need a way out from westgate timeshare interests

[SmileMar]

Hello everyone,

I may have posted this in a wrong forum, I am still trying to figure out this website Please read my story below and I'll be happy to hear any advice or feedback

"Hello everyone,

I am new here, I am glad I came across this website, so much useful information.

My story began similar to the others' stories. We went on a vacation to Myrtle Beach this summer. The guy in one of the clothing stores offered free tickets to aquarium and free dinner for the whole family, the only thing we had to do is go for 90-minute presentation and look at the rooms Westgate is building. No mention of timeshare, whatsoever. Me and my husband thought how bad it can be, the worst thing they can do is to try to sell something and we would just say no. Well, we did say no to timeshare at first , then the so-called manager came out and offered us a "great" deal and we took it! They made it sound as if we were getting a good deal. We were so happy that we didn't even blink they said there would be a maintenance fee and taxes of $900. What is wrong with us?!? You can easily go to a nice hotel and pick the week you want to go without buying a timeshare. Alright, numbers... We financed a little over $15000 at 14.99% and a little over $2100 was the down payment. That is a lot of money for us. I felt a little uneasy after we left but thought we will pay it off fast and have a free vacation every other year, but it is not free, did not think about HOA fees. So we didn't look at the contract until recently and I was so sad when I realized we had 10 days to cancel and we missed it. I decided to review the mortgage payments, it doesn't have a lot of information there, no payment history, no details. We made 4 payments total of $978, only $ 223 of it went towards principal. Does that sound right?

So we are not sure what to do, we can't really afford it. We are debating if we should try to pay it off and try to give it away, $17000 would be lost. It will definitely be hard to try to pay their HOA every other year for us. Or just stop paying and walk away. What happens if you walk away? I assume it would ruin our credit but what other bad things may happen to us? They can't come after our house, can they?

I understand we made a very stupid mistake, please don't be harsh on me but I was hoping someone could give me some advice. Please "

 

[Jason245]

There is no way out. You bought something that is worthless. In Fact something with negative worth on the resale market.

Other than a credit hit and or bankruptcy. .you are stuck. You signed a contract that they designed to make impossible for you to get out of.

Refinance and pay off asap. Learn to use what you have (many here can help).


Sent from my SAMSUNG-SM-N910A using Tapatalk

 

[presley]

I was answering your other thread when it went poof. Not sure if this one will, too.

They cannot take your house. If they foreclose on you, you'll have a bad mark on your credit report. That won't matter if you don't plan to go into debt again.

Nobody will buy your timeshare or take it for free until you pay it off. Even then, it will be very difficult to find anyone to take it.

If you can pay for it and use it, do that and have fun. Something sounded good when you bought it. Keep reminding yourself what that was. If you can't pay for it or can't use it, stop paying now. It will take a while, but eventually they will foreclose on you.

 

[SmileMar]

Thank you, Jason and Presley.

It was our initial plan to refinance and pay it off. These past 3 days , I have been googling every free minute I got looking for solution and I read all these horrible complaints from the timeshare owners and got scared. They say HOA goes up by almost $100 every year, is that true?
As for if we can afford it or not, we are at 0 at the end of the month, that's the price you pay for bad decisions, I guess.

 

[presley]

It was our initial plan to refinance and pay it off. These past 3 days , I have been googling every free minute I got looking for solution and I read all these horrible complaints from the timeshare owners and got scared. They say HOA goes up by almost $100 every year, is that true?
As for if we can afford it or not, we are at 0 at the end of the month, that's the price you pay for bad decisions, I guess.

It's really easy to get scared when you read complaints, especially about Westgate. They have a really bad reputation. However, people love their resorts. So, if you stay in the resorts and enjoy them, just avoid all the salespeople/owner update people.

It is true that HOA goes up every year. It is like that with every timeshare. Rarely, it will stay the same or go down a few dollars. It's the norm to go up every year, but not necessarily $100. That isn't the immediate worry, though. If you are at zero at the end of the month, you might not have enough money to take the vacations that you are paying for. If that is the case, foreclosure might be your best choice. If there is any chance that you will foreclose, don't refinance. If you refinance, Westgate gets paid, you will have a bad debt with someone else and you'll still eventually get foreclosed on if you don't pay your annual fees.

