Help with leaving HGVC timeshare

[ExtraGold]

So I'm new here, I have spent a good deal of time researching timeshare, but it's so hard to find consistent information. To sum up the situation, my wife and I purchased a HGVC timeshare back in 2018, we were just starting our careers and expected to have more free time and money. Life never goes as planned unfortunately. We have never had the time to use our points nor the disposable income to take a vacation. We also didn't realize that paying the minimum on our loan was mostly just paying for endless interest. We doubt the timeshare will be of any use to us anytime soon and just want to leave the program entirely.

The unfortunate part is that we currently still owe 12.5k on our loan. Our program is 4800 pts every other year and the unit attributed to our account is Las Palmeras.

Are we ultimately just going to be forced to finish paying the loan ourselves or is there another way out? Also if paid off, how easy is it to get rid of? I don't expect to make back any of the money we have essentially wasted, I've accepted this.

Thanks for any help.

 

[GT75]

Welcome. Sorry to hear about your situation. You basically only have a couple of options.

• Pay off your loan and either sell or keep/use what you purchased (make lemonade out of lemons).
• Call HGVC and claim hardship (but I doubt they will let you out of your deed)
• Let the deed/loan go into default. Of course, this will most likely affect your credit.

If your own 4800 pts at Las Palmeras, this would be a 1Br platinum season, EOY. If you tried to sell it (this could only happen after the loan was paid off), it would be worth a little money maybe $1-2K. I don't have your MFs listed for this unit but I do know that Las Palmeras is higher than the other Orlando properties.

Don't fall victim from a TS exit company to add to your problem.

 

[RX8]

To add one more thing to @GT75 ‘s excellent advice - avoid any company that says you will be able to easily sell your timeshare for $15,000 on their website but you need to pay them $1,000 upfront for a marketing fee. That is a scam to get you to pay them the upfront fee. There are two things going against you with these advertising/marketing companies. One is that your listing will be on an obscure, hard to find website. The website will be all glamour and glitz only in trying to convince other owners to sign up and pay the fee to list their timeshare too. Very little work has been put into the actual timeshare listing part of the website. Trying to find your specific ad, or any ad for that matter, will be a difficult and frustrating experience. This is because their true business model is not providing a robust website for advertising timeshare sales but rather cold calling timeshare owners for the upfront fee. Second, they want you to believe that your timeshare is worth thousands more than it is truly worth solely to make their fee look reasonable. Even if someone stumbles across your ad they will quickly dismiss it as way overpriced.

I like GT75’s first bullet point. HGVC is a very nice system. If you can pay off your loan your 4800 points is a decent number to play with and being EOY you don’t have the annual financial obligation. There are many HGVC owners here that can help you maximize your ownership.

Good luck!

 

[CalGalTraveler]

To add to the excellent prior advice. Look into renting it to help pay off your annual loan then dispose of it (or use). Life happens and you might want to use it at that point.

 

[LynnHilton]

My situation somewhat similar to yours, just to give you an idea of how I handled it, successfully for me.

Purchased summer 2019, almost immediate buyer's remorse and didn't know rescission was possible.

Consulted my long-time financial adviser, he advised that I pay off the loan in full immediately, which I did.

He also advised that I stop calling the purchase "a mistake" in my mind.

You probably don't need as much emotional hand-holding as I did, but via talking things over with financial adviser, talk therapist, family and friends, I've been able to do what @GT75 suggested: pay off my loan and keep/use what I purchased (make lemonade out of lemons).

Extra info:

I was 65 years old at the time of purchase, and totally unrelated to retirement funds I had some cash savings that I would've used more slowly to pay for vacations. Instead I used it in lump sum to pay off loan. You mentioned you have "disposable income", I hope your budget can support you paying off the loan immediately, or quickly.

Having just spent all that money, I did not have a wish nor attitude to immediately turn around and sell my timeshare on the resale market for majorly less than what I'd just paid.

My points are Platinum Studio EOY, plus I got Bonus Points for paying off the loan. I've used my points for shorter 4-night stays at resorts during their Gold or even Silver season as well as Monday-Thursday nights avoiding Friday-Saturday-Sunday nights.

So far I went once to Myrtle Beach SC, once to Park City UT, twice to Orlando, with more trips planned for remainder of 2021.

For every trip, I really enjoyed the luxury of the resorts, and never found myself ruminating about "this was a waste of my money."

 

[tdietvorst]

My situation somewhat similar to yours, just to give you an idea of how I handled it, successfully for me.

Purchased summer 2019, almost immediate buyer's remorse and didn't know rescission was possible.

Consulted my long-time financial adviser, he advised that I pay off the loan in full immediately, which I did.

He also advised that I stop calling the purchase "a mistake" in my mind.

You probably don't need as much emotional hand-holding as I did, but via talking things over with financial adviser, talk therapist, family and friends, I've been able to do what @GT75 suggested: pay off my loan and keep/use what I purchased (make lemonade out of lemons).

Extra info:

I was 65 years old at the time of purchase, and totally unrelated to retirement funds I had some cash savings that I would've used more slowly to pay for vacations. Instead I used it in lump sum to pay off loan. You mentioned you have "disposable income", I hope your budget can support you paying off the loan immediately, or quickly.

