Advice: Rescinding ownership & bonus points

[marian.dougherty]

Hello! My husband and I went for a short getaway at HGVC Ocean 22 in Myrtle Beach last October using my in-laws' points. While there, we went through the sales pitch and ended up purchasing an every-other-year gold 1 bedroom at 5800pts for about $24k. We were also given 20k in HGVC bonus points, which was honestly what made the decision for us. Our maintenance fees were under $600/year.

In August, we visited again (using some of our bonus points) and were offered to trade our old contract in and upgrade to an annual contract in platinum season (week of July 4th) at 5800pts per year for $34k. Our first payment isn't due until October 11 and I had hoped to refinance to a lower interest rate but that doesn't seem to be possible. After reading another thread here from another new owner and seeing recommendations to visit a reputable timeshare resaler, I think I want to rescind this purchase and go that route instead.

My questions are:

1. Are we still within the timeframe to rescind?
2. If we rescind, do we lose our remaining bonus points from the initial EOY purchase?
3. I put about $6k in cash toward this upgrade; will HGVC refund this money to me in full?

Thank you so much for sharing your wisdom!!

 

[amirh]

Hi,

Welcome to TUG. Unfortunately, you only have 5 days from the date you signed to rescind your contract so that option is no longer available to you. HGVC is an awesome plan, I suggest you read the many useful posts in this forum and learn how to maximize your points.

Amir

 

[dayooper]

Hello! My husband and I went for a short getaway at HGVC Ocean 22 in Myrtle Beach last October using my in-laws' points. While there, we went through the sales pitch and ended up purchasing an every-other-year gold 1 bedroom at 5800pts for about $24k. We were also given 20k in HGVC bonus points, which was honestly what made the decision for us. Our maintenance fees were under $600/year.

In August, we visited again (using some of our bonus points) and were offered to trade our old contract in and upgrade to an annual contract in platinum season (week of July 4th) at 5800pts per year for $34k. Our first payment isn't due until October 11 and I had hoped to refinance to a lower interest rate but that doesn't seem to be possible. After reading another thread here from another new owner and seeing recommendations to visit a reputable timeshare resaler, I think I want to rescind this purchase and go that route instead.

My questions are:

1. Are we still within the timeframe to rescind?
2. If we rescind, do we lose our remaining bonus points from the initial EOY purchase?
3. I put about $6k in cash toward this upgrade; will HGVC refund this money to me in full?

Thank you so much for sharing your wisdom!!

If you purchased in August, you unfortunately would be past the period to rescind. The rescission period is 5-7 days after purchase, depending on the state.

 

[Janann]

1. No. Regardless of the state where the timeshare was purchased, this timeframe never exceeds two weeks.

Are you trying to get rid of the first (October 2019) and second (August 2020) purchase, or only the second one?

Its not likely that you can refinance at a better rate. I'm guessing that your interest rate is around 15%?

 

[marian.dougherty]

1. No. Regardless of the state where the timeshare was purchased, this timeframe never exceeds two weeks.

Are you trying to get rid of the first (October 2019) and second (August 2020) purchase, or only the second one?

Its not likely that you can refinance at a better rate. I'm guessing that your interest rate is around 15%?

Wanting to get rid of the second one -- we traded in the first one. I believe our interest rate is around 11% with a 10 year loan term. We have excellent (800+) credit but even so, we'd only be able to knock off maybe 0.5% and the loan term would be reduced to 7 years at maximum, so it would actually make our monthly payment even higher.

 

[GT75]

Welcome to TUG. If you purchased the upgrade in August, you are certainly now past the rescind period

 

[Janann]

1. Are we still within the timeframe to rescind?
2. If we rescind, do we lose our remaining bonus points from the initial EOY purchase?
3. I put about $6k in cash toward this upgrade; will HGVC refund this money to me in full?

2. If you rescind or attempt to rescind, I would expect the bonus points are gone. They were a gift for the first purchase, which has been rolled into the second purchase. If you are refusing to make payments on the second purchase, I wouldn't expect them to let you keep the gift. However, its certainly possible that two departments at HGVC don't talk to each other, and maybe you could get away with using them.

3. Maybe. HGVC is more likely to treat you fairly than other timeshare companies. All you can do is ask.

You'll need to make your case with HGVC about why you are no longer able to honor the contract. It can't be sold on the resale market because you owe far more than the resale price.

 

[marian.dougherty]

Thank you all for your advice. I knew we were doing something that was at least slightly unwise and that we'd be paying a premium for the points package but I had no idea that the resale market was so very much cheaper. I wish that I'd known about TUG a year ago!

 

[brp]

Thank you all for your advice. I knew we were doing something that was at least slightly unwise and that we'd be paying a premium for the points package but I had no idea that the resale market was so very much cheaper. I wish that I'd known about TUG a year ago!

Just know that your next timeshare purchase will be resale

Cheers.

 

[GT75]

And don't go to anymore "owner's updates" (aka. sales presentations).

 

[brp]

And don't go to anymore "owner's updates" (aka. sales presentations).

Well, unless one has the discipline not to buy. We've gotten some very good deals by attending these. Things like $200 for 15 minutes' time. I can handle that

Cheers.

 

[Smclaugh99]

Thank you all for your advice. I knew we were doing something that was at least slightly unwise and that we'd be paying a premium for the points package but I had no idea that the resale market was so very much cheaper. I wish that I'd known about TUG a year ago!

Don’t beat yourself up. Many of us on TUG bought retail and even “upgraded” (for me, I did this 3x ). All other purchases should be resale, so think of it like like dollar cost averaging.

Sean

 

[Fredward]

Have you investigated home equity lines of credit? You pay off the HGVC loan then pay back the Heloc at a much lower interest rate.


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[jabberwocky]

Thank you all for your advice. I knew we were doing something that was at least slightly unwise and that we'd be paying a premium for the points package but I had no idea that the resale market was so very much cheaper. I wish that I'd known about TUG a year ago!

A lot of us wish we had found TUG before buying our first timeshare. Some of us have even made developer purchases after joining - but have managed to work the system to get into a more suitable portfolio.

If you were willing to pay the price before, you had a reason why you saw value in it. Learn how to use it to the maximum potential and then buy resale if you want to add on.

Welcome to TUG!