credit ruined by [defaulting on] timeshare

[icydog]

Never mind

 

[Scott W]

Scott, I live in VA, timeshare is in SF, CA, and I probably only paid for about 5 years

Weegie,

Check your credit report and note the date (year) the derogatory was inserted. Negatives can remain on your report for 7 years. Has any of this been on your credit report before? And you're right, you don't need to file BK unless you are sued and cannot pay the debt.

 

[VegasBella]

http://www.consumer.ftc.gov/articles/0151-disputing-errors-credit-reports
skip down to "correcting errors" and follow the directions

 

[Scott W]

http://www.consumer.ftc.gov/articles/0151-disputing-errors-credit-reports
skip down to "correcting errors" and follow the directions

When to dispute and how to dispute depend on the age of the negative entry.

 

[Scott W]

Nothing wrong with the link you provided. BUT THIS IS VERY IMPORTANT: When to dispute and how to dispute depend on the age of the negative entry.

 

[Passepartout]

http://www.consumer.ftc.gov/articles/0151-disputing-errors-credit-reports
skip down to "correcting errors" and follow the directions

Wouldn't it have to be an incorrect listing of debt to be 'corrected'? The OP stated that he just 'tired' of the TS and paying the MF and quit paying. If he then gets a ding on his credit report, how is that an incorrect entry?

Sorry, but I have no feeling of sympathy for those who choose to take this way out.

Quitting paying legitimate debt has to have consequences. A credit score ding is just that.

Jim

 

[dougp26364]

Wouldn't it have to be an incorrect listing of debt to be 'corrected'? The OP stated that he just 'tired' of the TS and paying the MF and quit paying. If he then gets a ding on his credit report, how is that an incorrect entry?

Sorry, but I have no feeling of sympathy for those who choose to take this way out.

Quitting paying legitimate debt has to have consequences. A credit score ding is just that.

Jim

You can dispute any claim and have it put on your credit report. The actual ding will stay there unless the company who put it on your report requests it be removed or you can prove that it's not accurate information.

I'll give you two examples.

1. An apartment complex my wife lived in for >10 years attempted to collect "damages" when she moved out. They claimed she ruined the carpet, the walls needed to be repainted, apartment wasn't clean et.... The issue was the carpet had a wear date of 5 years and was not new when she moved in, there was an agreement that complex was to repaint the apartment every 5 years yet had never done so and we disputed, with photographs, that the apartment was clean when we left. They threatened lawsuit but never followed through. They filed a uncollected debt write off on my wife's credit report. We disputed it and had our side of the story put on her credit record. The uncollected debt was never removed from the report but neiher was our dispute. In the end it did not have much of a negative effect on her credit and she was never denied credit at reasonable terms.

2. Capital One placed a bad debt write off on my credit report after they issued a credit card to someone else in my name. That person had used an incorrect birthdate, incorrect SS#, incorrect employer and incorrect mothers maiden name. It was not difficult to prove this was not me. It took some fighting with Cap. One until I played the lawyer card. The uncollected bad debt was removed from my credit report.

In one case the disputed claim was our word against theirs and the negative information remained. In the other I could prove it was not my bad debt and the information was removed. With the OP they probably won't be able to get the report removed from the credit record unless they can prove it's not a valid debt.

Since the OP has never returned since their first post, I doubt the validity of the story. It's either that or they really don't want any advice on what to do and instead prefer to just complain about their own bad judgement. If it's a valid bad debt I doubt anyone will get that information "corrected" on their credit report.

 

[Passepartout]

Since the OP has never returned since their first post, I doubt the validity of the story. It's either that or they really don't want any advice on what to do and instead prefer to just complain about their own bad judgement. If it's a valid bad debt I doubt anyone will get that information "corrected" on their credit report.

Doug, the OP has come back for comments, and fleshed out details (see #35) of how/when they 'quit paying' MFs.

I'm all for the appeal process on an undeserved bad credit report, but it appears that in this case a buyer just chose to unilaterally stop paying an obligation. The result answers the question asked of TUGgers all the time, 'What happens if I just don't pay the MF bill?'

