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[ 2024 ] What happens Next after foreclosure

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Dk33

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I defaulted on my maintenance fees for my resort because I wasn’t able to pay them. They told me that it’s going in foreclosure. Once it’s goes o foreclosure where do the deed go too. Or who do they sale them 2.
 
The deed goes back to them and they will try to resell them. In the meantime you credit score maybe ding and it will be affected for 5 to 7 years.
 
The timeshare week will go to foreclosure auction. In most cases, the HOA (or developer if foreclosing on a timeshare loan) will bid what they are owed for the timeshare. If no one else bids then the HOA (or developer) takes over title. What happens after that can depend on the state where the property is located. In a recourse situation they could try to get an additional judgement for the deficiencies owed or write off the debt. In a non recourse state, they can't go after any deficiencies. If they write off any deficiencies they can possibly issue a 1099-C (usually the case in a timeshare loan) which could have certain income tax implications.
 
dioxide45 said:
The timeshare week will go to foreclosure auction. In most cases, the HOA (or developer if foreclosing on a timeshare loan) will bid what they are owed for the timeshare. If no one else bids then the HOA (or developer) takes over title. What happens after that can depend on the state where the property is located. In a recourse situation they could try to get an additional judgement for the deficiencies owed or write off the debt. In a non recourse state, they can't go after any deficiencies. If they write off any deficiencies they can possibly issue a 1099-C (usually the case in a timeshare loan) which could have certain income tax implications.
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The timeshare had a clean free deed. There was no loans. I defaulted on the maintenance fees.
 
what state is the timeshare in?

given the cost of actual forclosure, id bet the resort actually reaches out to offer you to sign the deed back over to them vs going thru the legal process of obtaining it back via forclosure.

was the letter you got just a form letter from the resort? or delivered via certified mail from an lawfirm?
 
TUGBrian said:
what state is the timeshare in?

given the cost of actual forclosure, id bet the resort actually reaches out to offer you to sign the deed back over to them vs going thru the legal process of obtaining it back via forclosure.

was the letter you got just a form letter from the resort? or delivered via certified mail from an lawfirm?
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Certified mail from law firm
 
curious what the letter stated exactly, can you forward a copy to us at tugadmin@tug2.net ?
 
My first few timeshares were purchased on the "courthouse steps" after they were foreclosed on. I paid the purchase price and a small fee for document creation and filing. I then started paying annual maintenance fees on the intervals. None of the arrears.

Sheila
 
What are the laws in California?
California foreclosures of timeshare mortgages can be either judicially or nonjudicial. Timeshare purchases are subject to California's strict anti-deficiency judgment laws, judicial or not. They are considered 'purchase-money loans' so a deficiency judgment cannot be filed against the borrower following a foreclosure.
 
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sfwilshire said:
My first few timeshares were purchased on the "courthouse steps" after they were foreclosed on. I paid the purchase price and a small fee for document creation and filing. I then started paying annual maintenance fees on the intervals. None of the arrears.

Sheila
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Was there a minimum bid in place for them?
 
Dk33 said:
I defaulted on my maintenance fees for my resort because I wasn’t able to pay them. They told me that it’s going in foreclosure. Once it’s goes o foreclosure where do the deed go too. Or who do they sale them 2.
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I'm don't know what state your timeshare is in, but years ago I had two timeshares in Myrtle Beach, SC with Marriott which I could no longer afford so I requested to turn them back in to them. Their lawyer sent me an offer to give them back in lieu of foreclosure (there is a legal term for this which I don't remember) and they took the deeds back with no penalty to me. They wanted them back because by that time they had sold most of their inventory and they resold them for more than what I paid for them. Good deal for me and them. There were some tax implications but I did some research in the IRS code and found a way to avoid any tax on the sale. This was over 10 years ago.
 
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