Defaulting on the loan: Should I involve a lawyer?

[am1]

They said they would never do that. Something like If your looking for us to handle the loan outside of a debt collection agency, We do not do that.
The people at Welks are so sweet and welcoming. Talking to their loans department showed me their true side.

Most likely the debt was sold to someone else. Not as easy to erase it. If they let you out then they would have to let others out that asked.

 

[DrQ]

My shill alert is going off, I'm out.

 

[VacationForever]

My shill alert is going off, I'm out.

Smelling a fish eh?

 

[dioxide45]

Why don't you just contact the resort and tell them you are not going to keep paying and see if they will take the week back? If you really have already paid what you said you did, they may be able to let you off the hook

There is still $31K tied up in a loan. The resort doesn't care as long as they get the MFs. Welk on the other hand is obligated to collect on that loan. Either by way of payments or foreclosure. Based on past posts, it seems CA is a non recourse state. So after foreclosure the lender can't try to collect monies that foreclosure sale didn't cover. So worst case here is lost timeshare and perhaps a credit hit.

 

[RX8]

I don’t know anything about Global Timeshare Attorneys or the attorney but googling I see multiple instances where she or her firm are the defendants in cases.

 

[bogey21]

Thank you but bankruptcy would put my parents home in trouble.

Whoa... Who said defaulting on TS Loan would force you into bankruptcy? All you need to do is determine for sure if lender can (or can't) get a deficiency judgement against you if you default on TS Loan. Most on this thread say they can't. I believe they are correct. But it is not a good idea to rely 100% on Internet advice. I'm not big on hiring lawyers but in this case spending $200 or $300 to have your own lawyer tell you with certainty whether this is true or not should allow you to decide if defaulting on the TS Loan is the way for you to go...

George

 

[TheTimeTraveler]

That was the plan, until covid-19 hit and we lost out jobs.

I would touch base with Welk, explain your situation (i.e. job loss & lack of assets), put the ball in their court, and see how they respond prior to spending any up front money for anything.

The worse case is they can say is no. And just maybe, they can offer you some type of alternate option for you.....

Best of luck!



.

 

[LannyPC]

They tell me their on my side since the sales tactics were aggressive.

How much are they going to charge you? And you say these attorneys are going to get you out of your contract. Did they say how and exactly what that means? For instance, are these attorneys going to get you a refund of what you paid and return ownership to the developer? IOW, are you going to be able to exercise your rights of rescission long after the rescission period expired?

As for the seven points you mentioned about the sales people's tactics, you have to be able to prove that that is what happened. For instance, can you prove that you were there for eight hours? Can you prove that the sales people said the things you said that they said? Are you absolutely sure they never informed you about your rights of rescission? By law, they have to include that in the contract. They might not have to say it verbally but they do have to include it in writing.

 

[JohnLee6072]

Another big concern I have now is in my newly found desperate financial situation, just as I am taking drastic moves, Welks may take even more to make sure I can't leave. My thoughts spin out of control now and every conclusion leads to the worst case scenario. I ruin my credit score and I can't escape Welks.

 

[bogey21]

You are over thinking and procrastinating. Reread all the posts on this thread super carefully. Take notes, reread the pertinent ones then decide and act on a course of action. Continually talking about your situation will get you nowhere...

George

 

[Passepartout]

Another big concern I have now is in my newly found desperate financial situation, just as I am taking drastic moves, Welks may take even more to make sure I can't leave. My thoughts spin out of control now and every conclusion leads to the worst case scenario. I ruin my credit score and I can't escape Welks.

Go over the answers you've received here. Then DO SOMETHING! The worst they can do is ding your credit. That can be repaired. Believe me, a timeshare foreclosure is not nearly the disaster that- for instance- not having $31K to help a kid go to college. Remember, that timeshare already has ZERO monetary value, and it won't miraculously get any by paying it off.

Good Luck!

Jim

 

[LannyPC]

My shill alert is going off...

What would ever give you that idea?

