walking away from timeshare issues

[sdeleese]

Hello everyone,

I am looking for some help. My wife and I purchased a timeshare in March 2008. I was laid off in Octobor 2008. We have never used the timeshare. We put 2K down, payed nearly $300/mo, and nearly a grand in maint fees, and never used it.

We can't really plan a vacation because if and when I get a new job I probably will not be able to take the time off. The bottom line is that we can no longer afford the timeshare. I talked to a broker from SDTIMESHARE.COM and he told me that my timeshare at 180,000 points annually was only worth about $5000.

He suggested that I call my timeshare company and offer to sign it over to them in lieu of foreclosure and they can just resell it. He also said that if they refuse, that we should just walk away from it and stop paying for it if we can't afford it. In this event, I am worried about whether they could put a lien on my home? I know that our credit will take a hit and I can live with that, but a lien is a different ballgame. Any suggestions would be greatly appreciated.

Thanks.

 

[timeos2]

No lien on house but..

Hello everyone,

I am looking for some help. My wife and I purchased a timeshare in March 2008. I was laid off in Octobor 2008. We have never used the timeshare. We put 2K down, payed nearly $300/mo, and nearly a grand in maint fees, and never used it.

We can't really plan a vacation because if and when I get a new job I probably will not be able to take the time off. The bottom line is that we can no longer afford the timeshare. I talked to a broker from SDTIMESHARE.COM and he told me that my timeshare at 180,000 points annually was only worth about $5000.

He suggested that I call my timeshare company and offer to sign it over to them in lieu of foreclosure and they can just resell it. He also said that if they refuse, that we should just walk away from it and stop paying for it if we can't afford it. In this event, I am worried about whether they could put a lien on my home? I know that our credit will take a hit and I can live with that, but a lien is a different ballgame. Any suggestions would be greatly appreciated.

Thanks.

The price they gave you is closer to the true market value than what you likely paid but still far from easy to get (and of course you still owe on the original amount, right?).

Yes, do call them and offer to forfeit what you have paid IF they will accept it back and give you a written document that you are released from any future obligations and any outstanding loan amount. If you can get that consider yourself lucky. If you simply stop paying they cannot lien your home BUT they can, and likely would, list you as delinquent and thus hurt your credit rating. This can be bad to terrible as credit ratings now days even affect your ability to obtain work. Don't treat it too lightly and push to simply have them accept it back as that is by far your best out now.

Good luck & best wishes for a successful job hunt.

 

[oregonguy]

I would definitely talk to an attorney before just walking away - You should be concerned about a lien against your house, and you need to find out if the timeshare company can go after you with a deficiency judgment. (It isn't an option in all states, but you should know beforehand if it coule be an issue) - Just because it hasn't been used as much in the past doesn't mean the timeshare companies won't use it - especially in these times when so many people find themselves unable to pay because of changed economic circumstances.

 

[calgarygary]

John and your broker have given you the best scenario that is possible for you and I truely hope that your ts company is willing to take it back. Please be aware that after contacting a resale company that your contact information may get shared and you will likely receive emails or phone calls promising you the world. You could be told that someone has a buyer for your ts that is thousands more than your current balance. Or maybe someone has a renter willing to pay 3 or 4 times your mf. All you have to do is pay an upfront fee and your problems will be solved - NOT! Avoid these scammers at all costs or the financial hole you are in will become deeper.

 

[dougp26364]

I'd make the call to who you bought the timeshare from but, keep in mind that many timeshare developers don't hold the loan. It's bundled with other timeshare loans and sold as a security investment. It might seem like a no brainer for a developer to take back timeshares and resell them but it's often more complicated then just signing the deed back over and reselling it.

 

[Carolinian]

While they cannot directly put a lien on your home, they can indirectly.

First they foreclose on the timeshare, selling it at the courthouse door for next to nothing. Then they get a deficiency judgment for the difference between the balance on the note and the pitience they bid in at the courthouse doot, suing you in the state where the timeshare is located. Then they go to you home state and get a judgment on an out of state judgment and docket it in your home county. That last judgment DOES become a lien on your residence. Now there may be quirks from state to state, such as laws that may prevent a deficiency judgment in certain circumstances. You need advice of a lawyer in the state(s) involved, not advice from these boards.

 

[ecwinch]

Or move to Texas.

Or if you know someone that is about to have their home foreclosed on.

