Can I just return the deed and walk away

[A.saun]

Approximately 85% of my mortgage with Westgate is paid off. My maintenance fee is 1000+. Can I just simply returned the deed and let Westgate repossess my deeded timeshare.?

 

[DeniseM]

They have to AGREE to take it back - you can't force them to do so. If they foreclose - you will take a credit hit.

 

[Passepartout]

Knowing Wastegate like we do, there is a near *ZERO* chance that they will accept a 'deed back'. Maybe if you fall several payments behind and can convince them to take it back to avoid the expense of foreclosure, there is a chance. I would imagine that you being a Canadian might make a difference as well. Depending on how you value your credit rating in the short term, the TS is near worthless anyway whether you pay it off or not.

Bottom line: Which do you want more? Good credit rating and nice vacations in a worthless timeshare, or money in your pocket with a possible credit hit.

Your call......

Jim

 

[Talent312]

Besides a credit hit, they will likely send it to a collection agency which will hound you
with increasingly strident phone calls and letters. Here's where caller ID is your friend.

Whenever they use the term "foreclosure," you can offer them a "deed in lieu of."
But they'll only be interested once they know you're not gonn'a pay another dime.
.

 

[theo]

The devil is in the details...

A relevant factor not clearly specified by the OP is who actually holds the mortgage on the OP's purchase.

Banks largely "bailed" on Mr. Sea Gull and Westgate some years back (+/- 2008), so this purchase may have been financed "in house" by Westgate itself or perhaps by some other outside entity. If it's the latter case, the unpaid note balance will likely have to be satisfied before Wastegate is in any position to even consider or accept a "deed in lieu of foreclosure" in the first place.

 

[dougp26364]

This would be like walking away from your home and it's mortgage, you can do it but there are consequences. You may find a foreclosure and bad debt write off in your credit report. They could decide to seek relief and court and get a judgement against you for the balance of the loan and any unpaid MF's. Or, the may send threatening letters but do nothing other than foreclose on the unit.

If you decide to stop paying, the best thing may be to allow it to go into collections, then negotiate to return the deed saving the HOA the cost of foreclosure. Some states, like Florida, have amended their laws allowing for a simpler foreclosure process on timeshares. It makes it easier, quicker and less Costly for the HOA.

 

[Rent_Share]

Since there are a lot of Canadian members here - I was wondering something

With the lack of quality in Timeshare billings, has anyone north of the border actually had any legitimate dispute with a timeshare seller or HOA in the US (or any other financial institution) or Mexico actually show up on their Canadian Credit Report ?

 

[richardm]

Selling paper..

A relevant factor not clearly specified by the OP is who actually holds the mortgage on the OP's purchase.

Banks largely "bailed" on Mr. Sea Gull and Westgate some years back (+/- 2008), so this purchase may have been financed "in house" by Westgate itself or perhaps by some other outside entity. If it's the latter case, the unpaid note balance will likely have to be satisfied before Wastegate is in any position to even consider or accept a "deed in lieu of foreclosure" in the first place.

Normally, what the developer sells is just the promise of future receivables. The mortgage is unchanged and nothing new is recorded at the county level. A resort will use future receivables to establish a line of credit, which frees up cash for the developer to be used for operations, marketing, and expansion. In the event an individual mortgage defaults, the developer simply replaces that with another active mortgage to keep the overall value of the receivables the same.

What happened with the timeshare industry is that when the credit markets froze (which in reality had very little to do with timeshare sales or collections), many developers were unable to extend or renew these lines of credit.

Since most timeshare operators incur more upfront costs (due to commissions, marketing, operations) than income (from the down payment requirement) on a sale- they need to be able to monetize the future loan payments immediately to be operational.

Using Westgate as an example, during the credit crunch front Orlando line sales were still doing very well- but because each sale was costing more money than was being immediately collected from the buyer it was causing the developer to bleed cash money. They have now restructured line sales to balance cost and income, and appear to be stronger now financially than before.

