Downgrading, modifying or cancelling you contrat to buy a timeshare?

[wanderlust]

Two months ago we purchased a 2 bedroom timeshare for 28,500 at the Grand Chateau, Las Vegas after attending a sales presentation. We put ten percent down at the time.

We're now home and think its too much money, period. We enjoy the vacations and quality and stuff, its just the money. The loan has since closed and we received our first statement.

What are our options to back out of this contract/reduce the financial burden?

1. Are we allowed to cancel the contract entirely?

2. Can we Downgrade to a one bed EOY for $10,160, reducing our financial burden and saving our deposit?

3. Can we sell the two bedroom, or will it sell at way too low compared to what we bought it at?


We would much rather back out entirely and lose the deposit of $2580.00, but then if we cannot and it affects our credit, then 2. is the option we would prefer to go by.

Any advice or experience you have in downgrading, changing, cancelling your contract? Who do we contact?

 

[CMF]

I'm afraid that everyone will tell you there is nothing you can do.

Once the 10 day rescision period has passed you are pretty much locked in. I think the only option is to sell at this point and you will probably take a financial hit. I suspect that there are not may GCs on the resale market since it's a new resort and that may allow you to list it for a decent price - I have no idea what it would go for on the resale market.

I hope someone else has more hopeful advice.

Charles

PS There are only two listings on redweek.com. One is a eoy for which the asking price is $15K and the second is an annual and the asking price is $22K.

 

[Hoc]

Chances are, you're stuck. Since you just bought your unit, if you try to resell, expect that you will only get about 50 percent of what you paid on a resale.

If you really need out, your best bet is to call Marriott, throw yourself at their mercy, and hope they will let you out without paying too big a penalty. Your right to rescind ended a few days after you bought, and you have no absolute right to do anything but pay off your loan and enjoy your vacation.

But, if you find someone at Marriott who is willing to be nice, they might let you out with a couple of thousand dollar penalty.

 

[dougp26364]

At this point, just try to enjoy your purchase. It wouldn't hurt to ask Marriott but my experience with them after the period has ended is tough luck.

We had explained to our salesman that we wanted to make a cash purchase but needed to get home first. Our intention was to increase our Marriott Rewards credit limit so that we could use it to pay off the timeshare, then pay off the card. This would have given us another 35,000 Marriott Rewards points.

When we got home, we made the arrangements with the CC company but, we had to go back to work. It took a few days to call Marriott. The salesman had told us we'd have at LEAST 30 days to pay off the note.

However, what he did was set it up as an installment loan, figuring we'd have it paid off before the contract closed. Guess what? They closed it within 2 weeks and I called ONE DAY AFTER the contract closed. At that point, they would not let me pay off the contract using our MR card. It was either cash or check. The contract stated that any changes had to be made prior to closing and despite the fact I was only one day after the closing date, they wouldn't allow me to pay off the note using our MR credit card.

So, you can ask and I sincerely hope they'll let you out of it but, I wouldn't count on it. Read these forums and learn how to use your TS to the best of your ability. Next year, we're flying to Ireland and spending a week there staying at one of the Marriott hotels. The air and hotel are being paid for with Marriott Rewards points. Marriott's also exchange very well so if you don't want to go to Vegas, there are lots of other Marriott resorts for internal exchanges or Interval International resorts to exchange into.

If all else fails use it to your best advantage and just maybe you'll change your mind about it's value.

 

[Dave M]

You entered into a legal contract. Thus, all of the following constitute excellent advice:

Once the 10 day rescision period has passed you are ... locked in.

Chances are, you're stuck.

At this point, just try to enjoy your purchase.

If you bought a home or a car, do you think the seller would let you change your mind two months after you took ownership? Of course not! Marriott is no different. Marriott is not heartless, but it runs a business and won't let you back out (or "downgrade") now.

 

[Stefa]

I don't know your financial situation, but since you have a loan, you might still be better off selling at a loss and saving the interest you would pay if you keep the unit. You need to do an honest appraisal of your ability to pay off the loan. If you can pay it off in a year or two, it may not be so bad, but if you can't pay it off early, it will cost you a bundle. If you can sell for 18K (not saying you can, but you could try), you would really reduce the time it would take to pay off the loan. Just a thought.

 

[jerseyfinn]

I'm sorry to hear about your situation, but you're talking two months after signing the deal and certainly many weeks after closing.

Why did you allow so much time to pass before concluding that you wanted out?

I don't see any alternative except to enjoy the week and the travel/trades it can bring you, and to shop around for more attractive financing alternatives. Otherwise, if it's all about the money, then you'll have to give it up, but at a significant loss to you. Sadly, that's life and a lesson learned.

But for folks who are shopping for TS who read this thread, the lesson is to ponder carefully the implications of any timeshare purchase and to read the T&C of the legal documents which accompany the purchase ( actually this applies any large purchase ).

