Canadian trying to get out of Timeshare in US

[parent123]

Hi there, new to the forum...We owe about $17000 on our timeshare at Sheraton Vistana Villages, and wonder the best way to get out of it? Are we totally screwed? lol We were told when we bought that Canadians are not affected if they walk away from their timeshares, i.e.: no issues with credit. Not sure why they told us that? We are not necessarily going to stop payment unless there is no other way out. We have 5 kids now and money is very tight. We find it too expensive to not only pay the timeshare monthly loan payment, maintenance fees AND flights, food....when we want to vacation there. Any advice? I can't make sense of the prices on the marketplace - there are none that are close to what we owe. Thanks in advance!

 

[Jason245]

Hi there, new to the forum...We owe about $17000 on our timeshare at Sheraton Vistana Villages, and wonder the best way to get out of it? Are we totally screwed? lol We were told when we bought that Canadians are not affected if they walk away from their timeshares, i.e.: no issues with credit. Not sure why they told us that? We are not necessarily going to stop payment unless there is no other way out. We have 5 kids now and money is very tight. We find it too expensive to not only pay the timeshare monthly loan payment, maintenance fees AND flights, food....when we want to vacation there. Any advice? I can't make sense of the prices on the marketplace - there are none that are close to what we owe. Thanks in advance!

I don't think anyone will contradict the legal information you received from your Attorney (we are not experts in that field).

As for pricing.... You found this site a little late, cause it is probably worth less than 20% of what you paid (if that).

Many here can teach you how to use the week you bought, or can guide you in disposal, but I can almost guarantee you that you need to pay off the debt to even try to get rid of it through a means other than walking away.

 

[Passepartout]

Welcome to TUG. I hate to be the bearer of bad news, but what you saw as valuations in the Marketplace or eBay are pretty close to what timeshares are going for these days. 0-20% of their developer cost. There is simply far more supply than demand and there are more people who want to rid themselves of the ongoing expense than those willing to take them on.

Worse, since you still owe that $17K on it, the TS would have to be paid off before the title could be transferred to a new owner. It's highly unlikely that ANYONE will pay enough for this week to pay off the mortgage.

I don't know who told you that you could default (walk away) without taking a credit hit, but I think that is exactly what I'd do, then after missing a few payments and getting notices from the mortgage holder, I'd offer them the deed back in lieu of foreclosure. That would get you free of the TS, they would get it back without the expense of foreclosure. You will lose what you've paid, and possibly take little or no hit to your credit.

We wish you well.

Please keep us informed as this works out. We're curious about what to tell other non US people what to expect as they encounter the same situation.

Jim

 

[persia]

Well it's a foreign timeshare and credit ratings typically don't cross borders, so they may be able to just walk away without a credit hit. It really depends on how it's financed.

Welcome to TUG. I hate to be the bearer of bad news, but what you saw as valuations in the Marketplace or eBay are pretty close to what timeshares are going for these days. 0-20% of their developer cost. There is simply far more supply than demand and there are more people who want to rid themselves of the ongoing expense than those willing to take them on.

Worse, since you still owe that $17K on it, the TS would have to be paid off before the title could be transferred to a new owner. It's highly unlikely that ANYONE will pay enough for this week to pay off the mortgage.

I don't know who told you that you could default (walk away) without taking a credit hit, but I think that is exactly what I'd do, then after missing a few payments and getting notices from the mortgage holder, I'd offer them the deed back in lieu of foreclosure. That would get you free of the TS, they would get it back without the expense of foreclosure. You will lose what you've paid, and possibly take little or no hit to your credit.

We wish you well.

Please keep us informed as this works out. We're curious about what to tell other non US people what to expect as they encounter the same situation.

Jim

 

[parent123]

Thanks for the replies everyone. Our first inclination is not to walk away but right from the Starwood folks (not lawyers) themselves we got the info that nothing would happen if we did walk as we are in Canada. Since we owe so much, and the property being worth nothing compared to the outstanding balance, I'm not sure how we could even sell it!! Does anyone have an opinion or advice on how we could go about selling? It's financed through Starwood Loan Financing.

