Cancel Timeshare Contract after Rescission Period

[pbuffay9]

Hello all,

I made this account due to inability to find anything specific to my situation thus far.

Backstory: I signed with HGVC in May 2021. My contract entails 3,520 points every even year of the platinum season at Las Palmeras. I have monthly payments of $189, which I have always paid on time, with a $10,278 remaining principal balance. My maintenance fees are $900+ every even year. I was only 22-years-old at the time of this purchase, and certainly didn't understand what I was getting into.

Deceit: Just like anyone else, I was told this was an investment. I was told this would help build my credit. I was told annual fees do not increase, and that I could book anywhere any time I wanted. I explained I am enlisting in the military and that I am concerned I would be unable to make good use of the timeshare, and was told I was being given a deal for my military interest and that my timeshare would be bought back by the resort if I so choose. Most importantly, I was told this would be a ten-year payment fixed at $189/mo. Obviously, that's not going to happen with this interest rate.

Problem: I want out of the timeshare contract. I understand I signed a contract by my own will. I do not expect any reimbursement. I realize I am far beyond a rescission period, which I was never informed of as a possibility either.
I have received orders to deploy overseas for the next year. I am an Army Reservist, and could not have anticipated these orders which will now result in a large pay cut from my civilian job when not on active duty/full-time military as I now will be. This will be a year of largely decreased income due to these military orders, and I simply cannot afford the burden of this debt at my young age especially.

Details: I have tried to contact HGVC (e-mails, voicemail.) They simply will not respond to me. I have taken several initial consultation phone calls with timeshare exit teams as well as selling opportunities. As I still owe over $10k, I do not believe selling is an option at all. I cannot find any information or contact for Hilton Exit Opportunities, but have read on forums such as this I likely do not qualify with an outstanding loan. Timeshare Exit Teams sound like my best option, but are obviously still very expensive and I don't know who to trust with all the scams out there. Can I cancel this contract on my own by sending letters and contacting HGVC? Should I stop making payments? I've read some guidance suggesting attempting foreclosure, but again, I am very young and currently have a good credit score I would like to protect if possible, and I am aware a delinquency debt and judgment by HGVC could still become an issue.


Desperate and looking for any guidance or experience at all. Thank you very much.

P

 

[HuskerATL]

Sorry to hear this and I know exactly where you are at. A lot of us (reservist) ran into that during Desert Storm. You don't think about that when you sign up that if you are activated, you don't get your civilian pay and only your military pay which may be a lot less depending on your civilian salary and rank. We had a lot of families really struggling since we were deployed between 6 months to a year for our unit. On that front you do have some protections though for any bills. You need to call them, explain it, and show your orders. Look at the Servicemembers Civil Relief Act, https://www.military.com/benefits/military-legal-matters/servicemembers-civil-relief-act-overview.html#:~:text=The SCRA covers all active,to 90 days after discharge.

Now, on the other discussion. I hate to say it but that is a terrible timeshare. You are paying a lot for not very many points and high MFs. You basically have a few options, punt while you are deployed but the interest will grow and the loan will still be there when you get back but you will be covered while deployed. The next is try to pay it off and later either try to sale it, which you won't get anything for it and may have to pay someone to take it so that you don't have to pay MFs, or potentially upgrade it to a better deed, but that would take more money or just use it. There is a Timeshare exit company discussed on Military Savings #14, https://military-savings.net/saving...eF7Vn5EGyJBo2pDEbJMO65t2E2OnfjuKs7o2eLFCef9z0 . I don't know anything about it but it may be worth, at least checking out. Do not pay anyone up front to exit a timeshare.

Luckily, you don't owe too much so it could be paid off but I understand where you are at when I was your age and didn't have $10k. Another option is just to stop paying and it will probably hit your credit. I am not saying this is the best route but it is an option.

I think the other route would be to call them. Tell them the situation and that you are being deployed, you are young, and don't have the money for this. Maybe they would do something. I understand that you have called them but do it again and get to a person. You can also contact them at this address, Portfolio Services pfoliosvc@hgvc.com , and see if they will allow a deed back. Most of the time, I think they need to be paid off to do this but you can try.

Really push the military/deployment angle.

Sorry that you are dealing with this and be safe on the deployment

 

[CalGalTraveler]

Thank you for your service. We all made mistakes when we are young.

Agree with @HuskerATL. When you speak with HGV (get a person but not a sales person, be persistent), I believe I recently heard an extension on the HGV phone tree that had a line to call for loans.

In addition to your military deployment and age, tell them that you know that you consulted with experts and were told "by law Florida is a, non-judicial, anti-deficiency state" and that you would have no choice but to walk from the deed and let it fall into Florida foreclosure. It would be cleaner (and much fairer to someone defending our country) to just take it back now rather than going through the legal expense and delays of foreclosure."

Read the information below on the Florida section. It is critical if you pursue this that if HGV declines to take it back or tries to change the loan terms but doesn't release then tell them explicitly that "you have no objections to foreclosure." And then ignore, do not pay, do not answer calls for about 1.5 years (perhaps being overseas will help but do not let your family answer calls either as it may be interpreted as objecting to the foreclosure and collection agencies may try to trick you.)