Jim

 

[czar]

I'd be curious to know what the resort has/has not been able to do with this week for the past 30 years.

 

[Beefnot]

Since the OP has never returned since their first post, I doubt the validity of the story. It's either that or they really don't want any advice on what to do and instead prefer to just complain about their own bad judgement. If it's a valid bad debt I doubt anyone will get that information "corrected" on their credit report.

I don't follow. The OP has returned since the first post.

 

[timeos2]

I'd be curious to know what the resort has/has not been able to do with this week for the past 30 years.

Since it was delinquent they can and should have rented it for whatever they could get. Hopefully they did.

 

[Rent_Share]

Weegie,

Check your credit report and note the date (year) the derogatory was inserted. Negatives can remain on your report for 7 years. Has any of this been on your credit report before? And you're right, you don't need to file BK unless you are sued and cannot pay the debt.

7 years from the event or the report ? The 7 years cant start 30 years after the event

 

[timeos2]

If they properly billed the account regularly each year then the oldest claims may have been wiped out but the later years would stand. As would any older black marks from those unpaid (ignored) bills. As long as the owner didn't properly handle a sale or transfer to a new paying owner they remain on the hook for the bills and the resulting credit hit(s). Just like they would for a car loan or home loan - a loan or a bill ignored doesn't just magically go away. You need to deal with it properly. The OP has a chance again to fix it and should do so ASAP.

As noted this is a good example of how an unpaid timeshare fee can impact owners. It is best to handle these things rather than just hoping that the resort will forget about you.

 

[Rent_Share]

There is a statute of limitations

If the seller did nothing eventually they waive their right by operation of law

Even a judgment becomes uncollectible / unenforceable after 10 years, unless renewed, 10 more years and it never happened,

 

[Tia]

The first year the owner didn't pay the HOA was aware so should of taken action so believe that is when the time limit starts....

 

[Ridewithme38]

Since it was delinquent they can and should have rented it for whatever they could get. Hopefully they did.

Timeos, you have experience working on a Board....When the week is rented, does that count towards the owners obligation?

I.e. if i own at Ko Olina and don't pay mf, of 1,954.73, but the resort is able to rent my week for $1700.....Do i only owe $254.73 or do i still owe the full 1,954.73? What if they are able to rent it for $2,100?

 

[VegasBella]

Disputing an item on your credit report forces an investigation of the matter. That alone can sometimes be enough to get rid of an old debt. If not, it will still dig up some important details of the debt. It may remove any portion of the debt that is no longer valid (having passed the statute of limitations, for example). And having the details of the debt may be extremely useful in negotiating a settlement.

My experience: I was exempt from filing taxes one year when I was 20. I earned so little that I was exempt. Stupidly, I just didn't file. I now know better - always file your taxes even if you're exempt. Because I had formerly worked at a job that collected tips my state tax board simply decided I owed them a bunch of money. The literally just decided this due to my former employment. They put a lien on my bank account and tried to collect. Well, after a lot of paperwork proving I had not worked and wasn't hiding stashes of tips the lien was finally removed and I received an apology from the state tax board. I didn't owe them a dime. However, the event ended up on my credit report. This is how I learned how to dispute blemishes on my credit report. Yes, the event happened and that's not in dispute. But the reason it happened and the fact that I didn't owe anything was important information to add to the report. Eventually it came off my credit report. And I'm happy to say that these days my credit score is amazingly high.

 

[timeos2]

Timeos, you have experience working on a Board....When the week is rented, does that count towards the owners obligation?

I.e. if i own at Ko Olina and don't pay mf, of 1,954.73, but the resort is able to rent my week for $1700.....Do i only owe $254.73 or do i still owe the full 1,954.73? What if they are able to rent it for $2,100?

Yes, the amount they rent it for is to be credited toward the owners fee. However it won't be the full amount as they are allowed a commission for renting as well as adding any penalties and interest to the amount due. So usually what is credited to the account even after the rental is less than was due. But only the remaining balance would be due from the owner to bring the ownership current. Of course the time is gone even if they do pay the balance for that year.