 

[theo]

Thanks for the replies everyone. Our first inclination is not to walk away but right from the Starwood folks (not lawyers) themselves we got the info that nothing would happen if we did walk as we are in Canada. Since we owe so much, and the property being worth nothing compared to the outstanding balance, I'm not sure how we could even sell it!! Does anyone have an opinion or advice on how we could go about selling? It's financed through Starwood Loan Financing.

With all due respect, if it's financed then it's not actually yours to sell at all --- at any price. The existing associated loan would first need to be satisfied in order for you to acquire clear title and legal standing to then somehow part with the ownership. Until /unless the loan is satisfied, you're not actually the "owner" of record anyhow.

In theory, you could find someone to assume your loan and exit that way. In reality, that ain't gonna happen for a timeshare of little or no monetary value.
Walking away is an option, but you would obviously forfeit the deposit (and any and all other money paid out thereafter).

You don't have many options. Personally, I am unsure (doubtful, even) about the stated belief that defaulting would have no credit report impact when involving a U.S. entity and a Canadian citizen. That might be true, but I'd look for more definitive verification than TUG BBS "opinions" before casually accepting it as accurate. YMMV.

 

[parent123]

Welcome to TUG. I hate to be the bearer of bad news, but what you saw as valuations in the Marketplace or eBay are pretty close to what timeshares are going for these days. 0-20% of their developer cost. There is simply far more supply than demand and there are more people who want to rid themselves of the ongoing expense than those willing to take them on.

Worse, since you still owe that $17K on it, the TS would have to be paid off before the title could be transferred to a new owner. It's highly unlikely that ANYONE will pay enough for this week to pay off the mortgage.

I don't know who told you that you could default (walk away) without taking a credit hit, but I think that is exactly what I'd do, then after missing a few payments and getting notices from the mortgage holder, I'd offer them the deed back in lieu of foreclosure. That would get you free of the TS, they would get it back without the expense of foreclosure. You will lose what you've paid, and possibly take little or no hit to your credit.

We wish you well.

Please keep us informed as this works out. We're curious about what to tell other non US people what to expect as they encounter the same situation.

Jim

Thanks for this. I think we may explore this option some more....need to do a bit more research but I really think we are limited unfortunately!

 

[LannyPC]

The other thing that many warn against for people in situations like yours is to watch out for many of these scam companies that make promises such as "Cancel your mortgage; End your timeshare agreement, etc.". Be careful of these because they will charge you a large upfront fee and might not even accomplish what they promise.

 

[DavidnRobin]

...and you are not passing your obligation back to SVO, you are passing it onto the HOA which in turn is passing it on as increased MFs to SVV owners.

 

[bogey21]

...and you are not passing your obligation back to SVO, you are passing it onto the HOA which in turn is passing it on as increased MFs to SVV owners.

I think only the lack of future MFs inures to the HOA until the Week is resold. My guess is that the outstanding debt is eaten by Starwood or whomever they sold the note to.

George

 

[BevL]

Have you thought about actually speaking to a credit assistance type place to find out if you would in fact be "creditor proof" for a US debt? It might be worth a consultation just to find out.

I was able to give back a timeshare to the HOA for a nominal fee but mine was paid for and I had a good track record with them. Starwood might not be so easy to let you walk with money owing. And with a young family, a hit on your credit might be quite problematic for you if they were able to cross-border impact you.

But your only real options are to keep paying or default - you're never going to find someone to pay you anywhere close to what you owe on it. But don't rely on information here as to whether or not being Canadians will work in your favour, the advice you get here is probably worth what you pay for it for a legal question like that.

If you do get a definitive answer to the cross-border credit impact question and are so inclined, I'd be interested to hear what you learned. Doesn't impact me, but the question comes up from time to time and we've never had any sort of actual expert opinion on it.

Thanks very much and I hope you can sort it out. Times are difficult these days for young families.

Bev

 

[bamboo299]

Have you thought about actually speaking to a credit assistance type place to find out if you would in fact be "creditor proof" for a US debt? It might be worth a consultation just to find out.