 

[Passepartout]

If indeed you are at zero $ at the end of the month, could it be that there other debts (medical? Un-needed auto? consumer debt?, school loan etc.) that you could discharge in bankruptcy? Now if you simply have a case of spend-it-it is, and are living beyond your means, BK won't help you. If it could- and a lawyer in your area will do an assessment for little to no cost- you definitely CAN discharge a negative asset- which a timeshare certainly is. And it MIGHT even be less harmful to your credit than a foreclosure.

Welcome to TUG. We wish you'd found us before your Wastegate nightmare began.

Jim

 

[LannyPC]

Please read my story below and I'll be happy to hear any advice or feedback...but I was hoping someone could give me some advice. Please "

Another piece of advice that we usually offer to people in situations like yours is this. Watch out for the many scammers and questionable companies out there that claim to be able to perform miracles for you. They might have some sweet-sounding offers claiming they can get you out of your mortgage, end your TS agreement, stop your MFs, etc. They will charge you a hefty fee and then it's anybody's guess what they will do once they receive your dollars.

The other major scam to watch out for usually initiates with a phone call. They claim that they have buyers or renters waiting in the wings ready to pay you boatloads of money for your TS. They have no buyer or renter. They will charge you a hefty, upfront fee in the hundreds or thousands of dollars then escape with your money.

Others have already mentioned some of your options (as unappealing as they may sound) but realize the hard truth of your situation and what you "own".

 

[SmileMar]

Thank you, everyone.

Yes, there are some medical bills, big lawyer fees ( going through green card application through a sponsor), mortgage, preschool for kids; regular bills most people have. We are budgeting, very rare when we go out to a restaurant.

I think we could pay it off, as long as we are healthy and have jobs but I am worried we wouldn't get much use out of it as some of you do... And end up foreclosing down the road. Plus there is a possibility we would move to a different country if green card application is not approved for any reason..

I have few more questions. What happens if you are not able to use the week you own? I noticed some people use word "rent", is that something easily done ? and would that cover MF+ taxes?

I am still inclining more towards foreclosing but it terrifies me. We've never been late on any bills and have excellent credit scores , I don't think we will need to take out any loans in near future so the credit score wouldn't matter...

 

[presley]

I have few more questions. What happens if you are not able to use the week you own? I noticed some people use word "rent", is that something easily done ? and would that cover MF+ taxes?

I am still inclining more towards foreclosing but it terrifies me. We've never been late on any bills and have excellent credit scores , I don't think we will need to take out any loans in near future so the credit score wouldn't matter...

Renting it out is not easily done unless you have a holiday week in a high demand resort. Since you are paying a mortgage on top of the annual dues, you probably won't recoup much. Some people make their MFs back. Some make more (ocean front beach week), some only cover part of their MFs. It isn't a strategy I'd recommend unless you are sure that you want to keep the timeshare and know that you'll be able to use it the next year or two for yourself.

 

[LannyPC]

I have few more questions. What happens if you are not able to use the week you own? I noticed some people use word "rent", is that something easily done ? and would that cover MF+ taxes?

Another option is exchanging. If you use one of the major exchange companies, what you would do is deposit your week to the exchange company, then the company will allow you to take a week of close-to-equal value that it has in its inventory (usually deposited weeks from other owners).

Just keep in mind that there is an exchange fee depending on which company you use and, if you use one of the big two (RCI or II), there is usually an annual membership fee. However, TUG offers a free direct exchange between owners.

 

[Ty1on]

If it could- and a lawyer in your area will do an assessment for little to no cost- you definitely CAN discharge a negative asset- which a timeshare certainly is. And it MIGHT even be less harmful to your credit than a foreclosure.

I would research deep into bankruptcy before assuming it's less harmful on credit than a foreclosure. Talk to a financial adviser first.. Be aware that bankruptcy lawyers increase their income when they convince clients to file bankruptcy....some lawyers are ethical, some not so much.

 

[SmileMar]

Thanks everyone. I plan to contact a lawyer, maybe he will have something else to say...

 

[TUGBrian]

you will find that those "lawyers" that give you the story you want to hear (that there is an easy way out)....are going to then ask you for a large upfront fee.