 

[AwayWeGo]

Good Deal For Delinquent Timeshare Owner.

Yes, the amount they rent it for is to be credited toward the owners fee. However it won't be the full amount as they are allowed a commission for renting as well as adding any penalties and interest to the amount due. So usually what is credited to the account even after the rental is less than was due. But only the remaining balance would be due from the owner to bring the ownership current. Of course the time is gone even if they do pay the balance for that year.

That's beneficial for the delinquent owner.

If the delinquent owner's week is not rented out, the delinquent owner owes the full unpaid amount (plus penalties & interest) & the time is still gone.

When the delinquent week is rented out, at least the delinquent owner gets a little something off the amount that has to be paid to get back in good standing.

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​

 

[Ridewithme38]

Yes, the amount they rent it for is to be credited toward the owners fee. However it won't be the full amount as they are allowed a commission for renting as well as adding any penalties and interest to the amount due. So usually what is credited to the account even after the rental is less than was due. But only the remaining balance would be due from the owner to bring the ownership current. Of course the time is gone even if they do pay the balance for that year.

So basically, how you win this game....Buy the timeshare with the highest rental value(rack rate) and the lowest MF, that way, when you don't pay, you can still break even by having the resort rent it for you.

Eventually, once the resort gets used to and comfortable finding renters for you, you should never have to pay a MF again, but will still own the property

 

[AwayWeGo]

That Works Out About The Same As Not Owning, But It's More Trouble.

So basically, how you win this game....Buy the timeshare with the highest rental value(rack rate) and the lowest MF, that way, when you don't pay, you can still break even by having the resort rent it for you.

Eventually, once the resort gets used to and comfortable finding renters for you, you should never have to pay a MF again, but will still own the property

If you want to skip paying & skip going, it's lots simpler not to own.

( Just saying. )

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​

 

[Ridewithme38]

If you want to skip paying & skip going, it's lots simpler not to own.

( Just saying. )

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​

Property ownership is a pretty valuable thing, Mark Twain said "Buy land, they're not making anymore" or something like that. I have family that owns good, buildable land in florida, that they never really plan to use or build on....they are just holding it for the future gain in value.

 

[jc92869]

not the same

I think that when i comes to regular real estate, this may apply. however it may not work with the timeshare industry.

I think that you philosophy follows the thinking that T/S can be an investment. I think that for the most part, a t/s is never a good investment. It is a leisure item; A luxury. Do you agree?

Property ownership is a pretty valuable thing, Mark Twain said "Buy land, they're not making anymore" or something like that. I have family that owns good, buildable land in florida, that they never really plan to use or build on....they are just holding it for the future gain in value.

 

[jc92869]

wow harsh.

As true, honest, straightforward, or accurate as your statement might be, It was worded quite harshly.

Not arguing your point, simply giving an opinion.

weegie57, thanks for posting this. People frequently post here asking 'What happens if I just quit paying my MF? What can they do?' Some friendly TUGger frequently tells them to just give the thing away and get their name off the deed. At the worst, they can get foreclosed on, sent to collection, credit ruined, and then can't sell the TS because it has a lien. They usually just go away, having not taken what they were told seriously.

Since you have posted the above, now we know. And actually contrary to your title to the thread, the timeshare didn't ruin your credit. You did. By not paying the responsibility you took on when you bought it. Your problem is not the timeshare's fault.

We are sorry for your predicament, but not sympathetic. This is the Timeshare USER'S Group. We use our timeshares. And when some deadbeat defaults on their responsibility, all our payments go up to cover what people like you didn't pay, along with the legal fees to collect it.

So pay up what you owe, then either USE the TS or get rid of it. We can help with that part.

Jim

 

[Passepartout]

As true, honest, straightforward, or accurate as your statement might be, It was worded quite harshly.

Not arguing your point, simply giving an opinion.

OK. I accept that. I did not sugar coat my opinion. Your turn. Use your words to address someone who chose not to pay his MF for decades while others paid them through the resort's increases, and now that he NEEDS a good credit score is here looking for an easy way out of the debt.

Go ahead. What say you?