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Time Share Trade In ? Equity Value Agreement

thasel13

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In November I traded through RCI to go to Vidanta Riviera Maya. I attended the sales presentation and was talked in to buying a 1 bdrm red at the Grand Cascades Nuevo Vallarta for 15K.

The sale attracted me because I have not been able to go on vacation for 4 years and included trading in my current 2 properties - Wyndham in Mazatlan (1 bdrm red) & Raintree in Cabo (50K pts). MF's keep going up every year and I am paying $780 per year for Wyndham & $1200 every odd year for Raintree. This new contract does not require any annual MF's unless you use it. Also no exchange fees, which I hope is true. Seemed very good at the time.

I would have cancelled the contract had I read the posts on Tug or the BBB regarding Vida but I am past the 5 days and my credit card has already been charged. I feel very foolish for getting sold again!

So today I was contacted by Timeshare Resale Market, the company Vida uses for the Equity Value Agreement. They gave me 2 options:
1) Pay $1879 per property (total of $3,758), pay current year MF's, do not use the time-share and my properties will be transferred out of my name in 150 days.
2) Pay $4505 total to basically buy back my properties and they will sell them in the next year and I will receive any profit margin directly, but be charged another fee at the time of the sales.

So my question to all you experienced timeshare users and traders is do I proceed and which option do you recommend?

I've also considered chalking up the $5200 down payment I made to stupidity, not paying the money to trade-in the current time-shares and not paying off Vidanta. My only concern is the clause in the equity agreement that states I will have to pay TRM one half the equity provided by the agreement, which in total for both properties was $39,400.

I realize I made a huge mistake in purchasing this contract and know that I paid way too much but I would appreciate any advice regarding the trade-in process and if you think I should just stop the bleeding now and not put out any further money. Thank you.
 

tschwa2

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Did the agreement that you signed indicate that it would cost you another $1879 per property to transfer them out of your name?

In all likelihood the company is transferring them to a company who will probably give them away or sell them for less than $100 each and that is including free 2016 usage. Neither has any resale value.
 

MuranoJo

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Vida resorts are really nice, but the sales tactics just don't sit well with me and many others. For instance, as has happened with you, you are led to believe you're trading in your existing timeshares for their offer, yet you're later asked to shell out to get rid of them.

If what you were promised is not in the contract, you should contact their customer service team at grupomayanblog@grupovidanta.com and file a complaint. Doesn't hurt to try.

Always, always read contracts and make sure verbal promises are included in writing before signing.
 

thasel13

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Dispute the CC charge?

During the presentation I was told that the $1879 per property was paid by Vida. There is nothing in the written agreement to indicate who pays or the fee for the trade-in.

After thinking about this more I might just call my CC company and dispute the charge. I was promised many things that so far either have not been true or will not come true:

1) It will not cost me anything further to trade-in my existing time shares.
2) I will be given an additional week every year to compensate for the usage fee each year I use the resort.
3) There are no additional exchange fees.
4) $380 credit to my room charge upon check-out for partial reimbursement for the Cirque Du Soleil tickets.
 

bjones9942

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Unfortunately disputing the charge hasn't worked for most of the people I've seen post here, and other forums. Credit card company will contact the seller, who will send them a copy of the contract, signed by you. Verbal promises won't even be considered as they aren't part of the contract (again - signed by you). If you are successful, please post and let everyone know! I for one will cross my fingers for you!

I would definitely contact the resort and see if they'll let you out of the deal. It doesn't hurt to try. If not, you'll need to decide how you want to proceed.
 

Tia

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If the contract fails to disclose a fee for the trade in they agreed to take in then seems to me, non lawyer person, that in itself is an out either they transfer it or contract is broken... :ponder:

Don't throw more $ after bad as you still may end up owning the old ts if the they don't transfer them out of your name!

During the presentation I was told that the $1879 per property was paid by Vida. There is nothing in the written agreement to indicate who pays or the fee for the trade-in.

