Holiday Inn Club Vacations cancellation options due to financial hardship and medical reasons

[CatForum2022]

Hi all...new member here. From reading all the post it looks like you can only get out of a mortgage with HI if it's paid in full. Has anyone had experience getting out after paying for 3 years and only using one time? We really need to get this debt off our plate to pay thousands of dollars of hospital bills and now reduced income of about 40%. Will Horizons even listen to a true financial hardship story and offer any help? Any suggestions are SO welcome at this point .... we just don't know what is the best way to approach this.

 

[TheTimeTraveler]

Bankruptcy may be your only option..... Get lot's of advice prior to pulling the trigger.

Welcome to TUG.





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[simpsontruckdriver]

In terms of medical bills, after July they will be treated differently. With your HICV, it never hurts to ask. Bankruptcy is one of those things people should get as much advice as possible, and it's not as easy as signing the papers and they're debt-free.

TS

 

[AmexBlack]

The loan you have is like a mortgage. The only way is to declare bankruptcy. You can’t select to pay your car or home mortgage but not your timeshare mortgage. You signed a contract that is legally binding. Talk to the hospital and see if hardship works there. Most hospitals have payment plans.

 

[dioxide45]

The only way is to declare bankruptcy.

Bankruptcy isn't the only way. Foreclosure will work and doesn't require bankruptcy to get out of the timeshare loan. The OP didn't indicate which state the timeshare is located, but if it is in Florida then they could simply allow it to go through a non judicial foreclosure and they would be out. There would be no recourse by HICV for unpaid amounts above the foreclosure sale. There could be a hit to their credit ratings and it is possible that HICV may issue a 1099-C and the loan amount could then be taxable income to the IRS and even their home state, but bankruptcy isn't the only option.

 

[dioxide45]

Hi all...new member here. From reading all the post it looks like you can only get out of a mortgage with HI if it's paid in full. Has anyone had experience getting out after paying for 3 years and only using one time? We really need to get this debt off our plate to pay thousands of dollars of hospital bills and now reduced income of about 40%. Will Horizons even listen to a true financial hardship story and offer any help? Any suggestions are SO welcome at this point .... we just don't know what is the best way to approach this.

Unfortunately HICV isn't going to let you out of the mortgage due to the hardship. They may work with you on a payment plan to reduce or furlough your monthly payments for a period of time (while still accruing interest). Simply wiping the mortgage clean isn't how hardship programs work. They work the same way as with your house. What you need to do is determine what is the priority here, and pay those first and if you don't have money left ot pay HICV, then you don't. Call them and let them know the circumstances, but don't expect them to let you off easy.

 

[Janann]

People here are far too quick to recommend bankruptcy. Don't file without getting professional financial advice elsewhere.

The three pieces of information that you have provided (medical debt of an unknown amount, a timeshare mortgage of an unknown amount, and a 40% income drop) are only the beginning of trying to figure out if bankruptcy should be filed.

 

[dioxide45]

People here are far too quick to recommend bankruptcy. Don't file without getting professional financial advice elsewhere.

The three pieces of information that you have provided (medical debt of an unknown amount, a timeshare mortgage of an unknown amount, and a 40% income drop) are only the beginning of trying to figure out if bankruptcy should be filed.

You pretty much need a lawyer to file bankruptcy, so legal advice there is almost a given. I just don't like seeing it said that bankruptcy is the only option. It is not the ONLY option. It probably should be the last option to get out of a timeshare. Bankruptcy is a guaranteed credit hit given that there will be other debt included. Just walking away may not cause any issues or the credit hit might be less than bankruptcy. One needs to consider a lot of things when deciding what to do, future debt needs, possibly needing to move, is a car needing to be replaced, etc. But one shouldn't consider a timeshare to be a ball and chain.

 

[CatForum2022]

Thank you all for your comments .... you've given us a lot to think about.

 

[Juanjuanhijo]

Thank you all for your comments .... you've given us a lot to think about.

Worth noting on the medical debt to negotiate with the collection agency. Medical debt can easily be settled for much less than face value.
Also worth noting that the way medical debt is reported and it’s impact to your credit report is changing. Best of luck!

 

[cobblover]

Hi all...new member here. From reading all the post it looks like you can only get out of a mortgage with HI if it's paid in full. Has anyone had experience getting out after paying for 3 years and only using one time? We really need to get this debt off our plate to pay thousands of dollars of hospital bills and now reduced income of about 40%. Will Horizons even listen to a true financial hardship story and offer any help? Any suggestions are SO welcome at this point .... we just don't know what is the best way to approach this

 

[cobblover]

We had similar circumstances. Maybe this helps.

Check terms and conditions of the original purchase and mortgage contracts for default penalties. Hopefully your loan is not secured to any of your assets, and there is nothing stating they can put a lien on your home (if you own), or garnish wages, etc.

Try to learn what hits you will take from a defaulted loan and lower credit score - rentals may be harder to find, car insurance raised, etc. but you may have no choice.

Try to reach the finance/debt solutions department to see what options you have. It may a few months of nonpayment before they talk to you, but I think you are better off establishing communication and working with them vs. dealing with a debt collection company later. They might offer a loan forgiveness plan. For example, if the original loan was $20k, and you have paid off $10k, and can pay a lump sum of $3k now, they may agree to a loan forgiveness of $7k. You may get a 1099 for that $7k, and owe taxes on it as a type of "reportable income."