Getting out of Marriott Timeshare

[vail2468]

Hi. I'm a new TUG user. I hope I'm posting this correctly. If not, please help teach me what to do!!

I'd like to get rid of my Marriott timeshare week which I've owned for many years. It's an undesirable season and the maintenance fees have just gotten too high.

My question: Rather than selling my week for $0, why can't I just stop paying the maintenance fees and let Marriott have it back? Does anyone know if Marriott will go after me legally? Once I buy the week, am I obligated to pay the maintenance fees each year even if I just don't want the week any more?

Thanks for the help!

 

[DeniseM]

You have a legal obligation to pay the maintenance fee as long as you own the timeshare. If you default, Marriott will eventually foreclose on you, but before they do that, they will notify the credit bureaus that you have defaulted, damage your credit, and turn you over to collections. NOT a good idea.

Instead - why don't you see if you can give it away here on TUG?

MORE INFO - http://www.tugbbs.com/forums/showthread.php?t=132509

 

[Passepartout]

No expert here, but wouldn't a Marriott be worth something?? Perhaps they would accept a deedback? Unless it's a mud week at a ski resort, someone oughtta want it enough to take it and keep the OP from ruining his credit.

My 3 cents worth.

Jim

 

[dbmarch]

Take a look at the market place , or redweek.com to see what something equivalent is going for.

Or you can post your resort name/week/season to get an opinion on if it is worth anything.

 

[DeniseM]

Take a look at the market place , or redweek.com to see what something equivalent is going for.

Or you can post your resort name/week/season to get an opinion on if it is worth anything.

No, I'm sorry, but once you post that you want to get rid of it, you cannot post the details in the forums, because it may solicit offers, and advertising is not permitted in the discussion forums.

 

[vail2468]

selling a Marriott TS

Denise and Jim,

Thanks for your replies! Jim, you hit the nail on the head. This is a mud week @ a ski resort! [details removed]

Denise, do you know of Marriott actually pursuing owners all the way through collection activities? I've had Marriott people say that, but I wasn't sure if it might just be a threat.

Thanks,

Derald

 

[DeniseM]

In this economy there are MANY people who want or need to get out of their timeshare obligation, so the resorts are definitely going after owners who default. They have to - they have an obligation to the rest of the owners who have to pay the maintenance fees for everyone who defaults. Remember, Marriott doesn't own the resorts - the owners do.

 

[vail2468]

marriott timeshare sale

Thank you Denise. It's good to know what's happening in the real world. I'll look into giving it away on TUG.

Derald

 

[wvacations]

It is not Marriott that does not get their money for default on MF's. It is the home owners associated affiliated with the resort. They will definitely persue all avenues to collect the debt. Rember Marriott only gets a management fee from the MF. When the association has to pay for services and reseves for the property, and someone defaults on MF's the owners have to pay the difference not Marriott.

You will take a hit on your credit report just like any other obligation that you choose to default on. I would think if you listed on eBay and agreed to pay all or even half the closing cost, you should be able to sell even a mud week for close to $0 but save your credit rating.

If it got to foreclosure, it would look the same on your credit report as a forclousure on your house.

Marriott is not the one losing Any money, so I would not look to Marriott to take the deed back and then become obligated to pay the MF's.

 

[vail2468]

Thanks! The replies have given me clear direction. I'll investigate giving this away / paying the closing costs on Ebay or TUG.

 

[bogey21]

.......but before they do that, they will notify the credit bureaus that you have defaulted, damage your credit, and turn you over to collections.

This may be true now but about 8 or 9 years ago I gave my ex-wife our Monarch Crown Suite Week in our divorce. I ran into her and she told me she had not paid the MFs for 2 years and asked me to see what I could do with Marriott. I called and they told me they were getting ready to post if for foreclosure but if I would pay the delinquent MFs they would rent it out and sell it for me. They did exactly what they said they would do. The rental income covered almost all the delinquent MFs and they sold it for enough that we made a $16,000 profit (Week had been purchased resale. People told me they wouldn't sell a Week acquired in the Resale Market, but the subject never came up and they did.) I checked and found that it had never shown up on her Credit Report even though 2 years delinquent.