After thinking about this more I might just call my CC company and dispute the charge. I was promised many things that so far either have not been true or will not come true:

1) It will not cost me anything further to trade-in my existing time shares.
2) I will be given an additional week every year to compensate for the usage fee each year I use the resort.
3) There are no additional exchange fees.
4) $380 credit to my room charge upon check-out for partial reimbursement for the Cirque Du Soleil tickets.
 

thasel13

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I recently purchased a timeshare at Vida and as part of the deal I signed 2 Equity Value Agreements for each of my other timeshares for trade in.

Once I returned home I was contacted by Timeshare Resale Market and they gave me 2 options. Pay $1879 per time share to transfer them out of my name, total of $3758. Or pay $4,505 (calculated percent of value) and I can keep the timeshares.

They say if I do not take one of these options I will owe the applied equity given during the new timeshare purchase which was $5002 & $16,900. Could this resale company or Vida really come back to claim this money from me?

I realize the trade-in value that was applied to my purchase is just a slick sales tactic and really does not matter because I paid the same as someone who would not have traded-in any other timeshares.

My ultimate goal is to eliminate the 2 timeshares I have and get rid of the yearly maintenance fees which continue to rapidly increase every year.

So my question is should I go ahead with the trade-ins and pay the $3758 to get rid of the 2 timeshares? Has anyone used this option with success? Another thought. Both of my timeshares are paid in full so what if I just stop paying the maintenance fees?

Here is some of the statements on the Equity Value Agreement I signed for both timeshares:

This Agreement is subject to the following binding terms and conditions:
The property or membership ("Interval") described below shall be provided an Equity Value ("Applied Equity Credit" or "Equity Credit") in exchange for the Intervals authorized and legal owner(s) ("Owner(s) engaging TRM") to market and engage the appropriate parties to complete the transfer of said Interval contemplated under this agreement. Owner will cooperate with and provide all documents requested by closing agent for transfer of the Interval and Owner will keep current all assessments that are billed within 150 days of the delivery of the last of said documents to the closing agent.
 

raygo123

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In 2009 I traded in my timeshare to vida. I'm sure I dealt with a different company. Anyway, to make a long story short, when they called I negotiated down to $500 and kept the timeshare. I would negotiate. Some on tug believe you should do nothing, but you want to get rid of them, tell them you will do 500 and see what they say. Also was this additional fee in the contract?

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theo

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When a "trade-in" isn't really "traded-in" at all...

OLA! The fundamental problem with (...ahem) "trade-ins" in Mexico, particularly if the "traded-in" product is a U.S. timeshare, is that a "traded-in" U.S. resort will (appropriately) only recognize and acknowledge a lawful transfer of ownership if / when they see a new, valid deed properly recorded in the U.S. jurisdiction of that particular U.S. timeshare. Any applicable U.S. resort transfer fee is an entirely separate matter; less important but still relevant to actually finalizing a transfer.

It's somewhat comparable to the U.S. situation where people sign a PoA (and fork over some serious cash too, of course) to the assorted PCC's "operating" here.
While the PoA authorizes the PCC to dispose of timeshare(s) on your behalf, you actually have little or no leverage to ensure that they ever subsequently do so lawfully or effectively --- despite the fact that you pre-paid some relatively serious cash "out of pocket".

Until / unless a valid new deed for a U.S. timeshare is recorded in the U.S. (...and what exactly is your leverage to ensure that ever happens, Gringo? :shrug:) any "trade-in" paperwork executed in Mexico is (appropriately) of no particular interest, meaning or legal significance whatsoever to the allegedly "traded-in" U.S. resort.
This is precisely why many intended "trade-ins" in Mexico unfortunately remain firmly in the legal ownership of optimistic folks who naively believed that they had painlessly and easily "traded-in" their unwanted (and perhaps worthless) U.S. timeshare(s) while south of the border in Mexico. Sorry, but very possibly not so.
 
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TUGBrian

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have never once heard of these "timeshare trade in" schemes being a good idea for the buyer.
 

theo

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have never once heard of these "timeshare trade in" schemes being a good idea for the buyer.

Absolutely right!

