New Here! Help with Westgate Timeshare

[pablo216]

Hi guys!

I guess I didn't find TUG on time and now I'm deeply in debt. So I know I'm the biggest and dumbest guy ever so we can skip that part lol.

I purchased Westgate in Orlando on nov-2-23 and I'm now paying monthly $650 for the next 10 years . (I'm new to the US and got excited about my wife possibly finding a side gig renting these Westgate weeks). Eventually I'll refinance once my credit score improves

The sales rep told us it was a great business to publish these weeks on airbnb, booking, etc. and that we should look at it as a way to make some extra bucks and have vacation plans set. Because my wife didn't have a job we thought it was a great option to get her occupied and making her own money (oh boy...).

Now I realize that the $40k "investment" I could've gotten for free and I'm coming to terms with it by reading you guys... now my main questions are:

1. Do these "get out of TS" companies work only with already payed TS's? Or is there any trustworthy one I could hire even if it costs me a bit?
2. Is there ANY way for me to deed back without having payed the total amount? I'm even willing to loose all I've invested so far ($6k of the $40K) or even pay extra to forget this nightmare. I only see people wanting to get rid of already payed TS's but no one as dumb as me who paid premium full price retail and didn't find TUG on time.
3. If I'm not going to be able to get out of this entire ordeal, can I legally "sell" through online platforms my floating 6 weeks to try and minimize the damage? I guess the good thing here is that I have a Float plan so I could play with high demand season and sell cheap to at least recoup part of it.
4. I also have Interval International for a year so maybe I can "sell" my discounted weeks online. Are there any guides here to do that?

Thanks in advance for any assistance you might provide to the dumbest guy alive!

 

[TUGBrian]

Welcome to TUG!

1. Do these "get out of TS" companies work only with already payed TS's? Or is there any trustworthy one I could hire even if it costs me a bit?

The solution provided by exit companies in your situation is to stop paying.

1. Is there ANY way for me to deed back without having payed the total amount? I'm even willing to loose all I've invested so far ($6k of the $40K) or even pay extra to forget this nightmare. I only see people wanting to get rid of already payed TS's but no one as dumb as me who paid premium full price retail and didn't find TUG on time.

you can stop paying, but this (especially with westgate) will likely come with the usual/expected downsides to defaulting on a hefty loana balance.

1. If I'm not going to be able to get out of this entire ordeal, can I legally "sell" through online platforms my floating 6 weeks to try and minimize the damage? I guess the good thing here is that I have a Float plan so I could play with high demand season and sell cheap to at least recoup part of it.

renting anywhere in Orlando (especially westgate) is not likely to cover your maintenance fees, but it is possible. https://rent.tug2.net

1. I also have Interval International for a year so maybe I can "sell" my discounted weeks online. Are there any guides here to do that?

you cannot rent exchange or bonus weeks in either RCI or II.

 

[rickandcindy23]

So sorry. I would stop paying but you will get a credit hit. Timeshare salespeople are just scammers. They lie and say anything for a sale.

 

[Patri]

If your credit score is already sort of low, just stop paying. Your score will probably improve over the same time frame as you were hoping, and you will have that money still in your pocket!

 

[RX8]

I was a credit analyst many years ago. Not sure how current analysts look at these things but if there was a timeshare delinquency on the credit bureau, or even a gym membership delinquency, I ignored it if everything else was fine. That said, while it may be an approval there may be a hit on the credit score which may result in a higher rate.

 

[pablo216]

Oh guys I would take the hit but I'm not from the US and just got here last year with a wrk visa and will be trying to become a permanent resident in the next years. I don't want to risk getting flagged by the immigration people and maybe rejecting the entire process.

But from the sound of it I'm kind of screwed... At least until I get my permanent residence and then maybe I could follow your advice.

 

[Patri]

Immigration may think you are smart.

 

[WorldT]

A credit hit from a timeshare company will not impact your visa status or permanent residence application. There has to be a suspicion of fraud on your part before your immigration status is affected. You are/were a victim of a scam.
If you are okay with losing the 6k, toss it, cut your loses and move on. There is no legitimate way to get out without losing more money. Just toss it and don't pay anyone any money to "get you out".

