Cancelling Welk Resort Ownership

[cardcat]

Sigh. Sorry, I know this topic has probably been addressed multiple times already, but I just wanted to confirm what I already feared, which is that I'm probably stuck with this [expletive deleted] "timeshare." Unfortunately, my wife and I fell for their aggressive sales pitch like fools. Is there any way to cancel this after the after the 7 day cancellation period has passed? We signed the contract on Oct 14, 2019. Or at this point are we stuck and need to try to make the best use of it...we bought 240,000 points every 2 years. I just today logged onto the site and tried the RCI exchange and it seems like a complete ripoff. I can't believe I was dumb enough to think this was a good deal.

Also, does anyone know of a Welk buy-back program? During our financial/contract meeting where we were video recorded I specifically asked about this and they told me that they were working on a buy-back program. If this was a complete lie, then would I be able to take legal action? I can still ask for the video recording right?

Anyway, any help would be greatly appreciated. I don't know how the people who work for these predatory companies sleep at night. It's a joke how they're screwing over people.

 

[cardcat]

I was also just reading that

Perpetuity Contracts
Any contract where either a) no end date is specified in the contract; or b) the end date exceeds fifty years from the date it is signed is illegal. Any contract of this nature signed after January 1999 can be legally nullified and all sums paid returned to the signee.

On page 2 of my Welk contract, it states "The term of your Ownership and of this timeshare plan is perpetual." Does this mean the contract can be voided?

 

[bnoble]

I am not a lawyer, but the people who wrote that contract you signed are. So, I’m guessing it is not that simple.

The standard advice is to make the best of it once you are past your rescission period, as you are. Remember that you bought this for a reason, and even though it wasn’t the most informed of reasons, it was still there. Learn to make the best use of it and you are likely to come away with some excellent vacation memories. The value in timeshares is the using of them. Many folks here did just as you have, and bought from the developer. They have still enjoyed their vacations while learning a lesson along the way.

 

[Shankilicious]

As far as the legal side of things goes, you'll want to talk to a lawyer familiar with timeshare laws. I've never heard anything about that before.
There currently is no but back program and they probably won't exercise right of first refusal for your point amount even if you sell it for $500.
Once passed the seven day window, you are for the most part stuck. DM me with your frustrations as I love my ownership as do at least 275 others in a social media group I moderate.
It's very confusing and much less simple compared to what the sales people promise. Which location did you buy at?

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[Iggyearl]

Perpetuity Contracts
Any contract where either a) no end date is specified in the contract; or b) the end date exceeds fifty years from the date it is signed is illegal. Any contract of this nature signed after January 1999 can be legally nullified and all sums paid returned to the signee.

Unfortunately this verbiage is from Spanish timeshare law. Spain does not allow these two traits to be in contracts sold in the country. Also, accepting deposits before a two week waiting period. The law was passed in 1999, and is just now seeing widespread usage by people trying to get out of contracts - from mostly Spanish timeshare companies. Diamond and Marriott have some exposure to this law, as they sold in Spain during this period. Unfortunately, this law cannot help you in the United States. But - it's a pretty good law.

 

[Fredflintstone]

Links to Official State TS Laws and Guides/Manuals
https://r.tapatalk.com/shareLink/to...-Manuals.298554/&share_type=t&link_source=app




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[LannyPC]

If this was a complete lie, then would I be able to take legal action? I can still ask for the video recording right?

You can, but you would have to prove that they lied to you. I have never heard of the sales team video recording the sales pitches. Therefore, it would be a matter of he said, she said. That's one reason why these contracts basically say that what is written in these contracts is what counts and not what was said at the sales presentation.

Hence, I would advise you the way most here on TUG would advise people in your situation. Do not go seeking the "help" of these so-called exit/relief/cancel companies or law firms that claim they can get you out of your predicament. They are usually scams.

The other piece of advice depends on how much you have paid so far and what you owe. Some people in your situation have just decided to not pay any more into what they have bought. They lost whatever they paid and probably faced collection calls and dings on their credit ratings. But they no longer own the property or have to pay any MFs. They will not pay thousands more into something that is probably worth around zero dollars resale.

 

[cardcat]

So here's a question. We already paid about about $13,500 downpayment and still have another $11,500 left to pay (each month they are auto-withdrawing from my credit card). What if I cancel my credit card/refuse to pay the rest of the amount? I'm assuming my credit will take a hit and they'll send me to collections? Will they actually pursue legal action to get the rest of the $11,500 or at that point would they just take back their points and cancel my contract with them?

 

[cardcat]

You can, but you would have to prove that they lied to you. I have never heard of the sales team video recording the sales pitches. Therefore, it would be a matter of he said, she said. That's one reason why these contracts basically say that what is written in these contracts is what counts and not what was said at the sales presentation.

