Comments on: Deed in Lieu of Foreclosure for Timeshare

By: Jack

Jack — Fri, 23 Jul 2010 20:57:33 +0000

I have one question. What happens to people like me who already paid off the Timeshare and only have the maintenance to pay for? Can forclosure be a better option?

By: Melham

Melham — Sat, 03 Jul 2010 01:27:04 +0000

bill,

that is correct. the form is called 1099-C (cancellation od debt).

By: bill

bill — Fri, 02 Jul 2010 19:12:22 +0000

for vams:
from timesharecouncil.net
The timeshare lender will report the foreclosure to the IRS. They will show the amount of money that was still owed at the time of the foreclosure as well as the value of the property at the time it was sold.

Say you paid $10,000 for the timeshare, had a remaining balance of $8000 and the timeshare is now worth $4000. For tax purposes you have a $4000 non-deductible loss (timeshares are personal use property) and a $4000 cancellation of debt income. If you are not insolvent or bankrupt, the $4000 will be added to your income in the year of the foreclosure as ‘other income.’ (The loan is considered separately from the property so the $4000 loss doesn’t reduce the COD income at all.)

By: workedfortimeshare

workedfortimeshare — Thu, 01 Jul 2010 13:48:29 +0000

In regards to the Island One issue. If your were not present at the time of signing the new contract, then you are not legally bound. You should send a letter to the VP over the maintenance and tax division or call 407-859-8900 for her e-mail address. Let her know you can prove that you didn’t sign the new agreement and therefore your signature was fraudulently used. Make them prove you were there that day. Please note, if they have a prior copy of your DL and credit card information on file, they can possibly piece information together. Figure out where you were that day and prove to them that you couldn’t have been in their presence to sign off on such an agreement. At the end of the day, if you don’t pay, you will continue to receive calls, but the only person really losing here is the resorts. They need these contracts to keep paying in order to make money to operate or pay down the enormous loans they have with financial institutions that pay them upfront to operate. Timeshare is going to hit rock bottom before it see rocket profits again.

By: yams

yams — Sun, 27 Jun 2010 23:49:56 +0000

Thanks Rose. What is it that we will have to pay to the IRS when we foreclose on timeshare? I’ve been researching and reading so much online that I can’t remember everything I’ve read.

By: rose

rose — Thu, 24 Jun 2010 13:43:56 +0000

yams,

I also tried to contact ProfessionalServices..hmmmm they asked also upfront fees..they seems to be all connected dont trust anymore, we have the same amount owed, but im ready for foreclosure rather pay IRS than to transfer the nightmare to my children, only deal with wyndham directly (by writing) not to anyone they are all scam.

By: yams

yams — Thu, 24 Jun 2010 06:24:13 +0000

Has anyone ever dealt with professionaltimeshareservices.com? They claim to be consumer advocates for timeshare owners who’ve been pressured and lied to by timeshare salespersons. They say that they hate timeshare companies taking advantage of people and will represent us in our complaints and they claim to have a money back guarantee if they fail to get us out of our timeshare contract. However they want $4,000.00 upfront to do this!!? I’m scared of getting ripped off again and I don’t even have $4,000.00 or I wouldn’t be behind 4 months in my timeshare payments if I did!! Anyone out there ever had dealings with them? Or can we just wait and see if the timeshare will actually take action?
I like Rose’s June 3rd 2010 comment “don’t talk to collection agency. Wait til lawyer gets a hold of you.” Professionaltimeshareservices said when that happens it’s too late for them to help us (PTS)and that then we’re looking at paying much more for an attorney to represent us. Are they just saying that because then we find out that maybe this won’t cost us anything to get out of??? We have a $42,000.00 contract at 11% with Wyndham and it’s adding interest and late penalties as we speak. Not sure how to deal with this one. HELP!!

By: Melham

Melham — Thu, 24 Jun 2010 03:56:40 +0000

in a bind,

dont believe these people, TD advocate ,professional LLc, etc they all want upfront fees, they are all connected in making money that’s how the TS network goes there are a lot of how to make money in TS either you continue or foreclose they still make money , they ruin people’s live , dont ever trust , buying TS was already enough.

By: In a bind

In a bind — Thu, 24 Jun 2010 02:22:56 +0000

Any suggestions on a good attorney that won’t screw me over or charge me out the nose?

By: In a bind

In a bind — Thu, 24 Jun 2010 02:22:31 +0000

Yes I’ve tried renting it, and listing it with a company to sell. I’m out $1,000 for listing it for sale with 2 different companies, it hasn’t sold and it’s been for sale for over a year now. I have talked to 2 attorney’s, one wants $3500 to help me with this matter and get me out of it, the other one wants $500 upfront to review my purchase contract and send a letter to the TS company, I asked him about representing me through the end of this or through a foreclosure and he said it could cost from $500-$5000 depending on how stubborn the TS company wants to be on settling this. What now?

By: Jean

Jean — Wed, 16 Jun 2010 04:03:13 +0000

Have you tried to rent it out? See an attorney?