Having just spent all that money, I did not have a wish nor attitude to immediately turn around and sell my timeshare on the resale market for majorly less than what I'd just paid.

My points are Platinum Studio EOY, plus I got Bonus Points for paying off the loan. I've used my points for shorter 4-night stays at resorts during their Gold or even Silver season as well as Monday-Thursday nights avoiding Friday-Saturday-Sunday nights.

So far I went once to Myrtle Beach SC, once to Park City UT, twice to Orlando, with more trips planned for remainder of 2021.

For very trip, I really enjoyed the luxury of the resorts, and never found myself ruminating about "this was a waste of my money."

Lynn, I really appreciate the honest, straightforward reply, sharing what at the time must have been painful learning. I, myself, am a frustrated owner waiting for the day to unload what I bought. I can see an 'attitude adjustment' might come in useful. (-

 

[Sandy VDH]

If you got a lemon, try making Lemon-aid. Many of the people on this site purchased a timeshare directly from the developer. No timeshares would be available for resale if not purchased first.

Selling it to make up the money to pay the loan is not going to happen. So is learning about what you did purchase and learning how to use to your advantage even an option?

 

[LynnHilton]

To correct something in my previous post, I realize you said you do not have a lot of disposable income. I mis-read that you did, hence my suggestion to use that to pay off loan.

I thought of a couple more ideas that can possibly soothe you.

HGVC owners can request a "Guest Certificate" to allow your family or friends to use your points to stay at an HGVC resort when you're not there with them.

If you really, truly can't break away for a vacation yourself, then perhaps you can use a Guest Certificate to treat your family or friends to a free stay at an HGVC resort. It feels good to be generous.

Similar, if you have family or friends with the financial means, you can use a Guest Certificate for them to go to HGVC, but ask if they can defray the cost by paying you some amount of money. If they paid you a nightly rate that's typical of a non-resort hotel but then get to enjoy the benefits of staying in a quality HGVC resort, that might be a way for everyone to feel good.

Another idea: some HGVC owners here on this forum may want to pay you for a Guest Certificate that they can use if they don't have enough points of their own to reserve the location and room-size they want.

Lastly and already mentioned above, you can list your week for rent here on the TUGBBS website. I don't know what other websites are recommended for listing rentals.

Please, can another TUG member here on the forum point out anything I suggested that is not accurate or not recommended, thanks !!

 

[dayooper]

@tdietvorst You have been given very good advice already. I think you have to decide if you want to try and make it work for you. You can start by taking a trip that’s close to you. If there isn’t an HGVC resort drivable to you, give RCI a chance. As you careers progress, you will have more disposable income for those longer trips. 4800 points for a couple can go a long ways, especially in RCI. The resorts usually aren’t as nice as HGVC resorts, but it can get you started. I HATED going on trips before our purchase, but the extra room is so nice.

 

[LynnHilton]

@tdietvorst You have been given very good advice already.

@dayooper, I think that the OP on this thread is @ExtraGold, and @tdietvorst was just a participant on the thread.

 

[T-Dot-Traveller]

My situation somewhat similar to yours, just to give you an idea of how I handled it, successfully for me.
Purchased summer 2019, almost immediate buyer's remorse and didn't know rescission was possible.
Consulted my long-time financial adviser, he advised that I pay off the loan in full immediately, which I did.

He also advised that I stop calling the purchase "a mistake" in my mind.....I was 65 years old at the time of purchase .......Having just spent all that money, I did not have a wish nor attitude to immediately turn around and sell my timeshare ......
So far I went once to Myrtle Beach SC, once to Park City UT, twice to Orlando, with more trips planned for remainder of 2021 ........I really enjoyed the luxury of the resorts, and never found myself ruminating about "this was a waste of my money."

Hi Lynn,
Your story is the perfect TUG story for @TUGBrian

Found TUG after a remorsed developer purchase- Got good advice for Free on TUG -became a Timeshare User rather than someone with regret and self doubt.

WENT ON MORE & BETTER VACATIONS - as a result.

 

[alwysonvac]

Hi and Welcome to TUG!

Some states such Florida have anti-deficiency, non-judicial foreclosure laws.
Take a look at these two threads.

What if you just don't pay the developer: legal implications

As most of us know, buying from a developer will invariably lead to untold anxiety and sadness once you realize the enormity of your mistake. That is borne out by a recent TUG post (as one example of perhaps hundreds of thousands over the years)...

tugbbs.com

​

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

Also be careful of timeshare scams

Timeshare Owner Scams: How to Identify and Avoid Them!

Discover common timeshare scams targeting owners and learn how to protect yourself. Get expert tips to spot and avoid fraudulent schemes!

tug2.net

 

[hgvpodcaster]

@ExtraGold - When we first purchased our timeshare in 2019 I was in a similar situation where I was frustrated that I had jumped in without doing proper research and was feeling quite dupped. I went on my first trip to Tuscany and we really enjoyed it. So what I did was actually add to my portfolio by grabbing an Elara 7000 pt EOY contract on the resale market. So now if I average the two contracts together and consider the low cost maintenance fees at Elara I am able to reconcile my per point cost in my brain much easier. We were able to snag a 2Br Premier at Lagoon Tower and I estimate it cost me 1,500 for the week, and on booking they list cash rate for the room at around $4,000. This has really helped me look past what I first paid for my contract. I hope it all works out for you.

