Timeshare foreclosure actions

[Ellie23]

Is there anyone who has personally had there timeshare foreclosed on due to non payment of mortgage? If so, what were the consequences? Did the resort sue you for the difference owed on the timeshare?

thank you for any responses.

 

[Ellie23]

Is there anyone who has personally had there timeshare foreclosed on due to non payment of mortgage? If so, what were the consequences? Did the resort sue you for the difference owed on the timeshare?

thank you for any responses.

My timeshare was purchased in Las Vegas, NV and I currently live in Tennessee

 

[CalGalTraveler]

Welcome to TUG. Read these stickys to get answers to your questions. If your timeshare is in Nevada, Nevada laws apply to your timeshare. Under Nevada law they may be able to come after your other assets as a deficiency judgment if you don't pay your mortgage. YMMV.

Links to Official State Timeshare Laws and Guides/Manuals

@TUGBrian @DeniseM @CalGalTraveler take a look. This weekend, I’m creating a spreadsheet with official links to states’ timeshare laws, as well as their statuses as to non-judicial, anti-deficiency foreclosures. In the meantime, I will just keep adding notes. * Legal Disclaimer: This list...

tugbbs.com

Look up your ownership to see datapoints on foreclosure action:

[ 2022 ] Timeshare Default Credit Report/Collection Tracking

Some of you know I have been tracking this. Out of four (4) more TS defaults reported on TUG Facebook, one (1) got his credit affected. I have tabbed the following stats(updated 5/2022): TS defaults w credit drops: 47 out of 107 TS defaults w collections: 12 out of 107 TS defaults w...

tugbbs.com

If you decide to move forward, please pay it forward and report your experience to @Grammarhero to add to the database.

 

[LannyPC]

I see you own at Grandview Las Vegas. Before you decide to default, have you tried:

1)...selling it? Grandview Las Vegas seems to be well spoken of and might have some resale value.

2) ...asking the resort (the Homeowners' Association) if it will take your property back?

3)...giving it away? TUG here has the Bargain deals section that allows owners to list for free properties that they want to give away.

Most here on TUG would recommend trying these three options first before defaulting. Defaulting is a last resort only after the aforementioned three options have been exhausted and unsuccessful.

 

[Passepartout]

I read that the OP has defaulted on mortgage payments. They won't be able to sell, give back, or give away the TS unless it's paid off and current. Point is that they MAY be sued and a judgement made for the default.

Nevada Real Estate laws are more predatory- or maybe I should say- more lender-friendly than other states.

Jim

 

[goaliedave]

Defaulting on a mortgage is serious; whether it's a timeshare or your primary residence, see a bankruptcy trustee to discuss the processes and options before they come guns blazing.

 

[Ellie23]

I read that the OP has defaulted on mortgage payments. They won't be able to sell, give back, or give away the TS unless it's paid off and current. Point is that they MAY be sued and a judgement made for the default.

Nevada Real Estate laws are more predatory- or maybe I should say- more lender-friendly than other states.

Jim

Since I live in Tennessee wouldn't they have to come after and sue me under Tennessee law?unfortunately I see TN allows for deficiency judgement as well, so either way it looks like they can go after me.
I guess my next question would be.. I signed this with and ex and we are both in the loan. He lives in another state. Would they have to force him to pay half as well instead of only me? (I know they'lol try to make me pay all but I can imagine it's legal that they only pursue me for the mortgage.)

 

[dioxide45]

Since I live in Tennessee wouldn't they have to come after and sue me under Tennessee law?unfortunately I see TN allows for deficiency judgement as well, so either way it looks like they can go after me.
I guess my next question would be.. I signed this with and ex and we are both in the loan. He lives in another state. Would they have to force him to pay half as well instead of only me? (I know they'lol try to make me pay all but I can imagine it's legal that they only pursue me for the mortgage.)

They would sue in the state that the property is located, not the state you live in. Foreclosure action is taken in the state the property is located. If you default, they will only take foreclosure action. They are very unlikely to sue or take any additional action beyond foreclosure. We have yet to see a single instance where a timeshare developer has taken additional recourse action to obtain a deficiency judgement to recover the total amount owed on a timeshare loan. Realize that timeshare financing doesn't work the same as your home. When you buy a home you have a seller, buyer and a bank (third party lender). On the day you sign to buy a timeshare and sign a mortgage, there is no 3rd party lender (bank) that wires a bunch of money. Think of timeshare loans as seller financing or buy here pay here. Their only real recourse will be to take back the timeshare through foreclosure.

 

[Ellie23]

T

They would sue in the state that the property is located, not the state you live in. Foreclosure action is taken in the state the property is located. If you default, they will only take foreclosure action. They are very unlikely to sue or take any additional action beyond foreclosure. We have yet to see a single instance where a timeshare developer has taken additional recourse action to obtain a deficiency judgement to recover the total amount owed on a timeshare loan. Realize that timeshare financing doesn't work the same as your home. When you buy a home you have a seller, buyer and a bank (third party lender). On the day you sign to buy a timeshare and sign a mortgage, there is no 3rd party lender (bank) that wires a bunch of money. Think of timeshare loans as seller financing or buy here pay here. Their only real recourse will be to take back the timeshare through foreclosure.

Thank you for sharing this. It puts my mind at ease a bit. I definetly think it's crazy that they haven't foreclosed after 4 years of non payment on mortgage. I know it will come at some point. Just wondering when.

 

[dioxide45]

Defaulting on a mortgage is serious; whether it's a timeshare or your primary residence, see a bankruptcy trustee to discuss the processes and options before they come guns blazing.

Foreclosure doesn't have to lead to bankruptcy.

 

[Janann]

I signed this with and ex and we are both in the loan. He lives in another state. Would they have to force him to pay half as well instead of only me? (I know they'lol try to make me pay all but I can imagine it's legal that they only pursue me for the mortgage.)

Unless the loan documents specifically say 50/50, then the lender can go after one or both parties. It is legal. Imagine a different scenario...if one person on the loan is deceased, then the lender can go after just the one survivor. There is no obligation to try to get 50% repayment from the survivor and 50% from the estate of the deceased.

Another scenario is where an adult wants to buy a business, a car, or some other asset, and a parent either co-borrows or guarantees the loan in order to get it approved by the lender. If the loan defaults, the lender can pursue whomever has the best ability to repay, which is probably the parent.

Lenders will start out by notifying everyone on the loan about the loan status, and then (most likely) aggressively pursue the person with the most money.