Looking to Sell TS at a Loss

[vanni13]

That's the theory. Reality may be different. I had a mortgage that was sold to Slimy Mortgage Co in St Petersburg Florida. They were kiting checks so I refinanced with a different (and local) company. Getting the ACH to stop proved very frustrating and took changing the bank account number (i.e closing that account). I also complained to various state and federal agencies and I think the one in Florida was helpful. So while it should be a simple matter of withdrawing your approval, be prepared for them to not pay any attention. Assume an account number change in some form.

Great. Thank you for that information I did call them today and they said we aren't on auto pay to begin with (although I'm not certain so swapping accounts might be the move)

Are you still using your timeshare? We did get a final answer on stopping payment and they told me they will start recovery after 120 days of non payment.

My wife and I are also looking at refinancing with shorter terms and better interest rates. We are stuck on which one to do so we are going to sit on it and make a decision in a few days.

Again, really appreciate everyone chiming in here it really helps

 

[vanni13]

That's the theory. Reality may be different. I had a mortgage that was sold to Slimy Mortgage Co in St Petersburg Florida. They were kiting checks so I refinanced with a different (and local) company. Getting the ACH to stop proved very frustrating and took changing the bank account number (i.e closing that account). I also complained to various state and federal agencies and I think the one in Florida was helpful. So while it should be a simple matter of withdrawing your approval, be prepared for them to not pay any attention. Assume an account number change in some form.

Thank you for that information. This has all been very helpful.

Can you share, or are you willing to share what kind of hit it took on your credit?

It does look like HIVC does do credit hits from what I am reading in other threads

 

[heathpack]

Honestly- it doesn't make sense to pay off the loan. Just stop paying it, and close that bank account. Losing your $2000 initial payment is bad enough, $20,000 is too high of a price to pay

 

[vanni13]

Honestly- it doesn't make sense to pay off the loan. Just stop paying it, and close that bank account. Losing your $2000 initial payment is bad enough, $20,000 is too high of a price to pay

Do you know what kind of credit hit were looking at? From what I am seeing it's 100-200 pts. Maybe higher.

We can take that for a lil bit.

 

[heathpack]

Do you know what kind of credit hit were looking at? From what I am seeing it's 100-200 pts. Maybe higher.

We can take that for a lil bit.

I really don't know. Sometimes there is no hit at all. If it was even $5000, I'd understand taking your lumps. But $20,000 is too much.

 

[vanni13]

I really don't know. Sometimes there is no hit at all. If it was even $5000, I'd understand taking your lumps. But $20,000 is too much.

Well it does seem like we might get some leeway with the credit agencies when it's all said and done.

I suppose dealing with a handful of months of harassment is worth 20k

It just does seem like HIVC does def try to ding your credit (I believe it was 4 out of 4 reported on one of the cancel threads)

Yeah 20 is a lot. Esp for what we actually got.

 

[sue1947]

Can you share, or are you willing to share what kind of hit it took on your credit?

None. I didn't default. I simply refinanced with another mortgage company. Mortgage for my home is a whole different ball of wax than a timeshare.

I have 2 timeshare, both purchased resale. I have gotten much more value out of each vs the purchase price + maintenance fees. Timeshares can be a VERY cost effective way to stay. However, they aren't for everybody. It's best for those who plan ahead and are willing to dig into the details to learn the ins and outs of how to get the best value.

Boiling everything down for you:
Defaulting on a timeshare doesn't seem to have much impact. There is a thread here somewhere tracking people who defaulted and the consequences and the latter seem pretty small if any at all. But it really depends on your specific situation. If you plan on making a purchase via a loan (house or car), you might be impacted. Otherwise, writing off the initial costs paid so far as an expensive lesson might make sense.
OR learn how to use what you have. If you don't have enough points, look at getting additional points resale (likely for free) and see if the additional maintenance fees + your loan = decent value for you. Again, this depends on your specific situation.

 

[Snazzylass]

Do you know what kind of credit hit were looking at? From what I am seeing it's 100-200 pts. Maybe higher.

We can take that for a lil bit.

First, can I say, your posts are all over the place. I'm sorry this happened, but it's been less than a month. Maybe make sure you have totally educated yourself on what you bought and how you might use it by doing a deep dive in these forums, reading your contract, calling about booking again.

