• The TUGBBS forums are completely free and open to the public and exist as the absolute best place for owners to get help and advice about their timeshares for more than 27 years!

    Join tens of thousands of other owners just like you here to get any and all Timeshare questions answered!
  • TUG is asking for recent reviews of older resorts, earn a free year membership!

    Read more here
  • TUG has now saved timeshare owners more than $17,000,000 dollars just by finding us in time to rescind a new Timeshare purchase! A truly incredible milestone!

    Read more here: TUG saves owners more than $17 Million dollars
  • Follow the TUG Member Banner as it travels the world on vacation with Timeshare owners! Also sign up to get the banner sent to you so you can submit a photo of your vacation with the banner to share with TUG! Banner Thread
  • Sign up to get the TUG Newsletter for free! Join tens of thousands of other owners who get this every week! Latest resort reviews and the most important topics discussed by owners during the week!
  • Our official "end my sales presentation early" T-shirts are available again! Also come with the option for a free membership extension with purchase to offset the cost!

    Read more Here
  • A few of the most common links here on the forums for newbies and guests!

Foreclosure consequences

Artsondra

Guest
Joined
Aug 14, 2017
Messages
8
Reaction score
0
Points
1
Resorts Owned
Wyndham Bonnet Creek, Marriott Cypress Harbor, Diamond
What are the consequences of letting a timeshare (with Diamond Resorts) go into foreclosure?
 

bogey21

TUG Member
Joined
Jun 8, 2005
Messages
9,257
Reaction score
4,414
Points
649
Location
Fort Worth, Texas
What are the consequences of letting a timeshare (with Diamond Resorts) go into foreclosure?
If you don't have a loan outstanding, they will take it back if you ask. If you have an outstanding loan, the consequences will be the same as defaulting on any other debt.

George
 

Artsondra

Guest
Joined
Aug 14, 2017
Messages
8
Reaction score
0
Points
1
Resorts Owned
Wyndham Bonnet Creek, Marriott Cypress Harbor, Diamond
I've never defaulted on a debt before now, so, other than for a hit on my credit report (and I'd like to know how long that lasts), I do not know the consequences of defaulting on my loan.
 

silentg

TUG Review Crew: Expert
TUG Member
Joined
Jul 17, 2005
Messages
5,509
Reaction score
2,746
Points
649
Location
Central Florida
Resorts Owned
HICV Orange Lake, Fitzpatrick's Castle Holiday Homes, The Pines At Aspen East, Enchanted Isle.
Why? Contact the resort and see if they will take it back, doesn't hurt to ask
 

TUGBrian

Administrator
Joined
Mar 24, 2006
Messages
19,302
Reaction score
4,587
Points
899
Location
Florida
DRI has an official surrender program where you can give your week back for a $250 fee (assuming its paid off).

if you have a loan attached, you would technically be defaulting on two separate items...the first being your ownership with diamond...the 2nd being the loan you took out to purchase that ownership and its likely thru a 3rd party lender (barclays is common with diamond ownerships).

http://tug2.net/timeshare_advice/stop_paying_for_timeshare.html
 

Artsondra

Guest
Joined
Aug 14, 2017
Messages
8
Reaction score
0
Points
1
Resorts Owned
Wyndham Bonnet Creek, Marriott Cypress Harbor, Diamond
The loan is already in default according to Diamond. In October 2016 We purchased an upgrade to an existing contract (We were told by the salesperson that it was a new contract and we would only have one payment so we assumed all former contracts were combined into the one new contract). After we got home we looked at the contract and our finances and determined that we could not afford it so we sent in a cancellation of contract (within the allotted time) and received a letter from Diamond that they had received and accepted the letter of cancellation. In November 2016, I sent an email to Diamond asking them if this cancellation (please remember we did not know it reverted to the former contract, we thought the cancellation was for everything) included the points that we had already bought and paid for. Diamond emailed back the reply that when we cancelled the contract ALL points were cancelled. This further confirmed to us our assumption that the ENTIRE contract had been cancelled. In addition, We stopped receiving advertising emails from Diamond. All email and postal mailings from our Diamond membership in Interval International ceased. Everything had been cancelled as we had assumed it to be, or so we thought.
We heard NOTHING from Diamond until June 2017 (almost 8 months later) when we started receiving a plethora of phone calls from Diamond informing us that our loan was seriously past due and headed for default. We have neither the ability nor the desire to pay any more money to Diamond than we have to. We also cancelled the Barclay card at the same time we cancelled the contract back in October 2016 and all money charged on that card was resolved. Our loans made before then were all directly with Diamond.
We were current in our payments to Diamond at the time I sent the email to them asking about previously paid for points. If, as Diamond claims, our cancellation in October 2016 merely meant a reversion to a former contract, WHY DID DIAMOND TELL US ALL POINTS WERE CANCELLED?