Barry

 

[JimC]

I don't know your financial situation, but since you have a loan, you might still be better off selling at a loss and saving the interest you would pay if you keep the unit. You need to do an honest appraisal of your ability to pay off the loan. If you can pay it off in a year or two, it may not be so bad, but if you can't pay it off early, it will cost you a bundle. If you can sell for 18K (not saying you can, but you could try), you would really reduce the time it would take to pay off the loan. Just a thought.

But if the OP sells for less than the loan amount they will have to come up with the difference to payoff the loan at closing.

They should take some time to examine carefully all of the options. Talk with a broker, like Seth Nock who can tell them what the contract is likely to get in the resale market. And they should keep asking questions here as well.

 

[Darlene]

Is the unit a lock-off? I would suggest you look into renting out the unit. If it is a lock-out, you can rent out the unit as 2 separate units. Is it a float week, what season? Get the best high demand week you can reserved, and rent it. Hopefully, it will help cover the mf and a little more. If you can hold onto it until the resort sells out, then you will have a better chance of selling it at a decent price. It is a fabulous resort, in a great location, and it will have alot of demand. I would not rent it through Marriott, though, they take a big cut.
Darlene

 

[Stefa]

I agree with you, Jim. Especially the part about contacting Seth Nock. I was just pointing out that, depending on their financial circumstances, keeping it might not make sense. IMO, if they would have trouble coming up with the money to close out the loan, that is all the more reason to consider selling. It may simply be a case of buyer's remorse and maybe they will end up keeping it and loving it, but it is just as possible that, after the excitement wore off, they realized timesharing just isn't for them.

 

[Hoc]

IMO, if they would have trouble coming up with the money to close out the loan, that is all the more reason to consider selling.

Perhaps, but if they can't pay to close out the loan, then they can't sell. Figure that, if they sell, they will probably have to pay as much as $18k in cash into the escrow in order to pay off the loan so that the sellers will take it.

 

[CMF]

Almost all Platinum

Is the unit a lock-off? I would suggest you look into renting out the unit. If it is a lock-out, you can rent out the unit as 2 separate units. Is it a float week, what season? Get the best high demand week you can reserved, and rent it. Hopefully, it will help cover the mf and a little more. If you can hold onto it until the resort sells out, then you will have a better chance of selling it at a decent price. It is a fabulous resort, in a great location, and it will have alot of demand. I would not rent it through Marriott, though, they take a big cut.
Darlene

If I remember correctly, GC is almost all platinum. The last two weeks of the year are platimun plus.

Charles

 

[Stefa]

I'm a little confused by the 18k. Are you saying that they would have to pay the loan off in full first or that they could only sell for about 8-10k? In that case, I see your point. I was assuming they would be able to sell for 15-18 which would put the balance in the 8-10k range.

 

[dougp26364]

I'm a little confused by the 18k. Are you saying that they would have to pay the loan off in full first or that they could only sell for about 8-10k? In that case, I see your point. I was assuming they would be able to sell for 15-18 which would put the balance in the 8-10k range.

In order to sell the unit and transfer a clear title, the loan will have to be paid off first. So, if they purchased the unit for $28,000 and only put down 10% or $2,800, they will have to come up with $25,200 in order to transfer clear title.

Resale value is typically 50% of developer pricing. A lot of times it's less. If they were able to get $14,000 for the two bedroom unit on the resale market, the seller would still have to come up with $11,200 cash in order to transfer clear title to the new owners.

Think of selling a car. If you owe $14,000 to the bank on the car and then sell the car for $10,000, the bank it going to want the other $4,000 they loaned you before they'll release their lean on the car and allow the title to transfer cleanly to the next owner.

The idea of renting out the units may not be a bad idea. However, you'll have to consider that this unit is in Vegas, home to the largest number of hotel rooms for one city in the world. Price compition can be stiff with all the casino's offering deals on rooms to draw people in to spend money on gambling, shows and shopping. Plus, renting may only cover the cost of the yearly MF's, which is in the $1,000 range for this property. Of course if may not even cover that. What a waste of a unit if you have to pay on a 17% interest note and never have use of the unit.

I really believe that at this point, the best thing the OP can do is use the unit and take some great vacations. Marriott has wondeful properties in more locations than most chains. We're using Marriott Rewards points for a week long vacation to Ireland where all we'll have to pay for is meals and a rental car. The airfare and hotel are paid for with our points. Marriott has great properties in many family oriented destinations as well as exotic worldwide destinations. Buyers remorse is a terrible thing but give it a shot and I'm sure you'll feel better about your purchase as years go on.

 

[Hoc]

I'm a little confused by the 18k. Are you saying that they would have to pay the loan off in full first or that they could only sell for about 8-10k? In that case, I see your point. I was assuming they would be able to sell for 15-18 which would put the balance in the 8-10k range.

I'm assuming that they can clear the loan at the closing of escrow, but that the sales price will probably be only 8-10k. So, into the escrow, they would deposit title, the seller would deposit 15-18k, and the buyer would deposit the purchase price. At the close of escrow, clear title could transfer to the buyer, free of the loan.