Even if / when the "traded-in" interval is later properly sold and transferred (...which happens only on occasion), the "lucky" buyer of the new Mexican RTU contract has in truth been given absolutely nothing for the "traded-in" interval(s). The "trade-in value" applied is just a "baited hook" to lure in the gullible prey; it's a completely fictitious figure to be "applied" toward a (equally fictitious) new RTU contract purchase figure. Worse still, as has already been described in first hand accounts earlier in this thread, the parasites later often demand even more money after the RTU purchase has been fully concluded --- a form of (apparently legal in Mexico) extortion --- additional money demanded after the fact of the transaction to dispose of (or retain ownership of) the allegedly "traded-in" interval(s).

In truth, any RTU contract buyer in Mexico could actually pay less for that very same RTU contract while having no trade-in at all.
It's just just smoke and mirrors; a contrived scheme that could be very accurately called "Getting Greenbacks from Gullible Gringos".
 
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Iggyearl

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A true "trade-in"

If I buy a new $25,000 Honda, and I bring in my 10 year old Honda - and get $5,000 off the sticker price - that is a "trade-in." I give a piece of personal property to a seller in exchange for a discount.

In this case, you own a contract with a timeshare developer. It cannot be transferred without the developer's consent. The word "trade-in" is a misnomer. If you pay this 3rd party a fee of $3758 to do this transaction, what happens if the transfer doesn't occur? You own THREE timeshares and Vida can say that they are sorry, but your written contract with them can't be waved. Ask yourself why Vida is not doing this transaction themselves.

To get more background on this type of transaction, google "Equity Acquisition Services." That is the name of who they used before "Timeshare Resale Market." The internet is loaded with stories about them. And, if your salesman gave you some line about renting to golfers for a huge profit, try googling "Golf Vacation Network." A friend lost big-time on that one.

You might revisit Raygo's post and then dispose of your timeshares under circumstances you control.
 

decadude

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I still am relatively new to the hobby but from what I have seen if someone is offering a service involving timeshares specifically whether it is to get rid of it or do a trade or whatever its generally a bad deal.

This is just the trend I am seeing.
 

thasel13

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Further info & update

Thank you for the responses.

In answer to raygo123 question regarding previously mentioned fees for the trade-in the Equity Value Agreement states:

Owner(s) understand that the subscription fee of $995 payable to TRM does not include applicable government taxes, fees, transfer and estoppel costs charged by the resort, other third party charges, title and closing agent fees, legal fees, etc... and that Owner will be obligated to these fees in order to complete this transaction.

When I asked TRM they said the $995 was only if I still owed on the timeshare, my timeshares are paid in full. That seemed like a BS answer.

TRM is located in the U.S. as well as the Vida Time Sharks which are located in Texas. My other 2 timeshares are not deeded and last for approx. 10 more years. My other 2 timeshares are also in Mexico, Raintree in Cabo and the Wyndham in Mazatlan.

After researching on TUG and getting good advice I called Vida and negotiated with them to reduce my contract by the $3,758.00 which TRM is asking me to pay for the trade-in. They did follow through and reduce my payoff amount as long as I stay at their resort again next year, which is ok with me, since we enjoyed our vacation there.

The resale company keeps contacting me asking which option I want to go with. I would love to get rid of the 2 timeshares and not be responsible for the maint fees any longer but I'm worried I will pay the money and still have them!
 

raygo123

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Thank you for the responses.

In answer to raygo123 question regarding previously mentioned fees for the trade-in the Equity Value Agreement states:

Owner(s) understand that the subscription fee of $995 payable to TRM does not include applicable government taxes, fees, transfer and estoppel costs charged by the resort, other third party charges, title and closing agent fees, legal fees, etc... and that Owner will be obligated to these fees in order to complete this transaction.

When I asked TRM they said the $995 was only if I still owed on the timeshare, my timeshares are paid in full. That seemed like a BS answer.

TRM is located in the U.S. as well as the Vida Time Sharks which are located in Texas. My other 2 timeshares are not deeded and last for approx. 10 more years. My other 2 timeshares are also in Mexico, Raintree in Cabo and the Wyndham in Mazatlan.

After researching on TUG and getting good advice I called Vida and negotiated with them to reduce my contract by the $3,758.00 which TRM is asking me to pay for the trade-in. They did follow through and reduce my payoff amount as long as I stay at their resort again next year, which is ok with me, since we enjoyed our vacation there.

