[ 2015 ] getting rid of starwood vacation ownership

[122707Wilsons]

I would like to know how I can get rid of my Starwood vacation ownership. I am up to date with my payments and my maintenance fees. but I still owe s8,000 to own it outright.

Our home resort is in Palm Desert the Desert Willow. It is a two bedroom lockoff, and i get 56000 points ever other year. on odd years. it is vacation period 30, and we are gold membership.

 

[DeniseM]

Unfortunately, there is no way to unload it unless you are willing to pay it off.

-Balance owed is too high
-The Staroptions and Starpoints and gold membership don't transfer to the new owner when you resale it.
-Off-season
-Can be acquired on the resale market for free

If you can take the hit on your credit rating, you can stop making the payments and eventually they will foreclose on you, and take it back. But it will probably take 2 years, and in the meantime, they won't make it pleasant. You may be turned over to collections, and it may damage your credit rating.

*What were your goals when you bought this timeshare - maybe we can help you with that.

 

[122707Wilsons]

is there anyone who can help me with this?

 

[122707Wilsons]

It looked like a good deal at the time but after looking into this it is far to expensive for one week every other year.

 

[DeniseM]

is there anyone who can help me with this?

There isn't - you signed a legally binding contract, just like any other credit purchase, and the only way out is to pay it off, and then get rid of it, or go through foreclosure.

Unfortunately, it's almost never a good deal to buy from the developer, but a lot of us have done it (me!) and survived.

Is it a financial hardship for you, or you just regret buying it?

One action that you may want to consider is refinancing it, and lowering your interest rate with a home equity loan, rather than the developer's loan.

 

[122707Wilsons]

do we just stop paying or do we contact them and let them know of our intention to stop payment.

 

[DeniseM]

do we just stop paying or do we contact them and let them know of our intention to stop payment.

It doesn't matter - if you stop paying, they will contact you.

You may want to try offering them a "deed back in lieu of foreclosure." That means instead of going through foreclosure, you will deed it back to them.

It's a long shot, but since the resort is still in active sales, they might consider it.

However, they'd rather have your money, than the deed back, so it's a long shot.

 

[122707Wilsons]

both, a financial hardship and we do regret putting ourselves in this situation.

 

[122707Wilsons]

We were awarded 45000 SPG points when we bought the timeshare, or do we lose them if we don't use.

 

[DeniseM]

*You may be approached by some shady companies who promise the they can rescue you from this situation. This is usually a scam - no one can get you out of the mortgage payments. Be aware that getting rid of the timeshare, doesn't get rid of the loan.

In other words, you could easily sign the timeshare over to someone, but you'd still owe the payments - the loan is separate.

 

[Passepartout]

both, a financial hardship and we do regret putting ourselves in this situation.

Question is, do you regret it enough to go through collection, legal ramifications that might include garnishment, foreclosure, and a 100 to 200 point hit to your credit for 7 or more years.

Me, I'd just hike up my big-boy pants, refinance at lower rate, and learn how to use it. Maybe renting reservations to reduce out-of-pocket cost. You probably won't get enough rental income to zero out your cost, but it can help soften the blow a lot more than a collection/foreclosure. It would show you are an adult.

Jim

 

[122707Wilsons]

do we lose the SPG points that were awarded to us on the day of purchase? If we foreclose do they take those points back

 

[DeniseM]

do we lose the SPG points that were awarded to us on the day of purchase? If we foreclose do they take those points back

Probably not - but that should be the least of your concerns at this point.

 

[Passepartout]

Never mind.

 

[122707Wilsons]

Never mind.

So they can garnish your wages if you foreclose on the timeshare, I understand the hit that I get on the credit report if I stop paying.

 

[Passepartout]

So they can garnish your wages if you foreclose on the timeshare, I understand the hit that I get on the credit report if I stop paying.

If they get a legal order. It isn't mandatory that collectors pursue it, but they have the right. You signed a legal contract as an adult obligating yourself for this purchase, didn't you? And you had several days to review the contract, and show it to your lawyer, or whoever, and rescind it with no ramifications. Put affairs back as if it never happened. Right? Now you want to renege? It isn't allowed without cost. And the cost is substantial.

 

[cubigbird]

The cost to allow foreclosure and the extended hit to credit I'm sure exceeds $8000. If you can pay off the loan and then give the week away that's your best bet.

 

[DavidnRobin]

Probably not - but that should be the least of your concern at this point.

^^^THIS^^^

you own $8K on an EOY WDW Gold week (ouch) - unfortunately, it has no value.
you are not only one who has found themselves in this boat.
having the $8K loan is a major problem - there is no easy way out.

you may be able to rid yourself of the week - but the loan is a problem. who is going to take on a loan on a TS that is has no value?

btw - fuzzy math puts those 45K SPs at around $1000
IMO - use them quickly - they have no bearing on your obligation - they aren't taking the week back regardless of what happens to those SPs - not even if you pay off your $8K loan

sorry

 

[Sicnarf]

Starwood took back one of my WDW unit a few years ago. Not sure though if it was because I declared bankruptcy. They also took the100000 SPs that I got as a gift when I purchase the unit a year before. Make sure to use up your SPs if you offer them the deed in lieu of foreclosure.

 

[alexadeparis]

Starwood took back one of my WDW unit a few years ago. Not sure though if it was because I declared bankruptcy. They also took the100000 SPs that I got as a gift when I purchase the unit a year before. Make sure to use up your SPs if you offer them the deed in lieu of foreclosure.

Was this before or after you were elite? I always wondered how a timeshare company would handle someone who had a paid in full timeshare AND a financed one. Mainly, would they consider a person in good standing on their paid unit and only take back the financed one? I have never had a client with that exact scenario. Was that your particular situation?

 

[taterhed]

May I add a comment? (or two)

1. If you came here to get (expert) advice on your options...you've gotten it in the comments above.
   • pay it off and figure a way to reduce the cost (equity loan, rentals, use the vacation etc...)
   • attempt "deed back in lieu of foreclosure" (unlikely) and suffer any consequences
   • stop paying and face the unhappy consequences (foreclosure, credit, collectors, judgments, garnishment or bankruptcy)
2. If anyone. ANYONE tells you they can 'make your timeshare go away' in any format short of paying off the loan (Forum, phone, email, Google ad etc...) they are either lying, stealing, cheating or scamming you. And, just because it 'disappears' today doesn't mean it won't come right back to you in 6mos or a year. *
3. Don't even ask about donating it to charity :ignore:
4. Jim is spot-on: Figure out ways to reduce the cost and/or use the week and then give it away once paid off.

I hope you get the information you need to make a choice that is right for you. I hope this does not turn into another thread about "...I can make your debt disappear..."

Good luck.

*there is always the super-slim chance somebody might 'assume your loan' but I wouldn't count on it.

 

[Sicnarf]

Was this before or after you were elite? I always wondered how a timeshare company would handle someone who had a paid in full timeshare AND a financed one. Mainly, would they consider a person in good standing on their paid unit and only take back the financed one? I have never had a client with that exact scenario. Was that your particular situation?

Before 5* but after 4*. Yes, I was in good standing in all my paid units except for one which was financed.

 

[alexadeparis]

Before 5* but after 4*. Yes, I was in good standing in all my paid units except for one which was financed.

Thank you.

 

[VacationForever]

Before 5* but after 4*. Yes, I was in good standing in all my paid units except for one which was financed.

You had a good bankruptcy lawyer.

 

[tahoeJoe]

.... It would show you are an adult.

Jim

That's pretty judgemental and not very helpful.