How to cancel timeshare with a loan balance

[Megan24]

I have a timeshare with worldmark Wyndham and bought it in September 2023. Still have a loan balance around $18,000. I want to cancel it, have no options thru their certified exit program. If I stop paying on my loan and dues what will happen?

 

[dioxide45]

If you stop paying, it will go into default and they could then take back your ownership. By stopping paying it could negatively impact your credit score. If that doesn't matter, default is a way to get out.

 

[DeniseM]

You can't cancel it, but you can default on it - just stop paying.

 

[TheTimeTraveler]

I have a timeshare with worldmark Wyndham and bought it in September 2023. Still have a loan balance around $18,000. I want to cancel it, have no options thru their certified exit program. If I stop paying on my loan and dues what will happen?

It is far too late to cancel. The only way to get out now is "defaulting" as no one will buy this from you with an $18,000 payoff balance.......







.

 

[Megan24]

If you stop paying, it will go into default and they could then take back your ownership. By stopping paying it could negatively impact your credit score. If that doesn't matter, default is a way to get out.

What happens when you default? Do they send it to collections?

 

[dioxide45]

What happens when you default? Do they send it to collections?

Yes, you will get calls asking you to pay. You can ask them to not contact you via phone under the Fair Debt Collections Practices Act. That won't stop them from reporting to the credit agencies.

 

[TUGBrian]

 

[sue1947]

There is no 'cancelling' of a contract. Just like once you buy a car, a house or anything else with a contract, you can sell it, give it away, default on payment or use it.
Based on the size of the loan, I suspect you have a 10000 credit or lower account.
Wyndham will only take back ones that don't have a loan so they can quickly sell it again.
Worldmark sells for about 0.10/credit. That means the most you can sell it for is $1,000. Any unused credits can be rented to another owner at .07/credit. As you can see, there is no way you will get anybody to pay $18,000 for an account worth $1,000. Giving it away doesn't make the loan go away.
You really only have 2 choices: default and take the credit hit or learn to use it and pay off that loan. Over time, the $17,000 you overpaid for it won't be so bad.
If you decide to keep it, go to wmowners.com to learn how to make the most of what you purchased.

 

[davidvel]

What happens when you default? Do they send it to collections?

Where did you buy the timeshare and where do you live? This may affect whether they can come after you for the loan balance and get a judgment. In most cases they cannot or will not.

No one can precisely predict how bad it will hurt your credit, but it will be pretty bad. It will remain on your credit report for 7 years. You have to decide if all this is worth it or not.

 

[Passepartout]

What happens when you default? Do they send it to collections?

They can. Just FYI we did a poll here not long ago, asking TUGgers how they bought their first timeshare. The result was that almost exactly half of us bought just like you did. We went to a developer's presentation with NO INTENT to buy a timeshare. Then we bought and didn't exercise our right to rescind in time.

Then we realized that there is value in it. So rather than wrecking our credit, we buckled down and paid what we agreed to pay and have had years and years of great vacations.

I don't know you, or your circumstances, but unless paying this loan keeps you from eating or clothing your kids, you'll be better off recognizing that you saw value in timeshare. In the end paying it off and learning to use it is better than causing yourself legal pain for years.

Wishing you the best! And BTW, Worldmark is a GREAT system that I wish I'd bought into many years ago.

Jim

 

[Megan24]

Where did you buy the timeshare and where do you live? This may affect whether they can come after you for the loan balance and get a judgment. In most cases they cannot or will not.

No one can precisely predict how bad it will hurt your credit, but it will be pretty bad. It will remain on your credit report for 7 years. You have to decide if all this is worth it or not.

I live in Washington state and bought it in Washington as well. Not sure how that affects it…

 

[sue1947]

I live in Washington state and bought it in Washington as well. Not sure how that affects it…

It doesn't.