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Westgate - Buyer assuming loan? Seller not removed??

gk527

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I found a buyer for my Westgate Smoky Mountains timeshare. I'm selling it for what I owe on it.

The buyer completed a loan application with Westgate which was approved.
The paperwork was sent to Equity Land and Title from Westgate.
EL&T then sent me, the seller, the paperwork. Here's my issue...

On the "Assumptions and Modification Agreement" page it reads as follows...
"The parties expressly acknowledge that SELLER is not being released from its obligation under the Note and Deed of Trust and remains fully liable thereon."

It also says...
LENDER hereby recognizes BUYER as an additional obligor on the NOTE and DEED OF TRUST.

Why is it like this?? I don't know the buyer. I'm selling the timeshare. I want nothing else to do with it. I've emailed both Westgate and Equity Land and Title. Waiting on a reply... :mad: :annoyed:
 

DeniseM

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Par for the course for Westgate....

Question: It is EXTREMELY odd that someone would want to take over your loan. No offense, but this timeshare has no resale value.

Are you paying anything for this transfer to take place?
 

Ty1on

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I think it is to avoid the shill buyer treatment. If it gets transferred to someone who is leaving the country, is in hospice care, or doesn't mind just simply willfully ignoring their new obligation, they can still come after you for repayment.
 

gk527

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Par for the course for Westgate....

Question: It is EXTREMELY odd that someone would want to take over your loan. No offense, but this timeshare has no resale value.

Are you paying anything for this transfer to take place?

The buyer paid the $450 to Equity Land and Title to get the process going.

I placed it on eBay and had several people interested.
 

gk527

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I think it is to avoid the shill buyer treatment. If it gets transferred to someone who is leaving the country, is in hospice care, or doesn't mind just simply willfully ignoring their new obligation, they can still come after you for repayment.

I don't see how that can be done... It's not like that with a house or a car.
 

raygo123

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It a co-sign. Not unusual. Like a car loan for your child buying thier first car with little or no credit. In this case it's a perfect stranger! Worse case sinerio is they make no payments and now your stuck with them on your deed, and have to pay to get them off before you can sell it again, didn't pay the MF, and took a free vacation.

Thanks dad. Hehe

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vacationhopeful

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The buyer paid the $450 to Equity Land and Title to get the process going.

I placed it on eBay and had several people interested.

I would NOT go thru with it. Suggest the buyer obtain their own financing ... fall back to the other buyers interested.

Can of worms with the gate-keeper being a SLIMEY Westgate organization .. you might find they rather double dip from BOTH of you.
 

theo

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Color me dubious...

I don't know what to make of the OP post, quite frankly. Most unhappy Westgate owners have to pay all closing costs, maybe even some future maintenance fees, maybe some additional out of pocket cash incentive as well, just to get a willing recipient to take a fully paid off, free Westgate ownership off their hands, yet the OP claims to have found someone willing to assume an existing loan on a (probably worthless) Westgate ownership? :eek:

I just dunno... :ponder:
 
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bogey21

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I see nothing wrong with this transaction. Seller is obligated to make the payments and has found someone else to make them. Every payment Buyer makes reduces the amount outstanding on the loan. In addition Seller retains the cash he otherwise would be using to make payments.

George
 

raygo123

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I don't know what to make of the OP post, quite frankly. Most unhappy Westgate owners have to pay all closing costs, maybe even some future maintenance fees, maybe some additional out of pocket cash incentive as well, just to get a willing recipient to take a fully paid off, free Westgate ownership off their hands, yet the OP claims to have found someone willing to assume an existing loan on a Westgate ownership? :eek:

I just plain dunno... onder:
The buyer has no credit period................or no money!

Otherwise he wouldn't.


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gk527

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I don't know what to make of the OP post, quite frankly. Most unhappy Westgate owners have to pay all closing costs, maybe even some future maintenance fees, maybe some additional out of pocket cash incentive as well, just to get a willing recipient to take a fully paid off, free Westgate ownership off their hands, yet the OP claims to have found someone willing to assume an existing loan on a Westgate ownership? :eek:

I just plain dunno... :ponder:

I promise... It's real.
 

gk527

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I would NOT go thru with it. Suggest the buyer obtain their own financing ... fall back to the other buyers interested.