 

[A.saun]

Very helpful, and good food for thoughts

Knowing Wastegate like we do, there is a near *ZERO* chance that they will accept a 'deed back'. Maybe if you fall several payments behind and can convince them to take it back to avoid the expense of foreclosure, there is a chance. I would imagine that you being a Canadian might make a difference as well. Depending on how you value your credit rating in the short term, the TS is near worthless anyway whether you pay it off or not.

Bottom line: Which do you want more? Good credit rating and nice vacations in a worthless timeshare, or money in your pocket with a possible credit hit.

Your call......

Jim

Food for thoughts. Thanks for the suggestion

 

[Centurion]

Denise is right, Westgate will have to AGREE to take it back. Chances of that happening are slim to none.
It will have to come down to what is more important to you and how much you depend on your credit rating as well as how much you can tolerate collection companies calling.

 

[A.saun]

Assistance Application

Considering my current financial situation, and coming in terms with my biggest mistake, I decided to give up my TS and do not worry about my Canadian credit rating. I have 7 G to pay off my 3-bed room unit + 1 G this year MF. As suggested by members of TUG, I sent Westgate a proposal with two options: (i) downsize my unit to two-bed room from 3-bedroom to 2- bedroom in the same resort and waive the 7 G. (ii) I would send the deed back.
It seems Westgate is more interested to downsize my unit. They sent me an application for Assistance, requesting info re. my income and expenses. I was told verbally on the phone ( not in the letter) that they may offer a smaller unit with no further explanation. Honestly, I am paranoid to send any thing to TS related businesses. I do not mind to keep a paid off unit with a smaller MF in the same resort. However, i am afraid they will catch me somewhere with this Application of Assistance. As suggested by a member of TUG, I obtained a copy of two main credit reporting agencies in Canada. Westgate was NOT listed. Please share your opinion/knowledge and similar experience.

 

[theo]

My $0.02 worth...

Considering my current financial situation, and coming in terms with my biggest mistake, I decided to give up my TS and do not worry about my Canadian credit rating. I have 7 G to pay off my 3-bed room unit + 1 G this year MF. As suggested by members of TUG, I sent Westgate a proposal with two options: (i) downsize my unit to two-bed room from 3-bedroom to 2- bedroom in the same resort and waive the 7 G. (ii) I would send the deed back.
It seems Westgate is more interested to downsize my unit. They sent me an application for Assistance, requesting info re. my income and expenses. I was told verbally on the phone ( not in the letter) that they may offer a smaller unit with no further explanation. Honestly, I am paranoid to send any thing to TS related businesses. I do not mind to keep a paid off unit with a smaller MF in the same resort. However, i am afraid they will catch me somewhere with this Application of Assistance. As suggested by a member of TUG, I obtained a copy of two main credit reporting agencies in Canada. Westgate was NOT listed. Please share your opinion/knowledge and similar experience.

This may not be at all what you want to hear, but I frankly would not trust Westgate as far as I could throw their Chief Weasel (a.k.a. CEO) David Siegel. I certainly would not complete any Westgate-generated "application for assistance" and I would not give Westgate any personal information they don't possess already, nor any other new information on my income or employment. In all likelihood (at least IMnsHO), they are just building a stronger file (with your voluntary help and assistance) for potential future "collections" use.

Keep one indisputable fact clearly in mind --- Westgate will only look out for their own interests, not yours. They will say and / or do anything to keep you on the hook, one way or another. A Westgate week isn't worth much of anything at all in monetary value in the open marketplace, so I'd recommend thinking long and hard about whether you want to pay thousands of dollars for something you likely already know to have little or no monetary value, even if it was already paid in full today (...which it is not). Factor in the future and consistently increasing annual maintenance fee obligations and the overall picture gets even darker.

I won't presume to know anything about your finances and I can't and won't give you financial or legal advice or actually encourage you to default. I will simply say that you should perhaps at least consider just cutting your losses now, one way or another, firmly and finally telling Westgate (...and your "sunk money") goodbye --- and just take the inevitable later hit on your credit report, with money still in your pockets, not theirs.

Personally, if in your shoes I would be looking to just wash my hands entirely of Westgate and I would examine any and all available avenues to do so. For me (but maybe not for you), that certainly would not include letting any Westgate Weasels unilaterally "restructure" the terms of my existing bondage. YMMV.

