What happens if I just stop paying maintenance and property fees?

[mccombjs]

What happens if I just stop paying the maintenance fees and property taxes? What is the worst thing that can happen?

 

[Timeshare Von]

Collection agencies and ruined credit.

 

[ronparise]

Collection agencies and ruined credit.

I wouldnt say ruined credit Id say damaged credit and add foreclosure

 

[Passepartout]

This same question has been asked many times with the same answers. I sure wish someone would try it, then report back- like maybe monthly- with the results. Could be that in the current foreclosure and unemployment climate a small wrist slap and letter to the credit agencies about not wanting the TS and there being no market to sell it (doubtful) might be the penalty.

Maybe we have been right all along that credit ruination, foreclosure, letters from the TS HOA about how all the other owners have had to step up to pay the deadbeat's MF, then daily phone calls from collectors and eventual bankruptcy.

Maybe it's some middle ground.

OP, before you try defaulting, try to give it away on eBay, TUG or Craigslist. Just don't pay anyone an upfront fee- those are always a scam.

Good Luck and best wishes

Jim Ricks

 

[Makai Guy]

Here are links to some some existing threads:
http://www.tugbbs.com/forums/showthread.php?t=158413
http://www.tugbbs.com/forums/showthread.php?t=157698
http://www.tugbbs.com/forums/showthread.php?t=152492
http://www.tugbbs.com/forums/showthread.php?t=147945
http://www.tugbbs.com/forums/showthread.php?t=89766
http://www.tugbbs.com/forums/showthread.php?t=32847

 

[pjrose]

. . .

OP, before you try defaulting, try to give it away on eBay, TUG or Craigslist. Just don't pay anyone an upfront fee- those are always a scam.

Or contact the resort and see if you can deed it back to them. Some will happily take it back so they can sell it to someone else.

 

[Ridewithme38]

You go to debtors prison in which they stamp a dollar sign with a red cross over it like this

on your head

Then they attach a long chain with a 100lbs ball to the end, they name this Bankruptcy and it will follow you around for the rest of your life

This will effect your entire life, your credit card rates will double, your mortgage will go screwy, cars will be impossible to finance, if you need a new job you will not get it because of your credit and ANY women who is actually interested in you will do a background check and won't marry anyone without a bankruptcy on their credit report

Eventually with your mortgage going through the roof you will loose your home, your car will be repossessed and your job will see your credit report and label you unreliable and fire you...Because of your credit you won't be able to rent an apartment and without credit cards no hotel will let you stay the night....Without a place to stay or a car, even if you meet a women to stay the night with, she will throw you out after the background check...

Not paying you MF's will cause you to be homeless, jobless, car less and without a mate, until you die of loneliness

 

[ronparise]

You go to debtors prison in which they stamp a dollar sign with a red cross over it like this

on your head

Then they attach a long chain with a 100lbs ball to the end, they name this Bankruptcy and it will follow you around for the rest of your life

This will effect your entire life, your credit card rates will double, your mortgage will go screwy, cars will be impossible to finance, if you need a new job you will not get it because of your credit and ANY women who is actually interested in you will do a background check and won't marry anyone without a bankruptcy on their credit report

Eventually with your mortgage going through the roof you will loose your home, your car will be repossessed and your job will see your credit report and label you unreliable and fire you...Because of your credit you won't be able to rent an apartment and without credit cards no hotel will let you stay the night....Without a place to stay or a car, even if you meet a women to stay the night with, she will throw you out after the background check...

Not paying you MF's will cause you to be homeless, jobless, car less and without a mate, until you die of loneliness

The op did ask, worst case...But even all that some say would be better than owning a timeshare

 

[Talent312]

ALSO: The other TS owners who must chip in to pay your share will form a posse to chase you down, give you 40 lashes, tar+feather you, and make you walk the plank. Or maybe not.

 

[icul8rg8r]

Or contact the resort and see if you can deed it back to them. Some will happily take it back so they can sell it to someone else.

We've been trying to give ours away for a few months now, with no success. We were even going to pay the next years' dues and any closing / transfer costs. I called the resort, initially to ask what they would charge us to transfer ownership, and I happened to ask if they "buy back". Found out we can deed it back to them for only $100 - and since I contacted them before the dues were due 1/1/2012, we do not have to pay next years dues.

So contact your resort and see if they will allow you to deed it back.

 

[rrlongwell]

... So contact your resort and see if they will allow you to deed it back.

A novel unconventional thought, like you report, it might work.

 

[RX8]

I wouldnt say ruined credit Id say damaged credit and add foreclosure

I used to be a credit analyst and made judgment decisions on a daily basis based on collateral, job/income and of course credit. Whenever I saw a derog item related to a Timeshare, I still considered it in the overall context of the credit but it was always considered less severe than other repos or chargeoffs. I didnt see many bureaus with Timeshare derogs but i will say approved loans (auto) even with that Timeshare charge off. Chances were even greater if the Timeshare was the ONLY derog trade line.