The resale company keeps contacting me asking which option I want to go with. I would love to get rid of the 2 timeshares and not be responsible for the maint fees any longer but I'm worried I will pay the money and still have them!
Tell them you will put the monies in escrow until the title transfer to their name is finalized. Be sure to put a drop dead date on the escrow account and set it up with your bank.

Sent from my Nexus 7 using Tapatalk
 

glmyers

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OLA! The fundamental problem with (...ahem) "trade-ins" in Mexico, particularly if the "traded-in" product is a U.S. timeshare, is that a "traded-in" U.S. resort will (appropriately) only recognize and acknowledge a lawful transfer of ownership if / when they see a new, valid deed properly recorded in the U.S. jurisdiction of that particular U.S. timeshare. Any applicable U.S. resort transfer fee is an entirely separate matter; less important but still relevant to actually finalizing a transfer.

It's somewhat comparable to the U.S. situation where people sign a PoA (and fork over some serious cash too, of course) to the assorted PCC's "operating" here.
While the PoA authorizes the PCC to dispose of timeshare(s) on your behalf, you actually have little or no leverage to ensure that they ever subsequently do so lawfully or effectively --- despite the fact that you pre-paid some relatively serious cash "out of pocket".

Until / unless a valid new deed for a U.S. timeshare is recorded in the U.S. (...and what exactly is your leverage to ensure that ever happens, Gringo? :shrug:) any "trade-in" paperwork executed in Mexico is (appropriately) of no particular interest, meaning or legal significance whatsoever to the allegedly "traded-in" U.S. resort.
This is precisely why many intended "trade-ins" in Mexico unfortunately remain firmly in the legal ownership of optimistic folks who naively believed that they had painlessly and easily "traded-in" their unwanted (and perhaps worthless) U.S. timeshare(s) while south of the border in Mexico. Sorry, but very possibly not so.

Recording a deed is a very simple thing to accomplish in most places that merely requires action by the grantor. The way he can ensure that happens it to record it. The easiest part of any timeshare transaction is recording the deed. It's satisfying the resort specific transfer requirements that can be a pain.
 

T-Dot-Traveller

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What to Do

Thank you for the responses.

In answer to raygo123 question regarding previously mentioned fees for the trade-in the Equity Value Agreement states:

Owner(s) understand that the subscription fee of $995 payable to TRM does not include applicable government taxes, fees, transfer and estoppel costs charged by the resort, other third party charges, title and closing agent fees, legal fees, etc... and that Owner will be obligated to these fees in order to complete this transaction.

When I asked TRM they said the $995 was only if I still owed on the timeshare, my timeshares are paid in full. That seemed like a BS answer.

TRM is located in the U.S. as well as the Vida Time Sharks which are located in Texas. My other 2 timeshares are not deeded and last for approx. 10 more years. My other 2 timeshares are also in Mexico, Raintree in Cabo and the Wyndham in Mazatlan.

After researching on TUG and getting good advice I called Vida and negotiated with them to reduce my contract by the $3,758.00 which TRM is asking me to pay for the trade-in. They did follow through and reduce my payoff amount as long as I stay at their resort again next year, which is ok with me, since we enjoyed our vacation there.

The resale company keeps contacting me asking which option I want to go with. I would love to get rid of the 2 timeshares and not be responsible for the maint fees any longer but I'm worried I will pay the money and still have them!

Dear Thasel 13 .
I think you did the right thing by contacting Vida / Grupo Vidanta and negotiating the $ 3758 reduction since your contract with them did not specify that this was your responsibility and the sales rep "implied " it was included in the trade in. ( I read your earlier thread on the process)
I believe you probably should go ahead and do as Raygo 123 has suggested- that the payment to TRM be put in escrow with a date . When they have sold the Raintree and E lCid for $ 1 on Ebay ( probably the most likely option ) they make $ 3758.

Vida /Grupo Vidanta/ Mayan has a long history of doing "trade ins" and there is a (long) fall 2015 Tug thread that includes some info of positive outcomes --see<.Dr Guy a Grand Luxxe owner says his did -Nov 11 2015- post 22 Thread Purchased Grand Luxxe - started by Seema who also purchase GL with a trade in >. You may wish to PM ( private message / click on each of their blue names ) to find out any additional details of the process either Tugger may be able to share .

