nursepam53
TUG Member
What if we just stop paying the maintance fees as my husband wants to do. We are in Canada. any insight?:
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not paying maintance fees
- Thread starter nursepam53
- Start date
Very likely wreck your credit. Phone calls at all hours. Legal proceedings. Higher insurance costs. Difficulty in buying stuff. Max interest on your credit cards if they renew them at all. It isn't pretty.
If you don't want the TS, why not give it away? There is a sticky at the top of the Buying, Selling, Renting Forum on how.
Jim
If you don't want the TS, why not give it away? There is a sticky at the top of the Buying, Selling, Renting Forum on how.
Jim
DeniseM
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They will report you to the Credit bureaus, and turn you over to collection, and debt collectors will start hounding you.
Your maintenance fees are a contractual obligation.
If your timeshares are paid off - consider giving them away on TUG:
Why?
-You can give it away yourself for nearly no cost.
-You can control the transfer process to make sure it is truly transferred out of your name.
-You won't have to deal with companies that may or may not be Legit.
-You can transfer it to a private individual who will be happy to have it for their own use.
-You will have the satisfaction of knowing that you ended your ownership legally and ethically.
There are TWO places on TUG where you can give away your TS's for free (no charge for the Ads.) THEY ARE COMPLETELY DIFFERENT - SO YOU SHOULD POST IN BOTH AREAS. There are other cheap and free sites on the internet, as well.
TUG Marketplace - the only cost is your TUG membership - $15 (List it for $1 and it will automatically go in the Bargain Basement Ads.)
Bargain Deals - Totally FREE! - just write a simple post with all the pertinent info. In your post, include the following info.:
To make it more attractive I would:
Good luck!
Your maintenance fees are a contractual obligation.
If your timeshares are paid off - consider giving them away on TUG:
Why?
-You can give it away yourself for nearly no cost.
-You can control the transfer process to make sure it is truly transferred out of your name.
-You won't have to deal with companies that may or may not be Legit.
-You can transfer it to a private individual who will be happy to have it for their own use.
-You will have the satisfaction of knowing that you ended your ownership legally and ethically.
There are TWO places on TUG where you can give away your TS's for free (no charge for the Ads.) THEY ARE COMPLETELY DIFFERENT - SO YOU SHOULD POST IN BOTH AREAS. There are other cheap and free sites on the internet, as well.
TUG Marketplace - the only cost is your TUG membership - $15 (List it for $1 and it will automatically go in the Bargain Basement Ads.)
Bargain Deals - Totally FREE! - just write a simple post with all the pertinent info. In your post, include the following info.:
-resort name
-unit size
-season owned
-maintenance fee
-current reservations
-unit size
-season owned
-maintenance fee
-current reservations
To make it more attractive I would:
1) Pay the 2013/2014 maintenance fees and don't ask for reimbursement.
2) Pay for the title transfer (you can get a simple title transfer with no escrow or title search for about $100.) Many Tuggers (including me) have been using Legal Timeshare Transfers, a no frills document preparation company, and they are receiving good reviews on TUG.:
Legal Timeshare Transfers/Ready Legal
Lisa Short and Mary Pless
http://legaltimesharetransfers.com/
1.706.219.2709
3) Reserve a popular holiday week in 2013/14 for the new owner
4) Instead of paying a fee to a rescue company - consider offering a cash incentive to the new owner.
5) Here is the very important step that most people miss: Come back to TUG once a week and add more info. to your thread - this will bump it to the top of the page.
2) Pay for the title transfer (you can get a simple title transfer with no escrow or title search for about $100.) Many Tuggers (including me) have been using Legal Timeshare Transfers, a no frills document preparation company, and they are receiving good reviews on TUG.:
Legal Timeshare Transfers/Ready Legal
Lisa Short and Mary Pless
http://legaltimesharetransfers.com/
1.706.219.2709
3) Reserve a popular holiday week in 2013/14 for the new owner
4) Instead of paying a fee to a rescue company - consider offering a cash incentive to the new owner.
5) Here is the very important step that most people miss: Come back to TUG once a week and add more info. to your thread - this will bump it to the top of the page.
Good luck!
Rent_Share
TUG Member
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As a real property interest, if you sell for less than you paid and have held for more than a year, can you not take a capital loss on your return?? If not I stand corrected. I must say your post is one of the rudest I have ever encountered on this forum...
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Lizap, are you well versed on Canadian tax law? How so?