The fact that the OP specifically named this company in the OP?
The fact that the OP won't answer the basic question How much is this company going to charge you?
The fact that the OP won't answer how the said company plans to get the owner out of the timeshare?
The fact that the OP keeps shooting down the advice that TUGgers give him/her the best course of action and then the OP keeps directing attention back to how said company will help him/her?
The fact that, considering the OP is allegedly unknowledgeable about the TS industry by falling for the sales pitch but, in the OP now seems to know a lot more about it?
The fact that in post #9 the OP spells out the company's contract that seems mouth-watering to someone who's trying to get out of a bad TS contract?
The fact that the OP keeps putting the name of the company in bold print?
The fact that points 1-7 in post #23 is what we would see on a website for these exit/cancel/relief companies (yes, I've looked at such web sites for mild entertainment purposes)?

Hmm, maybe the OP is a shill but...innocent until proven guilty.

 

[DrQ]

What would ever give you that idea?

The fact that the OP specifically named this company in the OP?
The fact that the OP won't answer the basic question How much is this company going to charge you?
The fact that the OP won't answer how the said company plans to get the owner out of the timeshare?
The fact that the OP keeps shooting down the advice that TUGgers give him/her the best course of action and then the OP keeps directing attention back to how said company will help him/her?
The fact that, considering the OP is allegedly unknowledgeable about the TS industry by falling for the sales pitch but, in the OP now seems to know a lot more about it?
The fact that in post #9 the OP spells out the company's contract that seems mouth-watering to someone who's trying to get out of a bad TS contract?
The fact that the OP keeps putting the name of the company in bold print?
The fact that points 1-7 in post #23 is what we would see on a website for these exit/cancel/relief companies (yes, I've looked at such web sites for mild entertainment purposes)?

Hmm, maybe the OP is a shill but...innocent until proven guilty.

 

[Talent312]

Whatever he is, he seems determined to ignore the advice given here.
If he's legit, he's intent on throwing the little $$ he has down a rat-hole.
They say, "You can lead a horse to water, but you can't make him drink."

... OTOH, If he's not, then he's he's just wasted his time here, and ours.
.

 

[JohnLee6072]

What would ever give you that idea?

The fact that the OP specifically named this company in the OP?
The fact that the OP won't answer the basic question How much is this company going to charge you?
The fact that the OP won't answer how the said company plans to get the owner out of the timeshare?
The fact that the OP keeps shooting down the advice that TUGgers give him/her the best course of action and then the OP keeps directing attention back to how said company will help him/her?
The fact that, considering the OP is allegedly unknowledgeable about the TS industry by falling for the sales pitch but, in the OP now seems to know a lot more about it?
The fact that in post #9 the OP spells out the company's contract that seems mouth-watering to someone who's trying to get out of a bad TS contract?
The fact that the OP keeps putting the name of the company in bold print?
The fact that points 1-7 in post #23 is what we would see on a website for these exit/cancel/relief companies (yes, I've looked at such web sites for mild entertainment purposes)?

Hmm, maybe the OP is a shill but...innocent until proven guilty.

yikes. I don't know what good answering any of these will do, I've called 4 exit companies now, only 1 offers and escrow for "payment after contract cancellation" but was 25% additional cost. But then they wont let me speak to their lawyers...
everyone's promising the same thing. My minimum effort is, Stop all payments to Welks. shop around for TS lawyers and if that fails, hire consult on bankruptcy/credit repair. Im guessing a shill is an advertising agent, which I 100% will be for FREE if any of these companies actually save me ass.

 

[JohnLee6072]

Whoa... Who said defaulting on TS Loan would force you into bankruptcy? All you need to do is determine for sure if lender can (or can't) get a deficiency judgement against you if you default on TS Loan. Most on this thread say they can't. I believe they are correct. But it is not a good idea to rely 100% on Internet advice. I'm not big on hiring lawyers but in this case spending $200 or $300 to have your own lawyer tell you with certainty whether this is true or not should allow you to decide if defaulting on the TS Loan is the way for you to go...

George

I got quoted 400$ a hour for a TS attorney and ill probably take it to just make sure. I tried reading through the documents TUG users have shared but I can't find anything on the anti-deficiency judgements other than what TS attorney groups say on their website. Not sure why i said that thing about bankruptcy. I think someone here recommended it.

 

[JohnLee6072]

No matter what happens here, I really appreciate this forum. I don't know anyone else in my position and I can't trust anyone with a google ad. The support here is very helpful. It's hard to admit so many of my mistakes to my friends and family.