Links to Official State Timeshare Laws and Guides/Manuals

@TUGBrian @DeniseM @CalGalTraveler take a look. This weekend, I’m creating a spreadsheet with official links to states’ timeshare laws, as well as their statuses as to non-judicial, anti-deficiency foreclosures. In the meantime, I will just keep adding notes. * Legal Disclaimer: This list...

tugbbs.com

It may result in a ding on your credit record but you are young and if you explain your deployment, age and that it was a timeshare, people will understand. Before you do this, make sure that a credit ding won't hurt your job or military standing.

Here are the odds based on feedback from others:

With HGVC you have a 2 out of 3 chance of a ding to your credit (all loans).

[ 2022 ] Timeshare Default Credit Report/Collection Tracking

Two more data points

tugbbs.com

If you decide to pursue this difficult step, please share back what transpired to TUG to pay it forward to others in the future.

Good luck.

 

[CalGalTraveler]

One more idea:

Can you rent out your home week to cover your maintenance fees? Pick the highest demand week you can book and then rent it out on TUG, Redweek, Koala etc. (you can only rent out your home week - not club weeks). You own Platinum so pick a week that takes highest rent. Check Redweek and Koala for comps.

A bit more hassle but then others are paying for your MF (you cannot use it anyway) and no credit impact. If you keep renting it over 10 years then others will have paid for some or most of expenses, then you will have a free and clear timeshare to enjoy going forward and could augment with inexpensive resales when you can afford it.

 

[CalGalTraveler]

At Las Palmeras 1 bdrm rents for about $1000 per Redweek which covers your Maint Fees. However does your $189/month include MF - that's $2268/year! If not what is the interest rate on that loan? Can you refi to a lower rate through military? If you stay with that loan you are paying $20k or so over the life of the loan. That's crazy.

Might be worth walking if HGV won't take this back because you can't even rent that room to cover your fees.

BTW...do not pay third parties such as exit companies to get you out of your obligations. They will do just as we described above and now you know you can take these steps for free.

 

[magmue]

Timeshare Exit Teams sound like my best option, but are obviously still very expensive and I don't know who to trust with all the scams out there.

The short answer is - trust none of them. When you come right down to it,, they are all scams.

 

[TheTimeTraveler]

Like it or not you are stuck with it. You can only "rescind" a Timeshare purchase for a few days, and you're at least a year beyond that. Best solution is to try and make use out of your purchase by using or renting.

You can walk away, but doing so does have a downside (i.e. credit issues, etc.).

DON'T use any of those Timeshare Exit Teams. They will dig into your pockets and not provide anything for you in return.

Possible Hint: Don't active Military have benefits where debt can be suspended during deployment? This may be worth pursuing but I don't believe they can make it go away forever.

Welcome to TUG and best of luck!





.

 

[Mongoose]

I’ve never heard of such a poor TS contract from Hilton. I’m sorry they suckered you.

 

[RNCollins]

…Don't active Military have benefits where debt can be suspended during deployment? This may be worth pursuing but I don't believe they can make it go away forever.

@HuskerATL listed a link to the Servicemembers Civil Relief Act (SCRA) - it provides some protection financially during deployment.

The Servicemembers Civil Relief Act - SCRA

The SCRA provides protections for individuals entering, called to active duty in the military, or deployed.

www.military.com

 

[12GotTahi]

Sorry to hear this and I know exactly where you are at. A lot of us (reservist) ran into that during Desert Storm. You don't think about that when you sign up that if you are activated, you don't get your civilian pay and only your military pay which may be a lot less depending on your civilian salary and rank. We had a lot of families really struggling since we were deployed between 6 months to a year for our unit. On that front you do have some protections though for any bills. You need to call them, explain it, and show your orders. Look at the Servicemembers Civil Relief Act, https://www.military.com/benefits/military-legal-matters/servicemembers-civil-relief-act-overview.html#:~:text=The SCRA covers all active,to 90 days after discharge.

Now, on the other discussion. I hate to say it but that is a terrible timeshare. You are paying a lot for not very many points and high MFs. You basically have a few options, punt while you are deployed but the interest will grow and the loan will still be there when you get back but you will be covered while deployed. The next is try to pay it off and later either try to sale it, which you won't get anything for it and may have to pay someone to take it so that you don't have to pay MFs, or potentially upgrade it to a better deed, but that would take more money or just use it. There is a Timeshare exit company discussed on Military Savings #14, https://military-savings.net/saving...eF7Vn5EGyJBo2pDEbJMO65t2E2OnfjuKs7o2eLFCef9z0 . I don't know anything about it but it may be worth, at least checking out. Do not pay anyone up front to exit a timeshare.

Luckily, you don't owe too much so it could be paid off but I understand where you are at when I was your age and didn't have $10k. Another option is just to stop paying and it will probably hit your credit. I am not saying this is the best route but it is an option.

I think the other route would be to call them. Tell them the situation and that you are being deployed, you are young, and don't have the money for this. Maybe they would do something. I understand that you have called them but do it again and get to a person. You can also contact them at this address, Portfolio Services pfoliosvc@hgvc.com , and see if they will allow a deed back. Most of the time, I think they need to be paid off to do this but you can try.

Really push the military/deployment angle.

Sorry that you are dealing with this and be safe on the deployment

Thank you for taking care of our military service members! I really appreciate it.

 

[MickeyBlue]

Do you have a “consumer advocate” on your local news channel? Call them for help and to put some pressure on hgvc!