Canadian stop paying for Florida Timeshare

[JCAM7]

Hello! I've searched the forum for posts about this but many are old 2015 & 2020. Based on what I've read, we stopped paying for both the loan & maintenance fees of my Dad's last contract with Wyndham. It's been about 6 months of them calling every day or multiple times a day. I also sent official paperwork in back in April indicating we want out & we're not paying anymore based on a thread I found in here.

I am now getting calls from a human being from Wyndham. I'm wondering if I should answer & offer deedback in lieu of foreclosure? Or would I be resetting the timeclock as I've seen other posts?

My Dad bought in 3 times. Had over 500,000 points. Paid 2 contracts off. Financed the last at 17%!!! And has run out of money to afford these. They front loaded the interest. Up until now, he paid everything he was supposed to. We enjoyed 7 years of nice vacations at Bonnet Creek but the timeshare cost was never worth it, especially once you add maintenance fees!

Also to the tally person - what are the numbers now for defaulting. Still 0 for ?? 8

Thanks so much! You guys are awesome!

 

[Passepartout]

@JCAM7
You might want to talk with a Canadian legal professional and ask if your dad is 'judgement proof'. I honestly don't know the mechanics of cross-border financial transactions. Obviously the collateral for the loan is the timeshare, and it appears he is willing to let it go. Eventually, they WILL foreclose. It's unlikely that a bad credit report is going to have much (if any) effect on dad's ability to borrow.

I wouldn't answer any phone calls. At some point there will be some 'official looking' papers outlining when the foreclosure will occur. Then, it'll be a done deal.

Jim

 

[TUGBrian]

well youve already stopped paying, the time to ask those questions was likely before that =)

is likely no harm in talking to wyndham to try to work out a surrender instead of waiting for foreclosure.

 

[T-Dot-Traveller]

Hello! I've searched the forum for posts about this but many are old 2015 & 2020. Based on what I've read, we stopped paying for both the loan & maintenance fees of my Dad's last contract with Wyndham. It's been about 6 months of them calling every day or multiple times a day

I'm wondering if I should answer & offer deedback in lieu of foreclosure?
Or would I be resetting the timeclock as I've seen other posts?

My Dad bought in 3 times. Had over 500,000 points. Paid 2 contracts off. Financed the last at 17%!!! And has run out of money to afford these. They front loaded the interest. Up until now, he paid everything he was supposed to. We enjoyed 7 years of nice vacations at Bonnet Creek but ..........

Hi @JCAM7
Welcome to TUG . Sorry to hear of your Dad's situation .

Since he bought Wyndham Points there may not be a specific underlying deed
In my opinion the collection would be on the loan balance.
@chapjim may be able to add information.

 

[dioxide45]

Interest is always “front loaded” on every loan.

 

[JCAM7]

Interest is always “front loaded” on every loan.

Not here in Canada. Maybe always with timeshare though... or always in Florida.

 

[AJCts411]

When I had USA debt, business related credit cards, issued by USA banks (had an USA bank account), nothing USA related ever showed on my Canadian credit report. Check his credit report and see if the USA debt is in fact listed.

 

[Fido Chuckwagon]

Not here in Canada. Maybe always with timeshare though... or always in Florida.

What? Compounding interest compounds. It’s the nature of compounding interest. You necessarily are paying more interest at the beginning of the loan because your balance is higher and more interest is accruing. As the balance decreases over time (in a flat payment system) the ratio of interest to principal changes. That’s not a US or a Canadian thing. That’s just how flat-payment compounding interest loans work.

 

[Fido Chuckwagon]

What? Compounding interest compounds. It’s the nature of compounding interest. You necessarily are paying more interest at the beginning of the loan because your balance is higher and more interest is accruing. As the balance decreases over time (in a flat payment system) the ratio of interest to principal changes. That’s not a US or a Canadian thing. That’s just how flat-payment compounding interest loans work.

I guess if you are overpaying the loan and the servicer applies the overpayment to the next months payment (paying interest) instead of to principal only, that could be where you are getting the misconception from. Other than an overpayment situation though your statement makes no sense.

 

[dioxide45]

I guess if you are overpaying the loan and the servicer applies the overpayment to the next months payment (paying interest) instead of to principal only, that could be where you are getting the misconception from. Other than an overpayment situation though your statement makes no sense.

You need to look at a mortgage amortization calculator and put some numbers in to see how it works. The initial payments are alway mostly interest. Just how it works.

 

[4TimeAway]

You need to look at a mortgage amortization calculator and put some numbers in to see how it works. The initial payments are alway mostly interest. Just how it works.

That's just how the math works.

But no prepayment penalty? I hope.

 

[dioxide45]

That's just how the math works.

But no prepayment penalty? I hope.

