

[tschwa2]

It also depends on what you own. Foreclosure is for deeded real estate. So if you own a RTU or a club membership or a beneficial interest in a trust like CWA, or Marriott Destination Points, or Bluegreen or Worldmark or a few others you can't have it foreclosed anymore than your car could be "foreclosed" for not paying the loan or not paying the taxes. It can be repossessed. You can be penalized, it can be sent to collection and you can take a hit on your credit it just can't be listed a as a foreclosure if not on deeded real estate.

You list VV at Parkway and if this is on a deeded week and not their Club membership then they can eventually foreclose but they are not required to do so in any specific time frame. I would imagine they could let it go on for several years adding on fees before eventually foreclosing.

 

[Amberia4308]

should move the bottom line where you mention you will cover all closing costs plus pay 2018 MF as the seller to the top! lead with that =)

best of luck!


(also make sure you post it here with those details in the bargain deals forum)

Thank you for your advice but I have listed it for free including MF for 2018 and all closing/transfer costs on bargain deal (http://tugbbs.com/forums/index.php?...y-2-br-lockout-week-1-annual-for-free.262169/) and on TUG classifieds. I've gotten saying they are interested but when I go to contact them they never contact back. But its looking like were going to have to bit the bullet and take the hit to our credit scores because we financial can't afford to pay it and leave other things unpaid or that constant feeling of just keeping your head above water.

 

[TUGBrian]

if you look at the completed VV parkway ads on ebay, the only completed ones are offering even more incentive to buyers on top of covering closing costs...AND prepaying 2018 mf

the most recent one successfully sold also included an extra $450 gift card...the one before that sold with a $500 gift card.

the only ones that have recently sold without those incentives were ones that appear to have already been converted to RCI points. Sadly there are countless ones for sale for $1 that did not sell.

 

[ronparise]

Talent has it right, they may or may not foreclose now or later depending on their needs

 

[simpsontruckdriver]

I used to own points with Wyndham. When we were struggling through the Great Recession, Wyndham foreclosed on our points. We did not get a credit report "hit", thankfully. So yes, they can foreclosed for nonpayment of MFs.

TS

 

[theo]

I used to own points with Wyndham. When we were struggling through the Great Recession, Wyndham foreclosed on our points. We did not get a credit report "hit", thankfully. So yes, they can foreclose for nonpayment of MFs.

Any timeshare entity, whether "chain" or independent, can / will eventually initiate foreclosure (or contract termination) for non payment of fees.
Whether the entity makes the effort to also ensure a negative credit report entry is less of a certainty.

Cancellation of pure points contracts (e.g., Wyndham CWA) for non-payment would be less likely than foreclosure on a deeded ownership to generate a negative credit report. Foreclosure on deeded ownerships creates a retrievable public record --- not so for termination of a "pure points contract".

 

[simpsontruckdriver]

Not exactly... our Wyndham points were deeded at Star Island, Weeks and all. In the end, we're lucky Wyndham/Star Island foreclosed and did not touch our credit, nor asked for any $$$$

TS

 

[WackyLucy]

deleted; duplicate post

 

[WackyLucy]

Not exactly... our Wyndham points were deeded at Star Island, Weeks and all. In the end, we're lucky Wyndham/Star Island foreclosed and did not touch our credit, nor asked for any $$$$

Sounds like you may have had a "converted" fixed week. if so, Wyndham was probably happy enough to just get it back for free and probably turn it into a CWA Points contact, stripping off the underlying deeded week. Just a slightly more involved process than their current "Ovation" program.

 

[dioxide45]

With deeded TS's, there's an HOA that holds a lien on the TS for the MF's.
It's much like a tax lien. They may delay enforcement of that lien.
It could be years, but eventually, they will do their job and proceed with it.

.

There is no requirement for the HOA to file a lien against the deed. There is also no requirement that they ever initiate foreclosure or collection efforts. The HOA should be doing based on their fiduciary responsibility, but that doesn't mean they ever will. They could just continue to bill the paying owners for the delinquencies/bad debt of those that aren't paying in order to make sure the property can continue to operate. At some time it will blow up and the resort could go bankrupt and someone will have to clean up the mess.

 

[VegasBella]

If taxes are paid separately or individually on each unit then it's actually more likely that the tax man will force it into foreclosure than the HOA. That still takes years but it can happen more quickly, ironically since the taxes are far lower than the MF.

 

[theo]

If taxes are paid separately or individually on each unit then it's actually more likely that the tax man will force it into foreclosure than the HOA. That still takes years but it can happen more quickly, ironically since the taxes are far lower than the MF.

True, but aside from CA and ME, how many states are there in which timeshare property taxes are billed separately from maintenance fees?

 

[dioxide45]

If taxes are paid separately or individually on each unit then it's actually more likely that the tax man will force it into foreclosure than the HOA. That still takes years but it can happen more quickly, ironically since the taxes are far lower than the MF.

True, but aside from CA and ME, how many states are there in which timeshare property taxes are billed separately from maintenance fees?

For a zero value timeshare, I don't know how successful a tax sale would be. The taxing authority needs to find a buyer for the taxes. Many investor go out and buy at tax sales for residential real estate. They hope in many cases to simply collect high redemption fees from the lender that somehow didn't pay the taxes or missed that they were't paid buy the owner. If un-redeemed, they get a cheap property that they can flip. For a timeshare where the developer is still in the picture, they usually step in since they are really the only ones with a means to monetize them. The city certainly doesn't want to take on an REO timeshare since they would be on the hook for the annual fees. For a $0 timeshare in those states that bill taxes separately, I think even unpaid taxes won't remove the liability from the owner.