Defaulting on the loan: Should I involve a lawyer?

[Grammarhero]

@JohnLee6072

California

Time-Share Manual, Cal. Dept. Real Estate, Sec. Anti-Deficiency Judgment, pg. 27; Cal. Civ. Code Sec. 2911 & 882.020

AD

4 yrs

AD

NJ FC: 10 years after maturity; J FC: 4 yrs after maturity

No

Both

http://www.dre.ca.gov/files/pdf/timeshare_manual.pdf (page 27) https://leginfo.legislature.ca.gov/...ion=3.&title=14.&part=4.&chapter=1.&article=6. https://leginfo.legislature.ca.gov/...ision=2.&title=5.&part=2.&chapter=2.&article= Operative Language: “The Department has taken the position that the anti-deficiency judgment provisions of the Code of Civil Procedure, Section 580(b), are applicable to sales of time-share interests. Each such contract or financing instrument should contain a statement where the subdivider declares he will not seek a deficiency judgment in the event of a default by a purchaser.” Operative language: “Anything to the contrary notwithstanding, any lien heretofore existing or which may hereafter exist upon real property to secure the payment of a public improvement assessment shall be presumed to have been extinguished at the expiration of four years after the due date of such assessment or the last installment thereof” Cal. Civ. Code 2911 Operative Language: “the lien expires at, and is not enforceable by action for foreclosure commenced, power of sale exercised, or any other means asserted after, the later of the following times: (1) If the final maturity date or the last date fixed for payment of the debt or performance of the obligation is ascertainable from the recorded evidence of indebtedness, 10 years after that date.” Cal. Civ. Code Sec. 882.020. Note: CA allows anti-deficiency treatment, even with objections. MF defaults have four (4) year SOL. If the TS mortgage default is pursued judicially, the SOL is 4 years after maturity. If the TS mortgage default is pursued nonjudicially, the SOL is 10 years after maturity.

 

[JohnLee6072]

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.

1. $10,000, or $12,500 if i put the money into escrow "pay only if we win".
2. Protect my credit, exit the timeshare
3. Welks used aggressive sales tactics which they were sued for around 2018. My circumstances "Qualified" when brought to the team of attorneys.

The timeshare exit company wouldnt let me speak to a laywer before I continued with them. So I declined. I don't understand why i couldn't speak to the attorney who would be representing me. Now I'm going to call Welks and tell them im missing next month and every month after. I have nothing to give them and they won't accept anything less than the full amount. So good bye credit score.

 

[JohnLee6072]

@JohnLee6072

California

Time-Share Manual, Cal. Dept. Real Estate, Sec. Anti-Deficiency Judgment, pg. 27; Cal. Civ. Code Sec. 2911 & 882.020

AD

4 yrs

AD

NJ FC: 10 years after maturity; J FC: 4 yrs after maturity

No

Both

http://www.dre.ca.gov/files/pdf/timeshare_manual.pdf (page 27) https://leginfo.legislature.ca.gov/...ion=3.&title=14.&part=4.&chapter=1.&article=6. https://leginfo.legislature.ca.gov/...ision=2.&title=5.&part=2.&chapter=2.&article= Operative Language: “The Department has taken the position that the anti-deficiency judgment provisions of the Code of Civil Procedure, Section 580(b), are applicable to sales of time-share interests. Each such contract or financing instrument should contain a statement where the subdivider declares he will not seek a deficiency judgment in the event of a default by a purchaser.” Operative language: “Anything to the contrary notwithstanding, any lien heretofore existing or which may hereafter exist upon real property to secure the payment of a public improvement assessment shall be presumed to have been extinguished at the expiration of four years after the due date of such assessment or the last installment thereof” Cal. Civ. Code 2911 Operative Language: “the lien expires at, and is not enforceable by action for foreclosure commenced, power of sale exercised, or any other means asserted after, the later of the following times: (1) If the final maturity date or the last date fixed for payment of the debt or performance of the obligation is ascertainable from the recorded evidence of indebtedness, 10 years after that date.” Cal. Civ. Code Sec. 882.020. Note: CA allows anti-deficiency treatment, even with objections. MF defaults have four (4) year SOL. If the TS mortgage default is pursued judicially, the SOL is 4 years after maturity. If the TS mortgage default is pursued nonjudicially, the SOL is 10 years after maturity.

I'm guessing with Welk's hurting from Covid-19 (as all travel is), They will pursue judicially. I never knew how deceptive a sales person could be. Now I don't trust anyone. I'm absolutely cynical.

 

[LannyPC]

1. $10,000, or $12,500 if i put the money into escrow "pay only if we win".
2. Protect my credit, exit the timeshare
3. Welks used aggressive sales tactics which they were sued for around 2018. My circumstances "Qualified" when brought to the team of attorneys.

The timeshare exit company wouldnt let me speak to a laywer before I continued with them. So I declined. I don't understand why i couldn't speak to the attorney who would be representing me. Now I'm going to call Welks and tell them im missing next month and every month after. I have nothing to give them and they won't accept anything less than the full amount. So good bye credit score.