By: In a bind

In a bind — Sun, 13 Jun 2010 16:22:45 +0000

I have a Lawrence Welk Resort in CA and I notified them last year of my job loss and asked if there was anything I could do and they said NO. I have been struggling to pay the monthly payment (I owe about $7000 left on the TS) and their maintenance fees went up $400 last year. I didn’t pay last month and closed my check card and had a new one sent to me so they couldn’t draft it anymore. They won’t work with me on deeding it back, payment modification, NOTHING. Any suggestions? I don’t want it anymore and I’ve paid 2 real estate companies to try to sell it and they have been on the market for 1 year now and no hits or bites on it. Any suggestions? HELP

By: Rose

Rose — Thu, 03 Jun 2010 14:07:30 +0000

renee, base on some postings, “dont deal with the collection agencies nor paying a single cent..otherwise a clock will start again.” all they want is to collect they wont listen to what ever reason, wait till they have a letter fron the company’s lawyer not from collection agencies”

By: Rose

Rose — Thu, 03 Jun 2010 14:00:46 +0000

reyna, you are very right, they cant do anything if we cant afford anymore nor they get something that we dont have. I hope its just like Insurance ,that if we cant afford the premium then we are no longer covered and that’s it, but with this TS they get more money from us in advance, we dont get anything just a service from vacation , unlike buying the car we have the care. TS concept is unbelievable, in reality we were the one who gave them money. I am taking the risk in my credit score, at least I can pay some important bills and credit cards which is more important. Life change, in this time of hardship TS is first to let go.

By: reyna

reyna — Thu, 03 Jun 2010 04:28:42 +0000

HI I HAVNT PAID MY TIME SHARE IN FLORIDA FOR OVER 2 YEARS ,IVE GOTTTEN LETTERS NOTICES FROM THE TIMESHARES LAWYER IT SAID THERE WAS A JUGDGEMENT AGAINST ME SO SO I SEND THE COURT A LETTER AND A COPY TO THERE LAWYER STAING MY REASONS WHY I COULDNT KEEP UP WITH MY TIMESHARE AND THEY GAVE ME THE OPTION TO GO WITH DEED IN LIEU OF FORCLOSURE IM GOING TO TAKE THE PAPER WORK TO THE NOTARY AND SEND OT BACK. TO BE HONEST I DONT WORRY ABOUT IT MUCH BECAUSE THERES NOTHING THEY CAN CAN DO IF YOU DONT HAVE THE MONEY TO PAY IT BUT I WOULD JUST RETURN THE TIMESHARE BACK. I HAD VERY GOOD CREDIT BUT THINGS WENT SO WRONG. I DONT WORRY ABOUT MY CREDIT ANYMORE AS LONG AS I CAN KEEP MY MORTGAGE PAYMENTS AND AND MY BILLS. ITS TOUGH TO BE IN DEBT BUT THERE ARE OPTIONS AND WAYS TO DEAL WITH THIS.

By: renee

renee — Fri, 02 Apr 2010 06:40:17 +0000

Hi, I stop paying my Timeshare for about 10 months now, since then consolidated resort continue to send bills and every month principal balance continue to rise at the same time. Today i received a letter from the collection Agency to make voluntary arrangements for payment to their client Tahiti Village. I know I cannot afford anymore to continue paying due to financial hardship.What should I do at this point the Collection agency wants to hear from me with in 30 days from the day I received the letter and also the amount that they’re trying to collect from me it got almost the double from the original loan. Please, I need an advise don’t know what to do.

By: Stop Paying Timeshare, Foreclosure Steps, Can I Not Pay My Time Share

Stop Paying Timeshare, Foreclosure Steps, Can I Not Pay My Time Share — Tue, 30 Jun 2009 19:52:00 +0000

[...] Deed in Lieu of Foreclosure for Timeshare - http://rcivip.com/2008/deed-in-lieu-of-foreclosure-for-timeshare/ [...]

By: Kamala

Kamala — Sun, 19 Apr 2009 19:10:19 +0000

Hello, in Dec. 2006 I sign an modification and extension of mortgage from my timeshare I have the legal documents but on the due date of which was January 2007 they they call me to informed me that they could not accept the modification. I recieved notice of foreclosure on my timeshare.What shall I do.

By: kris

kris — Thu, 26 Mar 2009 11:08:11 +0000

hi. I have not paid my timeshare since late last year and have been offered a deed-in-lieu of foreclosure. I am in the process of doing all the paperwork. I want to find out if anyone out there has been through this and what happened afterwards. Does the DIL guarantee that we will not be pursued after? (That is what is written in the paperwork I received, that my debt will be forgiven). I am also worried of possible tax consequences. Can someone explain or advice? Is there anything I can do to minimize my losses further (money-wise, as I don’t have a job and cannot afford to pay hefty taxes). Also, I am not a US resident, but have intentions of immigrating there.

