Looking to sell Grandview Las Vegas

[araunity2005]

Hi everyone,

My story is no different than many I have read so far; I live in Canada and have a Grandview Las Vegas with $14,834.80 left in mortgage payout. With the recent challenges in Canada and the rise in interest rates, I have struggled even with 2 jobs keeping my principal home, and now things are coming to a spot where I cannot pay the timeshare anymore. I am honestly looking for advice or options for anyone buying this even at $0 but with the mortgage owing since put I cannot make the payments anymore.

 

[jabberwocky]

I don’t think anyone will take it off your hands with a mortgage owing on it. That’s a good chunk of change once converted to CAD.

You may just want to let it go into foreclosure. It is unlikely to impact your Canadian credit rating as these are completely separate.

 

[Fido Chuckwagon]

Hi everyone,

My story is no different than many I have read so far; I live in Canada and have a Grandview Las Vegas - Deeded / Biennial/ Week 29 / 2 bedroom with $14,834.80 left in mortgage payout. With the recent challenges in Canada and the rise in interest rates, I have struggled even with 2 jobs keeping my principal home, and now things are coming to a spot where I cannot pay the timeshare anymore. I am honestly looking for advice or options for anyone buying this even at $0 but with the mortgage owing since put I cannot make the payments anymore.

You are significantly upside down, the timeshare is not worth close to what you owe on it, if it’s worth anything at all. There is no possibility of selling it, or even giving it away. Unless you care about your credit rating in the US it’s likely there will be no consequences to you if you just stop paying and let it go into foreclosure. Certainly your other expenses should take priority over this. NO MATTER WHAT DO NOT PAY ANY UPFRONT MONEY TO ANY COMPANY THAT WILL CLAIM TO BE ABLE TO GET YOU OUT OF IT OR CLAIM THAT THEY WILL BE ABLE TO SELL IT FOR YOU. THEY ARE ALL SCAMS.

 

[Passepartout]

I suspect that since this timeshare has you upside-down in your finances, you might have other issues. Credit card debt? Installment loans? It's really none of our business, but you might have a talk with professional personal finance person. If you stop paying this mortgage, know that you will get possibly abusive and demanding calls from them. You can demand (in writing) that ALL correspondence be in writing. I don't know if Canada has an equivalent to USs Fair Credit Reporting Act to protect people like you. You should see what your rights are.

You should also know that if you default on this (or any other US based debt) it will NOT affect your ability to visit the US.- Immigration and customs folks have no access to your credit information.

We wish you well.

Jim

 

[Fido Chuckwagon]

Also, unless you plan on moving to the US in the next 7 years, I wouldn’t lose sleep about a foreclosure on your US credit report. Even if you were, I still probably wouldn’t lose a ton of sleep.

 

[SteveinHNL]

So hard to give personal financial planning advice on an internet website without knowing all the facts. But if you are struggling to bail water to stay on top of your home mortgage, then a TS in Vegas is one of first things I'd toss out of the boat.

 

[araunity2005]

Hey everyone, thank you for your advice. To put a bit more context, I have 2 jobs, and my income is decent to make all my expenses and ensure I can keep saving for the future. I got into a problem over the last few months because I have 2 properties in Canada, one principal, one condo for the future and one variable. The rise in rates, food costs (no competition in Toronto), and heating bills, thanks to our government's stupid carbon tax, compounded the problem. So I am paying a good 3000 more between my 2 properties but gas, food, and heating tipped things too heavily.

What makes life complicated is my only child is autistic, and unlike the US, in Canada, the support system is scarce, so we are paying a lot out of pocket for therapies; there has been a sharp increase. His therapy fees increased as all the companies are private, so a combination of all these factors pretty much means it is time to tighten the belt very heavily and start looking at all my liabilities and severing ones that does not make sense. In all the necessities we cannot afford to make trips outside of Canada let alone even visit Vegas to use the timeshare ownership week. So I am looking at cutting as much of costs that just does not make sense out.

 

[Patri]

Yep, dump the timeshare. Best wishes for everything else.

 

[Fido Chuckwagon]

Hey everyone, thank you for your advice. To put a bit more context, I have 2 jobs, and my income is decent to make all my expenses and ensure I can keep saving for the future. I got into a problem over the last few months because I have 2 properties in Canada, one principal, one condo for the future and one variable. The rise in rates, food costs (no competition in Toronto), and heating bills, thanks to our government's stupid carbon tax, compounded the problem. So I am paying a good 3000 more between my 2 properties but gas, food, and heating tipped things too heavily.

