Please help me get out!

[CalGalTraveler]

I'm surprised that most of the young people that need to protect their credit report and want out of a timeshare contract don't find an old person that doesn't care about their credit report to take the contract and use it up Viking Ship style.

Before anyone disagrees I know all of the arguments against this and would also say doing this as an individual consumer is not against any law.

Bill

The problem is who pays for the mortgage in the meantime?

Hmm....What you are suggesting is an interesting (albeit not quite PC) marketplace. Perhaps match terminally ill patients with young timeshare owners who want out? The elderly person gets a fee to help offset bills for taking this on. As long as this costs significantly less than the mortgage, then worth the complexity. $5000 could help a lot of patients pay bills.

 

[Regretful_Owner]

I'm surprised that most of the young people that need to protect their credit report and want out of a timeshare contract don't find an old person that doesn't care about their credit report to take the contract and use it up Viking Ship style.

Before anyone disagrees I know all of the arguments against this and would also say doing this as an individual consumer is not against any law.

Bill

I don't even need an old person; I can create an LLC for a couple hundred dollars and transfer it to that entity. But how would that help me? Even if I transfer the property, the note is in my personal capacity and I can't transfer that. And even as far as the MFs go, can I transfer the liability to a third party without the developer's consent? Wouldn't I still be on the hook if the new owner doesn't pay?

 

[sue1947]

I don't even need an old person; I can create an LLC for a couple hundred dollars and transfer it to that entity. But how would that help me? Even if I transfer the property, the note is in my personal capacity and I can't transfer that. And even as far as the MFs go, can I transfer the liability to a third party without the developer's consent? Wouldn't I still be on the hook if the new owner doesn't pay?

It's called fraud. The only people, young or old, that will participate in this for any amount of money are criminals.

Bottom line: you screwed up when you bought without reading the contract. We all make mistakes and it is how we learn.
There is no way to make a legal contract go away. Yes, they may be sleazy, but it still boils down to you signed a contract. Not reading it and understanding the ins and outs was your decision. Accept it and learn from it. You have 2 choices: pay off the loan or default. If you pay off the loan, learn to use it or give it away to avoid maintenance fees. If you default, you will have to deal with the credit hit.
I'm sorry, but those are the cold hard facts. No amount of wishful thinking will change them.

 

[Pmuppet]

I think you have been given good advice here. Key point is to forget about the $19k. That is gone.

You need to determine if you really want own at this resort. If the resort will not negotiate that they take back the property and you pay them $19k, the week clearly has zero (or negative) value. In that case, I personally would work to get rid of the property.

That could mean you have to agree to pay an additional $6k just to get out of the maintenance fees going forward. Until you know the actual number what it takes to get out of the property (whether you get something for it or if you have to pay to get out of it), you won’t know what your going to have pay to keep good credit.

Lastly, we (the USA) are build on credit. It only takes a couple years to restore most credit. Maybe not for a home purchase, but most other credit related issues will come back quickly.

 

[Regretful_Owner]

I just spoke to one of the law-firms that claims to handle these matters, and they are a bunch scammers. Their offer essentially is that for $2k, they will send a "fraud notice" for me, and then represent me in the event that BG sues me for me debt after I stop paying.

You and I all know that BG won't sue me for the deficit (as I understand, that's not even an option in FL), they will just foreclose on my property and destroy my credit. But I guess there are people out there who don't know any better and will pay someone $2k just to have them wreck their credit.

 

[Pathways]

Key point is to forget about the $19k. That is gone.

How is $19k gone? Not unless the OP pays off the note. If it goes into foreclosure, whether or not a judgment will be obtained, and whether OP is pursued for the debt will depend on the type of note/entity with which the debt is held.

 

[Pathways]

I just spoke to one of the law-firms that claims to handle these matters, and they are a bunch scammers. Their offer essentially is that for $2k, they will send a "fraud notice" for me, and then represent me in the event that BG sues me for me debt after I stop paying.

You and I all know that BG won't sue me for the deficit (as I understand, that's not even an option in FL), they will just foreclose on my property and destroy my credit. But I guess there are people out there who don't know any better and will pay someone $2k just to have them wreck their credit.

