[ 2019 ] anyone has stopped paying maintenance fees, what happened ?

[DAKOTATEX]

i am trying to get an answer from someone who has actually stopped paying maintenance fees , so unless you are the one , please keep speculation to yourself .secondly i am referring specifically about HOA fees , NOT mortgage payments that i completely understand the consequences . help will be appreciate it
thanks

YES: First I called "Fiesta Grand Vacation Club" and asked what could be done; I was told I needed to write a letter to them notifying them I was discontinuing my membership. I must have had an automatic payment set up because they still charged me so I stopped the charge on my credit card; FGVC charged me again the next month so I stopped that charge and notified FGVC AGAIN; the next time I was charged, I canceled that credit card completely and have had no problems since. No credit problems or letters or phone calls. (maybe because this was Mexico?) Some of the timeshare companies are changing their policies, so be sure you call and ask them Dakotatex

 

[Fredflintstone]

Unfortunately this list from a law firm is not helpful for those who own in Florida or SC as neither are noted. Any other resource to review?

? You mean a list of law firms in the area?


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[Fredflintstone]

I would definitely recommend asking the resort to take it back before stopping maintenance payments. I did this and received a letter from the resort asking for $150 for legal fees, and sending the check was an easy decision. This was around 2006, when takebacks weren't nearly as common.

Yes, I agree. It’s always best to talk to the resort first. 150 is fair. Just from experience, resorts are starting to become more reasonable because they know the refusal, we have a contract approach usually leaves them with an abandoned TS. Not to mention, the exit companies (that I personally don’t recommend) nipping in their heels isn’t making things better.

You do have options though and stop paying is one of them if they are being unwilling to cooperate or paying the hard ball approach.


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[Brerrabbit]

i am trying to get an answer from someone who has actually stopped paying maintenance fees , so unless you are the one , please keep speculation to yourself .secondly i am referring specifically about HOA fees , NOT mortgage payments that i completely understand the consequences . help will be appreciate it
thanks

I quit paying them on mine several years ago and they foreclosed on it. They sent me several notices about it but I just did not have the money, or the income I had when I bought the timeshare. This was a unit in Arizona. I don't know if it ever went on my credit report or not. I have never seen it on there, and I really didn't care. I think it has been over 7 years now anyway.

I have decided that if I ever buy another timeshare, which is highly unlikely, I will do it only if there is a clause in the contract that says that if I am unable to use the unit during some year, I will not have to pay the maintenance fees for that year; and also that if they raise the maintenance fees without me agreeing to it, then I have the right to sell the timeshare back to them and get a 100% refund of what I paid for it, regardless of how long I have had it.

 

[Grammarhero]

Thanks to @clfieguth and @DAKOTATEX for reporting. Now that @AZSadOwner clarified just one of his foreclosed TS affecting this credit, I am reporting updated stats.

- 6 out of 16 defaults got reported to credit agencies.
- for TS without loans, 3 out of 12 defaults got reported to credit agencies.
- for TS with loans, 3 out of 4 got reported to credit agencies.
- for Canadian TS owners with three combined defaults, none got reported to credit agencies.
- for three Wyndham defaults including one with a loan, none got reported to credit agencies.

 

[Beach57]

i am trying to get an answer from someone who has actually stopped paying maintenance fees , so unless you are the one , please keep speculation to yourself .secondly i am referring specifically about HOA fees , NOT mortgage payments that i completely understand the consequences . help will be appreciate it
thanks

I had been looking to sell a deeded TS for a few years. No luck and no deed back. I have three others that are RTU. I finally decided to sell it for $1.00, pay all transfer and closing fees, and offer a $250 Visa gift card. Posted here and on eBay. I had tons of offers, more than I could keep up with. After all this, guess what? I really didn't lose any money. This would be much easier for you. Good luck.