What makes life complicated is my only child is autistic, and unlike the US, in Canada, the support system is scarce, so we are paying a lot out of pocket for therapies; there has been a sharp increase. His therapy fees increased as all the companies are private, so a combination of all these factors pretty much means it is time to tighten the belt very heavily and start looking at all my liabilities and severing ones that does not make sense. In all the necessities we cannot afford to make trips outside of Canada let alone even visit Vegas to use the timeshare ownership week. So I am looking at cutting as much of costs that just does not make sense out.

Just stop paying and let them foreclose.

 

[5finny]

All good advice above
Pay particular attention to advice not to pay anyone ANY upfront money to supposedly help you EXIT timeshare
Good Luck!

 

[jabberwocky]

I suspect that since this timeshare has you upside-down in your finances, you might have other issues. Credit card debt? Installment loans? It's really none of our business, but you might have a talk with professional personal finance person. If you stop paying this mortgage, know that you will get possibly abusive and demanding calls from them.

We wish you well.

Jim

Just a note - this is becoming quite a common story in Canada- even for people who are quite conservative with their finances. You don’t see large credit card borrowings typically. Unlike the US where you can get a fixed rate mortgage for 30 years, pretty much the maximum you can fix your rate for up here is 5 years.

To make matters worse, the rate premium for locking in your rate is pretty hefty over going with what we call a “variable rate” mortgage which adjusts each month. About 1/3 of Canadian borrowers have a variable rate.

Basically you can think of Canada as being a country where every home sold has some variant of an ARM (back in 2008 in the US these mortgages were usually referred to as “subprime”). Those with variable mortgages are already hurting - those who were fortunate enough to lock in during 2020-21 at ridiculously low 5 years rates will be seeing steep increases in their payments. (I was able to get a 5 year at 1.89% which is good for another two years. If I had to renew now it would be over 6%).

Add in the huge increases to transportation and heating costs (nearly all of our fresh food is imported) because of continued increase in energy prices (electric and heating prices have tripled largely due to a carbon tax).

All I’m saying is that this is incredibly common and likely not the fault of the OP. The average Canadian family is stretched and it is about to get worse. I wouldn’t want to be heavily invested in Canadian banks…this is going to be a train wreck in the near future unless the government does some sort of bailout for the mortgage insurance industry.

 

[WaikikiFirst]

Just a note - this is becoming quite a common story in Canada- even for people who are quite conservative with their finances. You don’t see large credit card borrowings typically. Unlike the US where you can get a fixed rate mortgage for 30 years, pretty much the maximum you can fix your rate for up here is 5 years.

To make matters worse, the rate premium for locking in your rate is pretty hefty over going with what we call a “variable rate” mortgage which adjusts each month. About 1/3 of Canadian borrowers have a variable rate.

Basically you can think of Canada as being a country where every home sold has some variant of an ARM (back in 2008 in the US these mortgages were usually referred to as “subprime”). Those with variable mortgages are already hurting - those who were fortunate enough to lock in during 2020-21 at ridiculously low 5 years rates will be seeing steep increases in their payments. (I was able to get a 5 year at 1.89% which is good for another two years. If I had to renew now it would be over 6%).

Add in the huge increases to transportation and heating costs (nearly all of our fresh food is imported) because of continued increase in energy prices (electric and heating prices have tripled largely due to a carbon tax).

All I’m saying is that this is incredibly common and likely not the fault of the OP. The average Canadian family is stretched and it is about to get worse. I wouldn’t want to be heavily invested in Canadian banks…this is going to be a train wreck in the near future unless the government does some sort of bailout for the mortgage insurance industry.

Wow for sure. YLSNED. "think of Canada as being a country where every home sold has some variant of an ARM"
This would seem to make Canada the canary in the coal mine ofr a RE decline. Conversely, I recently saw a headline, so I looked it up. take a look at the chart in this report

Nearly Everyone With a Mortgage Has an Interest Rate Below 6%, Prompting Many to Stay Put

With rates now close to 7%, many homeowners aren’t moving, which is intensifying a shortage of homes for sale.

www.redfin.com

Almost 25% of US mortgages are now below 3%. Another 30% of US mortgages are between 3% & 4%.
The "issue" here is people won't sell because they don't want to get a much higher rate on the next house. The coming problem there would seem to be the opposite: many forced sales.

 

[geist1223]

We have a below 3% Loan. The term was 15 years. We have no desire to buy in today's Market and pay over 6%. We will stay where we are at until we are ready for Senior Living. We are currently 69. So that is a ways off.

 

[TheHolleys87]

We have a below 3% Loan. The term was 15 years. We have no desire to buy in today's Market and pay over 6%. We will stay where we are at until we are ready for Senior Living. We are currently 69. So that is a ways off.

Same here - even though I’d love to move closer to our new grandbaby, who's 200 miles away, I don’t want to take on a new mortgage at more than twice the interest rate. So we’ll be here as long as we can manage it.