 

[pablo216]

Ok guys thanks for the great advice! Should I send a letter to the timeshare company telling them anything about the cease of payment so that they start the foreclosure as quick as possible? Or is it just a "don't pay and never answer any emails of phone calls ever again" type of situation?

Do you know anybody that has gone through this experience with Westgate so that I could know what to expect?

Thanks for your help guys!!

 

[WorldT]

Since you still owe on purchase, even their limited take back program will not work. But you can still give it a shot. Worst case the say no or the ask you to pay a lot of money. Like I said, I wouldn't pay them a dime more. They will try to convince you to pay a little but do not pay anything, not even a cent more.
1. So call them first. If not free option, tell them you will stop making the payment.
2. Send them a letter, telling them the same thing.
3. Ignore all calls from them. Put them on your block list.
4. Read all letters from them. Ignore everything that offers you to call them to settle unless it is at no cost. Handing it over to them at no extra cost(other than what you have already paid) is your ultimate goal, so if they offer that, then you take it.

Likely you will be handed over to collections and your timeshare will be put in foreclosure. It would likely be administrative (no court involved).
Just in case some overzealous debt collector wants to shake you down, if you ever get a summons for court, that is the only time you would respond.

Don't ask me what my response will be. I will rip into them in any lawsuit response and publicize it too. But that is just me. That timeshare you bought is worth less than 0 and it can easily be proven.

 

[pablo216]

So my wife stopped paying for a couple months and they have now reported her and she got the credit hit. 138 points were deducted.

My question now is… what comes next? We still owe like 35k to Westgate and I’m also on the deed.

- Will they now come after my credit score?
- Can they report me and affect my credit score more than once? Like getting the same hit every now and then
- If they foreclose it eventually, are there extra legal fees?
- Will this eventually reach the courts?
- can they find a way to just freeze her accounts or get payed from her savings?

Thanks for all your help guys! I’m new in the country and this gets me really frustrated but also nervous

 

[dioxide45]

Florida timeshares go through a non-judicial foreclosure process. This means the courts aren't involved. With that they also non deficiency. Meaning the timeshare company can't file for e deficiency judgement on any debts that the foreclosure sale doesn't cover. This also would mean they really can't recover any of the legal or foreclosure costs. Just don't dispute the foreclosure because that would change it from a non-judicial to judicial foreclosure process and then the the non deficiency would no longer apply. They could then seek a deficiency judgement.

Worst case is the credit hit that will, and has, happened with defaulting. If you are also listed on the mortgage Note, then you may likely get a hit on your credit score also. A foreclosure will possibly make the hit even worse. Credit rating hits are often short lived and don't usually prevent you from applying for new credit, they just make that credit more expensive. You may need to wait a few years before financing a new car or home, but it isn't the end of the world.

 

[rickandcindy23]

Write a letter to the credit reporting agencies to explain in detail about your situation, and maybe the credit hit will be reduced.

We just had a bit credit hit, which was temporary because we charged our recent Disney points purchase of over $120,000 on four credit cards. Our credit went down substantially, but we have paid in full. I wanted to get the credit card points, which was substantial. Credit goes up and goes down. A big purchase will hurt your credit, revolving debt really hurts your credit. It's a fact of life.

Too bad we cannot charge our next car, when we get one.

 

[TheTimeTraveler]

Too bad we cannot charge our next car, when we get one.

Who says you can't use your credit card to purchase your next car?

I think it's a hit or a miss when trying to purchase a vehicle using a credit card. Some dealers will take it but may charge you an additional fee









.

 

[Sponge]

We just had a bit credit hit, which was temporary because we charged our recent Disney points purchase of over $120,000 on four credit cards

And you Cry about a $5.oo ARDA Fee ?

 

[VacationForever]

And you Cry about a $5.oo ARDA Fee ?

It's a matter of principle.

