What happens Next after foreclosure

[Dk33]

I defaulted on my maintenance fees for my resort because I wasn’t able to pay them. They told me that it’s going in foreclosure. Once it’s goes o foreclosure where do the deed go too. Or who do they sale them 2.

 

[VacationForever]

The deed goes back to them and they will try to resell them. In the meantime you credit score maybe ding and it will be affected for 5 to 7 years.

 

[dioxide45]

The timeshare week will go to foreclosure auction. In most cases, the HOA (or developer if foreclosing on a timeshare loan) will bid what they are owed for the timeshare. If no one else bids then the HOA (or developer) takes over title. What happens after that can depend on the state where the property is located. In a recourse situation they could try to get an additional judgement for the deficiencies owed or write off the debt. In a non recourse state, they can't go after any deficiencies. If they write off any deficiencies they can possibly issue a 1099-C (usually the case in a timeshare loan) which could have certain income tax implications.

 

[Dk33]

The timeshare week will go to foreclosure auction. In most cases, the HOA (or developer if foreclosing on a timeshare loan) will bid what they are owed for the timeshare. If no one else bids then the HOA (or developer) takes over title. What happens after that can depend on the state where the property is located. In a recourse situation they could try to get an additional judgement for the deficiencies owed or write off the debt. In a non recourse state, they can't go after any deficiencies. If they write off any deficiencies they can possibly issue a 1099-C (usually the case in a timeshare loan) which could have certain income tax implications.

The timeshare had a clean free deed. There was no loans. I defaulted on the maintenance fees.

 

[TUGBrian]

what state is the timeshare in?

given the cost of actual forclosure, id bet the resort actually reaches out to offer you to sign the deed back over to them vs going thru the legal process of obtaining it back via forclosure.

was the letter you got just a form letter from the resort? or delivered via certified mail from an lawfirm?

 

[geneare]

The timeshare had a clean free deed. There was no loans. I defaulted on the maintenance fees.

00

 

[Dk33]

what state is the timeshare in?

given the cost of actual forclosure, id bet the resort actually reaches out to offer you to sign the deed back over to them vs going thru the legal process of obtaining it back via forclosure.

was the letter you got just a form letter from the resort? or delivered via certified mail from an lawfirm?

Certified mail from law firm

 

[TUGBrian]

curious what the letter stated exactly, can you forward a copy to us at tugadmin@tug2.net ?

 

[sfwilshire]

My first few timeshares were purchased on the "courthouse steps" after they were foreclosed on. I paid the purchase price and a small fee for document creation and filing. I then started paying annual maintenance fees on the intervals. None of the arrears.

Sheila

 

[dannybaker]

What are the laws in California?
California foreclosures of timeshare mortgages can be either judicially or nonjudicial. Timeshare purchases are subject to California's strict anti-deficiency judgment laws, judicial or not. They are considered 'purchase-money loans' so a deficiency judgment cannot be filed against the borrower following a foreclosure.