Desperate Help With Maintenance Fees and Loan Needed

[RollBulldogs]

First of all, let me start out by stating that I'm an idiot in desperate need of advice. I had a 1 Bedroom Suite that I bought in 2013 that I had paid off, and back in April 2021 was given a 7 day/ 6 night stay at an Orlando resort to listen to their upgrade presentation. Long story-short they convinced my wife and I to upgrade and use the paid-off suite for equity, and came out taken a $40,000 loan with 10.99% interest ($582/month) and a 2021 maintenance fee of $1189. My wife and I were doing pretty well financially at the time and got overconfident that we could keep up with the payments, but now realize we'd made a big mistake. We thought that the 2021 maintenance fees that we paid in Dec 2020 would carry over, but a couple weeks ago we get a letter in the mail stating that the 2021 maintenance fee was overdue with late fees, lockout fees, and now an activations fee totaling $1576; we also have 2022 maintenance fees due on Jan 1, but the HOA said that they can give 45 days without late fees. To make matters worse, last week we noticed a couple stains on our kitchen ceiling and a crack, and had a roofer come out and quote us $3663 to fix the roof (home insurance deductible is $2500). My questions are as follows:

1) What possible options do I have to lessen my 2021 maintenance fee (or at least lockout and activation fees), and lessen my 2022 maintenance fees?
2) What possible options do I have to get rid of my loan, and go back to my 1 Bedroom Suite without negatively affecting my credit?
3) Any other (constructive) advice welcome.

 

[alwysonvac]

Welcome to TUG.

It’s like any other type of loan, if you don’t pay it expect to get the credit hit.
Sorry you didn’t find us earlier. We would have told you to rescind on that upgrade offer .

[ 2022 ] Timeshare Default Credit Report/Collection Tracking

Some of you know I have been tracking this. Out of four (4) more TS defaults reported on TUG Facebook, one (1) got his credit affected. I have tabbed the following stats(updated 5/2022): TS defaults w credit drops: 47 out of 107 TS defaults w collections: 12 out of 107 TS defaults w...

tugbbs.com

 

[GT75]

1) What possible options do I have to lessen my 2021 maintenance fee (or at least lockout and activation fees), and lessen my 2022 maintenance fees?
2) What possible options do I have to get rid of my loan, and go back to my 1 Bedroom Suite without negatively affecting my credit?
3) Any other (constructive) advice welcome.

One option to lesson MF is to pay them with bonus pts which you should have received with the upgrade. You will only get $0.10/bonus pts. It isn’t the best use of bonus pts but is an option.

On item #2, I can not think of any options except default however you will be defaulting on your complete ownership.

Welcome to TUG. Sorry that I don’t have any better advise.

 

[HuskerATL]

Unfortunately, I agree with the other responses but I am a little confused about the 2020 MF. If you paid in Dec 2020, that would be your 2021 MF unless you are saying the 2021 MF are for the new timeshare. If that is the case, then maybe you can contact them and let them know that you paid MF for 2021 but you only owned it until April 2021 so how can those MFs be applied to your new one. Ideally, that could have been negotiated during the upgrade.

For the loan, your best option may be a lower interest loan to pay off that one. At least, you would save money on the interest.

Sorry to hear this though but welcome to TUG.

 

[alwysonvac]

Perhaps you can try HGVC Member Solutions (see link). It looks like they offer finance options.

https://club.hiltongrandvacations.c...l&utm_source=arda-landingpg&utm_campaign=arda​

Just beware of Timeshare Exit Company Scams

Don't Fall for Timeshare Exit Scams

Sketchy firms are targeting older timeshare owners with hollow promises to get them out of their contracts for a hefty upfront fee.

www.kiplinger.com

HGVC Resale/Rental Scam Alert:

https://club.hiltongrandvacations.com/en/help/club-navigator/Resale-Rental-Service-Alert​

HGV Resale FAQs:

https://d1m2ucn09z2f8d.cloudfront.n...-f0ba-44c6-b629-d709a2d32fe1/Resales-FAQs.pdf​

 

[ccwu]

1) What possible options do I have to lessen my 2021 maintenance fee (or at least lockout and activation fees), and lessen my 2022 maintenance fees?
2) What possible options do I have to get rid of my loan, and go back to my 1 Bedroom Suite without negatively affecting my credit?
3) Any other (constructive) advice welcome.