Can of worms with the gate-keeper being a SLIMEY Westgate organization .. you might find they rather double dip from BOTH of you.

The buyer has their own financing through Westgate. They completed a loan application through them.
 

theo

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I promise... It's real.

If so, you are perhaps among the most trusting and fortunate people on the planet --- and your buyer, to say the least, is not among the most financially astute. :rolleyes:
In any case, it seems that you will still remain on the hook for the loan balance, with or without your new (....but completely unknown) co-signor.
 
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tschwa2

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The buyer has their own financing through Westgate. They completed a loan application through them.

But apparently Westgate wouldn't give them their own financing, they simply added them as a co applicant with you.

Your options are to accept this arrangement (doesn't seem wise to me.)
or
Ask the buyer to obtain alternate financing, it won't be a secured loan because the timeshare has no value. You would need to have a closing company that could provide escrow service and you would have to pay off your loan before the transfer could be completed.
or
forget the whole thing and continue to pay off your loan and use your week.
 

vacationhopeful

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The buyer has their own financing through Westgate. They completed a loan application through them.

YOUR loan is NOT going away! And I seriously doubt that you are DUMB enough to sign a new loan and mortgage with this UNKNOWNED buyer.

I own some real estate ... my first lesson taught to me by my mentor was ... NO PARTNERS. ie NO co-owners. Either you own it or you don't.

And that is 5000 times more right with an upside down timeshare property.

That "financing" was to identify the new co-owner as a person with funds...just to spread the risk and secure the payment if one "walks" (defaults).

PS I would NEVER let a co-marker (on a loan/note/mortgage to ME) walk. Either pay me off in full or add the name as another person for me to sue for collecting an (future) unpaid debt.
 

gmarine

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Something doesnt seem right here. Westgate is providing funds to someone for a resale ? And lets say they are and its all legit, someone is dumb enough to finance a Westgate resale ? I'm very skeptical that this is legit.
 

bogey21

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YOUR loan is NOT going away! And I seriously doubt that you are DUMB enough to sign a new loan and mortgage with this UNKNOWNED buyer.

I don't understand the rationale for your position. The Week has no value. No, his loan is not going away but someone else will be making payments reducing the outstanding balance on it. Seller obviously doesn't want use of the Week. He can accumulate the monthly payments and MFs he is no longer making in a separate bank account if he wants. If Buyer defaults, he can probably negotiate a better deal with Westgate as they have someone else on the hook to chase.

George
 

theo

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Something doesnt seem right here. Westgate is providing funds to someone for a resale ? And lets say they are and its all legit, someone is dumb enough to finance a Westgate resale ? I'm very skeptical that this is legit.

While I agree that something seems odd and amiss in this whole situation of more, new willing borrowers for a worthless Westgate product, I think you can rest assured that Westgate is not literally "providing funds" to anyone involved. Even if this strange tale is true and accurate, Westgate is extending nothing more than another reach into even more pockets for the same product via a co-sign exercise, at absolutely no risk whatsoever to themselves.

In the event of subsequent default / foreclosure, it wouldn't be the first time Westgate "recycled" a recovered "product" back into the sales sludge pool inventory. :shrug:
 
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glmyers

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I don't see how that can be done... It's not like that with a house or a car.

Yes it is typically like that with a house in the rare cases where someone is allowed to assume a loan in today's market. The only way a borrower is totally off the hook is when the loan is paid in full.
 

gk527

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YOUR loan is NOT going away! And I seriously doubt that you are DUMB enough to sign a new loan and mortgage with this UNKNOWNED buyer.

I own some real estate ... my first lesson taught to me by my mentor was ... NO PARTNERS. ie NO co-owners. Either you own it or you don't.

And that is 5000 times more right with an upside down timeshare property.

That "financing" was to identify the new co-owner as a person with funds...just to spread the risk and secure the payment if one "walks" (defaults).

PS I would NEVER let a co-marker (on a loan/note/mortgage to ME) walk. Either pay me off in full or add the name as another person for me to sue for collecting an (future) unpaid debt.

I'm not going in partners with the buyer. I've requested that these two line items be removed. The first one actually has been. Just waiting on the other.

