Advice needed - walk out of mortgage tied to HGV Florida T/S

[youngdumbtimeshareowner]

Hello, I'm a 22yr old non-resident alien resided within the US, in 2019, I was hyped by salesman along with my parent's approval of it (it was really dumb of me to not do any researches first, which is my fault). Up till now, I did not realize that this was a corporate scam and now I'm unable to pay both Monthly payment as well as other fee associated with the T/S. The T/S piece gives 3,400 points in odd year. I have not used any point of it due to schools and other duties. With COVID impacted, my financial situation has become increasingly difficult and now Im no longer able to pay for it. Now I'm stuck with 12k mortgage loan.

I've read lots of threads on here and here that I collected from these summary points but still unsure of what I should do:
1. Stop paying.
2. Then Does HGV send a default notice afterwards?
3. After 2, they will send a non-judicial foreclosures? and I should just agree with it?

I'm at a point where I cant find a job, stressed by school and financially unstable. I have to move into a relative house so I'm relieved of rent duty. I dont mind losing around 7k in costs and fees that already paid in this T/S or hurt my credit score but I just really need to get out of this. I also talked to a laywer for free consulting and they said to quote me >3K to hire them, which i cant afford. Any advices would be greatly appreciated because I have no ideas what to do right now.

 

[Talent312]

Contact them, say what you said here, and ask if they'll take-back in lieu of foreclosure.
If they say no, or if they still want $$, tell 'em to pound sand... in so many words.

They may harass you and file a non-judicial foreclosure (waiving a deficiency judgment).
Even if they pursue a claim for $$, you are, as they say, judgment-proof.
As a last resort, the debt can be discharged in Bankruptcy.
You credit may take a significant hit for a while, but it can be repaired over time.
.

 

[Hobokie]

non-resident alien

If you are a non-resident alien, how is credit even something that affects you? I hope it doesn't, but I have read elsewhere on this forum that there is about a 50% chance (I think?) of them reporting you to the credit bureaus according to other TUG members who have reported whether this hurt them or not.

Regarding the lawyer who offered to help for $3k, if you read on this forum you will see the same advice: DO NOT GIVE ANYONE ANY MONEY UP FRONT TO HELP YOU GET OUT OF YOUR TIMESHARE. I am not an expert on this so I won't comment further, but others can! Also, maybe read this post for some additional guidance and search the forum for key words like default. There are quite a bit of posts around this: https://tugbbs.com/forums/threads/defaulting-on-the-loan-should-i-involve-a-lawyer.313270/

On a somewhat related note: I just saw a video a few days ago that spoke about one's ability to not authorize a company (i.e. a creditor) to release your information to the credit bureaus which would mean that the 3 credit bureaus would not get the info related to the default on this, which means it wouldn't be reported... I don't know the details on this at all, but saw it and found it curious and wonder if this is possible.

@Talent312 , can you explain further "They may harass you and file a non-judicial foreclosure (waiving a deficiency judgment). Even if they pursue a claim for $$, you are, as they say, judgment-proof." I have read about Florida being an exception to

 

[DazedandConfused]

here is your solution

Deed in lieu of foreclosure - Wikipedia

en.wikipedia.org

 

[Iggyearl]

Second the advice of Talent in post #2. The salesman should be shot, and your parents should be chastised for letting this happen. You are not a candidate for a timeshare. Your money is gone, but your life is not over. Ignore all calls to collect and realize that your credit score (if you have one) will drop. However, there is no bogeyman than can get you. 1 out of 8 timeshares in the US goes into default. You are honest and probably feel guilty, but you should have no shame. In the future, beware of strangers bearing gifts. (That is how it started).

 

[Janann]

If you are a non-resident alien, how is credit even something that affects you?

Non-resident aliens can have a credit report. Someone who is a non-resident alien may need to rent an apartment, finance a furniture purchase, etc.

 

[CalGalTraveler]

IMHO: What was HGV thinking by selling a TS mortgage to a 21 YO still in school?

What everyone said earlier. Offer deed in lieu of foreclosure. If they refuse then walk. Don't respond to anything. Do not let your family respond to anything or it may be construed as objecting which means they can come after other assets. Do not indicate in anyway that you will oppose foreclosure.

Florida – FL, inaction or non-objection results in estate, anti-deficiency foreclosure, but objection leads to judicial, deficiency action: http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0721/0721.html
https://www.flrules.org/gateway/ChapterHome.asp?Chapter=61B-37

Please report back to us your results to pay it forward to others in a similar situation. Good luck.

 

[LannyPC]

What was HGV thinking by selling a TS mortgage to a 21 YO still in school?

"I get my commission no matter who buys."

 

[LannyPC]

Deed in lieu of foreclosure - Wikipedia

en.wikipedia.org

Interesting tidbit.

