As part of the assets I inherited after my Father's passing a year and a half ago was his every other week at Sands of Kahana timeshare in Maui. I kept up with the dues and taxes and my use year in 2022 is coming up that I have no plans to use then or any time in the future. I contacted Soleil and offered to let them take ownership but they refused. I contacted a couple timeshare brokers, including one on the island and they said the units are worthless and no one will currently buy them because the maintenance fees are too high. So the resort doesn't want them back either because they know the same thing.
This reminds me of a story a friend told me once when he went through financial hardship and had to let his credit card go unpaid and he offered to pay off a portion of the balance and close the account. The credit card company refused but a few months later after he hadn't made any payments, they charged it off, and turned around and offered him a pay off agreement of 25% the total to change it from a chargeback on his credit report to paid as agreed for less than amount owed, which the latter was less deterimental to his credit.
My gut feeling is this is similar in that the management company, rather than go through a foreclosure process would prefer (once you stop paying) to just do what I read is called a "deedback". But I think like the credit card company, they won't agree to it until you have gone X months late on your payment. The concern is obviously they could send it to collections before foreclosing or agreeing to a deedback and thereby negatively effect my credit.
My Uncle suggested why not just create a single owner S-Corp (cost about $200 in fees) to protect my individual credit, transfer ownership to the S-Corp (I read here LT Transfers is a good low-cost outfit to use), and then once the transfer is done, send a letter to Soleil (the management company) under the Corporation letterhead saying the Corporation is dissolving and you're not paying anymore and will do a "deedback." ??? That will probably cost close to another $1000 in fees from LT Transfer and he resort, but what other option do I have to divest myself from it without negatively affecting my credit?
This reminds me of a story a friend told me once when he went through financial hardship and had to let his credit card go unpaid and he offered to pay off a portion of the balance and close the account. The credit card company refused but a few months later after he hadn't made any payments, they charged it off, and turned around and offered him a pay off agreement of 25% the total to change it from a chargeback on his credit report to paid as agreed for less than amount owed, which the latter was less deterimental to his credit.
My gut feeling is this is similar in that the management company, rather than go through a foreclosure process would prefer (once you stop paying) to just do what I read is called a "deedback". But I think like the credit card company, they won't agree to it until you have gone X months late on your payment. The concern is obviously they could send it to collections before foreclosing or agreeing to a deedback and thereby negatively effect my credit.
My Uncle suggested why not just create a single owner S-Corp (cost about $200 in fees) to protect my individual credit, transfer ownership to the S-Corp (I read here LT Transfers is a good low-cost outfit to use), and then once the transfer is done, send a letter to Soleil (the management company) under the Corporation letterhead saying the Corporation is dissolving and you're not paying anymore and will do a "deedback." ??? That will probably cost close to another $1000 in fees from LT Transfer and he resort, but what other option do I have to divest myself from it without negatively affecting my credit?
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