Hence, I would advise you the way most here on TUG would advise people in your situation. Do not go seeking the "help" of these so-called exit/relief/cancel companies or law firms that claim they can get you out of your predicament. They are usually scams.

The other piece of advice depends on how much you have paid so far and what you owe. Some people in your situation have just decided to not pay any more into what they have bought. They lost whatever they paid and probably faced collection calls and dings on their credit ratings. But they no longer own the property or have to pay any MFs. They will not pay thousands more into something that is probably worth around zero dollars resale.

The contract signing was video-recorded. During that time, I specifically asked about a buy back program/cancelling the membership because one of the salespeople told me Welk had one in place. The person I was signing the contract with said he didn't know about any buy back program, so he then called the manager/salesperson I spoke with down to confirm. The manager said that the company had just created it and was in the process of finalizing it and it should be available in the coming months. They did not mention anything to me about the 7 day cancellation option. Again, this was all video-recorded. However, my only issue is that in the contract it says "I am not relying on any verbal representations, assurances, or statements that were made in connection with the sales process, purchasing and/or financing of my Ownership." Does this mean I can't use what the manager person said against Welk, even though it was recorded?

 

[CalGalTraveler]

The contract signing was video-recorded. During that time, I specifically asked about a buy back program/cancelling the membership because one of the salespeople told me Welk had one in place. The person I was signing the contract with said he didn't know about any buy back program, so he then called the manager/salesperson I spoke with down to confirm. The manager said that the company had just created it and was in the process of finalizing it and it should be available in the coming months. They did not mention anything to me about the 7 day cancellation option. Again, this was all video-recorded. However, my only issue is that in the contract it says "I am not relying on any verbal representations, assurances, or statements that were made in connection with the sales process, purchasing and/or financing of my Ownership." Does this mean I can't use what the manager person said against Welk, even though it was recorded?

Correct the contract holds. But if you have a copy of the video you can file a complaint with the state AG about deceptive sales practices. If you don't have a copy, then there is not much recourse unless you want to spend a lot of money on lawyers to be told about the wording in the contract because they would have to have court filings to supaena the videos and this is probably a lot more $$$$ than you spent.

 

[CalGalTraveler]

Not sure if you have buyers remorse or if you truly don't want this. There must have been some value that convinced you to buy. Many of us here on TUG bought our first timeshare retail before we discovered resale. We found loopholes in the systems to turn lemons into lemonade. Perhaps stick around TUG or the Welk groups and figure out how to maximize the value to your advantage.

 

[Fredflintstone]

Correct the contract holds. But if you have a copy of the video you can file a complaint with the state AG about deceptive sales practices. If you don't have a copy, then there is not much recourse unless you want to spend a lot of money on lawyers to be told about the wording in the contract because they would have to have court filings to supaena the videos and this is probably a lot more $$$$ than you spent.

IMO and from research, Welk is very stickler on procedures. On their website, they are the only developer I know who proudly shares their declarations, public reports, platinum membership rules and other disclosures on their properties. Thus, they make sure they do everything possible to disclose honestly. It doesn’t surprise me they even video the signing party.

On the bottom of their website, the entire list of documents are available for all to see. I wish all developers would openly disclose like that.

On your contract and Public report, Welk makes sure you see your recession rights. You sign it off. All I can say is I think Welk covers their bases really well to ensure they can defend a “misrepresentation/fraud” allegation.

I do wish you luck.


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[TheTimeTraveler]

Sigh. Sorry, I know this topic has probably been addressed multiple times already, but I just wanted to confirm what I already feared, which is that I'm probably stuck with this shitty "timeshare." Unfortunately, my wife and I fell for their aggressive sales pitch like fools. Is there any way to cancel this after the after the 7 day cancellation period has passed? We signed the contract on Oct 14, 2019. Or at this point are we stuck and need to try to make the best use of it...we bought 240,000 points every 2 years. I just today logged onto the site and tried the RCI exchange and it seems like a complete ripoff. I can't believe I was dumb enough to think this was a good deal.

Also, does anyone know of a Welk buy-back program? During our financial/contract meeting where we were video recorded I specifically asked about this and they told me that they were working on a buy-back program. If this was a complete lie, then would I be able to take legal action? I can still ask for the video recording right?

Anyway, any help would be greatly appreciated. I don't know how the people who work for these predatory companies sleep at night. It's a joke how they're screwing over people.

It appears you are now a timeshare owner; the best thing to do at this point is either make the best of it (i.e. use it, rent it, trade it), or get it paid off and sell it.

You won't get anywhere near what you paid for it, but if you sell it off then you will not be burdened with annual maintenance fees.