 

[RX8]

- Will they now come after my credit score?
- Can they report me and affect my credit score more than once? Like getting the same hit every now and then

Creditors do not come after your credit score. What they do is report to any or all of the three major credit bureaus. Based on the type of credit and the payment history they report, the credit bureaus will use that information in the calculation of your credit bureau score. The bureaus all look at payment history (are the payments on time?), how long your credit profile is in age (in your case you likely have a new credit profile and therefore, negative history will impact your score more), types of credit (installment, revolving and auto loans), revolving utilization (your outstanding balance divided by total available credit, typically shoot for 30% or less), and to a lesser extent, the number of inquiries (shopping for a lot of credit). While any poor history will negatively impact your credit score, the score will improve over time if you continue to pay everything else on time. Eventually, after 7 years that negative item will be removed from your credit profile. In addition, having a late pay or foreclosure reporting for a timeshare may, or may not prevent you from being approved for credit. See post #5 for more details on that.

 

[pablo216]

Guys I'm so incredibly grateful for all the great tips. Here's what we've done so far and what has happened.

- They call on a daily basis and not once do we answer the phone
- We are already working on the credit score hit and it is what it is, I don't care about that so much really... no big purchases expected for at least a couple years
- They sent the following communications this week:


If anything, this is good news for me as the threats are:
1. Lose your property (thank god!)
2. Lose your money (I already came to terms with it)
3. Potentially affect credit score (already took the hit. At least my wife, I'm still not affected)

Can you guys help me once more? All this is quite new.

- @dioxide45 what do you mean when you say I shouldn't dispute the foreclosure? Do I have to write a letter or something saying I'm ok with it? Or just keep on ignoring them?
- If they give my case (probably) to a collection agency, how should I proceed? Also ignore the hell out of it?
- Anything else you think I should consider to get ready for what might come?

I'll keep you posted on how it goes!

Thanks!!!!

 

[WorldT]

What he meant was this:
The foreclosure will be non-judicial. This means they will not sue you. If they don't sue you, they cannot try to collect the balance on the purchase.
Don't respond, don't communicate, and don't contest the non-judicial foreclosure. If you contest it, the issue may move into the court room. If that happens, they will now try to collect on the balance and any legal fees and court costs. So don't force that by responding or contesting.
You will only respond if you are sued in court. If that happens, you will get a summons (letter) from the court clerk saying you have been sued.
In summary, keep ignoring them. Just keep monitoring the communications but don't respond unless it is a lawsuit.

The only other time you would respond is if they change their mind and offer a FREE take back.

 

[pablo216]

Thanks for your reply. And the same goes for a collection agency? I expect them to be much more agressive but I don't know either how that goes

 

[Patri]

Thanks for your reply. And the same goes for a collection agency? I expect them to be much more agressive but I don't know either how that goes

Ignore them. Don’t take their calls.

 

[pablo216]

What he meant was this:
The foreclosure will be non-judicial. This means they will not sue you. If they don't sue you, they cannot try to collect the balance on the purchase.
Don't respond, don't communicate, and don't contest the non-judicial foreclosure. If you contest it, the issue may move into the court room. If that happens, they will now try to collect on the balance and any legal fees and court costs. So don't force that by responding or contesting.
You will only respond if you are sued in court. If that happens, you will get a summons (letter) from the court clerk saying you have been sued.
In summary, keep ignoring them. Just keep monitoring the communications but don't respond unless it is a lawsuit.

The only other time you would respond is if they change their mind and offer a FREE take back.

Thanks guys for all the support!! They keep on sending collection letters and calling every single day (which we don't answer).

I'm going to be moving from my current home this week. How should I handle this? Do you think that I should let know the collections agency my new address? I fear someday I'll be summoned, and I won't be aware of it. Or with the update of my address in USPS will be enough?

I'm new in the US so please bear with me

 

[WorldT]

Updating your address with USPS is enough. After that, if you ever get sued, they are required to serve you at your current address.

 

[GTLINZ]

I would be surprised if they ever sued. Westgate does not want to have any judge hear what they did to you. They already scammed you out of a lot of money and they are smart to be satisfied with that.

 

[WorldT]

I would be surprised if they ever sued. Westgate does not want to have any judge hear what they did to you. They already scammed you out of a lot of money and they are smart to be satisfied with that.

True! However, if the OP ever gets sued, it will likely be one of those debt collectors who buy the debts for pennies on the dollar and try to see who they can scare into paying them.