Timeshare Mess - Any Ideas?

[hisbonics]

Hello,
I have a situation with a timeshare we purchased many years ago through a reseller.

We used it once the first year and then we came on hard times (as so many others) and we stopped paying the maintenance fees. At first I hoped that we could get back on track and catch up, but then several years went by. I really thought that being delinquent the timeshare would just revert to the timeshare company but now it seems that they just let the timeshare sit there adding up years of maintenance fees. Somehow the fees and assessments have now gotten to nearly $9,000! I believe there have to be some assessments made and that is why it's so much because the fees have not been paid for about 6 years and they were about $500 a year, so $8,989 is much more than that.

They have finally sent us an offer to do one of 2 things:
1. Either make an agreement to "settle your HOA dues for less" and get back on track and enjoy bonus days at other resorts
or
2. "Deed your property back to us* without experiencing the ill-effects of foreclosure" (*the asterisk refers to: *eligibility requirements apply).

My Questions:

#1 I have not contacted them since I want to know what to say before I do so. If we deed the property back, could we be assured the debt will be erased? Is there a contract/agreement we need to make sure they sign?

#2 If they offer to erase the debt if we pay this year's fees, is that a smart way to go? Then we would keep the timeshare and continue using it.

I would rather just let it go really, but only if we could keep it off of our credit so that when our finances improve we don't have to deal with this ruining our chances on other things.

#3 Also, even with the delinquencies, do I have some rights, like asking for the details of what the $8989 amount is or if they have rented it to others? (shouldn't this offset my fees? I was told they do this sometimes).

#4 Anything else you can think of?

Thank you in advance to any that can help me.
Peace and blessings,
hisbonics

 

[Passepartout]

If I understand, you defaulted on a contract. Then apparently you did nothing to contact the resort about 'getting right.' So this means the rest of the owners had to pony up and pay your share. And you think that paying one years' MF and the resort forgiving all the rest of the debt would be fair?

I have a hunch the rest of the owners may have a difference of opinion. But at this stage, they are willing to get what they can. A week they can put into the hands of someone who will use it and pay the MF is better than it sitting empty being a drag on the bottom line.

It's pretty obvious that a TS is not a priority for your family. I'd just deed back the week and move on. If there ever comes a time that you have excess disposable income, timeshares sell today for pennies on the dollar of even resale prices 6 years ago.

I will keep the rest of my opinions to myself 'cause they aren't pretty.

Best wishes, and I hope the next few years are better.

Jim

 

[Patri]

Deed it back and be done with it. You are lucky to have that option. Read over the contract they send you, and have a lawyer look at if for assurance.

 

[Carolinian]

Do they report to credit agencies? A deed in lieu of foreclosure can mess up your credit, too. Make sure they agree not to report that on your credit.

 

[ronparise]

We often see posts here on TUG where someone asks....what will happen if we dont pay our maintenance fees. the answer from your experience is ,,,not much.

They have offered to settle for less or to take it back.

You have already indicated you would rather give it back. Thats what O I would do

There is no guarantee that they wont ding your credit, but they havent done that so far, and you havent worried about it so far...why start now.


I would send them an advance letter. Something like. "Thank you for your kind offer, Please send us the necessary papers to effect this transaction. We will sign the deed back to you with the understanding that all claims, we might have against each other are settled and will not be pursued"..

 

[FractionalTraveler]

Take the offer and run!

Don't put too much into the scare tatics "oh your credit will be ruined"!

The truth is that banks and other creditors don't value timeshares a bit.

Your credit will rebound and life goes on.