 

[DEROS]

I am not sure where you live but is there a close by HGVC or Hilton branded hotel? I love to do Staycation and have made Hilton Hawaiian Village an annual 4th of July Staycation for my family (even if it is only for 3 nights. Its all about the Fireworks). Oahu is small and I live only 1/2 mile from the beach, but there is something about lazily eating breakfast on the Lanai and if I'm lucky with a view of the Ocean. I have even worked during my Staycation. ie. I stayed in HHV and commuted back and forth from work.

So... Convert the points to Hilton rewards and say in a nearby nice Hilton branded Hotel or if you have a HGVC near by, stay there. My favorite Hilton brand hotel is Embassy Suites. Love their complementary hot Breakfast and evening Manager Cocktail. Picking a Holiday, like 4th of July, makes the stay a little better, even if it is local. In the 13 years owning HGVC, I have only stayed at my home resort twice so don't think that you are stuck staying in Las Palmeras.

I hope all ends well with your hard decision that you must make.

 

[bogey21]

I've used my points for shorter 4-night stays at resorts during their Gold or even Silver season as well as Monday-Thursday nights avoiding Friday-Saturday-Sunday nights.

I often found shorter stay advantageous. Sometimes helpful with airfares and car rentals but the main thing for me is that I often would get "burned out" after 3 or 4 days at a location and would burn money riding out the last 2, 3 or sometimes even 4 days of a 7 day stay. An example is that I would often go to Ruidoso for the All American Futurity horse race. All I really needed was 3, maybe 4 days. Why stay and spend more money (maybe at a casino) just because I owned, rented or traded into a full Week?
Even better if burning fewer Points...

George

 

[ChiefIlliniwek]

So I'm new here, I have spent a good deal of time researching timeshare, but it's so hard to find consistent information. To sum up the situation, my wife and I purchased a HGVC timeshare back in 2018, we were just starting our careers and expected to have more free time and money. Life never goes as planned unfortunately. We have never had the time to use our points nor the disposable income to take a vacation. We also didn't realize that paying the minimum on our loan was mostly just paying for endless interest. We doubt the timeshare will be of any use to us anytime soon and just want to leave the program entirely.

The unfortunate part is that we currently still owe 12.5k on our loan. Our program is 4800 pts every other year and the unit attributed to our account is Las Palmeras.

Are we ultimately just going to be forced to finish paying the loan ourselves or is there another way out? Also if paid off, how easy is it to get rid of? I don't expect to make back any of the money we have essentially wasted, I've accepted this.

Thanks for any help.

From my limited experience, the salesmen don't emphasize how much interest you'll be paying.

I (foolishly) bought a timeshare at the nearby Sheraton Vistana Villages. The salesman assumed that I would have to finance the purchase. I looked at the interest rate on the forms and handed him a credit card. Not once did the salesman mention the interest rate or total amount of interest. It was all about the monthly payment.

 

[LynnHilton]

Not once did the salesman mention the interest rate or total amount of interest. It was all about the monthly payment.

Exactly !! I was so naive that I didn't even know that I was signing up for a mortgage at 12.5% interest.

I thought I was signing up for an interest-free monthly payment until the total was paid off.

Upon learning that it was a mortgage at 12.5% interest, I was able to use some cash savings to pay off the loan in full before the first payment with interest was due.

 

[ChiefIlliniwek]

Exactly !! I was so naive that I didn't even know that I was signing up for a mortgage at 12.5% interest.

I thought I was signing up for an interest-free monthly payment until the total was paid off.

Upon learning that it was a mortgage at 12.5% interest, I was able to use some cash savings to pay off the loan in full before the first payment with interest was due.

Yes...if I hadn’t looked at the papers they had given me, I would’ve continued to think it was zero percent. I bet that the finance company is in-house.

 

[DEROS]

Yes...if I hadn’t looked at the papers they had given me, I would’ve continued to think it was zero percent. I bet that the finance company is in-house.

The finance company is in house but they will bundle the loan payments as collateral to create notes that are sold to private investment institution. Here is a link of what HGVC does with those TS loans. Hilton Grand Vacations Completes $300 Million Term Securitization | Hilton Grand Vacations

 

[RX8]

Yes...if I hadn’t looked at the papers they had given me, I would’ve continued to think it was zero percent. I bet that the finance company is in-house.

The finance company is in house but they will bundle the loan payments as collateral to create notes that are sold to private investment institution. Here is a link of what HGVC does with those TS loans. Hilton Grand Vacations Completes $300 Million Term Securitization | Hilton Grand Vacations

As @DEROS points out, it is only the revenue stream that is sold and this sale is completely transparent to the borrower. It isn't the same as when your home mortgage is sold to another lender. HGVC continues to service the loan until paid off.