Get out of my Virginia Timeshare

[jennblossom]

I bought a timeshare in Virginia. I since lost my job and cannot make payments. I’ve tried to sell it online but I owe too much on it and I can’t even give it away. The contract has a “possibility of reverter” clause. If I stop paying and the property reverts back to the developer then will I owe a deficiency? If the company gets the property back then there is no auction and no short sale does that creates a deficiency? Should I call the mortgage company and let them know I cannot and will not be making any more payments? Will I have to declare bankruptcy to end my timeshare nightmare? Please help!

 

[DeniseM]

Hi - I'm sorry for your troubles.

You are correct in your analysis of the situation - you owe more than the timeshare is worth on the resale market - so it's not salable.

The problem is that the resort doesn't want the timeshare back. They will have to cover the maintenance fees and try to resale it in a weak market. Most likely, who ever holds the mortgage with turn you over to collections and report you to the credit bureaus - this will damage your credit. Eventually, they will foreclose on you, but first they will try to get you to pay.

If you do declare bankruptcy, it will be part of the bankruptcy.

VERY IMPORTANT - Don't pay anyone a large upfront fee to get you out of this timeshare - that's ALWAYS a SCAM!

 

[funtime]

Each resort has different rules and different practices. I would not assume bankruptcy is your only option. Call or write the resort and advice you can no longer afford to pay and wish to revert or deed it back to them.

 

[teepeeca]

Each resort has different rules and different practices. I would not assume bankruptcy is your only option. Call or write the resort and advice you can no longer afford to pay and wish to revert or deed it back to them.

Calling the resort "might" be a good idea, but I doubt it. They (more than likely) DO NOT hold the mortgage, so if they took your week, the resort would be liable to finish paying the mortgage. THAT WON'T HAPPEN !!!

It would be better to call the developer (original seller of the unit) to see if they will "work with you" and take the timeshare back. (Again, not likely if they have "sold the paper" --- the mortgage---to a third party.)

Call the mortgage holder, and see if "they" will help you out/ work with you. If the mortgage company is affiliated or owned by the developer, there is a possibility, if you offer to give the timeshare unit back to them, and forfeit all of the $$$ you have paid. That would mean that you give up all of the down payment and other payments you have paid. Part of your terminology to them would be "a deed in lieu of forclosure". That would be less costly for them than to forclose.

Tony

 

[VictoriaLyn]

The resort might take it back but you have to call them and inquire about it. I know that there are some companies that help you get out of your contract but they charge a certain amount for their services. Another option you should consider is donating it to charity. Though not all of the accept timeshares there are some that do. You just have to do your research.

 

[DeniseM]

You cannot donate or give away a timeshare with a mortgage on it, unless you pay it off. All of the donation companies charge a high fee to accept the donation, unless the timeshare is worth a lot of money.

 

[goodomen]

Deeding Back To The Resort

My resort told me they aren't taking deed backs but what would happen if I deeded it back to them anyway? Would they have to take it then?

 

[DeniseM]

My resort told me they aren't taking deed backs but what would happen if I deeded it back to them anyway? Would they have to take it then?

No - you cannot force anyone to take property they don't want. They would just refuse it.

 

[theo]

Bad idea...

My resort told me they aren't taking deed backs but what would happen if I deeded it back to them anyway? Would they have to take it then?

No. A deed to an unwilling recipient (grantee) would essentially constitute fraud. In addition, the resort could sue to have any such invalid deed formally set aside (voided) --- and they could ask the court to have you be responsible to pay the legal costs of their having to undertake that legal action in the first place.
All in all, just clearly a bad idea...