Don't feel bad about your experience; a lot of us have been through the same and that is one of the many reasons that TUG exists.

Consider spending $15 and become a TUG member.




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[Fredflintstone]

One last thing to add.

If you look at the Public Report that is given to you by Welk at time of sale, you will see (on page 6 of public report) that all promises must or should be in your contract. It is bullet 2.

The complete public report is located here:


https://welkresorts.com/terms/public-report.pdf






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[cardcat]

Thank you all so much for the replies! I guess it seems like best option is to make the most of it and maximize the use of my points.

From my previous post:
"So here's a question. We already paid about about $13,500 downpayment and still have another $11,500 left to pay (each month they are auto-withdrawing from my credit card). What if I cancel my credit card/refuse to pay the rest of the amount? I'm assuming my credit will take a hit and they'll send me to collections? Will they actually pursue legal action to get the rest of the $11,500 or at that point would they just take back their points and cancel my contract with them?"

So just to confirm, no one thinks I should just stop making payments for the remainder of how much I owe and the VOA fees (currently $1600 every 2 years)? I'm only 30 and haven't bought a house yet, so would the credit hit really hurt me? I'm a dentist and my wife will be a pediatrician in a few years, so I think we'll be ok financially even with this drawback. It just really stinks knowing I wasted so much money on something that won't offer as much return as I was led to believe.

Another idea I had, albeit probably not a very good one, was to transfer the membership to my wife's 97 year old grandmother. Then have her refuse to make any payments and take the credit hit. After she passes away, would we still be responsible for it or would it still have to be passed on to her descendants?

***Sorry for all these random questions. I couldn't sleep at all last night thinking about all the different options.***

 

[TheTimeTraveler]

You both have great careers which should provide both of you with very nice six figure incomes; don't let this small bump in your life affect the rest of your financial life. DON'T default on anything. Pay it off then dump it. And don't dump your responsibilities on a 97 year old woman.

Remember ethics and responsibilities. Do the right thing! Your future patients and future children will be depending on your actions.




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[Fredflintstone]

I think time traveler is right.

You both sound like very clever people.

If any lesson can be learned on this is to READ anything BEFORE signing no matter the pressure or urgency to act. If you are at all unsure, don’t act. You can always revisit it later. My dad once said, “Look before you leap.”

Welk is a good company. Their timeshares are beautiful. Why not make the best of it? Something really good can come out of it like great memories.


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[Shankilicious]

Thank you all so much for the replies! I guess it seems like best option is to make the most of it and maximize the use of my points.

From my previous post:
"So here's a question. We already paid about about $13,500 downpayment and still have another $11,500 left to pay (each month they are auto-withdrawing from my credit card). What if I cancel my credit card/refuse to pay the rest of the amount? I'm assuming my credit will take a hit and they'll send me to collections? Will they actually pursue legal action to get the rest of the $11,500 or at that point would they just take back their points and cancel my contract with them?"

So just to confirm, no one thinks I should just stop making payments for the remainder of how much I owe and the VOA fees (currently $1600 every 2 years)? I'm only 30 and haven't bought a house yet, so would the credit hit really hurt me? I'm a dentist and my wife will be a pediatrician in a few years, so I think we'll be ok financially even with this drawback. It just really stinks knowing I wasted so much money on something that won't offer as much return as I was led to believe.

Another idea I had, albeit probably not a very good one, was to transfer the membership to my wife's 97 year old grandmother. Then have her refuse to make any payments and take the credit hit. After she passes away, would we still be responsible for it or would it still have to be passed on to her descendants?

***Sorry for all these random questions. I couldn't sleep at all last night thinking about all the different options.***

Even if you did transfer it to her, it would come right back to her descendants (you). If you have good credit now, you can do what I did when I bought (I was 28at the time) and apply for a personal loan from a local bank on the loan balance from Welk. Welk interest rate is prolly in the mid teens and we got a personal loan for twice as many points as you with a 5% interest rate.

Once you have the loan, Welk will be paid off and you can sell it or give it away. You'll lose all the money you put into it but you won't have the endless and increasing maintenance fees to worry about.

Your best bet is to stay on here or find a Facebook group to help you make the most of your Ownership. With your points, every other year you could go to Disney world (Saratoga springs). A two bedroom booked through Disney is over $6k. It only takes 240k Platinum points so your maintenance fees plus exchange fees. But you'll still be ahead close to $4k over booking straight through Disney.

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[CalGalTraveler]

Thank you all so much for the replies! I guess it seems like best option is to make the most of it and maximize the use of my points.