 

[kabalah]

mexican timeshare

what if the timeshare is in mexico? can they place liens on your property here in the us?
jim

 

[Dave M]

Not only can they place liens on your home, but, in most situations, they can sue you and try to collect all of their legal and other collection costs. Not all resorts and developers do that but they can.

The legal documents for most timeshares (to which you are obligated to follow when you buy) provide that the resort is entitled to recover all of their collection costs in the event that they come after you for what you owe - both loan amounts and maintenance fees. That's why the very good advice above (avoid merely walking away without consulting an attorney) is right on point.

 

[Blondie]

many Mexico timeshares have their offices located in the US

 

[ace2000]

The legal documents for most timeshares (to which you are obligated to follow when you buy) provide that the resort is entitled to recover all of their collection costs in the event that they come after you for what you owe - both loan amounts and maintenance fees.

Dave,

Can you honestly say you've heard of one example where this occurred? I have never heard of anyone having a lien placed on their home for failure to pay on a timeshare. I seriously doubt that you have also.

Please let us know...

 

[applegirl]

To the OP:

So sorry to hear of your situation, but I am glad you found TUG.

You definitely don't want to just walk away from this, it has too many ramifications. What about another option?

Someday your financial and job situation will improve, even if that seems far off at the moment. I don't know where your t/s is or how desirable your destination is, but if it's a high demand destination (or at least has seasons that high demand), why not try to book a highly desirable week every year for the next few years and rent it to cover your MF's and maybe even help to cover some of your monthly payments. I know it's a tough market to rent, but it might be possible. If the consequences of just letting it go are to high, you may want to stick around here for a while and learn how best to rent it until you find yourself in a place where you can use it.

Best of luck on this difficult situation. I feel for you.

Regards,
Janna

 

[e.bram]

DaveM:
I bought my TSes resale and the only documents I signed were the contract of sale with the seller. I doubt if the TS has access to thise papers and that contract was fulfilled. The deed is only signed buy the Grantor(seller) not the Grantee(me, buyer). How could the TS collect legal and collection fees?

 

[timeos2]

The deed is what counts.

DaveM:
I bought my TSes resale and the only documents I signed were the contract of sale with the seller. I doubt if the TS has access to thise papers and that contract was fulfilled. The deed is only signed buy the Grantor(seller) not the Grantee(me, buyer). How could the TS collect legal and collection fees?

Making wild "what if" scenario's that are in direct conflict with 100's or even thousands of years of law doesn't help this situation. If there is a recorded deed naming the OP as the owner then the resort/Association has every right to go after them in every possible way under the law. Your seeming suggestion that somehow that wouldn't apply simply isn't true and would be a foolish path for them to try to follow. If they accepted the ownership they owe the fees, loan, etc until they find a new owner.

 

[oregonguy]

Just because something hasn't happened much before doesn't mean it won't happen. My guess is that the current situation is unprecedented as far as defaults go. Anything is possible.

 

[ace2000]

To the OP... here's a link to a thread where this topic is discussed extensively... I believe it gives all sides of the issues involved.

http://www.tugbbs.com/forums/showthread.php?t=92686

Unfortunately, there are times where there is no other choice but to 'stop paying'. And by avoiding a discussion of that option, the OP is really not helped.

 

[oregonguy]

I agree with you, there are times when there is no other choice - My advice is that the OP be informed of all possibilities to protect themselves from what might happen. Just stop paying and burying your head in the sand is NOT a good idea. Anyone who is going to default on an obligation should be aware of all consequences before taking that action.

 

[calgarygary]

DaveM:
I bought my TSes resale and the only documents I signed were the contract of sale with the seller. I doubt if the TS has access to thise papers and that contract was fulfilled. The deed is only signed buy the Grantor(seller) not the Grantee(me, buyer). How could the TS collect legal and collection fees?

Stop paying your mf and see what happens.

 

[theo]

My slightly different suggestion...

Any suggestions would be greatly appreciated. /QUOTE]

Disagreeing slightly with some of the input already provided above, I'd personally (and strongly) recommend that you not use the telephone to initiate your inquiry regarding the offer of deedback in lieu of foreclosure. Why pursue telephone conversation(s) with people who may or may not even understand what you are talking about and almost surely have absolutely no decision making authority at all in the first place?

You need your deedback proposal to be reviewed by the right people. Submit your inquiry in writing only, depicting your unfortunate situation in clear and specific detail. If you have an attorney, the inquiry being on his / her letterhead might be even better. When formally presented in this way, making it clear that the two courses of action you are considering (deedback, or just walking away and enduring the consequences)the odds of acceptance improve considerably, in my opinion.