 

[CalGalTraveler]

There is a Canadian on another thread where Grandview, LV was asking for $2,700 ($3300 CDN) to deed back a 1 bdrm. IMO that is extortion for a property that has only $450/year MF. That's like paying out 6 years of ownership in advance just to deed it back. Yet the developer can turn around and sell or rent it out immediately! Perhaps the Canadian owner could walk similar to the case above because a US entity cannot report to Canadian credit bureaus nor cost-effectively pursue legal action so the owner could avoid this ridiculously high fee if s/he cannot give it away.

CalGal was this on a TUG thread or on another forum ? I'm interested because I'm dealing with Grandview also.

Here is a link to the thread. It appears that the OP is going to try to give it away first. Hopefully s/he will report back on the results.

 

[tomt73]

At the annual meeting yesterday of a TS HOA where we own a couple of intervals, the president reported that another resort where he was an owner had hired a collection agency to begin dunning delinquents. If you withstand their onslaught, they WILL report your delinquency to all the credit bureaus.

 

[Fredflintstone]

At the annual meeting yesterday of a TS HOA where we own a couple of intervals, the president reported that another resort where he was an owner had hired a collection agency to begin dunning delinquents. If you withstand their onslaught, they WILL report your delinquency to all the credit bureaus.

That’s only if they have your key data details (like DOB). In many jurisdictions, they are required to have your written consent to access your file in the first place. This does happen if you take out a loan for your TS. My guess is that’s why they try to up sell a credit card ( not to mention they get more commission).

If you buy resale, they don’t have your key credit details nor your written consent to access your credit file. Another reason to buy resale.

I find it humorous that resorts still try the “whip cracking” approach to warn people of the consequences. It does work with some but for those who stand fast, they are at a disadvantage.

Again, working with those through deed back programs is the most cost effective and least impacting (to bottom line) approach.


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[tlsbooks]

It seems like most of those self-reporting stopped paying MF's on deeded timeshares, correct?
Does anyone have info on what happens if you stop paying MF's on points in a Club? It seems there wouldn't even be a foreclosure/abundance of paperwork since there's no deeds involved.

The developer wants $2000 to take back points they will immediately resell...and we're disinclined to pay that.

 

[Fredflintstone]

It seems like most of those self-reporting stopped paying MF's on deeded timeshares, correct?
Does anyone have info on what happens if you stop paying MF's on points in a Club?
The developer wants $2000 to take back points they will immediately resell...and we're disinclined to pay that.

When you say “Club” do you mean membership?. Some deeded timeshares call themselves a “Club”.

2k? That’s ridiculous. Look at your contract. What state is this “Club” in?


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[barrey]

It seems like most of those self-reporting stopped paying MF's on deeded timeshares, correct?
Does anyone have info on what happens if you stop paying MF's on points in a Club? It seems there wouldn't even be a foreclosure/abundance of paperwork since there's no deeds involved.

The developer wants $2000 to take back points they will immediately resell...and we're disinclined to pay that.

A certain timeshare / "vacation club" in Tahoe that rhymes with "fridge" wanted me to pay 3 more years of MFs (at around $2600 or more per year) before they could "re-sell" my points.
Non-payment of the MF (I owed them nothing else) resulted in a series of letters, and finally a certified letter cancelling our "membership".

 

[CalGalTraveler]

A certain timeshare / "vacation club" in Tahoe that rhymes with "fridge" wanted me to pay 3 more years of MFs (at around $2600 or more per year) before they could "re-sell" my points.
Non-payment of the MF (I owed them nothing else) resulted in a series of letters, and finally a certified letter cancelling our "membership".

Are you saying they wanted $7,800 (3 x $2600) to get out? That doesn't sound like a "Responsible Exit" to me. That's extortion because resale the units are worth a fraction of that and they could turn around and resell or rent the unit out immediately once you pay them. Even at $2600 that's excessive.

They probably get the money from most people and figure after a certain amount of time, that it is less expensive to stop writing letters, cancel the membership and start renting out the unit than to legally chase people down who will ignore and fight them in a non-judicial, anti-deficiency state.

I was considering picking up a resale at that resort but will only rent there now given such a bad policy. We should start a TUG list of TS that charge ridiculous fees to exit.