I was able to give back a timeshare to the HOA for a nominal fee but mine was paid for and I had a good track record with them. Starwood might not be so easy to let you walk with money owing. And with a young family, a hit on your credit might be quite problematic for you if they were able to cross-border impact you.

But your only real options are to keep paying or default - you're never going to find someone to pay you anywhere close to what you owe on it. But don't rely on information here as to whether or not being Canadians will work in your favour, the advice you get here is probably worth what you pay for it for a legal question like that.

If you do get a definitive answer to the cross-border credit impact question and are so inclined, I'd be interested to hear what you learned. Doesn't impact me, but the question comes up from time to time and we've never had any sort of actual expert opinion on it.

Thanks very much and I hope you can sort it out. Times are difficult these days for young families.

Bev

Would love to hear from OP on any info found out and what has happened.

 

[LannyPC]

Would love to hear from OP on any info found out and what has happened.

You can try to contact him by via PM by clicking on his blue user name.

 

[BevL]

You can try to contact him by via PM by clicking on his blue user name.

I dropped him an email say that "inquiring minds would like to know" if they have found anything out about this topic.

 

[parent123]

Signing over deed.....thoughts?

So we've not had the money to pay for our timeshare, so we've told Starwood that we will hand over the deed to our property. They have now sent docs to indicate that should we have this signed in front of a notary public and provide the deed, we will no longer have any right to ownership, nor are we liable for any missed payments on the property (therefore not affecting our credit rating, IF in fact canadians could be affected...).Has anyone else experienced this? It seems legit as we have everything in writing but I just wanted to see if anyone else has been through this? Thanks in advance.

 

[theo]

So we've not had the money to pay for our timeshare, so we've told Starwood that we will hand over the deed to our property. They have now sent docs to indicate that should we have this signed in front of a notary public and provide the deed, we will no longer have any right to ownership, nor are we liable for any missed payments on the property (therefore not affecting our credit rating, IF in fact canadians could be affected...).Has anyone else experienced this? It seems legit as we have everything in writing but I just wanted to see if anyone else has been through this? Thanks in advance.

Some resorts and / or developers accept deedbacks; the practice is not altogether uncommon. In your case, since you reside outside the U.S., Starwood knows full well that collection efforts would be futile and completely fruitless, so accepting a deedback is a financially prudent option and course of action.
After all, they will just turn right around and sell the very same product all over again to someone else. A great deal --- for them.

My advice would be to proceed forthwith and complete the deedback (more formally known as deed in lieu of foreclosure) without hesitation or delay, before someone at Starwood changes their mind (which any facility or developer can do at anytime as they see fit, without notice). Glad that you can get "out" cleanly. Do it. Good luck.

 

[HudsHut]

So we've not had the money to pay for our timeshare, so we've told Starwood that we will hand over the deed to our property. They have now sent docs to indicate that should we have this signed in front of a notary public and provide the deed, we will no longer have any right to ownership, nor are we liable for any missed payments on the property (therefore not affecting our credit rating, IF in fact canadians could be affected...).Has anyone else experienced this? It seems legit as we have everything in writing but I just wanted to see if anyone else has been through this? Thanks in advance.

Thank you for taking the time to come back and give an update. I am delighted that you were able to get out from this onerous obligation.
Congratulations on following through.

 

[BevL]

Actually, thanks to info on TUG that Starwood will in fact accept deedbacks, friends of mine (Canadians like me) did just that. Quick and painless and they're out of their Starwood timeshare.

Would still be an interesting question whether walking away from a US timeshare would have the same effect on a Canadian's credit history as it would an American's and I don't believe there has been any actual empirical evidence either way on that question.

 

[theo]

<snip> I am delighted that you were able to get out from this onerous obligation. Congratulations on following through.

Congratulations may very well be in order soon, but OP parent123 is not actually out of the woods yet, at least as I read his / her most recent post (#15 above).

"Deeback" is apparently an option on the table right now, to hopefully be promptly executed and concluded by the OP while still available. Deedback policies can (and do) change suddenly; there is no legal requirement to provide any advance notice of any kind. IMnsHO, OP should run (not just walk) to use this currently open exit ramp.