From my previous post:
"So here's a question. We already paid about about $13,500 downpayment and still have another $11,500 left to pay (each month they are auto-withdrawing from my credit card). What if I cancel my credit card/refuse to pay the rest of the amount? I'm assuming my credit will take a hit and they'll send me to collections? Will they actually pursue legal action to get the rest of the $11,500 or at that point would they just take back their points and cancel my contract with them?"

So just to confirm, no one thinks I should just stop making payments for the remainder of how much I owe and the VOA fees (currently $1600 every 2 years)? I'm only 30 and haven't bought a house yet, so would the credit hit really hurt me? I'm a dentist and my wife will be a pediatrician in a few years, so I think we'll be ok financially even with this drawback. It just really stinks knowing I wasted so much money on something that won't offer as much return as I was led to believe.

Another idea I had, albeit probably not a very good one, was to transfer the membership to my wife's 97 year old grandmother. Then have her refuse to make any payments and take the credit hit. After she passes away, would we still be responsible for it or would it still have to be passed on to her descendants?

***Sorry for all these random questions. I couldn't sleep at all last night thinking about all the different options.***

You both make good money. It's an expensive lesson but it won't throw you in bankruptcy. At $25k you have lost much less than many others.

The best return on a timeshare is to use it. The properties are beautiful and you have many years to get ROI on this compared to hotel rooms. The sales processes suck but the products are good.

IMHO...It doesn't seem like you have given it a chance. Timeshares take planning but if you graduated with an advanced degree you certainly can figure this out.

Rather than throwing away $13,500 and risking negative credit affecting your first home mortgage, licensing / employers who may look at credit reports and business loans by stopping payments. Why don't you get with Welk owners, figure out how to use this, and try it out before you determine it is junk? If you still don't like it and want to walk or pay off the loan and give it away at least you tried it and got a vacation out of it.

 

[LannyPC]

Even if you did transfer it to her, it would come right back to her descendants (you).

Not necessarily. That's a huge misconception in the timeshare industry and a scare tactic that many exit/cancel/relief companies untruly use. This has been discussed many times here on TUG. No one is forced to inherit an unwanted timeshare. If an owner dies, there are many legal issues and hurdles, but no one is forced to accept an unwanted timeshare.

 

[LannyPC]

Thank you all so much for the replies! I guess it seems like best option is to make the most of it and maximize the use of my points.

Well if you decide to keep it, now would be a good time to warn you as a timeshare owner to watch out for the many phone call scams that will start coming your way. You might get phone calls telling you that they can find a buyer for what you own who is willing to pay you handsomely but, in order to complete the sale, you have to pay some sort of tax or fee. Don't fall for it!

 

[Grammarhero]

Well if you decide to keep it, now would be a good time to warn you as a timeshare owner to watch out for the many phone call scams that will start coming your way. You might get phone calls telling you that they can find a buyer for what you own who is willing to pay you handsomely but, in order to complete the sale, you have to pay some sort of tax or fee. Don't fall for it!

I haven’t gotten a single call despite having seven timeshares.

 

[jabberwocky]

I haven’t gotten a single call despite having seven timeshares.

Same here. Zero calls even with multiple weeks owned.

 

[jabberwocky]

So my few thoughts as I have a few minutes of free time.

Protecting your credit should be priority number one. You’ve got a lot of runway ahead of you in your career and you never know when you might want to take advantage of an opportunity that you don’t have immediate cash for (perhaps buying a lucrative dental practice?). Developing a good relationship with your current and future lenders is important.

while I don’t have a full picture of your finances and you may have other debt from student loans (complete wild guess here) which seem daunting - keep in mind this amount is a very small bump in the road. Once it is paid off and you know how to work the systems you’ll probably appreciate having the options.

 

[T-Dot-Traveller]

Thank you all so much for the replies! I guess it seems like best option is to make the most of it and maximize the use of my points.

From my previous post: ....... It just really stinks knowing I wasted so much money ......

***Sorry for all these random questions. I couldn't sleep at all last night thinking about all the different options.***

Not sleeping & your mind racing is very stressful .

1) Try and use the reset your brain strategy - what is the worst thing that can happen TODAY about this purchase .

answer - a payment comes off my credit card .
[ is that something I can afford - yes - / therefore - I can take my time to review the options ]

*******
In 2006 we were in Puerto Vallarta for a family wedding / bought a timeshare for 16 K .
We were in PV for a week last month (9th time ) and go back in February 2020 (when it is winter in Canada)

I could have bought a new car in 2006 for that money - and would today own a 13 year old very used vehicle that would have a resale value of close to $ ZERO

Instead I own a timeshare that definitely has a resale value of $ ZERO - but the vacation use remains and will continue .

My suggestion is like others - learn how to use the points and enjoy your vacations .