Thanks for letting me vent here. I'm not really asking for answers to my situation with Diamond but I would like to know the consequences of defaulting on this loan if Diamond persists in going in that direction.

Thanks!
 
Last edited:

TUGBrian

Administrator
Joined
Mar 24, 2006
Messages
19,302
Reaction score
4,587
Points
899
Location
Florida
is a bit confusing for sure, and im not quite sure how cancelling the barclays card would somehow resolve you of the money owed to them unless you transferred the balance to another source?

it certainly sounds like a tough spot, and if DRI already has informed you that you are already in foreclosure there is not likely much you can do at this point accept wait for them to send you correspondance (and or collections agencies to start contacting you if applicable).

I am not quite sure what the overall goal here is. on one hand it looks like you want out of everything (without paying a penalty)...on the other it looks like you want to go back to an original ownership you had before you upgraded?
 

mj2vacation

Guest
Joined
Jun 6, 2005
Messages
476
Reaction score
56
Points
188
Location
New Jersey
Ask them to send you, in writing, what the consequences are. What some of these companies do is to dance around reality by using threats.

In many cases, TS developers do not actually report defaults on credit reports. They use the inferred threat to do so to get you to give them more money.

At some point, some of them will sell the debt to a third party who then attempts to collect. They may or may not report, but they will use the threat again.

This information is from an insider.
 

Artsondra

Guest
Joined
Aug 14, 2017
Messages
8
Reaction score
0
Points
1
Resorts Owned
Wyndham Bonnet Creek, Marriott Cypress Harbor, Diamond
I'm trying to decide which consequences would be less financially painful. Letting the loan go into foreclosure? Or trying to work something out with Diamond that would make us keep the contract that we do not want and can't easily afford?
That's why I'm trying to find out what the consequences of foreclosure are before I decide which path to take.
 

theo

TUG Review Crew: Veteran
TUG Member
Joined
Mar 21, 2007
Messages
8,760
Reaction score
1,887
Points
448
Location
New England Coast
I'm trying to decide which consequences would be less financially painful. Letting the loan go into foreclosure? Or trying to work something out with Diamond that would make us keep the contract that we do not want and can't easily afford?
That's why I'm trying to find out what the consequences of foreclosure are before I decide which path to take.
If there is outstanding loan debt involved, there is frankly nothing to "work out" with DRI --- they most likley don't even hold the loan "note". You would need to pay off that loan debt before DRI could / would (...for a $250 fee) take back the "product".

It is a virtual certainty that defaulting on the loan will have credit report consequences. The assessment you need to make for yourself is the impact of that negative credit report upon other financial plans that you may have in the short term future (e.g., mortgage application, loan percentage rate, etc.).
 
Last edited:

WalnutBaron

TUG Review Crew: Veteran
TUG Member
Joined
Mar 27, 2008
Messages
2,112
Reaction score
2,430
Points
424
Location
California
Resorts Owned
Hyatt Highlands Inn, Hyatt Pinon Pointe, Welk
I've never defaulted on a debt before now, so, other than for a hit on my credit report (and I'd like to know how long that lasts), I do not know the consequences of defaulting on my loan.
Your credit history will be negatively affected for 7 years from the time the default is reported to the credit agencies. Otherwise pristine credit (e.g. a score above 775) will likely drop into the low to mid-600's, resulting in higher interest rates for future loans until your credit rating recovers.
 