Rent_Share
TUG Member
Direct and to the point
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Sorry, missed the Canadian part. But after some research (US tax law), if you own TSs as part of a business, such as rentals, losses ARE deductible.
Thats Canadian or US tax advice?
What part of the Canadian Federal or Ottowa Province code are you refering to?
So is there 'passporting' of credit data between Canada and the US. Does Canadian and US data privacy allow for sharing of such information cross border.
How are the Canadians sure that the data being shared cross border truly relates to one of their own.
What legal entity is able to share it cross border. What legal entity are they sharing it with, what agreement did the OP sign to allow that sharing, why can the receiving legal entity pass that data on to a Canadian Credit agency.
DeniseM
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TUG Tax Article: In most cases you cannot write off the loss when you sell a timeshare for less than you paid - http://www.tug2.net/timeshare_advice/TUG_Taxes_and_Timeshares.html
As others have said.
The phone calls are likely, afterall, a call from the US to Canada is cheap.
Credit hit? I don't know, you would need to undestand who you borrowed money from and how that relationship worked.
If you want out, the best approach is to see if the Homeowner Association will take the deed back if you offer them a years Maintainance up front.
If there is a mortgage on it, talk to the lender.
In both cases you are likely to need to default on your payments. Be say 3 months delinquent and then turn to the mortgage lender or homeowner association and offer them a quit claim on the deed and to turnover the deed to them instead of having them pursue a reposession.
Good Luck, stay in contact with the HOA as your actions in not paying Maintainance mean the other Homeowners have to pay your share.
If each share has a 1000 maintainance then 5% of those not paying will mean that the rest have to actually pay 1052 to make up for those not paying, this can quickly lead to a vicious cycle.
If they can take back the deed and get it resold to a paying owner then this is a win win for all but they are often not going to until you are a non paying owner.
American IRS centric tax article.
nursepam53
TUG Member
thanks
thanks for the input. I thought as much. Will try other options as suggested. This is a very helpfull site.
thanks for the input. I thought as much. Will try other options as suggested. This is a very helpfull site.
Most dont use their timeshares as a business. Rent_share might be rude, I think its better described as blunt. but he can get away with it because he's usually right.....
If you really want to see rude, (and nasty) show him that he's wrong about something
Ron, I was actually thinking of you when I found this in my IRS research. I bet you have deducted losses before, as you are in the rental business. My research indicates that you can even get into the rental business even after using it for your own use, but must be at least for 2 years.
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I doubt many who buy TSs have bought them for business purposes as you suggest.
Further, I am not certain you are accurate in your information assuming the TS is owned as part of a business.
p.s. If someone like "Ron" could do what you're suggesting, I would assume he would have suggested such an exit strategy.
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But there is a big difference between being able to get a tax break on a loss and being able to get out of a legal commitment. These are two separate things
(1) you have to unwind the legal commitment,
(2) you deal with the tax consequences
not paying MF
LIZP
"What part of the Canadian Federal or Ottowa Province code are you refering to?
"
Just so you know, Ottawa is the capital city of Canada, not a province.
NURSEPAM53
As a Canadian I will tell you that I am sure defaulting on MF would effect your credit rating.
LIZP
"What part of the Canadian Federal or Ottowa Province code are you refering to?
"
Just so you know, Ottawa is the capital city of Canada, not a province.
NURSEPAM53
As a Canadian I will tell you that I am sure defaulting on MF would effect your credit rating.
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Rent_Share
TUG Member
With a US debt ?
bogey21
TUG Member
I know this is the common wisdom and no doubt is true from a legal standpoint but I have never seen anyone admit that they stopped paying and that all this happened to them. Has anyone out there had first hand experience with not paying?
George
I think from what I have seen here in the past they would get a lot of negative ink if they talked about it here.
IMHO
Rent_Share
TUG Member
1. Anyone free of their timeshare through defaulting is unlikely to comeback here and post. They have put a bad experience behind them.
2. Those that use a for profit company to give back and then show up here to recommend are suspect.
That being said the decision to stop paying and accept "so sue me" is a huge step, - most people are afraid to chance it as a negotiation strategy.
In eight years of reading here I have no recollection of any one posting about aggressive collection actions and/or legal action by or on behalf of a timeshare management company. Just the dire warning it will happen, or the allegation by the management company when they ask them to take it back.
It could be that by the time someone actually defaults on a timeshare bill, and the management company takes action, they are in default with enough other monthly required obligations, they are seeking advice in a different world than a website specializing in timeshare utilization