I want nothing to do with the timeshare.
 

gk527

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While I agree that something seems very odd and seriously amiss in this whole situation, rest assured that Westgate is not literally "providing funds" to anyone involved. Even if this tale is accurate, Westgate is extending nothing more than another reach into more pockets via a co-sign exercise, at no risk whatsoever to themselves.

In the event of subsequent default / foreclosure, it wouldn't be the first time Westgate "recycled" a recovered "product" back into the sales sludge pool inventory. :shrug:

My timeshare was not paid off. We had a mortgage with Westgate. Westgate said that if the buyer truly wanted it, they'd have to apply for a new loan which in turn would pay off my mortgage creating a new one for the buyer.

If my timeshare had been paid off, Westgate could've exercised their right of first refusal.
 

Jason245

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My timeshare was not paid off. We had a mortgage with Westgate. Westgate said that if the buyer truly wanted it, they'd have to apply for a new loan which in turn would pay off my mortgage creating a new one for the buyer.

If my timeshare had been paid off, Westgate could've exercised their right of first refusal.
[DELETED TEXT, I just can't justify commenting on a thread which appears to run contrary to the whole reason TUG was created]

Sent from my SAMSUNG-SM-N910A using Tapatalk
 
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theo

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My timeshare was not paid off. We had a mortgage with Westgate. Westgate said that if the buyer truly wanted it, they'd have to apply for a new loan which in turn would pay off my mortgage creating a new one for the buyer.

If my timeshare had been paid off, Westgate could've exercised their right of first refusal.

Yes, I fully comprehend that you have a note with an unpaid balance --- but I nonetheless remain quite befuddled about the buyer.

With all due respect, why would this (or any other) buyer be willing to sign loan paperwork to become co-responsible for your loan balance, when they could instead acquire a free Westgate timeshare on any given day just about anywhere? I hope it works out for both of you, really, but I'm frankly just plain baffled. :confused::shrug::confused:

I've never before seen Westgate and ROFR used in the same sentence either, but I suppose that anything is possible. :shrug:

As I try (admittedly unsuccessfully, so far) to wrap my head around all this, it belatedly occurs to me that the timeshare at issue is not actually yours to sell or transfer in the first place, unless the note is first satisfied and the ownership is actually in your name. Perhaps this is where I am failing to properly connect the dots on the possibility of your "extracting" yourself from further responsibility without first satisfying the existing loan balance. Then again, my analysis and comprehension may admittedly be clouded by the indisputable fact that I don't particularly trust anything from (or concerning) Westgate. :ponder:
 
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gk527

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Yes, I fully comprehend that you have a note with an unpaid balance --- but I nonetheless remain quite befuddled about the buyer.

With all due respect, why would this (or any other) buyer be willing to sign loan paperwork to become co-responsible for your loan balance, when they could instead acquire a free Westgate timeshare on any given day just about anywhere? I hope it works out for both of you, really, but I'm frankly just plain baffled. :confused::shrug::confused:

I've never before seen Westgate and ROFR used in the same sentence either, but I suppose that anything is possible. :shrug:

What is ROFR?

The buyer is buying my timeshare for what I owe. It wasn't supposed to be setup like I originally said in my first post. I never heard of that before, which is why I asked.

I've actually gotten Westgate and Equity Land and Title to remove those lines saying i'd still be responsible. Just waiting on updated paperwork to be received.

Sounds like I've gotten lucky... My buyer said that they didn't feel comfortable buying from a resale company. They felt better about buying from an individual.
 

theo

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What is ROFR?

The buyer is buying my timeshare for what I owe. It wasn't supposed to be setup like I originally said in my first post. I never heard of that before, which is why I asked.

I've actually gotten Westgate and Equity Land and Title to remove those lines saying i'd still be responsible. Just waiting on updated paperwork to be received.

Sounds like I've gotten lucky... My buyer said that they didn't feel comfortable buying from a resale company. They felt better about buying from an individual.

ROFR = acronym for "right of first refusal", sometimes exercised by "higher end" companies like Hilton, Hyatt, Marriott. Never heard of it being exercised by Westgate.

I hope it works out for you. Be very grateful that your buyer seems (to say the least) to be (...ahem) "a bit under-informed" regarding Westgate resale vaue. ;)
 
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