Regarding your credit, if they are offering you a "deed in lieu of foreclosure," that's exactly what it will show up as on your report. At some point, get copies of Trans Union, Equifax and Experian. They may not report to all 3. So, check and find out. Effectively, this would report as a Foreclosure which is a very specific credit incident in addition to lowing your score. You may not qualify to refi your home among other things as long as that shows up. Lenders have very specific rules. I would advise against writing a letter to put on your report. I can't tell how many times the letter is still there when the "boo boo" is gone. (I am retired, most recently as a mortgage originator but also auto lending, leasing and commercial finance. I've seen a lot of credit reports.) Do you think you will need a new car loan in the next seven years? It won't be impossible but you would likely pay a premium.

 

[RX8]

Can you share, or are you willing to share what kind of hit it took on your credit?

[ 2022 ] Timeshare Default Credit Report/Collection Tracking

Some of you know I have been tracking this. Out of four (4) more TS defaults reported on TUG Facebook, one (1) got his credit affected. I have tabbed the following stats(updated 5/2022): TS defaults w credit drops: 47 out of 107 TS defaults w collections: 12 out of 107 TS defaults w...

tugbbs.com

 

[vanni13]

None. I didn't default. I simply refinanced with another mortgage company. Mortgage for my home is a whole different ball of wax than a timeshare.

I have 2 timeshare, both purchased resale. I have gotten much more value out of each vs the purchase price + maintenance fees. Timeshares can be a VERY cost effective way to stay. However, they aren't for everybody. It's best for those who plan ahead and are willing to dig into the details to learn the ins and outs of how to get the best value.

Boiling everything down for you:
Defaulting on a timeshare doesn't seem to have much impact. There is a thread here somewhere tracking people who defaulted and the consequences and the latter seem pretty small if any at all. But it really depends on your specific situation. If you plan on making a purchase via a loan (house or car), you might be impacted. Otherwise, writing off the initial costs paid so far as an expensive lesson might make sense.
OR learn how to use what you have. If you don't have enough points, look at getting additional points resale (likely for free) and see if the additional maintenance fees + your loan = decent value for you. Again, this depends on your specific situation.

Ah ok I see what you're saying. Add on with someone else trying to sell their points for $1 (which I see plenty of) and see if those combined things would allow us to enjoy the travel.

That's an interesting proposition especially since we ideally would like the vacation but can't book one with our current level of points.

 

[vanni13]

First, can I say, your posts are all over the place. I'm sorry this happened, but it's been less than a month. Maybe make sure you have totally educated yourself on what you bought and how you might use it by doing a deep dive in these forums, reading your contract, calling about booking again.

Regarding your credit, if they are offering you a "deed in lieu of foreclosure," that's exactly what it will show up as on your report. At some point, get copies of Trans Union, Equifax and Experian. They may not report to all 3. So, check and find out. Effectively, this would report as a Foreclosure which is a very specific credit incident in addition to lowing your score. You may not qualify to refi your home among other things as long as that shows up. Lenders have very specific rules. I would advise against writing a letter to put on your report. I can't tell how many times the letter is still there when the "boo boo" is gone. (I am retired, most recently as a mortgage originator but also auto lending, leasing and commercial finance. I've seen a lot of credit reports.) Do you think you will need a new car loan in the next seven years? It won't be impossible but you would likely pay a premi

 

[vanni13]

Yes. The posts are a little all over, mostly because we're trying to wrestle with what to do with it, since we can get a different loan to cover the balance of the loan and the fee to cancel through Horizons.

The main reason we don't want to default is that weve spent the last 10 years married building up the credit we have (wife is over 800, I am in the mid 700s) and I would hate to lose that... Although we likely do not have to get an auto loan in the next 7 years but we would like to refinance our mortgage whenever possible!!

I do realize it's only been a month and I need to chill out a little. I guess it's a mixture of self embarrassment, regret, and denial all in one. Im grieving but you should have seen me for 2 weeks after we bought. I could barely even sleep I was so stressed out the bad decision

 

[USA traveler]

Yes. The posts are a little all over, mostly because we're trying to wrestle with what to do with it, since we can get a different loan to cover the balance of the loan and the fee to cancel through Horizons.

So you can't afford to keep it, but will take on an outside loan of roughly $20k+ to pay it off and then just give it back to HICV, just to not get a potential hit on your credit?

If you can secure a new loan at lower interest to pay off HICV's original loan, u may as well hold onto it til end of year since you already paid the maintenence this yr. IDK, i hear that Horizon takes almost 6months+ to process, in some cases too. But it sucks that they will get over $20k from u with such little effort. At least get a vacation in this year. Your pts will stack if u don't use it this yr, so u can have 150k for next yr usage.