By: Sue

Sue — Wed, 11 Feb 2009 18:57:00 +0000

Darlene, Just a word of advice. I asked about this. When you donate your timeshare, you may claim on your income tax what it was resold for and not what you paid for it or the current value. If you return the deed, you may claim the current worth minus what you paid for it. That really doesn’t seem fair either. Either way these timeshares are such a racket. I have been trying to get rid of ours for several years. I have contacted the resort owners and they are considering the return of deed in exchange for not owing the maintenance fees for the past two years. Its just a shame. We have tried to sell it through newspaper ads, ebay, and a realtor to try to recoup at least some of our money. We just absolutely will not put out any money to a reseller because there are no guarantees that you will get money back. That is just another scam.

By: Darlene

Darlene — Mon, 19 Jan 2009 09:37:15 +0000

I purchased a timeshare at Fairfield Cypress Palms in 1997. It was paid off in 2003. I never used it. I stop paying and spoke with someone at their company headquarters in Las Vegas. We discussed options and he suggested I donate the timeshare or return the deed. I have been getting threating mail for 4 years. It is owned by Wyndham. This article states that my timeshare should have been in foreclosure. The fees are still going and it is up tp $10,000. Four thousand more than I paid for it. Please tell me why this has not gone into foreclosure. I know that I do not understand much but I believe they will try to take my home or garnish my pay.

By: Geno

Geno — Thu, 06 Nov 2008 02:09:17 +0000

Hello

I just have a question about a timeshare once it has been forclosed upon. My mother bought a timeshare in Orlando that was never used and since has been foreclosed on. How do we find out if the timeshare has been resold, and the amount, so we can know what her obligation is after the resale. Thanks in advance for any info about this.

By: fraud victim

fraud victim — Thu, 07 Aug 2008 01:15:22 +0000

My ex and I own at Orbit One (an Island One resort). We got divorced in 2000 and he got that timeshare as part of his settlement. He never did the paperwork to get me off the deed, however, because it didn’t seem necessary. In 2004 he got suckered into joining Club Navigo for $3000, which converted his weeks to points. Because my name was on the deed, HE FORGED MY SIGNATURE ON THE MORTGAGE AND JOINDER! The salesperson witnessed it and noted that he had seen our drivers licenses as proof of identity. I knew nothing about it until last week when I got a letter from them stating their intention to foreclose and asking for deed in lieu of foreclosure. I called and explained that I knew nothing about it, and got them to fax me copies of the documents. From there I recognized my ex’s handwriting.

I have perfect credit; he is in bankruptcy and his house is being foreclosed on. I offered to pay the $1200 remaining in return for him signing over his interest to me but he’s so smart that he’s going to sell it-ha ha, won’t happen.

I can’t sign it over to Island One because the divorce decree awards my interest to the ex. I’ve notified Island One that my signature was forged. If they go ahead with the foreclosure, they will have to go against me because my name is on the deed!

Any advice out there? although I believe my ex did the forgery (he denies everything of course), their salesperson is culpable as well because he witnessed the signatures and attested to me signing when I didn’t. I think their salesman is guilty of fraud and aiding & abetting forgery? Is the whole contract invalid? What can I do to get out of the situation without running up legal bills and having my credit damaged?

By: keny

keny — Sun, 20 Jul 2008 03:57:33 +0000

I get a clearer picture now thanks to you. by the way i’m am the same Keny which you have replied on the other post.

one more thing: would it be the best to contact the TS management and tell them that i’m not able to pay the MF anymore to see what options they can offer? or is better to just stop paying without giving any notice …

thanks again.

By: mandie

mandie — Sun, 20 Jul 2008 03:19:09 +0000

Hi Keny,

The amount owed on the property depends on the amount already paid on the principal balance and what the lender was able to resell the property for after foreclosure. For example, if you bought a $20,000 timeshare, and paid $2,000 on it before you foreclosed you would still owe $18,000, and the lender could possibly sue you for this amount. Lenders also sometimes will resell the property and hold the previous owner responsible for the difference in what they owed vs. the amount the property was sold for.

That said, it is not very common for lenders/resorts to go after timeshare owners that have foreclosed on their properties. The reason for this is because there is a lot of cost and time involved in pursuing a lawsuit against someone that has gone through with a foreclosure; it is more beneficial for the timeshare companies to keep reeling more people in and selling more timeshares rather than going after people who have not paid.

Hope this helps a bit:)

By: keny

keny — Sun, 20 Jul 2008 02:36:00 +0000

Hi mandie,

in the 1st section of the article it says “the former owner may be responsible for any applicable legal fees and/or amount owed different than what the property was resold for”.

Any idea on how much money can this be?? I’m starting the 2nd year out of 10 on the payments for a TS in Orlando and i dont want to do that anymore. i’m not a US resident and based on what i have read on your post “what-happens-if-i-stop-paying-my-timeshare/” the credit record is not an issue for non US residents, since it applies only within the US.

Finally, what do you mean by “I have found that many timeshare resort property owners do not take this extra legal step”?

thanks for the advice.