George

 

[kjd]

It's tough to take a $1,000 plus beating every year for each timeshare that you own. It's true that when you sell for a nominal price like $10 you get out from under the yearly obligation. However, if you paid developer prices when you purchased it might take upwards of thirty years to even equal any savings.

Maybe in some cases it's better off to convert to MRP's or DC points which may be easier to use. Who knows? Since one is willing to accept that there is no equity in a timeshare giving it away becomes a way to get out from under yearly fees. I get that. But it also seems to me that there might be other creative ways to attack the problem without taking such a terribly big loss. There have been several posts here about possibly renting the unit to others. That won't work for a lot of folks who bought weeks with poor demand. I'd like to hear other suggestions if anyone has them.

 

[DeniseM]

This may be true now but about 8 or 9 years ago

You are comparing apples and oranges: 8 or 9 years ago, the economy was completely different - with the number of people who want out of their timeshares today, resorts can no longer afford to be generous.

Not to mention that this is a mud week at a ski resort. Do you honestly think it could be sold for $16,000 or rented at all?

If the OP is still interested in travel, I agree that he should explore all his options as far as trading this unit for other locations.

 

[bogey21]

You are comparing apples and oranges: 8 or 9 years ago, the economy was completely different - with the number of people who want out of their timeshares today, resorts can no longer afford to be generous.

I don't dispute that things are different today. My reason for commenting was because you implied that Resorts will always report delinqent/forclosed Weeks to the Credit Bureaus. I question that this is true in every case.

George

 

[DeniseM]

I don't dispute that things are different today. My reason for commenting was because you implied that Resorts will always report delinqent/forclosed Weeks to the Credit Bureaus. I question that this is true in every case.

George

8 or 9 years ago it may not have been true. Today, it's true. The BOD has a responsibility to the remaining owners, and with a week that will be hard to resale, they simply can't afford to be "nice."

 

[vail2468]

Mega Thanks to both of you, George and Denise!!

This dialogue has given me more in depth information than I had expected. What you're both saying makes complete sense to me for the time frames you're each addressing.

I spoke with both II and the Marriott VC desk today and got additional ideas.

I love TUG!! What a great resource for someone like me!!

Best,

Derald

 

[FractionalTraveler]

An excellent and proven Risk Management Strategy to consider for most real estate holdings of value is to place the asset in a TRUST and make the beneficiary of the trust an LLC.

 

[VacationForever]

An excellent and proven Risk Management Strategy to consider for most real estate holdings of value is to place the asset in a TRUST and make the beneficiary of the trust an LLC.

I believe the issue highlighted here is on the contrary, i.e., what to do with real estate holdings of NO value. How to get rid of it?!

 

[dioxide45]

8 or 9 years ago it may not have been true. Today, it's true. The BOD has a responsibility to the remaining owners, and with a week that will be hard to resale, they simply can't afford to be "nice."

It isn't really the board that takes the actions to collect and foreclose. In the case of Marriott's, it is MVCI that takes action on behalf of the board/HOA. They are responsible to collect the MF for the HOA and file any foreclosure actions. We really don't know if they report to credit bureaus when they attempt to collect. It doesn't seem that they sell delinquent MFs to outside collection agencies that would report to the credit bureau. So it is quite possible that nothing would hit one's credit report until an actual foreclosure action is completed and recorded.

 

[FractionalTraveler]

I believe the issue highlighted here is on the contrary, i.e., what to do with real estate holdings of NO value. How to get rid of it?!

Then treat it like toxic waste and burry it in the ground or destroy the deed and stop paying the fees.

The credit reports are only of concern to people who rely on borrowing as a way of living and have predominately zero or negative net worth!

 

[dioxide45]

The credit reports are only of concern to people who rely on borrowing as a way of living and have predominately zero or negative net worth!