Idk, def sucks, but look at what you do have to work w. I would just stop paying altogether if I couldn't afford any of it, but u say u can get a loan to pay it off.

Also, for the ACH withdrawal, you should be able to call the payment line and cancel the auto transaction. Or log onto the payment site after you set up your online payment acct, and do it yourself. I did it recently.

 

[vanni13]

So you can't afford to keep it, but will take on an outside loan of roughly $20k+ to pay it off and then just give it back to HICV, just to not get a potential hit on your credit?

If you can secure a new loan at lower interest to pay off HICV's original loan, u may as well hold onto it til end of year since you already paid the maintenence this yr. IDK, i hear that Horizon takes almost 6months+ to process, in some cases too. But it sucks that they will get over $20k from u with such little effort. At least get a vacation in this year. Your pts will stack if u don't use it this yr, so u can have 150k for next yr usage.

Idk, def sucks, but look at what you do have to work w. I would just stop paying altogether if I couldn't afford any of it, but u say u can get a loan to pay it off.

Also, for the ACH withdrawal, you should be able to call the payment line and cancel the auto transaction. Or log onto the payment site after you set up your online payment acct, and do it yourself. I did it recentl

So you can't afford to keep it, but will take on an outside loan of roughly $20k+ to pay it off and then just give it back to HICV, just to not get a potential hit on your credit?

If you can secure a new loan at lower interest to pay off HICV's original loan, u may as well hold onto it til end of year since you already paid the maintenence this yr. IDK, i hear that Horizon takes almost 6months+ to process, in some cases too. But it sucks that they will get over $20k from u with such little effort. At least get a vacation in this year. Your pts will stack if u don't use it this yr, so u can have 150k for next yr usage.

Idk, def sucks, but look at what you do have to work w. I would just stop paying altogether if I couldn't afford any of it, but u say u can get a loan to pay it off.

Also, for the ACH withdrawal, you should be able to call the payment line and cancel the auto transaction. Or log onto the payment site after you set up your online payment acct, and do it yourself. I did it recently.

We are looking at not paying altogether as the best option here. Second is securing a different loan, paying off, and then trying to Horizon it away.

I suppose not paying maintenance fees would also be the option.

I suppose, in some kind of way we could squeeze to make the payments (which we thought would be ~$390/mo but go up to closer to +$500 with their added fees and taxes. So their loan would cost over 30k for the life of the mortgage vs getting a straight loan for $21k to pay it off with enough for horizons.

Not a great option in either bin and am worried some kind of thing will come up in the next 7 years and we need credit.

I am unfortunately a worrier. I worry a lot and I am worried in both directions here. My wife and I need to make a decision we can put our heads to the pillow every night so we either take the lump or we deal with the credit collectors and whatever happens from there.

I would assume since it's still an active time share and mortgage they will report and we will take a credit ding since it's not just non MF payment.

We don't have a first payment till the end of this month so we have a couple weeks to mull it over.

Thanks for the response. They all help!!

 

[vanni13]

So you can't afford to keep it, but will take on an outside loan of roughly $20k+ to pay it off and then just give it back to HICV, just to not get a potential hit on your credit?

If you can secure a new loan at lower interest to pay off HICV's original loan, u may as well hold onto it til end of year since you already paid the maintenence this yr. IDK, i hear that Horizon takes almost 6months+ to process, in some cases too. But it sucks that they will get over $20k from u with such little effort. At least get a vacation in this year. Your pts will stack if u don't use it this yr, so u can have 150k for next yr usage.

Idk, def sucks, but look at what you do have to work w. I would just stop paying altogether if I couldn't afford any of it, but u say u can get a loan to pay it off.

Also, for the ACH withdrawal, you should be able to call the payment line and cancel the auto transaction. Or log onto the payment site after you set up your online payment acct, and do it yourself. I did it recentl

[ 2022 ] Timeshare Default Credit Report/Collection Tracking

Some of you know I have been tracking this. Out of four (4) more TS defaults reported on TUG Facebook, one (1) got his credit affected. I have tabbed the following stats(updated 5/2022): TS defaults w credit drops: 47 out of 107 TS defaults w collections: 12 out of 107 TS defaults w...

tugbbs.com

So we're in between not paying and just sticking with what we have and trying to pay off in half the time (which seems to be possible when compared to our refinance options)

With default, we of course are worried about our credit scores and along the course of 7 years, with 3 small children, how will our situation maybe change immediately that would warrant needing the credit we built.

