Can't Afford It Anymore, My options are Zero?

[rrdude]

Gee, never thought I'd write this but here goes: We have two Timeshares [resort names deleted - DeniseM Moderator]

We bought from developer several years ago (yes, I have already whipped myself plenty), are upside down on the loan amount (we owe more than we could sell for) and cannot make the year maint fees [at one resort] or the maint fees at [at the other resort] $600 year.

So my options are: 1) default? 2) Try to Rent them out, and continue making payments on them 3) If I file bankruptcy, they go back to developer..........

ANY other suggestions, or experience?

I guess the best thing about TUG, is that I now "know" that when we get out of our financial mess, and if we buy a TS in the future, we know "how" to do it...........

Thanks.

 

[JeffW]

I'd do some searching on TUG first, I think you'll find other similar posts.

You can look into renting - it's one option that doesn't require an absolute committment. However I think the rental market is depressed too; some places, you might be lucky to even get your annual fee covered.

Have you checked with the developer on options from them? If you owe say $10k, then might be willing to take $5k from you, and the week back, and call it even.

DEFINITELY avoid anyplace that wants more than a token fee ($50 or less) to list your week. There are LOTS of companies that will advertise they can sell your week, for "just a $695 (or whatever) payment". I'm not sure I'd read of anyone on TUG who's had any success with this route.

I'm pretty sure that if you simply default, you'll get dinged pretty hard, so I wouldn't consider that option without lots of investigation.

Jeff

 

[funtime]

It is hard to advise since the timeshare names have been edited out. If you think the situation will be improving, it is not that hard to rent. Redweek works for well known timeshares like Marriott and Hilton but not so well for mid level timeshares with no name cachet. When your situation improves you could then start using again. Maybe try to keep the one that rents best? Good luck. Or, see if either developer is flexible as to taking back the deed. Do a lot of reading on this board and you will see others that are or were in your situation. Search for developer take back might lead to some good threads. Funtime

 

[dioxide45]

Your options are very limited since you are upside down on the loans. You would be best to call your loan servicer (this may be the developer) to see if you can work out a payment plan with them, perhaps to extend the term to lower the payment

Obviously you can't sell these unless you 1) have the cash to make up the difference to pay off the loan or 2) Sell them for enough to cover the loans.

Defaulting in the end may be the only option and for many it is the only option. It would then result in foreclosure and possibly bankruptcy. You need to weigh your options carefully.