P.S. If you still owe $7k, as indicated, the deed is not yet really yours to "give back" anyhow, so that "option" was never really viable. Maybe an alternative to pursue with Westgate is to try for a negotiated termination of the entire existing contractual obligation. You'd surely lose all that you have in so far, but you'll at least stop pouring good money right down the drain for something of little or no value in the first place (IMnsHO).
Just some additional thoughts to maybe consider. You asked --- so please don't shoot the messenger.

 

[persia]

I think it's worth the chance, Westgate is a foreign company in all likelihood they can't affect your Canadian credit rating.

 

[Saintsfanfl]

I think it's worth the chance, Westgate is a foreign company in all likelihood they can't affect your Canadian credit rating.

If a Canadian does business with a US company or bank, wouldn't the financing be reported on the Canadian credit report? The Canadian would be using a Canadian address and a Canadian SIN. Could it be reported on a US credit report? I would think only Canadian but I don't know the answer. I believe the credit bureaus in Canada are just subsidiaries of the ones in the US.

 

[schiff1997]

None of my four different US department store credit cards show up on any of my credit reports here in Canada.

 

[carl2591]

Westgate Timeshare Resort, Orlando florida, deed back

I agree with this post totally.. Waste er.. Westgate is known to lie, steal & cheat owners and those stupid enough to become owners. If you don't see them on your Canadian credit reports they are most likely not there..

if you can not get them to agree on PAPER to take the unit back, DO NOT give them any info or especially banking access.. they will rob you blind.

This may not be at all what you want to hear, but I frankly would not trust Westgate as far as I could throw their Chief Weasel (a.k.a. CEO) David Siegel. I certainly would not complete any Westgate-generated "application for assistance" and I would not give Westgate any personal information they don't possess already, nor any other new information on my income or employment. In all likelihood (at least IMnsHO), they are just building a stronger file (with your voluntary help and assistance) for potential future "collections" use.

Keep one indisputable fact clearly in mind --- Westgate will only look out for their own interests, not yours. They will say and / or do anything to keep you on the hook, one way or another. A Westgate week isn't worth much of anything at all in monetary value in the open marketplace, so I'd recommend thinking long and hard about whether you want to pay thousands of dollars for something you likely already know to have little or no monetary value, even if it was already paid in full today (...which it is not). Factor in the future and consistently increasing annual maintenance fee obligations and the overall picture gets even darker.

I won't presume to know anything about your finances and I can't and won't give you financial or legal advice or actually encourage you to default. I will simply say that you should perhaps at least consider just cutting your losses now, one way or another, firmly and finally telling Westgate (...and your "sunk money") goodbye --- and just take the inevitable later hit on your credit report, with money still in your pockets, not theirs.

Personally, if in your shoes I would be looking to just wash my hands entirely of Westgate and I would examine any and all available avenues to do so. For me (but maybe not for you), that certainly would not include letting any Westgate Weasels unilaterally "restructure" the terms of my existing bondage. YMMV.

P.S. If you still owe $7k, as indicated, the deed is not yet really yours to "give back" anyhow, so that "option" was never really viable. Maybe an alternative to pursue with Westgate is to try for a negotiated termination of the entire existing contractual obligation. You'd surely lose all that you have in so far, but you'll at least stop pouring good money right down the drain for something of little or no value in the first place (IMnsHO).
Just some additional thoughts to maybe consider. You asked --- so please don't shoot the messenger.

 

[Rent_Share]

Neither of the two posters about Westgate's "give back" program ever came back to post

http://www.tugbbs.com/forums/showthread.php?t=202611

At least one was also out of the country, you might email them, if you PM they should get an email advising of your question

 

[persia]

Which country is THE country?????

Neither of the two posters about Westgate's "give back" program ever came back to post

http://www.tugbbs.com/forums/showthread.php?t=202611

At least one was also out of the country, you might email them, if you PM they should get an email advising of your question

 

[A.saun]

Thanks so much

I sincerely appreciate your time and effort in providing me feedback and insights. I will provide updates on my journey to get rid of some thing that paid for it with $$$ that I earned with hard work.

 

[Rent_Share]

Which country is THE country?????

GB I believe