I can't say that would be same view taken by other analysts. Also, this will impact the credit score so that while you MAY still be approved for another loan application, you will likely be paying a higher interest rate than had there been no Timeshare foreclosure or charge off.

I should also add that at that time I knew very little about Timeshares. What I did know was that they were a luxury item that had high sales pressure to buy.

 

[monopoly]

Why not just stop paying $1100 monthly for my 500,000 points, let it defalt without any care on credit loss etc., Go on ebay and buy the same 500,000 points for $2500 cash and continue enjoying my Wyndham vacations with only maintenance fees.
I own my home and pay for all other thing by cash so I care less about credit rating etc This way I have eliminated close to $60,000 of debt which only stays on my credit record for no more than 7 years anyway.

 

[Passepartout]

Sorta makes me wonder if Wyndham would open another account for you if you have one already that you've defaulted on. They might. Or might not. Report back on how this works out.

 

[timeos2]

Why not just stop paying $1100 monthly for my 500,000 points, let it defalt without any care on credit loss etc., Go on ebay and buy the same 500,000 points for $2500 cash and continue enjoying my Wyndham vacations with only maintenance fees.
I own my home and pay for all other thing by cash so I care less about credit rating etc This way I have eliminated close to $60,000 of debt which only stays on my credit record for no more than 7 years anyway.

You don't owe only maintenance fees - you owe on a mortgage or personal loan for the original purchase. If you think Associations make it tough on debtors try defaulting on a loan! It won't be pleasant . Lots of luck with that. You'd need it.

 

[DeniseM]

Why not just stop paying $1100 monthly for my 500,000 points, let it defalt without any care on credit loss etc.

Ethics
Personal responsibility
Dumping your maintenance fees on your fellow owners

 

[Talent312]

Why not just stop paying $1100 monthly for my 500,000 points, let it defalt without any care on credit loss etc.

For what you owe, I doubt the creditor simply let it ride.

After the harrassing phone calls and threatening letters, you will be served with a lawsuit to foreclose and collect on the debt. The attorney will record the judgment as a lien against any of your property, try to seize any significant assets and garnish your wages.

To avoid that, you'll may need to file Bankruptcy. Don't worry, though. The trustee will likely let you buy back your assets from the Bankruptcy estate.

 

[bogey21]

So contact your resort and see if they will allow you to deed it back.

This is so obvious I don't understand why more don't take a shot at it. I have previously reported that I was able to deed Weeks at four different Resorts back to the HOA. And this is important. If you are rebuffed the first time you ask, try again. Sometimes things change at the Resort and sometimes you get to talk to a more responsive person. Be patient, be persistant, but don't be a pest either.

George

 

[AwayWeGo]

What? $60,000 Owed On A TIMESHARE? The Mind Boggles.

This way I have eliminated close to $60,000 of debt which only stays on my credit record for no more than 7 years anyway.

You're saying you owe $60,000 ?

On a timeshare ?

That is such an astounding amount of money to owe -- for a timeshare, any timeshare -- that I don't know what to say.

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​

 

[bogey21]

......while you MAY still be approved for another loan application, you will likely be paying a higher interest rate than had there been no Timeshare foreclosure or charge off.

I'm not advocating defaulting but higher interest rates are a small price to pay if you get to dodge a bunch of debt.

George

 

[persia]

Worst case, they sic the collection agencies after you and you end up having to pay or declare bankruptcy, both of which will affect your credit for 7 years (in the US)

Best case, they simply default and foreclose. Minor damage to your credit again for 7 years in the US, though likely you could challenge it off your credit report in a year or two, since they gave up without a fight.

 

[timeos2]

This is so obvious I don't understand why more don't take a shot at it. I have previously reported that I was able to deed Weeks at four different Resorts back to the HOA. And this is important. If you are rebuffed the first time you ask, try again. Sometimes things change at the Resort and sometimes you get to talk to a more responsive person. Be patient, be persistant, but don't be a pest either.

George

Even if the resort accepted the ownership that wouldn't kill the loan. In fact the ownership may not even be transferable until the loan is settled. This is far worse than merely owing for annual fees.

 

[persia]

Must be Wyndham by the numbers you present. Wyndham financial department in Las Vegas will pursue you. They may give up on smaller figures, I know people that have walked away from "Discovery," but they are going to be much more aggressive with $60K. It's beginning to sound like bankruptcy may be your only option. It will damage your credit initially but recovery from bankruptcy can take less than the 7 years it takes to fall off your credit report. You can start building credit with secured credit cards and work your way back to good/fair credit in a few years. But rebuilding your credit will take time and effort. This would not be a quick fix. Add to that the long waits to actually get to bankruptcy in the court and you could easily have 5 years of little or no credit....

Why not just stop paying $1100 monthly for my 500,000 points, let it defalt without any care on credit loss etc., Go on ebay and buy the same 500,000 points for $2500 cash and continue enjoying my Wyndham vacations with only maintenance fees.
I own my home and pay for all other thing by cash so I care less about credit rating etc This way I have eliminated close to $60,000 of debt which only stays on my credit record for no more than 7 years anyway.