As all have advised, the exit firms don't do anything more than you can do yourself, except add a legal name onto the top of the letter sent to the timeshare. They get these letters all the time, doubt they even notice that it is a law firm sending the letter.

 

[Pathways]

I don't even need an old person; I can create an LLC for a couple hundred dollars and transfer it to that entity. But how would that help me? Even if I transfer the property, the note is in my personal capacity and I can't transfer that. And even as far as the MFs go, can I transfer the liability to a third party without the developer's consent? Wouldn't I still be on the hook if the new owner doesn't pay?

We are back to what type of debt to which you have personally obligated yourself. If the debt is just a personal note, then yes, you can transfer it (the timeshare). (I own ALL my timeshares through an LLC).

Yes, developer's consent needed, there is no issue with that.

However if the debt is a 'mortgage' against the timeshare, transfer will not occur unless paid off.

 

[Regretful_Owner]

We are back to what type of debt to which you have personally obligated yourself. If the debt is just a personal note, then yes, you can transfer it. (I own ALL my timeshares through an LLC).

Yes, developer's consent needed, there is no issue with that.

However if the debt is a 'mortgage' against the timeshare, transfer will not occur unless paid off.

How can I transfer a personal note? Do you mean that I can borrow $20k personally, then transfer the note to my 94 year old grandmother without the lender's consent, and then keep the money?

 

[bnoble]

Before anyone disagrees I know all of the arguments against this and would also say doing this as an individual consumer is not against any law.

You may know all of the arguments, but others reading it might not. I'm not sure you can confidently say that there are no laws that could be brought to bear against two people who are consciously using the deed transfer process to avoid paying a loan on it. Of course, I'm not sure you can't, either.

At the very least, I would find doing that beyond my personal code of ethics. YMMV.

 

[Pathways]

How can I transfer a personal note? Do you mean that I can borrow $20k personally, then transfer the note to my 94 year old grandmother without the lender's consent, and then keep the money?

Sorry - meant you can transfer the timeshare. I edited

A transfer to an llc will not help with the note. The llc will then be responsible for the MF's, but the note is yours.

 

[dioxide45]

You usually can't transfer a deed while there is a lien outstanding.

 

[e.bram]

It's called fraud. The only people, young or old, that will participate in this for any amount of money are criminals.

Bottom line: you screwed up when you bought without reading the contract. We all make mistakes and it is how we learn.
There is no way to make a legal contract go away. Yes, they may be sleazy, but it still boils down to you signed a contract. Not reading it and understanding the ins and outs was your decision. Accept it and learn from it. You have 2 choices: pay off the loan or default. If you pay off the loan, learn to use it or give it away to avoid maintenance fees. If you default, you will have to deal with the credit hit.
I'm sorry, but those are the cold hard facts. No amount of wishful thinking will change them.

Look at my previous post.

 

[CalGalTraveler]

Some systems don't allow transfers to LLCs for this reason.

 

[sue1947]

Look at my previous post.

It's nonsense. You know it, I know it, but newbies hoping against hope take it as encouragement to keep hoping instead of dealing with the actual problem.

 

[Grammarhero]

Deleted

 

[Grammarhero]

I just spoke to one of the law-firms that claims to handle these matters, and they are a bunch scammers. Their offer essentially is that for $2k, they will send a "fraud notice" for me, and then represent me in the event that BG sues me for me debt after I stop paying.

You and I all know that BG won't sue me for the deficit (as I understand, that's not even an option in FL), they will just foreclose on my property and destroy my credit. But I guess there are people out there who don't know any better and will pay someone $2k just to have them wreck their credit.

So, how has your efforts to get a lawyer to get you out of a TS with little or no upfront money gone so far?

 

[Passepartout]

So, how has your efforts to get a lawyer to get you out of a TS with little or no upfront money gone so far?

Might as well drop it. The OP is unrealistically hoping to find someone as delusional as he was when he bought. Not happenin'. You know and I know that there are two choices. Pay it off or default. There are NO other choices.