Canada has different rules about mortgages. Open and closed. If you take out a closed mortgage then there may be a penalty to refinance or change the terms. These have lower rates than open mortgages.

 

[goaliedave]

Hello! I've searched the forum for posts about this but many are old 2015 & 2020. Based on what I've read, we stopped paying for both the loan & maintenance fees of my Dad's last contract with Wyndham. It's been about 6 months of them calling every day or multiple times a day. I also sent official paperwork in back in April indicating we want out & we're not paying anymore based on a thread I found in here.

I am now getting calls from a human being from Wyndham. I'm wondering if I should answer & offer deedback in lieu of foreclosure? Or would I be resetting the timeclock as I've seen other posts?

My Dad bought in 3 times. Had over 500,000 points. Paid 2 contracts off. Financed the last at 17%!!! And has run out of money to afford these. They front loaded the interest. Up until now, he paid everything he was supposed to. We enjoyed 7 years of nice vacations at Bonnet Creek but the timeshare cost was never worth it, especially once you add maintenance fees!

Also to the tally person - what are the numbers now for defaulting. Still 0 for ?? 8

Thanks so much! You guys are awesome!

Don't pay, don't answer or return any contact. It resets things. Block all emails and calls, write return to sender on all mail. Nothing will ever show on your Canadian credit report.

 

[Fido Chuckwagon]

You need to look at a mortgage amortization calculator and put some numbers in to see how it works. The initial payments are alway mostly interest. Just how it works.

Right, that’s the nature of paying a loan with compounding interest at a flat monthly rate for a set number of years.

 

[T-Dot-Traveller]

Hi @JCAM7
I would review these posts .

When I had USA debt, business related credit cards, issued by USA banks (had an USA bank account), nothing USA related ever showed on my Canadian credit report. Check his credit report and see if the USA debt is in fact listed.

Don't pay, don't answer or return any contact. It resets things. Block all emails and calls, write return to sender on all mail. Nothing will ever show on your Canadian credit report.

Since your Dad lives in Canada -

 

[callwill]

Not here in Canada. Maybe always with timeshare though... or always in Florida.

Where did he take out the loan? If he took it out in Canada it will be different than if he took it out in the USA despite his citizenship.
If he took it out in Canada then there is a different default issue isnt there.

 

[dioxide45]

Where did he take out the loan? If he took it out in Canada it will be different than if he took it out in the USA despite his citizenship.
If he took it out in Canada then there is a different default issue isnt there.

The timeshare loan was in the US. The OP was complaining that it was front loaded with interest. Others (me included) stated this is how all loans are and they then made the comparison to “not in Canada”. The timeshare loan, if taken with the developer, should not have a prepayment penalty.

 

[e.bram]

If a women calls, ask if she is a blonde.If she asks why or says yes or no. Say your father prefers them and you can arrange a meeting. That usually stops the calls. it did for me.

 

[JCAM7]

What? Compounding interest compounds. It’s the nature of compounding interest. You necessarily are paying more interest at the beginning of the loan because your balance is higher and more interest is accruing. As the balance decreases over time (in a flat payment system) the ratio of interest to principal changes. That’s not a US or a Canadian thing. That’s just how flat-payment compounding interest loans work.

They took $35,000 and applied $25,000 to interest and only $10,000 to principal saying he still owes $25000 on the principal. That's what I mean by front loading. My Canadian mortgage doesn't work this way.

 

[dioxide45]

Without details of what the loan amount is, when payments were made, was the $35,000 paid in a lump sum, what was the loan term. We really can’t make any assessments as to what you are talking about. I think there is more confusion about what was paid and how it was applied. In the timeshare world, there is no such thing as a front loaded interest loan. It is just the nature of all loans

 

[Fido Chuckwagon]

They took $35,000 and applied $25,000 to interest and only $10,000 to principal saying he still owes $25000 on the principal. That's what I mean by front loading. My Canadian mortgage doesn't work this way.

Did he pay the $35,000 in a lump sump as an attempt to pay off the loan in its entirety or did he just make his normal monthly payments for some number of months and at the end of those number of months had paid a total of $35,000? If it’s the latter, that’s the way loans work, including in Canada. If loans didn’t work that way in Canada then nobody would ever have to pay interest on any loans. Interest gets added to the principal.

If he attempted to lump-sum pay it off though and they did what you said, that’s a bigger issue. There shouldn’t be a prepayment penalty and the company likely did something wrong, having nothing to do with the country that it is in. You could potentially get the loan discharged without defaulting if this is the scenario.

 

[TheTimeTraveler]

A "front loaded" loan is better known as an "amortized loan" over X amount of years. No one calls them front loaded. They call them fully amortized mortgage loan over X amount of years unless of course it happens to be a balloon mortgage (and that's a different definition).





.