2.& 3.

Could you get home equity loan, at least lower interest rate to pay off the HGV loan? Talk to your banker. Home equity loan is about 3.75%. We had one for 3%. There is no or minimal closing cost. The bank can analyze how much max to lend you. Always borrow the max. You have the line of credit and you don’t have to use them all.


Sent from my iPhone using Tapatalk

 

[GT75]

Unfortunately, I agree with the other responses but I am a little confused about the 2020 MF. If you paid in Dec 2020, that would be your 2021 MF unless you are saying the 2021 MF are for the new timeshare.

Typical developer purchase HGVC TS, they will charge you current years MF, but also give you current years point allotment. This is for your new purchase.

 

[RollBulldogs]

Thanks all for the replies and advice. I'm guessing there isn't a way I could treat the new suite like you would a car and sell it for the "blue book" value to pay off the loan, could I? Am I basically stuck with a loan no matter what? Are there any go-to resources for choosing to default on a loan that you can get an idea of what will happen? My wife and I have our "forever home" (still paying mortgage), and two decent cars (loan on my wife's still) but I might need a new car in the next 5 years. Otherwise I can't think of anything immediately that I'd need a good credit score for. Sorry for the tangent of questions.

 

[Janann]

I'm guessing there isn't a way I could treat the new suite like you would a car and sell it for the "blue book" value to pay off the loan, could I?

You are correct. The timeshare needs to be free and clear of the loan before it can be sold. You haven't said what you own, but the sales price on the timeshare is in all likelihood going to be very little compared to the loan balance of $40,000.

Keep reading and learning on this website. There is no easy way out of this deal, but at least the people here will give you honest, realistic advice.

 

[GT75]

I'm guessing there isn't a way I could treat the new suite like you would a car and sell it for the "blue book" value to pay off the loan, could I?

In general, this TS isn’t worth very much resale. You haven’t told us what you have purchase but resale can very somewhere between $0 and maybe $1/pt. It certainly won’t be worth anywhere near 40K. If you want to tell us what you have purchased, we can probably give you a better resale value.

 

[Talent312]

You may want to ask them if they'll take a deed in lieu of foreclosure.
In some states, even if they foreclose, they can't get you for deficiency.
However, you may want to discharge the debt thru Bankruptcy.
I suggest that you consult a Bankruptcy attorney about that option.
.

 

[rrsafety]

Are you in a profession where you need to keep your credit score high? If not, consider defaulting on the TS and expect to pay cash for your next (very) used car. If they come after you hard for the default money, be prepared to settle.

 

[rangnatp]

@RollBulldogs - please be careful if you choose to default. Contact an attorney first. The mortgage on your “dream home” may be called in (meaning you have to pay in full) as well as the loan on your wife’s car (may have to pay in full). That could put you in a very bad situation. If your credit score drops, it affects everything you owe money on.

 

[RollBulldogs]

I have a 2 bdr at the Elara with 8400 points annually.

 

[HuskerATL]

I have a 2 bdr at the Elara with 8400 points annually.

That is a nice annual point allotment for Elara but, unfortunately, it won't sell for what you owe on it through resales. Take a peek at the Tug marketplace, Ebay, and the ROFR site, http://www.rofr.net/, to see what is being asked for them and what they have sold for. Not the message that you wanted to hear but wanted you to be aware. You are probably stuck with it and will need to either stick with where you are at, refinance to a different loan with better terms, or default.

 

[Janann]

@RollBulldogs. The mortgage on your “dream home” may be called in (meaning you have to pay in full)

I don't think that is possible in most states. An attorney in your state could provide a better answer.

 

[alwysonvac]

Links to Official State Timeshare Laws and Guides/Manuals

@TUGBrian @DeniseM @CalGalTraveler take a look. This weekend, I’m creating a spreadsheet with official links to states’ timeshare laws, as well as their statuses as to non-judicial, anti-deficiency foreclosures. In the meantime, I will just keep adding notes. * Legal Disclaimer: This list...

tugbbs.com

 

[rickandcindy23]

@RollBulldogs - please be careful if you choose to default. Contact an attorney first. The mortgage on your “dream home” may be called in (meaning you have to pay in full) as well as the loan on your wife’s car (may have to pay in full). That could put you in a very bad situation. If your credit score drops, it affects everything you owe money on.

