Unethical high pressure sales tactics [merged]

[VacationForever]

In addition to Jim's suggestion, I would highly suggest trying to rent out 2016 or 2017 usage if it has already been paid.

Her first post said MF not paid since 2013.

 

[MSchleicher]

Her first post said MF not paid since 2013.

After rereading, I see that I may have misread something.

The OP said the line of credit from Quorum Federal Credit Union is being used to automatically withdraw fees. If that is the case, I assumed the OP's status was up-to-date. I knew she just hasn't paid any money towards the credit card aside from the minimum balance. I assumed the maintenance fees were being withdrawn too.

 

[planzfortomorrow]

Sorry to hear about your situation. I feel for people that have made one stupid mistake, and have to pay for it, and keep paying for it, for years.

Do you still have more than half to go on the loan for the TS? I'm guessing you do. If so, as others have said, I'd stop paying on anything to do with the timeshare & take the hit. Close the credit card if possible (probably not as you have a balance). STOP the financial bleeding... Call up customer service (on the credit card) and see if they will work with you at all on the current balance. They might work out a different payment plan, reduce interest, etc. Especially if you've been paying high interest rates these past 3 years. You've got nothing to lose. Same with the timeshare company, but honestly, they don't make it easy to reach someone who can (or wants) to help you.

If you have less than half to go, then it might just be best to suck it up & try to pay it off, and learn to love what you've already bought.

Good luck with whichever way you decide to do.

 

[MSchleicher]

Close the credit card if possible (probably not as you have a balance). STOP the financial bleeding... Call up customer service (on the credit card) and see if they will work with you at all on the current balance. They might work out a different payment plan, reduce interest, etc. Especially if you've been paying high interest rates these past 3 years.

If you find that they are unwilling to work with you, you may want to look for a credit card company that will let you do an 12-24 month interest free balance transfer. The transfer may cost some money (typically 3%), but it may be a better option that continuing to allow expenses to pile up onto the account.

 

[VacationForever]

The issue is that I am reading only minimum payment is paid on the credit card which means the sum owed is probably even higher than the price of the timeshare. There is no way out except to just let credit card company turn to debt collections and stop the timeshare company from further charges.

 

[LannyPC]

I don't know your personal situation, but outside of your disgust with the company that sold you a bill of goods...can you use it? Like at all? I mean if you plan on going on vacation next year, could you use what you now own?

In the original post, the OP said' "That was in 2013, it is now 2016 and we haven't used a single day of our timeshare. Why? Because we can't afford it! We live on such a tight budget that we can't take time off."

Sad as it is, I can totally empathize with the OP. For us, one of the biggest expenses of vacationing is lost time at work. Yes, I know it sounds pathetic but for us (and apparently the OP), that's the harsh reality of vacationing.

 

[JudyS]

Cindysue82, one of the big issues here is what your credit is like currently. I would not assume it is bad. Instead, I would get a free credit score from www.creditkarma.com. (There are also other sites you can use.) If you credit is bad, there is little to lose from stopping payment and letting the resort try to collect from you, and then offering to do a "deed in lieu of foreclosure.". But if your credit is good, you might want to tell the resort about your bad financial situation and ask the resort if they will let you do a deedback instead (A deedback is NOT the same as a deed in lieu of foreclosure.) The resort will probably say no to a deedback, but it doesn't hurt to ask.

...
Do you still have more than half to go on the loan for the TS? I'm guessing you do. If so, as others have said, I'd stop paying on anything to do with the timeshare & take the hit. Close the credit card if possible (probably not as you have a balance). STOP the financial bleeding... Call up customer service (on the credit card) and see if they will work with you at all on the current balance. They might work out a different payment plan, reduce interest, etc. ....

It's quite possible to close a credit card that has a balance. Closing the card doesn't make the existing balance go away, but it stops any new charges from being made to the card. The debtor is then expected to pay off the balance under the same terms that existed when the credit card was open.

...
do a homestead if you need to protect your home from creditors
...

Vegasbella, can you explain what "doing a homestead" means? I'm not familiar with this phrase.

As for the person who suggested the Original Poster take money from her retirement account, a lot of people don't HAVE a retirement account. The OP says she's on MediCal (California's version of Medicaid), and I'm not sure a person can even qualify for MediCal if they have much in the way of retirement funds.

 

[Cindysue82]

Update:

I have requested that Welk stop the automatic payments from the credit card, which resulted in a higher payment and higher interest rate. Fun.

I still have not paid my MF, but this month would be the first month I neglect to pay the monthly mortgage.

I do not live in CA anymore so using the resort is not going to happen, and if you have ever tried to book with Welk/interval before, you know that using the exchange option is so ridiculously difficult it's not worth it. Nothing I can ever possibly make it to is ever available, and definitely not available for a time I could possibly go. It's so stupid. Only the rich and retired can make those restrictions and scheduling work.

I tried renting out a week in July but was unable to find a renter and now the MF are behind so I don't think I can book another week.

At this point, I am trying to figure out what's worse: continuing to pay for a luxury I can't afford, and havent even used once..or allow it to go into collection and screw my credit, which right now is sitting around 705. Nothing in me wants to keep the timeshare, I have absolutely no desire to vacation in those resorts. I'd rather go camping. If I suddenly won the lottery, I would pay it off and donate it, happily.

 

[Cindysue82]

Letting Lawrence Welk TS go into default

What's the worst that can happen?

I am considering letting my TS go into default. We still owe about $9,000 on the principle and haven't paid our MF this year. We have never been able to afford it, every single payment has been put on a credit card and I can't do that any more, and now the MF are late too. So I'm ready to give it up. Never wanted it, never once used it, and never want to use it.

So what I'm really wondering is, if I let it get foreclosed, what should I expect? I know my credit will take a big hit, like 250 points maybe? It's already bad, so I don't know if I care. I know I will be hounded.

How much can I expect the IRS to charge me for the BS "income" they perceive the foreclosure to be?

Is there anything else I should expect?

Any advice on the best way to go into default, if there is one?

 

[Passepartout]

I think you should communicate with Welk (assuming they hold the note). Offer them the deed back in lieu of foreclosure. It will save them money and legal fees, and they will get back a week they can re-sell. Now, if they have already sold the note to some finance company, all bets are off. They don't want the deed, and then it's possible you could face collection, nasty calls, letters, threats, suits, maybe garnishment. Who knows.

We wish you well, just know that default is not something to consider lightly.

Jim

 

[TUGBrian]

sadly the answer is "it depends"

http://tug2.net/timeshare_advice/stop_paying_for_timeshare.html