How to get out?

[girl123cdn]

Hello all, We bought a bi-annual timeshare at Grandview in Vegas two years ago for $10,000 US.
We are on the points system. We have never used it at all.
There are not a lot of options in Canada to trade it for.
We were told a lot of lies when we bought. We are still paying the $188US/month for the mortgage every month.
Our problem is that we are from Canada. Our Canadian dollar is dropping very quickly. It is now costing us $270 Cdn/month.
They charge the monthly payments to our credit card.
Does anyone have any advice on how we can get out of this?
It is costing us a fortune.
I was thinking about just cancelling that credit card so they cant bill us anymore.
I don't think they can affect our credit rating since we are in another country.
If we call and ask them to take back the title, will they?
Any advice you can give would be appriciated.

 

[TUGBrian]

welcome to TUG!

Is the interval paid off? or is there a loan still attached to it?

 

[girl123cdn]

Yes we are still paying off the original mortgage. I am not sure how much is left owing on it. But it is at a high interest rate.

 

[Passepartout]

The sad news is that with a mortgage, it has no value. You can't even give it away. It's doubtful that the resort will take back the deed in lieu of foreclosure- especially as you are current on payments. Those payments are what they want.

Honestly, the only value in timeshares is in their use. You could book a week, and rent it, but in that, your competition is Grandview, who regularly rents Last Call weeks for $209 USD. Probably not much help. I have no idea if cancelling the card and stopping payments will affect your credit rating or not. No one ever comes back here and tells us.

We are deeply sorry you bought something that lack of use and general economic situation has made a hardship. There is nothing we, or anyone else can do or say to make it go away. A word of caution: do not sign up for one of the "we will get you out of your timeshare- just send us $3000" outfits. All they will do is take your money, leaving you poorer and still with your timeshare.

I wish I had better news for you, but there it is. Sorry.

Good Luck.

Jim

 

[Kapolei]

Yes we are still paying off the original mortgage. I am not sure how much is left owing on it. But it is at a high interest rate.

That is totally messed up. I would pay that thing off as soon as possible and get rid of it. Then never trust anyone in field of marketing again for the rest of your life. You will save thousands going forward with the lesson that all sales people in every field are your enemy. This may sound harsh because there are honest sales people in the world. But this level of distrust towards all in the sales professions is healthy.

 

[dioxide45]

I think though that you probably still have 5-8 years still outstanding on this mortgage. You will need to accelerate the mortgage payments in order to be able to unload the week. No one will buy a timeshare that has a mortgage still outstanding.

However, as you suggest, you could just cancel the credit card and ignore their collection calls. They will end up foreclosing on the week and taking it back. What effect this will have on your credit rating is unknown, because as Jim says, no one ever comes back and tells us what happened when they just stopped paying. I would think that the ramifications would be more known if you lived in the US.

 

[WinniWoman]

Maybe it's me, but how to do you pay $10,000 for something and then never use it? Not meaning to be snarky, but why haven''t you used it? I am just curious-don't get it.

 

[LannyPC]

Maybe it's me, but how to do you pay $10,000 for something and then never use it? Not meaning to be snarky, but why haven''t you used it? I am just curious-don't get it.

It's probably for the same reason why people end up buying at those much-dreaded sales presentations. They get lured in by the gift and then, well, we know the rest.

But once somebody buys it, he doesn't realize how much it costs to use above and beyond the original mortgage. Besides the MFs, there are the peripheral costs of traveling such as airfare, luggage fare, costs to get around at your destination, activities, and food to name just a few.

Unfortunately, many who buy at those sales presentations do not consider those peripheral costs or the sales people somehow skew the numbers and figures to make it look like owning a TS will make for dirt cheap vacations when the opposite is usually true.

 

[wptamo]

Hiya, I think you have to do what is best for you. I suppose the original amount paid and resulting payments was within your budget, but now the exchange rate skewed things badly! Costs of everyday things like food go up more... There will be be a bigger ripple effect negatively if this low dollar continues.... I considered not paying a Maint fee and walking away from a TS, but will ride out this year.... Next year? I may need to be defensive, sell, give away or walk away... If the exchange continues negatively.
If the payments are too much , cut your loss and walk away....
Many of us may have to do that in the coming months....
I read some Buffalo news recently, some retailers there are also a bit concerned....
I still plan to take my trip to Fla this year... I will just spend way less....