The telephone should be used for nothing more than establishing and confirming the proper identity and address for submission of your deedback offer. Discussing the matter beyond that point with desk clerks, facility managers, or call center personnel is a waste of your time and theirs.
Just my personal opinion. If you want to succeed, stack the odds in your favor as best you can first....

 

[Jesse6283]

How to cancel free and clear

I worked for a timeshare company and I know how customers can cancel without having to worry about bad credit

A bit shady, but you can call and say that the salesperson said misleading information, etc etc----- save the bomb for the end, threaten to report the salesperson and the companies practices to and that you will report it to the timeshare monitoring body in America (I am from Australia, it is ASIC here)

and BAM, they will SH*& their pants and take it back hassle free

Best of luck

 

[GadgetRick]

First thing you should do is speak with the TS company and find out what--if any--policies they have in place to deal with your current situation. You may be surprised as you're far from the only one who is in your situation. Many times companies are working with people in this difficult time.

I'd also suggest, once you have an idea of what you're doing, to do everything in writing so you have a paper trail. Phone conversations are he said/she said and aren't gonna help you if things get bad with the TS company.

Someone mentioned bad credit can hurt your chances of getting a job. Not true. It is VERY illegal for anyone here in the US to deny you a job based on something like your credit report. Your credit is very important but it's not going to keep you from getting a job.

Also, there are (legal) ways to fix credit if you should find yourself with bad credit. I'd do everything I can do in order to keep good credit but don't lose sleep if you have to go behind on things. It's not worth the stress...

 

[theo]

Yuck...

I worked for a timeshare company and I know how customers can cancel without having to worry about bad credit

A bit shady, but you can call and say that the salesperson said misleading information, etc etc----- save the bomb for the end, threaten to report the salesperson and the companies practices to and that you will report it to the timeshare monitoring body in America (I am from Australia, it is ASIC here)

and BAM, they will SH*& their pants and take it back hassle free

Personally, I believe that the above advice is not only more than just "a bit shady", but is just plain bad advice overall --- moral issues aside regarding the fabrication of falsehoods about alleged sales associate statements.

For starters, OP purchase was made in March, 2008. It strains credibility to suddenly claim (...14 months after the purchase) that false statements were made (although some likely were).

Secondly, if the OP is looking to negotiate a deedback, taking a posture of idle, empty threats and phony claims hardly seems to be in one's best interests. Here in the U.S. threat of "being reported" to our weak and disinterested regulators hardly makes any entity quake in their boots...

Just my opinion, and I respect everyone's right to express theirs, but I see the above quoted input as constituting supremely bad advice....

 

[Tia]

... It's bundled with other timeshare loans and sold as a security investment. ....

This is something I had not so long ago heard about and was rather surprised... they have to be high risk investments I'd guess.

Maybe your sales person did lie , so did use shady practices, by telling you that the timeshares are easily rented for big $ and easily sold, but now that your having trouble you are finding this impossible...

People with solid home mortages on their homes with previously solid jobs are the new unemployeed and getting behind on mortages... read it yesterday on MSN home page article. A timeshare is a luxury so has to go in troubled financial situations but we know they stick...

 

[Mel]

Someone mentioned bad credit can hurt your chances of getting a job. Not true. It is VERY illegal for anyone here in the US to deny you a job based on something like your credit report. Your credit is very important but it's not going to keep you from getting a job.QUOTE]
It is your statement that is not true.

Employers cannot deny a job based only on BANKRUPTCY, but a bad credit rating can in fact be used. They cannot run that credit check without your permission, but they can also deny employment based on the fact that you won't permit a credit check. In this job market, with plenty of competition, you don't need bad credit working against you. It won't be the "reason" you weren't hired, but one of the factors in deciding that someone else was a better fit.

Beyond actual employment, if you have to move because of a new job, you get hit again. If you own your home, you have to sell it, and possibly buy a new home. Your credit score is lower because you haven't held your new job very long (if you've even started), and a forclosure on your timeshare will drop it even lower. That could make it more difficult to obtain a loan, and it could drie your interest rate higher. If you have to rent your new home, it may be a factor in the terms of your rental.

 

[ctyatty]

While they cannot directly put a lien on your home, they can indirectly.

You need to check your state, for example in Iowa judgment leins do not attach to your homestead. Each state has its own rules. Usually you cannot lose your home because of an unrelated debt.