Deed in Lieu MVC

[Wrussell21]

Been awhile since I have been here and while I have had some issues since my last time posting.

After 6 months we recieved an offer from Marriott offering a deed in lieu of foreclosure regarding my MVCI point based timeshare. We verbally agreed on March 11th with Marriott and are just now awaiting the paperwork in the mail.

We also have past due MF's in the amount of $1900ish with a filed lien for the past due amount on the MFs. The lien was filed 11 days after er verbally committed to the deed in lieu.

The financial services supervisor that I spoke with on the phone about the deed in lieu of offer letter stated the MFs would be wiped out along with the remaining mortgage balance. I've read both cases that they want the MFs caught up but i have also read where Marriott has assumed responsibility for the MF balance.

I've read tons of topics on these forums but people rarely respond after the deed in lieu is processed. Does anyone know how this process works?

Thank you

 

[TheTimeTraveler]

Can't answer your question but am curious as to what Marriott Resort you own at in which you are giving the deed in lieu of foreclosure ?




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[andysnovel]

Can't answer your question but am curious as to what Marriott Resort you own at in which you are giving the deed in lieu of foreclosure

I have seen resales on MVC Points going into the thousands of dollars, I noticed a lot of them going for $2 a point, don’t know how many points you have, if you only owe $1,900, it almost seems like a no brainer to try and sell it??? Others on here are more familiar with the Marriott System etc, you may get a lot of interest in acquiring your deed lol

 

[rthib]

I have seen resales on MVC Points going into the thousands of dollars, I noticed a lot of them going for $2 a point, don’t know how many points you have, if you only owe $1,900, it almost seems like a no brainer to try and sell it??? Others on here are more familiar with the Marriott System etc, you may get a lot of interest in acquiring your deed lol

Problem is it is not a clear deed. They owe back maintenance and most people will not buy something that has a lien.
So someone would need to pay $1900 plus cost of week and then get it past ROFR.

 

[Wrussell21]

It's not a specific resort or week. It's 2,500 points a year that can be used at any resort in the MVC portfolio.

We bought it in 2016 while visiting Ko'olina however. I should say we also have an outstanding mortgage balance on it. So while working with a lawyer using a strategic default we got a deed in lieu offer after about 5-6 months.

Considering Florida is a no deficiency state in a non judicial foreclosure it's always in Marriott's best interest to offer the deed in lieu since they can't obtain a deficiency judgment after foreclosures on timeshares. So obviously a deed in lieu is the cheapest/easiest route.

It's a fairly weird system since it does have a deed but the deed is essientially for made up beneficial interests to a made up piece of real estate in flordia that has no real estate value.

One glance at the Orange County LIEN search will show 10000000s of people fed up with Marriott or timeshares in general.

If we could have done what they said we could we wouldnt have any issues but when I pay on it for 3 years without the ability to book a resort due to no availability then no sane person would continue to pay for something you can't use.

 

[TXTortoise]

Could find a buyer at $2.50/point on the resale market. If it doesn't pass ROFR, which is likely, then Marriott will take it at the contract price.

Without a broker you'd net $6250 on the contract. You'd have to pay off the mortgage of course first, but seems like you'd see come out ahead of a deed back.

 

[Dean]

Could find a buyer at $2.50/point on the resale market. If it doesn't pass ROFR, which is likely, then Marriott will take it at the contract price.

Without a broker you'd net $6250 on the contract. You'd have to pay off the mortgage of course first, but seems like you'd see come out ahead of a deed back.

And avoid the major credit hit which could include increases in CC interest rates, future purchase issues and increases for several insurance types among other possibilities. And for those with a security clearance, they could easily lose it.

 

[RX8]

Could find a buyer at $2.50/point on the resale market. If it doesn't pass ROFR, which is likely, then Marriott will take it at the contract price.

Without a broker you'd net $6250 on the contract. You'd have to pay off the mortgage of course first, but seems like you'd see come out ahead of a deed back.

The problem is that the OP has an outstanding mortgage.

Also, the deed back in lieu may not be without additional expense. Isn’t there tax liabilities with the debt forgiveness?

 

[Dean]

The problem is that the OP has an outstanding mortgage.

Also, the deed back in lieu may not be without additional expense. Isn’t there tax liabilities with the debt forgiveness?

My understanding is any forgiveness would count as earned income.

 

[SmithOp]

The problem is that the OP has an outstanding mortgage.

Also, the deed back in lieu may not be without additional expense. Isn’t there tax liabilities with the debt forgiveness?

Yes, op will get a 1099-C Cancellation of Debt, which he will have to report on 2019 Taxes - Line 21 Other Income. Marriott gets to write it off as loss (or whoever owns the mortgage debt).


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