Sheraton Flex - need to do something with it

[diablo2424]

I found this forum by searching online for what options I have with my Vistana Sheraton Flex plan that purchased in 2018. The plan was purchased under my name, but with my ex, and now I am looking to see what I can do to either get out of it, or rent it out to at least let it pay for itself, until it's paid off.

I have 91,000 Staroptions per year, and honestly have no use for them, now that we're no longer together. Where is my best bet to speak with Vistana (I tried calling the main line - 888-786-9637) and the representative told me I have to pay it off in full before I can do anything with it.

First off, is this true? is there any options that I may have to cancel the deed, or return it back to Vistana?

Secondly, if I am stuck with it, what are some good websites that I can maybe rent it out? So I can get some money back to help pay this off until I can then get rid of it for good.

I know it was originally a 2-bedroom lockoff in Myrtle Beach, but two years ago we switched to the Sheraton Flex plan, then last year we upgraded it, a few months before separating. Not sure if that information helps.

 

[dioxide45]

Your only real option to return it to Vistana is to default on the mortgage and have them foreclose. This may negatively impact your credit. I will let others speak to the ability to rent, but your best option may be to book ski weeks and rent those out. Just about any other Sheraton week doesn't rent well.

 

[jabberwocky]

How much do you owe? It will have to be paid off before Vistana will allow a transfer out of your name.

just to be clear is the contract in your name alone or is your ex also on it.

@dioxide45 is right - SFlex will be difficult to rent out to cover your MF.

 

[diablo2424]

I still owe over $27k to this Sheraton Flex mortgage, and the timeshare is in my name only (hence how I got stuck with it). I thought about forclosure, but I do not want the 7 year forclosure on my record.

Just as an update to this, I have spoken with two different "timeshare exit teams" and did not like the way they presented themselves (I posted about one of them - Interval Exit Services). I just received a call from the Sheraton Vistana Owner Services out of the blue, asking me how I like my Sheraton Flex and if I plan on using it in the future (I guess because no one is using it as much with COVID happening). They booked me on my normal yearly owners update (where they try and sell you to upgrade your package), I mentioned my divorce, how I got stuck with the Timeshare that has a LARGE mortgage to be paid off still, and how I am now single-income and with COVID I cannot be travelling for fear of getting sick. The representative said, with the pandemic happening there may be something they can do to help me out, if it's not out-right getting rid of the timeshare, then there may be an option to downgrade it to make it more affordable for me. My meeting is Thursday (10/1) I'll report back how it went.

 

[diablo2424]

After speaking with the team member during my members update, they tried to up my 91,000 Sheraton Flex points to 103,400 ($35.8k), 118,800 ($39.1k) or 134,200 ($44.2k) points ($Loan amount). I ended up telling them that I could not upgrade, and actually am only interested in giving the timeshare back or downgrading. The sales rep told me that he could see about splitting a 102,000 option into two loans of 51,000 points each, then maybe Marriott could take one of those loans back, and leave me with just the one 51,000 point loan. I told him that would be great and he said he would get back to me the next day. 3 Days and 3 e-mails later (I CC'ed everyone on the initial e-mail I received from Marriott which had about 5 sales reps on it), he gave me a call and said, "I'm sorry my manager said there's no way to downgrade, only upgrade. Have you tried calling Owner Services?" When I told him I've spoken to them multiple times and every time they just tell me, "Pay the loan off and we can work with you, else you're on your own, good luck, try calling Sheraton Vistana directly", he told me that there's nothing he can do for me either.

<rant> Essentially they are forcing me to just foreclose on the loan, which will leave my credit in ruin, and they won't get ANY money out of the deal. I'm TRYING to work with them and give them something, but make this affordable for me, and they have NO interest at all in helping me. Essentially Marriott is garbage and I plan on making sure everyone knows that and doesn't buy into their timeshare. Go with RCI, DVC, Wyndham, anything but these money hungry jerks. </rant>

I'm going to try calling owner services again, as well as send a few more e-mails to the list of e-mail addresses that I have from that call, and see if I can get anywhere. The ONLY useful information this sales rep gave me, was that I can apply my 91,000 points from this year (since I haven't used them) towards my next maintenance fee, which is something I wasn't aware of.