Its a rock and a hard place for us. If we did pay, and pay extra, we would at least get the benefits of the timeshare for the time we are paying, even if that's not very much.

Long sigh... I'm worried that we just don't want to pay because we're mad at the difference between the sales presentation and our actual staying power. I don't want emotions to guide these decisions

 

[USA traveler]

Dont beat yourself up on it. Just get smart about what you bought and try to find the value. Read up on the members guide and find out how u can make most of it base on where your status is. The sticky posts will give you most all the info you and it is a lot. Things like mtnc fees costs/trends can help you not become surprised in Dec when they send you the annual bill.

Pts to rent don't change, so u can plan every other yr travels, and 150k is enough to get you a wk or more at most locations. Keep in mind, Sun thru Thu vs Fri and Sat nights will stretch your pts more, also. Max time are great, if u r flexible to travel, maybe later when kids get older.

Resort access window (13mon out) does require to book 7 nights min, and 150k will get you 7nights during platinum season. Otherwise at 10 mon window you can book min 2 nights anywhere. Also, the website is janky so you may not see all availability. For a fee, I think u can borrow or rent up to half of your pts from following yr, if u really need pts to book, also.

Not ideal, I'm sure, but if u can get 7nights vaca every other yr for 2BR HICV in Myrtle, ask yourself if onetime $20k and annual mtnc fees is worth it, if u do travel for next 20+ yrs. You can do the math and come to that conclusion. Hope it helps.

 

[vanni13]

Hey everyone. Thanks for all the responses it really helped us sort out what we're going to do.

We are going to keep the timeshare for at least the next 3-4 years as we follow our plan to pay off what we agreed to, even if we feel we were deceived that doesn't matter. We don't want to have the negative credit hit in the form of a mortgage default.

So we are going to enjoy everything we can with the points we have. We are spending our first weekend in August at the owner orientation.

Again thanks to everyone and this resource it's really great.

 

[DeniseM]

Sounds like a solid plan! Don't be a stranger!

 

[vanni13]

Dont beat yourself up on it. Just get smart about what you bought and try to find the value. Read up on the members guide and find out how u can make most of it base on where your status is. The sticky posts will give you most all the info you and it is a lot. Things like mtnc fees costs/trends can help you not become surprised in Dec when they send you the annual bill.

Pts to rent don't change, so u can plan every other yr travels, and 150k is enough to get you a wk or more at most locations. Keep in mind, Sun thru Thu vs Fri and Sat nights will stretch your pts more, also. Max time are great, if u r flexible to travel, maybe later when kids get older.

Resort access window (13mon out) does require to book 7 nights min, and 150k will get you 7nights during platinum season. Otherwise at 10 mon window you can book min 2 nights anywhere. Also, the website is janky so you may not see all availability. For a fee, I think u can borrow or rent up to half of your pts from following yr, if u really need pts to book, also.

Not ideal, I'm sure, but if u can get 7nights vaca every other yr for 2BR HICV in Myrtle, ask yourself if onetime $20k and annual mtnc fees is worth it, if u do travel for next 20+ yrs. You can do the math and come to that conclusion. Hope it helps.

I really appreciate all the encouraging posts!!

I have found we can book at least ~2 weeks a year when booking ahead and playing it smart.

We get to attend a new member orientation in August and get 25,000 club points so we'll actually start with 175,000 because we bought 75,000 and get gifted another 75,000... So 150,000 pts total and for the first 2 years we also get a complementary 3 night stay anywhere.

We're gonna make this work!! We have 3 small kids and they will enjoy the resorts.

We can book a week in Gatlinburg for 38,000 pts and then have a ton of points for other resorts as they're available.

At some point we will do a week in Orlando.

Anyways I'm sorry I sounded like we were in such a panic before. My wife and I can both unfortunately be over emotional in our own ways and this purchase has created a situation where my wife and I can have a great conversation about how we support each other during times like the sales presentation and now afterwards.

I'd say it's a net positive!

Thanks again!

 

[vanni13]

Sounds like a solid plan! Don't be a stranger!

We will

Sounds like a solid plan! Don't be a stranger!

We will join TUG as members now as we truly appreciate the support.

 

[DeniseM]

One more thing: Be aware that the "Owners Update," is really just another hard-core sales presentation.