 

[bogey21]

I got quoted 400$ a hour for a TS attorney and ill probably take it to just make sure..

If you have a deed, your Week is Real Estate. The question you want answered is "If they forclose on me can they come after me for the balance I owe"? The consensus on this Board is they can't. What you really need is a Real Estate Attorney. Start talking TS Attorney and the rate goes up. I'll bet you can probably find one for closer to $200...

George

 

[LannyPC]

Im guessing a shill is an advertising agent, which I 100% will be for FREE if any of these companies actually save me ass.

https://tug2.net/timeshare_advice/timeshare_shills.html

 

[LannyPC]

I don't know what good answering any of these will do, I've called 4 exit companies now....

Well if you answer these following questions truthfully:

1) How much is this company charging you to allegedly cancel your contract?
2) What are you hoping to accomplish using this company/lawyer?
3) How exactly does this company/lawyer plan to cancel your contract?

then we here on TUG can give you some advice as to your best and cheapest course of action.

 

[Fredflintstone]

Please read page 27 of this document. Please read the sub title under Anti-deficiency Judgements . I think it will answer your question. If you have questions, contact the California Real Estate Commission. They are in charge of timeshare rules.

https://www.dre.ca.gov/files/pdf/timeshare_manual.pdf

Sent from my iPad using Tapatalk

 

[elaine]

If you have questions, contact the California Real Estate Commission. They are in charge of timeshare rules.

I'd do this. The other thing you can do is search court records for foreclosures for Welk and find out if they are IN REM-which means they're only seeking a judgement against the real property. They likely do them in bulk.
That will give you an idea of what they typically do.
My quick google search found this--did you purchase in 2016 or earlier?https://welkresorts.com/resolution, https://oag.ca.gov/news/press-relea...iego-district-attorney-stephan-secure-3550000
Personally, given above, if you bought after 2016, I'd contract Welk again (their compliance or general counsel/corporate office, as opposed to sale office) with this info of above settlement and that you were also victim of misleading 8 hour high pressure sales pitch, let them know you also want to give your TS back (even without any compensation). If you still hit a brick wall, I'd then contact the atty gen # in the press release and ask them what recourse you have for sale pitch after 2016. You might even get information from them about what the consequences of letting them default are--or they could direct you to a state consumer atty. I expect they've gotten calls from others as well.
Above assumes loan is thru Welk. If 3rd party, then debt law/rules are likely different. However, if you bought from 2011-2016, you'd fall under above relief.
Good luck. Elaine

 

[RX8]

I got quoted 400$ a hour for a TS attorney and ill probably take it to just make sure. I tried reading through the documents TUG users have shared but I can't find anything on the anti-deficiency judgements other than what TS attorney groups say on their website. Not sure why i said that thing about bankruptcy. I think someone here recommended it.

Many here have essentially said you would be throwing good money after bad by enlisting the services of an exit company. You seem to have made up your mind already and are looking for confirmation but you are not going to find it here. At the end of the day it is your money to spend. If you have thousands of dollars available to put at risk then it is your choice, and yours alone, to move forward.

 

[presley]

Who is your loan with? You are under obligation to whoever that is. You could always try to get a loan at a lower rate somewhere else and transfer your debt, but whatever the financial company is that you are paying is owed the money. They have nothing to do with the resort. With that said, you may have the option of having Welk list your timeshare for sale through them if they believe they can sell for enough to pay off your loan and still make it worth their while.

You can default on MFs whenever you want. An option would be to contact the resort where you pay your MFs, tell them that you are under water and that you aren't going to pay any MFs going forward. They probably can't take the deed back since it isn't paid off, but you don't have to pay if you don't care what happens and I think you alluded to that in a previous post.

Debt is debt, though. A timeshare debt is the same as credit card debt, medical debt, car debt, etc. Someone has to pay for it and it should be the person who incurred the debt.

 

[dioxide45]

Debt is debt, though. A timeshare debt is the same as credit card debt, medical debt, car debt, etc. Someone has to pay for it and it should be the person who incurred the debt.

But there are remedies if you can't, won't or are unable to repay the debt. There are also consequences.