Jim

 

[rickandcindy23]

Might as well drop it. The OP is unrealistically hoping to find someone as delusional as he was when he bought. Not happenin'. You know and I know that there are two choices. Pay it off or default. There are NO other choices.

Jim

Very true. Pay your debt, you are the one that signed on the dotted line, or don't pay your debt and let your credit get a hit. No one can help you out of the mess once you have gotten into it. It's a lesson we learned years ago after buying our first timeshare. The company told us we couldn't rescind, not possible to back out, and that was two days later. I still don't know if that was true, but we just decided to live with the mistake.

 

[Regretful_Owner]

So, how has your efforts to get a lawyer to get you out of a TS with little or no upfront money gone so far?

Might as well drop it. The OP is unrealistically hoping to find someone as delusional as he was when he bought. Not happenin'. You know and I know that there are two choices. Pay it off or default. There are NO other choices.

Jim

I take this question to be rhetorical. Nonetheless, if I found an honest lawyer with some experience in this area, I would not be opposed to paying a small fee upfront for his help and experience with negotiations. Meaning, if I found a lawyer that was honest about the situation and was willing to draft and send a letter stating my possible causes of action and a financial offer in exchange for a release, I think that it's worth a shot. I would be willing to risk $500 upfront for the possibility of reducing my debt by a few thousand. I wouldn't consider that throwing good money after bad. I think that the difficult part will be finding such a lawyer.

 

[Passepartout]

I take this question to be rhetorical. Nonetheless, if I found an honest lawyer with some experience in this area, I would not be opposed to paying a small fee upfront for his help and experience with negotiations. Meaning, if I found a lawyer that was honest about the situation and was willing to draft and send a letter stating my possible causes of action and a financial offer in exchange for a release, I think that it's worth a shot. I would be willing to risk $500 upfront for the possibility of reducing my debt by a few thousand. I wouldn't consider that throwing good money after bad. I think that the difficult part will be finding such a lawyer.

Lotsa luck, Amigo. Keep us informed of your progress.

Jim

 

[Grammarhero]

FYI. @theo and I are lawyers, as is @Passepartout 's wife. A layman telling lawyers said layman has devised the best legal option over those explained by said lawyers = LOL.

Nevertheless, as delusional as you are, I am copying and pasting helpful some links and legal language on TS mortgage defaults in FL.

http://www.leg.state.fl.us/Statutes...ute&URL=0700-0799/0721/Sections/0721.855.html

http://www.leg.state.fl.us/Statutes...ng=&URL=0700-0799/0721/Sections/0721.856.html

http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0000-0099/0095/0095.html

Operative Language: “If you do not object to the use of the trustee foreclosure procedure, you will not be subject to a deficiency judgment even if the proceeds from the sale of your timeshare interest are insufficient to offset the amounts secured by the lien.”

Operative Language: “WITHIN FIVE YEARS.— (b) A legal or equitable action on a contract, obligation, or liability founded on a written instrument . . . (c) An action to foreclose a mortgage.” Sec. 95-11.

Note: non-objection or inaction likely leads to non-judicial, anti-deficiency treatment; objection may waive non-judicial, anti-deficiency treatment. TS defaults have SOL of five years.

 

[Pathways]

Some systems don't allow transfers to LLCs for this reason.

What system(s) doesn't allow this?

 

[Regretful_Owner]

Lotsa luck, Amigo. Keep us informed of your progress.

Jim

I'm not holding my breath.

That being said, I think that it's a business model that could work. A $500 upfront fee plus a percentage of any reduction in the principal debt plus, in the event of a full release, a multiple of the annual MFs. That could be a win/win for owners that aren't comfortable pursuing this option themselves or don't have the time or mind to so do. Don't see why it's so absurd.

But to clarify before everyone starts yelling at me, I don't think that such a lawyer exists, and I'm not delusional about that.

 

[Pathways]

That being said, I think that it's a business model that could work.

It's a business model that is working VERY well indeed already. So well that the 'firms' have increased the upfront fee to a few thousand. Of course, the successful part of the 'model' is money in the pocket of the firm, with few to no timeshare deed-backs except where the owner could have just done it themselves.