If you must go, you don't want to buy any more points from the developer - you can do much better buying additional points on the resale market, and you can learn about that here on TUG. You and your spouse need to plan to stand firm in this meeting.

 

[rickandcindy23]

What Denise said, I am going to reiterate. Buy additional points on the resale market and combine points. You can feel good about taking on additional points from owners who want out.

When my nephew bought WorldMark from the developer, 6,000 points, he was agonizing over his bad choice because he couldn't even book a week anywhere. He found resale points on eBay that were nearly free, added those into what he already owned, and now he has 36,000 points and gets 3-4 weeks of vacation a year out of it. He has this aunt who told him how to game the system.

Some people cannot resist buying at a timeshare presentation. We have friends (firefighter Rick worked with for years) who purchased three different timeshares in Florida after attending presentations because they cannot say no. They were so in debt, they divorced and filed bankruptcy to get out from under the debt of the timeshares.

Fast forward a few years, he remarries and calls Rick from a Mexico timeshare presentation to ask if he should buy because it's a beautiful resort. We don't know if he bought, but Rick told him to say no. He wouldn't tell Rick he did it because it would be against Rick's advice.

 

[sue1947]

One more thing: Be aware that the "Owners Update," is really just another hard-core sales presentation.

We get to attend a new member orientation in August and get 25,000 club points so we'll actually start with 175,000 because we bought 75,000 and get gifted another 75,000... So 150,000 pts total and for the first 2 years we also get a complementary 3 night stay anywhere.

That new member orientation with the extra points for attending isn't about educating you on how to use your membership; it's about selling you more. Your best bet for actual orientation is to ask questions here and get answers from other owners.
If you want the extra points for attending, recognize that it is merely a sales pitch and go in accordingly. Get a time limit commitment and then make them honor it. You will have to be firm. Any questions you ask will be answered in whatever way the sales person (aka orientation leader) thinks will make you buy more. You can safely assume that most timeshare sales people lie so take any answer you receive with a huge grain of salt. As a result, asking questions is a waste of time.

 

[vanni13]

One more thing: Be aware that the "Owners Update," is really just another hard-core sales presentation.

If you must go, you don't want to buy any more points from the developer - you can do much better buying additional points on the resale market, and you can learn about that here on TUG. You and your spouse need to plan to stand firm in this meeting.

Well yeah we realize when we paid for the new member orientation that it was just another hard sales meeting that's fine because at this point we're totally maxed out on anything extra we could spend every month anyways. I appreciate the heads up and we have definitely been preparing ourselves for this.

 

[vanni13]

What Denise said, I am going to reiterate. Buy additional points on the resale market and combine points. You can feel good about taking on additional points from owners who want out.

When my nephew bought WorldMark from the developer, 6,000 points, he was agonizing over his bad choice because he couldn't even book a week anywhere. He found resale points on eBay that were nearly free, added those into what he already owned, and now he has 36,000 points and gets 3-4 weeks of vacation a year out of it. He has this aunt who told him how to game the system.

Some people cannot resist buying at a timeshare presentation. We have friends (firefighter Rick worked with for years) who purchased three different timeshares in Florida after attending presentations because they cannot say no. They were so in debt, they divorced and filed bankrupt to get rid of the timeshares.

Fast forward a few years, he remarries and calls Rick from a Mexico timeshare presentation to ask if he should buy because it's a beautiful resort. We don't know if he bought, but Rick told him to say no. He wouldn't tell Rick he did it because it would be against Rick's advice.

I have to really admit that I am usually not the one to buy any of these things and the way they got us was when we were touring the property across the street from South Beach on the oceanfront property they showed us the child care center where we could drop our kids off for a few hours and I think that in our minds we had thought we would have had to go to one of those all inclusive resorts in Mexico to get the same as my brother had just done that so the second part of that is my wife was supposed to claim that she couldn't sign any papers because of her religion which is kind of true here but when we got to that part of the presentation and I looked over at her she just encouraged me to keep going so I followed her queue and we both kind of went with the feel-good thing even though starting that night I didn't get any sleep for like 2 weeks thinking about the fact that we had just signed that contract .

I feel like I'm just getting back to getting a decent night's sleep with a decision that we made and that was like a month ago.

If we do wind up staying with holiday and vacation club for longer than the time it takes us to pay off our mortgage then we will definitely look into buying more points on the used market and find people like us who decided to go in the different directions.