Deed in Lieu of Foreclosure for Timeshare
Whether you are facing timeshare foreclosure, or are looking for a way to get rid of an unwanted time share, a deed in-lieu of foreclosure can be a great option to get rid of your timeshare obligation. It is important to note that a deed in lieu of can usually only be (easily) obtained by an owner that has already paid off the principal balance of the property, whose only remaining financial obligations are yearly/monthly maintenance fees. If you still owe money on the property, in addition to maintenance fees, you will want to discuss a deed in lieu of foreclosure with your lender – their willingness to allow you to sign the deed instead of foreclosing depends on a variety of factors including the amount owed, frequency of delinquent payments, your personal situation and resort desirability. If the deed in lieu of foreclosure is accepted and executed in this case, the former owner may be responsible for any applicable legal fees and/or amount owed different than what the property was resold for; although I have found that many timeshare resort property owners do not take this extra legal step, as it involves a series of court orders and legal fees for their company.
With regards to your credit in the case of obtaining a deed-in-lieu of foreclosure, your credit should not be greatly affected at all. It is an excellent idea to obtain a written statement from the lawyer preparing the document to state that the lender and/or timeshare resort property owner will not be recording or reporting this deed to credit agencies. Some lenders/property developers will not agree to this, however, so you should at the very least obtain a signed statement acknowledging that any information reported will be accurate – including the fact that there was no delinquency or default if your payments are current. This document should be signed by the parties to whom you are returning the property, and while it is not a guarantee that the deed in lieu of foreclosure will not be reported to credit agencies, it will come in handy if any errors in reporting to FICO occur.
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We bought into Wyndham years ago and have even upgraded, not always happy with the sales pressure but did enjoy our vacations. We have over 500 pts and was told our ts was worth over $100,000 and we owe $20,000. My husband lost his job, had some medical issues and couldnt find another job for over a year. We were hurting financially, losing our home. We tried renting points out but didnt come anywhere close to covering costs. We advised Wyndham of our problems and sent a hardship letter but they said they didnt care. We even requested if they could reduce our points to show paid for we could pay mf. They didnt care. Wyndham has been worse than our actual mortgage company. We have not paid since 6/2011 except for 1 payment in the fall when they convinced us they wouldnt call for 2 months if we made a payment. We struggled that month but made a payment and we got as many calls as we did before. They lied to get their payment. We get 7-8 calls a day from Wyndham asking for payment. We will not pay them anymore money. They say we have 25 days and they will turn over to collection agency. I cant imagine calling anymore than they already do. We are hoping for a foreclosure so the calls will decrease. Other than changing our phone number, anything we should do at this point. We cant afford to pay anymore, we need a house to live in a little more than a vacation.
So, my wife and I foolishly bought into Wyndam Bonnett Creek (Near Disney in Orlando) back in 03. Talk about high pressure sales – we were trapped for almost 6 hours. In retrospect, we should have walked away but it was like being a hostage. Since then, we have tried to book time at that resort and others to no avail. No availability for any time we’d be able to take a vacation – we gave up even trying several years ago.
Ours is paid off so we’re only in maintenance fee mode. Anyone else have any experience with Wyndam and how quickly a Deed in Lieu of Foreclosure will go into effect with the new Florida law? My plan is to stop paying the maintenance fees and walk away from this complete waste of $$. I absolutely do not want to take a chance trying to get any other blood sucking service involved and just want to force the hand of Wyndam.
I never recieved a 2012 maintenance fees still owed for 2011 went online to pay fees and says its under forecloser we would like to pay fees but there is alot of legal fees in there can we pay this minus legal fees and not be forclosed on?
I just talked with a rep from Donate for A Cause about donating my 154k points of Wyndam. They told me they would take it but I would have to pay $3500 plus the remaining maintenance fees for 2012. I thought I could just donate it and that would be it but no it still cost. The only upside is that it supposedly is tax deductibe. I will talke with my accountant before I do anything.
I just stopped paying on my 1 million point Wyndham contract with $88k mortgage balance. It took a year but I finally got my DIL.
You said you only have 154k points. And you still owe big maint. fees.
And you can’t get anything decent, anywhere decent (but FAirfield Glade). Consider just ‘STOP PAYING’ Seriously, If you have to PAY to DONATE then you are cheating yourself. Research the ‘STOP PAYING’ method. It will take a year but you will finally get your DIL.
It worked with me and now instead of PAYING Wyndham $14k+ every year I SAVE it. With 4 months savings this summer I am going to go back to Oceanwalk Daytona but instead of staying @ Wyndham we have 3 suites next door @ the HILTON. And I still have spending money and savings. Seriously, don’t give Wyndham another dime.
Dr Jose — i hve sim sit at Marriott – i have not made payments – hardship, lost job plus Cancer – I owe Maint Fees they say they will not due DIL unless fees are current $4600. That is money I can’t afford but if it is only way. I have heard Tax consequences are awful IRS treats dif in LOAN Mtg and forgive as INCOME – clearly I need to choose without making mistake — at wits end