Not paying the MF (on the 2 trade ins) if due - is probably not a good idea -if you want them to be gone- as you will probably just end up with being put into collection ( or similar/ by the resorts) and not resolving anything.< and/ or possibly affecting your credit score >

I believe most or all "trade ins" that Vida has done the last few years are successful for all involved . I say this because it is clearly in their interest not to have posters saying negative things about this topic ( trade ins to Vida / Grupo Vidanta/ Mayan ) and there are legit ways such as ebay to easily sell them cheaply and still make money ( the $3758)

I know there was a day (my own trade in 2006/07 of a no name) where this did not always happen. I think (in general) that no longer happens with Vida because they NEEDED to improve in order to keep selling their product by taking trades. IMHO

Good luck completing this successfully.
-- and having great future vacations .
 
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theo

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SOUNDS good, but...

Recording a deed is a very simple thing to accomplish in most places that merely requires action by the grantor. The way he can ensure that happens it to record it. The easiest part of any timeshare transaction is recording the deed. It's satisfying the resort specific transfer requirements that can be a pain.

Simple and straightforward in theory, but what do you think the odds are that an attentive U.S. resort HOA will actually acknowledge or accept a new deed recorded with a new grantee that is an obscure Mexican corporate / LLC entity, likely of unclear (or completely unidentified) address and location somewhere --- in Mexico?
Those particular odds are very long indeed, I respectfully submit (...certainly including at the U.S. resort at which I sit on the BoD).

On the other hand, post #12 directly above provides noteworthy input. It does seem that there are fewer posted "trade-in non-performance" complaints in recent years, maybe since Grupo Mayan "evolved" into Vida? :shrug: After all, it's not a whole lot of effort or expense to just (legitimately) "dump" a unwanted U.S. "trade-in" via eBay, finding a new, real, willing U.S. or Canada based person / grantee after offering it there for a penny or a dollar, plus closing costs and transfer fees, if applicable.
Certainly, it would be a wise and prudent business decision and practice to just avoid all the complaints by actually completing "post trade-in" transfers.
 
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sjuhawk_jd

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In November I traded through RCI to go to Vidanta Riviera Maya. I attended the sales presentation and was talked in to buying a 1 bdrm red at the Grand Cascades Nuevo Vallarta for 15K.

The sale attracted me because I have not been able to go on vacation for 4 years and included trading in my current 2 properties - Wyndham in Mazatlan (1 bdrm red) & Raintree in Cabo (50K pts). MF's keep going up every year and I am paying $780 per year for Wyndham & $1200 every odd year for Raintree. This new contract does not require any annual MF's unless you use it. Also no exchange fees, which I hope is true. Seemed very good at the time.

I would have cancelled the contract had I read the posts on Tug or the BBB regarding Vida but I am past the 5 days and my credit card has already been charged. I feel very foolish for getting sold again!

So today I was contacted by Timeshare Resale Market, the company Vida uses for the Equity Value Agreement. They gave me 2 options:
1) Pay $1879 per property (total of $3,758), pay current year MF's, do not use the time-share and my properties will be transferred out of my name in 150 days.
2) Pay $4505 total to basically buy back my properties and they will sell them in the next year and I will receive any profit margin directly, but be charged another fee at the time of the sales.

So my question to all you experienced timeshare users and traders is do I proceed and which option do you recommend?

I've also considered chalking up the $5200 down payment I made to stupidity, not paying the money to trade-in the current time-shares and not paying off Vidanta. My only concern is the clause in the equity agreement that states I will have to pay TRM one half the equity provided by the agreement, which in total for both properties was $39,400.

I realize I made a huge mistake in purchasing this contract and know that I paid way too much but I would appreciate any advice regarding the trade-in process and if you think I should just stop the bleeding now and not put out any further money. Thank you.

Just figure out a way to offload your two timeshares (Wyndham and Raintree) yourself and walk away from everything else and do not send a single dime to Vidanta or any of their cronies in the equity trade business. Dispute everything with credit card company if you paid anything through credit card. Both of your timeshares are not even worth a $1 each.
 
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