 

[elaine]

I would call the corporate offices of HGVC and not the sales office and explain your hardship position and that you are a 21 yr old student. Hopefully someone at corporate will assist you in a deedback. If not, ask them to explain your options--again corporate-not sale office. Tell them you cannot afford to pay and, if they can't work out something, will need to let the process work for "anti-deficiency, non-judicial foreclosure."
Once this process is initiated by HGVC, which is 1st notice of past due bills, etc., be sure to NOT object or to write back with explanations, etc. as this can kick it out of that process, which is very favorable for timeshare consumers. Many others will take credit hits this year due to Covid. Focus on your schooling and moving forward. I am highly disappointed that HGVC sold to you as well. Also, when you say parents' approval, did they co-sign? If so, they might also take a credit score hit. If not, I would let the non-judicial foreclosure procedure run it's course. It takes about 1.5 years. you'll get several letters/notices--don't object.

 

[bogey21]

Also, when you say parents' approval, did they co-sign? .

If they did, this could be a different ballgame...

George

 

[Grammarhero]

Florida

Fl. Timeshare Lien Foreclosure Act., Fl. Stat. Secs. 721.855 & .856; Fl. Stat. Sec. 95-11

AD

5 yrs

AD

5 yrs

Yes

NJ

http://www.leg.state.fl.us/Statutes...ute&URL=0700-0799/0721/Sections/0721.855.html http://www.leg.state.fl.us/Statutes...ng=&URL=0700-0799/0721/Sections/0721.856.html http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0000-0099/0095/0095.html Operative Language: “If you do not object to the use of the trustee foreclosure procedure, you will not be subject to a deficiency judgment even if the proceeds from the sale of your timeshare interest are insufficient to offset the amounts secured by the lien.” Operative Language: “WITHIN FIVE YEARS.— (b) A legal or equitable action on a contract, obligation, or liability founded on a written instrument . . . (c) An action to foreclose a mortgage.” Sec. 95-11. Note: non-objection or inaction likely leads to non-judicial, anti-deficiency treatment; objection may waive non-judicial, anti-deficiency treatment. TS defaults have SOL of five years.

 

[CalGalTraveler]

If they did, this could be a different ballgame...

George

If the OPs parents don't reside in the USA they cannot ding their credit report. Either way, they can't take more back than the timeshare if the OP or parents don't object.

 

[Grammarhero]

Hello, I'm a 22yr old non-resident alien resided within the US, in 2019, I was hyped by salesman along with my parent's approval of it (it was really dumb of me to not do any researches first, which is my fault). Up till now, I did not realize that this was a corporate scam and now I'm unable to pay both Monthly payment as well as other fee associated with the T/S. The T/S piece gives 3,400 points in odd year. I have not used any point of it due to schools and other duties. With COVID impacted, my financial situation has become increasingly difficult and now Im no longer able to pay for it. Now I'm stuck with 12k mortgage loan.

I've read lots of threads on here and here that I collected from these summary points but still unsure of what I should do:
1. Stop paying.
2. Then Does HGV send a default notice afterwards?
3. After 2, they will send a non-judicial foreclosures? and I should just agree with it?

I'm at a point where I cant find a job, stressed by school and financially unstable. I have to move into a relative house so I'm relieved of rent duty. I dont mind losing around 7k in costs and fees that already paid in this T/S or hurt my credit score but I just really need to get out of this. I also talked to a laywer for free consulting and they said to quote me >3K to hire them, which i cant afford. Any advices would be greatly appreciated because I have no ideas what to do right now.

@youngdumbtimeshareowner We hope you are well and healthy. If you made the hard decision to default, mind sharing if your credit score got affected? It would help tuggers in similar situations moving forward.

 

[Gypsy65]

Second the advice of Talent in post #2. The salesman should be shot, and your parents should be chastised for letting this happen. You are not a candidate for a timeshare. Your money is gone, but your life is not over. Ignore all calls to collect and realize that your credit score (if you have one) will drop. However, there is no bogeyman than can get you. 1 out of 8 timeshares in the US goes into default. You are honest and probably feel guilty, but you should have no shame. In the future, beware of strangers bearing gifts. (That is how it started).

Shot and chastised?

Little extreme and how do you know she was not a candidate?
Maybe she was in a different situation and told the salesperson a different story , one of glamour and success and how she loves to travel

I’m not disagreeing with the angle that she was taken advantage of but who really knows for sure what she or anyone on here told the salesperson

I have personally seen potential buyers all lit up with joy hope and dreams in the sales room

If you walked into a car dealer. Drove a corvette and said you would take it because you love it why is it anyone’s fault that you bought a corvette when what you really needed was a mini van for your 5 kids and now you are stuck with this 2 seater sports car and it is the salespersons fault

 

[dioxide45]

I think we are just talking to ourselves. The OP hasn't been back since the day this was posted, over a month ago.

 

[Talent312]

I think we are just talking to ourselves. The OP hasn't been back since the day this was posted, over a month ago.

Yeah, but I liked Gypsy65's take on it. It's not the sales-creep's job to stop an impulse buy.