 

[TUGBrian]

almost all instances where an owner contacted a mexican timeshare or vacation/travel club they were told they could pay some ridiculous fee to end their ownership.

it is extremely common for those outfits to try to squeeze as much out of an owner as possible on the off chance they will pay it!

 

[Ewiike]

i am trying to get an answer from someone who has actually stopped paying maintenance fees , so unless you are the one , please keep speculation to yourself .secondly i am referring specifically about HOA fees , NOT mortgage payments that i completely understand the consequences . help will be appreciate it
thanks

Hi. Iwas late once , a few years ago , and Marriott put a lien on our house. We had to pay $ 175 extra when we paid the MF.

 

[Fredflintstone]

Hi. Iwas late once , a few years ago , and Marriott put a lien on our house. We had to pay $ 175 extra when we paid the MF.

Sorry, highly unlikely.




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[Ewiike]

Sorry, highly unlikely.




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Unlikely or not , it happened.

 

[Fredflintstone]

Unlikely or not , it happened.

So no court papers? No order to judgement? And you were late? Yup. Ok.

https://www.hg.org/legal-articles/can-i-get-a-lien-on-someone-s-house-who-owes-me-money-43724


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[CalGalTraveler]

Hi. Iwas late once , a few years ago , and Marriott put a lien on our house. We had to pay $ 175 extra when we paid the MF.

Would not work in Calif. There are very specific rules for liens. Even contractors who may have performed work on the primary home, cannot place a lien unless they notify within 20 days of signing contract.

 

[Fredflintstone]

Would not work in Calif. There are very specific rules for liens. Even contractors who may have performed work on the primary home, cannot place a lien unless they notify within 20 days of signing contract.

Frankly, no where I know where entities can just waltz in to the county clerk and place Leins on property. There has to be statement of claim, time for response, request for judgement, appeals time, etc.

Most states require written contracts proving debt and an invoice or sTatement is not enough. Most times, a simple response with counter claim solves the problem.

Yes, contractors have different rules and each state is unique in process....but Marriott is not a contractor.

You are right. California laws are even more cumbersome.

I cry foul.


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[CalGalTraveler]

Hi. Iwas late once , a few years ago , and Marriott put a lien on our house. We had to pay $ 175 extra when we paid the MF.

Hmmm...I wonder if MVC debt collector's fabricated this to get you to pay. What state was this in?

Wouldn't they have to present a copy of your deed with the lien? And wouldn't you have to pay much more than $175 to pay for the refiling fees on the deed and doc prep AND their legal fees. I doubt their lawyers work for less than $400/hour.

This does not add up.

 

[Fredflintstone]

Hmmm...I wonder if MVC debt collector's fabricated this to get you to pay. What state was this in?

Wouldn't they have to present a copy of your deed with the lien? And wouldn't you have to pay much more than $175 to pay for the refiling fees on the deed and doc prep and their legal fees.

This does not add up.

Yup. 175 wouldn’t cover it.

Oh, and let’s say you are in another jurisdiction from the timeshare. The process is even more cumbersome and expensive. If you are out of country from where the timeshare is located, legal fees hit the moon and processes magnify.

Deed? Not necessarily.




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[geist1223]

Might it not depend on what was in the Original Contract with Marriott. Even if you buy resell you are bound to the terms in the original Contract.

 

[Fredflintstone]

And one last thing...from my experiences, the courts consider the timeshare itself as security. Thus, they can lein the timeshare only and then foreclose. I am taking this as this guys HOME was leined on which I highly doubt. If they lein the timeshare itself, he should celebrate and look forward to foreclosure.

Non judicial rules play in most states and deficiency is questionable depending on the state where the timeshare is located.


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[Fredflintstone]

Might it not depend on what was in the Original Contract with Marriott. Even if you buy resell you are bound to the terms in the original Contract.

Depends on how the purchase contract is crafted. You cannot assume an original REAL PROPERTY contract without expressed, or signed, consent. Many states want proof that you RECEIVED the original contract and Public Disclosures as well which is frankly non existent. This is real property so “Statue of Frauds” apply. I could go all day long on how to defend a case like that but that would take awhile.


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