 

[dioxide45]

If you get a loan to buy a timeshare from DVC or Wyndham, their stance would be the same. While I can understand changing circumstances, I don't understand why you think Marriott should willingly let you out of the obligations you signed your name to? If you have a mortgage loan for a home, you can't just go to the bank and say you want out and for them to take the house. Foreclosure is the legal recourse for the bank to take back the property in the event of default. It is of course also a deterrent to get people to keep paying their obligations.

Whatever you do, don't buy more options and don't go to any sales presentations. They aren't there to help you get out of what you have gotten yourself into. They are there to sell you more points.

 

[diablo2424]

Also, the sales rep told me that StarOptions can be used to may future maintenance fee's, which the Owner services team member just told me that is incorrect and is not something you can do. What you can do with options is convert them to Marriott Bonvoy points (must be done before March 31st of the year) or exchange them into Interval, which has their own fee when you book with those points that have been converted. You can also use points for credit to spend at resorts to the tune of $9,000 points for $110 credit, or use 20,000 StarOptions to purchase Travel Insurance, up to 3 years in advance.

@dioxide45 - I understand they cannot let me completely out, as nice as that would be. But I am asking them to downgrade my package from 91,000 Options to 51,700 Options, which is an actual useful number, as that's the most common price for a 1-Bedroom Premium in most resorts. With 44,000 being a Standard 1-Bedroom, whereas there are no rooms available for 91,000 options - that's not a useful amount, ever. Why would downgrading not be an option? That doesn't make sense to me, at least in a normal mortgage situation, you have an X sq. ft. home, with X sq. ft. property that you are paying for. I do not have anything tangible in this instance, aside from a magical number of 91,000 options, I don't see why downgrading that to 51,700 isn't a possibility.

Defaulting may be the best course of action at this point.

 

[sjsharkie]

@dioxide45 - Why would downgrading not be an option? That doesn't make sense to me, at least in a normal mortgage situation, you have an X sq. ft. home, with X sq. ft. property that you are paying for. I do not have anything tangible in this instance, aside from a magical number of 91,000 options, I don't see why downgrading that to 51,700 isn't a possibility.

Because in a normal mortgage, they can resell the property to someone else and only lose a fraction of the amount of the original note (if any at all -- they might actually break even if the selling value of the house => the note).

With Flex, I assume they have more than enough inventory and the note far exceeds the value of the points. So they are not looking to let someone out from under a mortgage, downgrade to a lesser package, and have ~40k points to resell. They probably don't have enough buyers on a good day for Sheraton Flex much less now with COVID in place.

As a last ditch, I'd contact the Vistana deedback/exit/whatever they are called team phone number and see if you can talk with someone, let them know you are going to default and what options you might have. They aren't going to let you deed it back with a mortgage but worth a shot to see what they offer (versus the sales/update team is probably not the best place to start). If they don't offer any help, then you likely have only two options -- keep paying on (or payoff) the note and maintenance fees, or default. The credit hit would suck, but most loan companies have reasonable loan programs after 4 years of good credit post default even though the default will stay on your report for 7 years. You should also consult your tax professional to determine if you are subject to a 1099-a/1099-c for the default.

Only you can weigh whether or not defaulting is better than the $$$ you will lose paying off the note and future maintenance fees.

Good luck.

-ryan

 

[1029cr]

Also, the sales rep told me that StarOptions can be used to may future maintenance fee's, which the Owner services team member just told me that is incorrect and is not something you can do. What you can do with options is convert them to Marriott Bonvoy points (must be done before March 31st of the year) or exchange them into Interval, which has their own fee when you book with those points that have been converted. You can also use points for credit to spend at resorts to the tune of $9,000 points for $110 credit, or use 20,000 StarOptions to purchase Travel Insurance, up to 3 years in advance.

@dioxide45 - I understand they cannot let me completely out, as nice as that would be. But I am asking them to downgrade my package from 91,000 Options to 51,700 Options, which is an actual useful number, as that's the most common price for a 1-Bedroom Premium in most resorts. With 44,000 being a Standard 1-Bedroom, whereas there are no rooms available for 91,000 options - that's not a useful amount, ever. Why would downgrading not be an option? That doesn't make sense to me, at least in a normal mortgage situation, you have an X sq. ft. home, with X sq. ft. property that you are paying for. I do not have anything tangible in this instance, aside from a magical number of 91,000 options, I don't see why downgrading that to 51,700 isn't a possibility.

Defaulting may be the best course of action at this point.

I've been to 6 presentations for multiple companies and I dont ever believe the sales rep. I dont even believe them when they tell me their name lol