So in your OP, you said that you still owe $31,000 and that you already paid $15,000. So is this law firm going to exit you from the TS, refund you the $15,000 you already paid, and cancel the $31,000 debt just as if you exercised your rights of rescission had you done so within the 10-day window you had?

Is it worth $10,000-$12,500 to you to protect your credit?

As for this escrow company, who recommended it? If it's the law firm about which you are inquiring, those two could be one and the same or at least "in bed" together.

As for having our circumstances "qualified", qualified for what? If it's because of Welks' aggressive sales tactics, that's not a legal loophole to rescind a TS purchase after the rescission period expires. Even if it were, you would have to be able to prove with evidence that they used these tactics. What proof do you have that would stand up in court?

So please let me know if i am understanding you correctly. Every purchaser has a rescission period (anywhere from 5-15 days depending on where the contract was signed) that cancels the purchase and returns all money to the purchaser. This right is granted regardless of the sales methods used. However, if the sales people were aggressive, deceitful, and/or held you there longer than the agreed-upon time, this law firm can legally extend your rights of rescission. Is that correct?

 

[Grammarhero]

I'm guessing with Welk's hurting from Covid-19 (as all travel is), They will pursue judicially. I never knew how deceptive a sales person could be. Now I don't trust anyone. I'm absolutely cynical.

@JohnLee6072 We hope you are well and healthy. If you made the hard decision to default, mind sharing if your credit score got affected? It would help tuggers in similar situations moving forward.

 

[JohnLee6072]

@JohnLee6072 We hope you are well and healthy. If you made the hard decision to default, mind sharing if your credit score got affected? It would help tuggers in similar situations moving forward.

I am defaulting and yes my credit was hit. From 750 to 600. 3 missed payments at 90 days.
Also the timeshare exit companies keep calling me and advising me that I'm making a dangerous mistake.

 

[dioxide45]

I am defaulting and yes my credit was hit. From 750 to 600. 3 missed payments at 90 days.
Also the timeshare exit companies keep calling me and advising me that I'm making a dangerous mistake.

Where do you own and what timeshare company?
@Grammarhero

 

[Grammarhero]

I am defaulting and yes my credit was hit. From 750 to 600. 3 missed payments at 90 days.
Also the timeshare exit companies keep calling me and advising me that I'm making a dangerous mistake.

Maybe showing you an Inside Edition investigation of a TS exit company endorsed by Dave Ramsey might help.

seriously, a TS exit company cannot protect your credit. You signed a life long contract, and Welk is legally entitled to report you. Nothing a law firm can do will change that.

An exit company is often as deceptive, if not more so, than TS salespeople. Let that sink in.

 

[JohnLee6072]

Hello again everyone. I did not involve a lawyer and I have gone through the defaulting process. Now I'm sitting in limbo. The credit bureaus are saying my wells account has gone through a involuntary repossession. Am I one day expecting a letter that says my relationship with Welks has ended or worse case scenario, a summons to appear at court.

 

[LannyPC]

Am I one day expecting...a summons to appear at court.

Maybe Grammar Hero can chime in on this but I don't think anyone here who has defaulted has reported a summons to appear in court.

 

[JohnLee6072]

Maybe Grammar Hero can chime in on this but I don't think anyone here who has defaulted has reported a summons to appear in court.

It seems like I'm done. I hope. I took the credit hit and Welks stopped calling a while ago.

 

[DrQ]

It seems like I'm done. I hope. I took the credit hit and Welks stopped calling a while ago.

Regularly check your name with your county clerk to get a heads up on any pending legal action until the statute of limitation expires for your state.

Even if Welk has written off the debt, there is nothing that keeps them from selling the debt for pennies on the dollar to a third party debt collector.

 

[rickandcindy23]

It seems like I'm done. I hope. I took the credit hit and Welks stopped calling a while ago.

Now you write to the credit reporting agencies and explain the duress you experienced during your timeshare presentation and outline any lies told while at the table as well. Credit reporting agencies absolutely believe timeshares are a scam. I know this for a fact because friends of ours had three timeshares they defaulted on. They wrote many letters, and spent some time, but their credit was restored. Yeah, they didn't learn the lesson the first time. Not only did they not learn the lesson, they called from Mexico and told us they went on a timeshare presentation and were considering a purchase. I told him (fellow firefighter of Rick's) to walk away right now and don't look back. They apparently cannot say no to the presentation or no to the pitch.

 

[JohnLee6072]

Now you write to the credit reporting agencies and explain the duress you experienced during your timeshare presentation and outline any lies told while at the table as well. Credit reporting agencies absolutely believe timeshares are a scam. I know this for a fact because friends of ours had three timeshares they defaulted on. They wrote many letters, and spent some time, but their credit was restored. Yeah, they didn't learn the lesson the first time. Not only did they not learn the lesson, they called from Mexico and told us they went on a timeshare presentation and were considering a purchase. I told him (fellow firefighter of Rick's) to walk away right now and don't look back. They apparently cannot say no to the presentation or no to the pitch.

Thank you. I'll do that now.