Contacting an attorney is throwing good money away, in my opinion.

First you ask Hilton's finance company to work with you, then you do what you have to do, if they refuse. Next, consider a second mortgage or refinancing your current one to pay this loan off and keep the timeshare. After all, you did sign for it. We bought timeshares when we really couldn't afford them in 1982 and 1984. We were in our twenties and tried to rescind, but we were unable to rescind. We paid them off with a second mortgage. We especially regretted our first purchase. We just had to buy that timeshare and thought it all made so much sense.

I suggest defaulting, if you really cannot afford the payments. Write a letter to the credit bureaus, explaining to them that you were scammed by a timeshare presentation and see how far that goes in fixing your credit.

I can afford to pay cash for a car, yet I drive around a 19-year-old car that is still in top condition mechanically. Keep your cars for a while and see if that doesn't save you big money.

 

[CalGalTraveler]

Unfortunately, Nevada is not a judicial, anti-deficiency state. Florida is so you can walk without repercussions if you owned there.

In Nevada, you cannot default without the creditors potentially coming after your home and automobiles. It sounds like you cannot afford an unexpected $2500 bill so you should not be owning a timeshare. Call HGVC and find out how you can renegotiate and get a deed in lieu of foreclosure.

Links to Official State Timeshare Laws and Guides/Manuals

@TUGBrian @DeniseM @CalGalTraveler take a look. This weekend, I’m creating a spreadsheet with official links to states’ timeshare laws, as well as their statuses as to non-judicial, anti-deficiency foreclosures. In the meantime, I will just keep adding notes. * Legal Disclaimer: This list...

tugbbs.com

 

[bogey21]

I have an aversion to lawyers but in this case I'd talk to one, maybe a bankruptcy lawyer who could advise you on both the implications of bankruptcy and defaulting on your TS...

George

 

[Grammarhero]

I have a 2 bdr at the Elara with 8400 points annually.

@RollBulldogs We hope you are well and healthy. If you make the difficult decision to default, please kindly let us know if your credit got affected. It would help tuggers in similar situations moving forward.

 

[Ellie23]

@RollBulldogs We hope you are well and healthy. If you make the difficult decision to default, please kindly let us know if your credit got affected. It would help tuggers in similar situations moving forward.

I wasn't sure where to post this but I just wanted to add input to my default situation. I and my (now) ex boyfriend signed a timeshare contract with Grandview at Las Vegas in 2015. We stopped making mortgage fees in 2018 and my credit hasn't yet been affected (now march 2022). I did default on a maintenance fee a couple years ago and I was sent to collection but not my ex even though we both signed the paperwork equally. I am still waiting to see if I get sent to collections again as I will not be paying this years maintenance fee.

 

[Grammarhero]

First of all, let me start out by stating that I'm an idiot in desperate need of advice. I had a 1 Bedroom Suite that I bought in 2013 that I had paid off, and back in April 2021 was given a 7 day/ 6 night stay at an Orlando resort to listen to their upgrade presentation. Long story-short they convinced my wife and I to upgrade and use the paid-off suite for equity, and came out taken a $40,000 loan with 10.99% interest ($582/month) and a 2021 maintenance fee of $1189. My wife and I were doing pretty well financially at the time and got overconfident that we could keep up with the payments, but now realize we'd made a big mistake. We thought that the 2021 maintenance fees that we paid in Dec 2020 would carry over, but a couple weeks ago we get a letter in the mail stating that the 2021 maintenance fee was overdue with late fees, lockout fees, and now an activations fee totaling $1576; we also have 2022 maintenance fees due on Jan 1, but the HOA said that they can give 45 days without late fees. To make matters worse, last week we noticed a couple stains on our kitchen ceiling and a crack, and had a roofer come out and quote us $3663 to fix the roof (home insurance deductible is $2500). My questions are as follows:

1) What possible options do I have to lessen my 2021 maintenance fee (or at least lockout and activation fees), and lessen my 2022 maintenance fees?
2) What possible options do I have to get rid of my loan, and go back to my 1 Bedroom Suite without negatively affecting my credit?
3) Any other (constructive) advice welcome.

We hope you are well and healthy. If you make the difficult decision to default, please kindly let us know if your credit got affected. It would help tuggers in similar situations moving forward.