True, though if you factor a home mortgage in to net worth, then a lot of homeowners have a negative net worth. If you want to buy a new home or refinance a home, then the credit score is very important. If someone is a renter, then their credit score can also be a factor. Credit score can also be used to determine insurance policy rates among many other things. It holds far more importance than just for borrowing.

 

[Passepartout]

The credit reports are only of concern to people who rely on borrowing as a way of living and have predominately zero or negative net worth!

Credit reports are also regularly checked in the course of hiring. How a person handles credit is an indication of how they might handle employer's funds. Folks who are close to the financial edge, are more likely to steal from their employer. Also, no employer wants to be placed in the position of being the 'collector' if an employee is garnished.

Jim

 

[FractionalTraveler]

True, though if you factor a home mortgage in to net worth, then a lot of homeowners have a negative net worth. If you want to buy a new home or refinance a home, then the credit score is very important. If someone is a renter, then their credit score can also be a factor. Credit score can also be used to determine insurance policy rates among many other things. It holds far more importance than just for borrowing.

Great points that highlight the need to emphasize the forgotten practice of saving and investing for the future. Something that is apparently no longer handed down from generation to generation.

Credit scores for insurance policy rates are of little concern to the Insurance Company when the customer pays their annual premium in cash every year. If fact, most insurance companies give generous discounts for paying a policy in advance.

We have been conditioned (i.e. programmed) here in the USA by very smart marketing people to believe that its normal and OK to owe for homes, cars, and virtually everything else that can be financed or paid for with credit.

Instant gratification that is the motto of today's American lifestyle. If you want it, then you should be able to get it now regardless of any future financial considerations. If you can’t get it on credit, there must be something wrong with the company or product being offered.

A perfect reminder of such irresponsible consumer spending and corporate greed is played out each day here in Florida with the Housing industry.

 

[FractionalTraveler]

Credit reports are also regularly checked in the course of hiring. How a person handles credit is an indication of how they might handle employer's funds. Folks who are close to the financial edge, are more likely to steal from their employee. Also, no employer wants to be placed in the position of being the 'collector' if an employee is garnished.

Jim

Good point!

Those that borrow as a way of life should be concerned about checking their FICO scores routinely.

In fact, most people now borrow to check their scores through crafty credit card offers. What a scam! These offers are hidden under the cloak of identity theft protection services. Again, another predatory way of skinning the cat that lives day to day from plastic swipes.

 

[dioxide45]

Great points that highlight the need to emphasize the forgotten practice of saving and investing for the future. Something that is apparently no longer handed down from generation to generation.

Credit scores for insurance policy rates are of little concern to the Insurance Company when the customer pays their annual premium in cash every year. If fact, most insurance companies give generous discounts for paying a policy in advance.

Credit scores are used by the insurance companies as a risk score. They use this to determine the likelihood of someone filing a claim. The lower the score the more likely someone will file a claim or a small claim where someone with a high score is more likely just to pay cash instead of file a small claim. It has nothing to do with how the person pays the premium.

We have been conditioned (i.e. programmed) here in the USA by very smart marketing people to believe that its normal and OK to owe for homes, cars, and virtually everything else that can be financed or paid for with credit.

The difference here is the cost of a home then and now. When my parents (only one generation before mine) bought their home, it cost less than $18,000. They are in their early 60s.That same home today is probably worth over $400K (not sure that incomes have gone up that much). So it isn't about being okay to borrower for a home, it is a necessity. Someone would have to go much of their life to save up enough cash to buy a home. Though people should be saving up larger down payments than many currently do today.

I would rather see someone borrower to buy a car instead of lease. As leasing (unless for a tax write-off) is usually a worse financial move.

Instant gratification that is the motto of today's American lifestyle. If you want it, then you should be able to get it now regardless of any future financial considerations. If you can’t get it on credit, there must be something wrong with the company or product being offered.

This is definitely true of small end purchase, TVs, appliances, electronics, perhaps even cars. Not sure if a house is in that same category.

A perfect reminder of such irresponsible consumer spending and corporate greed is played out each day here in Florida with the Housing industry.