Artsondra

Guest
Joined
Aug 14, 2017
Messages
8
Reaction score
0
Points
1
Resorts Owned
Wyndham Bonnet Creek, Marriott Cypress Harbor, Diamond
I have been in communication with DRI and think the way to go is with an attorney. The question I have for TUG is, Where can I find a good, knowledgeable attorney who can help my case against DRI? If it helps: I live in Tampa, Fl
Thanks
 

Egret1986

TUG Review Crew: Expert
TUG Member
Joined
Jun 7, 2005
Messages
4,021
Reaction score
559
Points
499
Location
Coastal Southeast Virginia
I have been in communication with DRI and think the way to go is with an attorney. The question I have for TUG is, Where can I find a good, knowledgeable attorney who can help my case against DRI? If it helps: I live in Tampa, Fl
Thanks
Michael Finn Law Group has been mentioned many times here on TUG. He seems to have a distaste for DRI and is located in Florida.

Good luck.
 

TUGBrian

Administrator
Joined
Mar 24, 2006
Messages
19,302
Reaction score
4,587
Points
899
Location
Florida
TUG does not endorse or support any entity that charges large upfront fees for their services.
 

LannyPC

TUG Member
Joined
Jul 5, 2010
Messages
3,635
Reaction score
1,153
Points
398
Location
British Columbia
Michael Finn Law Group has been mentioned many times here on TUG. He seems to have a distaste for DRI and is located in Florida.
While he may be a competent, knowledgeable attorney when it comes to TSs, he does not have some sort of a magic wand that will make TSs disappear. Likely he won't be able to help you with a case of buyer's remorse or that you'd like to sue the sales person for lying to you.
 

theo

TUG Review Crew: Veteran
TUG Member
Joined
Mar 21, 2007
Messages
8,760
Reaction score
1,887
Points
448
Location
New England Coast
Michael Finn Law Group has been mentioned many times here on TUG. He seems to have a distaste for DRI and is located in Florida.
I have personally met Mike Finn; rest assured that his distaste for deceitful timeshare developer practices is certainly not limited to DRI.
Btw, the correct name of the firm is Finn Law Group, located in Largo, FL (very close to OP's location in Tampa).

That being said, I do not believe that Finn just takes on any and all cases, "willy nilly". My understanding (not from direct first hand experience) is that an extensive questionnaire is first completed by the prospective client for assessment, with no cost (yet) incurred. Michael Finn would be the first to tell you that (as LannyPC correctly notes above) he possesses no magic beans or secret elixirs and that "buyer's remorse" after the expiration of the rescission period, in and of itself, does not constitute a viable case. No harm (or cost) to just inquire I suppose, since OP is located so very close to Finn's law office. :shrug:
 
Last edited:

Asl18940

Guest
Joined
Sep 18, 2011
Messages
157
Reaction score
3
Points
78
Location
Newtown, PA
I have been working with Mr. Finn. Everything was very, very upfront. The fee is not insignificant, but this is not something you'd want to do without counsel. He was able to get my onerous timeshares terminated (if you private message me I can give you the details), and there have been no credit consequences -- that was a term of the deal. What we used was a resale advertisement I found at one of the resorts that demonstrated that the timeshare company was reselling points at less than half of what I paid, and those re-buyers were entitled to ALL of the benefits the original owners had. That outraged me so much that I could not pay another dime toward the debt knowing this discrepancy, and Finn worked well on the matter. The properties were retaken by the timeshare company and are being auctioned off. There was no reference on my credit report at all.
 

theo

TUG Review Crew: Veteran
TUG Member
Joined
Mar 21, 2007
Messages
8,760
Reaction score
1,887
Points
448
Location
New England Coast
As I've indicated previously I have met (and I greatly respect) Mike Finn and I also admire his obvious contempt for shaky developer practices.

That being said, the wrinkle in the OP's situation which cannot be ignored in assessing the situation, is that there is still associated outstanding loan debt.
In all likelihood, the lender is a third party entity (not Diamond itself) which considerably complicates (and significantly diminishes) any prospects for either successful negotiation or litigation. I wish the OP well, but am unconvinced that ponying up for attorneys will mitigate the harsh reality of the loan debt. :ponder:

Foreclosure on a "paid up" ownership may not result in any consequences, depending on the practices and energy level of the individual resort / chain.
Defaulting on a loan obligation is, however, a different kettle of fish and is virtually certain to have negative credit report consequences (for seven years).
 
Last edited:
Top