 

[bogey21]

If I was in your situation; i.e. not using the week and watching my payment go up as the Loonie declines in value vs the US Dollar, I would cancel the Credit Card being charged; ignore all the inevitable threatening phone calls, etc.; and accept the consequences.

George

 

[gmarine]

Before you stop paying call and ask for an address to send a letter requesting a deed back. Send them a letter explaining that you cant pay the loan and ask them to accept the deed back. Explain that if they say no you have no choice but to stop paying. Then if they deny the request stop paying.

After some time they will probably offer to take the deed back in lieu of foreclosure. How much time depends on the resort but with monthly payments overdue it might be months it could be years. Good luck, hope it goes as well as possible.

 

[dioxide45]

Before you stop paying call and ask for an address to send a letter requesting a deed back. Send them a letter explaining that you cant pay the loan and ask them to accept the deed back. Explain that if they say no you have no choice but to stop paying. Then if they deny the request stop paying.

After some time they will probably offer to take the deed back in lieu of foreclosure. How much time depends on the resort but with monthly payments overdue it might be months it could be years. Good luck, hope it goes as well as possible.

I would think that since they have a loan and they default on that loan, that the developer would step in and foreclose rather quickly. It isn't the HOA that is concerned as much when the owner defaults on a loan. That developer has investors backing their loans.

I agree with the advice on the deed back. However, a note holder often won't entertain a deed back if the borrower is current on all payments.

 

[Passepartout]

There is a good chance that the developer has sold the mortgage loan to a finance co., even ' in house.' The developer couldn't care less if the loan payments are made or not. They have already been paid. The question is whether the finance company can, or will, file an adverse credit report against a Canadian?

I said earlier that the OP will not get any traction on a deed back as long as she's current. I might consider cancelling the credit card account, defaulting the payments, and see what happens. Much depends on how important their credit score is to them. Upcoming need for a new car, home, college loan? Does their employer check employees credit? Credit is more important to young people than it might be for seniors.

Jim

 

[gmarine]

I would think that since they have a loan and they default on that loan, that the developer would step in and foreclose rather quickly. It isn't the HOA that is concerned as much when the owner defaults on a loan. That developer has investors backing their loans.

I agree with the advice on the deed back. However, a note holder often won't entertain a deed back if the borrower is current on all payments.

Very true, I overlooked the outstanding loan.

 

[girl123cdn]

Thank you for all your helpful thoughts. I appreciate your advice.

 

[LannyPC]

Thank you for all your helpful thoughts. I appreciate your advice.

No problem. AS a fellow Canadian, I totally sympathize with you about the plummeting loonie :annoyed:

One of the best ways you can thank us is by following the advice Passpartoute/Jim gave you in post #4. Do not seek out or fall for any company that claims it can magically make your TS obligation disappear or cancel your mortgage and MFs. Sometimes they might seem tempting but they end up usually being a costly mistake.

 

[vacationhopeful]

Hiya, I think you have to do what is best for you. I suppose the original amount paid and resulting payments was within your budget, but now the exchange rate skewed things badly! Costs of everyday things like food go up more... There will be be a bigger ripple effect negatively if this low dollar continues.... I considered not paying a Maint fee and walking away from a TS, but will ride out this year.... Next year? I may need to be defensive, sell, give away or walk away... If the exchange continues negatively.
If the payments are too much , cut your loss and walk away....
Many of us may have to do that in the coming months....
I read some Buffalo news recently, some retailers there are also a bit concerned....
I still plan to take my trip to Fla this year... I will just spend way less....

I too have seen MANY, MANY Canadians reduced or cancel totally their travel plans due to the BAD exchange rate. Having just been in South Florida this week, other US citizen commented on WAY, WAY fewer car tags from Canada AND I heard MANY fewer TS guests' id themselves as from Canada.