 

[puppymommo]

I would also suggest looking into whether or not bankruptcy or foreclosure would have any impact on getting a green card. I don't think so but I don't really know.

 

[theo]

I plan to contact a lawyer, maybe he will have something else to say...

Yes, a lawyer will indeed have something else to say, likely something along the lines of "I charge $xxx per hour for my time after this initial consultation".
No attorney on Earth possesses any magic beans or pixie dust which can extract you from a legally binding contract which you freely chose to execute, months ago.
As already pointed out by others, there is no "escape hatch" and no "way out" --- you voluntarily signed a legally binding contract.

Unfortunately, you purchased something of little or no resale value, regardless of whether or not you pay off the associated loan. IMnsHO, you would serve yourself better at this point by looking very closely into the ramifications of allowing foreclosure or filing for bankruptcy. The only attorneys of potential use to you in this unfortunate Westgate purchase decision would be those practicing in the bankruptcy arena. Any and all money you pay to Westgate (past and / or future) is just wasted and lost. Stop that financial bleeding as soon as humanly possible and cut your losses. Personally, if in your shoes I would not send those parasites another penny, let alone $15k.

I wish you luck.

 

[SmileMar]

Thank you, everyone for your advice. So we decided, it's probably a stupid idea, but we wrote a nice letter to Westgate asking them to take back the timeshare and canceling the credit card authorization for monthly withdrawal.They most likely ignore it or say no, I haven't found a single post that said someone was able to give their timeshare back with balance on it, but it doesn't hurt to try , right?

My question... does anyone know where we should send it? Would it be the same address as the one to cancel the contract within 10 days?

P.S. The lawyer was a friend of a friend, had 15 min free consultation, said the same thing as you all did, no way out, you either pay or don't.

 

[Passepartout]

No, it doesn't hurt to send a letter, but truly, it's a waste of a stamp. I'd wager they get dozens of similar letters a day. Send it to the address in Ocoee, Florida.

If you are current in payments and MF fees, you can rent your week to slow the cash outflow, but it's un likely you'll get enough to cover all the cost. Also, if you are current, there is less likelihood of Wastegate taking back the deed in lieu of foreclosure. After all, they want the money more than the timeshare.

If it were me, and I didn't want to go through a bankruptcy, I would simply stop paying. Change phone numbers. Cancel he credit cards they are debiting- (or change banks). After a time of not getting any money from you, they may be more amenable to taking it back, and if not, the 7 year black mark on your credit will have started, getting it over with all the sooner.

Only you can decide if all this is worth the $15K to simply pay it off and use it. Many (just about half) of TUGgers bought their timeshares from the developer before learning about TUG and resale. For sure, some of them were in tight finances, and paid it off and have since learned to use what they bought. Remember that even Wastegate salesweasels lie and stretch the truth, but in the end, you saw value in what they were selling. That value, it family memories and vacations, remains. I know you are in worrying financial situations now, but perhaps, by taking on more work, maybe refinancing the debt at lower rate, you can pay it off sooner and get out from under the debt crush.

We wish you well, and good luck.

Jim

 

[LannyPC]

The lawyer was a friend of a friend, had 15 min free consultation, said the same thing as you all did, no way out, you either pay or don't.

It's a good thing this lawyer gave you a free, brief consultation. He actually gave you some good advice, simple as it sounded. It's times like this where many TUGgers warn people in your shoes to watch out for law firms and other questionable outfits (some are outright scams) that claim things like "Cancel your mortgage; end your maintenance fees; unload your timeshare" but then require you to pay an upfront fee.

 

[yellowbird]

Voluntary Deedback to Westgate

You can try contacting Westgate directly and asking about the Voluntary Deedback option. I believe there is a place when you are signed in on the website where you can obtain a Voluntary Deed Back (VDB) request form. You can also try calling Developer Services at 407 355-1000. I had to jump through a few hoops, but I was able to deed back an inherited timeshare, and now have a copy of the recorded quit claim deed showing it was deeded back. Our time share was paid in full, and we were able to deed it back for less than the cost of the 2016 maintenance fees. Not sure what they do when you still owe for the timeshare.

 

[TUGBrian]

you arent eligible to deed the property back if you are delinquent on the fees etc.