What Happens if I Stop Paying My Timeshare?
This question comes up a lot on timeshare forums and blogs, and it can be complicated depending on the exact procedures outlined in your particular contract. There are a few main points that stay the same regardless of whether you have a deeded timeshare or right-to-use, and whether or not you have paid off the entire amount of the timeshare. The following is a description of the steps that will take place if you decide to throw in the towel and allow your timeshare to go into default, leading to timeshare foreclosure.
Timeshare is treated equal to real estate in the eyes of the law, and it follows the same rules and regulations as a homeowners deed. Your timeshare can foreclose in the same way as your home if you stop making payments – and this does not just mean payments on the principal balance, it also includes yearly maintenance fees. After your first missed payment, whether it be a monthly payment on the principal balance or your maintenance fees, you will start receiving calls from your timeshare resort’s collection company attempting to collect a payment. You will also receive information by mail detailing the amount due, including any applicable late fees, and their intentions on reporting your delinquency to the IRS.
The harassing telephone calls and letters will continue if you choose to not pay the balance due on your timeshare, and after anywhere from 6-24 months (this is dependent on the procedure of your resort company) your timeshare company will begin foreclosure proceedings on your timeshare. Timeshare companies will try to avoid this at all costs because a foreclosure means they have to take the property back and pay legal fees for the proper paperwork to be processed. I have heard instances of resorts offering to lower the amount due on the principal, changing contacts to make maintenance fees due only every 2 years, adding extra perks into your vacation package such as extended stays, rental cars, airfare, and sometimes even offering to forgive the amount owed if the two parties can reach a suitable agreement for payments to continue.
If your timeshare does go all the way through the foreclosure proceedings you will be notified by mail that your deeded timeshare will be part of a trustee’s sale or public auction. At the given date, time and place your timeshare will be sold at a sheriff’s auction to the highest bidder. The auction is public record and the transaction can be recorded and reported to the IRS and credit bureaus, effectively ruining your credit for the next 7 years. This strike on your credit score can make it difficult to finance a car, obtain a loan or even buy a home. Since timeshares rarely sell at auction for the amount owed on the deed, the timeshare resort company has the option to take legal action and sue you for the remaining balance owed. Read more on timeshare foreclosure and credit scores in the post – Timeshare Foreclosures and Your Credit Score
Timeshares can be hard to wiggle out of, but most anything is better than letting the property foreclose and take a major hit on your credit score – especially if you are anticipating a major purchase in the near future. Timeshare foreclosure should be your last resort if there is absolutely no way you can make the monthly or yearly payments. It is wise to contact your timeshare resort if you are having financial difficulties and anticipate missing a payment, some properties will even offer to take your timeshare back under some circumstances; some resorts will also offer a Deed in Lieu of Foreclosure. You will also want to check out possibly donating your timeshare if the principal amount is paid off in full – this is not an option if you still owe money on a loan.
Helpful Timeshare Foreclosure Links:
Deed in Lieu of Foreclosure for Timeshare – http://rcivip.com/deed-in-lieu-of-foreclosure-for-timeshare/
Timeshare Foreclosure and Your Credit Score – http://rcivip.com/timeshare-foreclosures-and-your-credit-score/
Alternative Timeshare Sales Options – http://rcivip.com/alternative-timeshare-sales-options/
I live in Virginia and my timeshare promised alot of features that don’t exist I think I’m going to attorney general on them I stopped paying 6 months ago….
I have a wyndham timeshare that is paid off & now want out of it. Can someone please tell me what wyndham does when you stop paying the maintenance fees? I have many comments but really unable to find out what happens when the timeshare is paid off & you stop paying the fees? Thank you
Hey if you own your Wymdham free and clear I’m willing to take it off your hands and pay the transfer fee and maintenance fees. I want more points but I don’t want to sign another contract. Depends on what your monthly fees are though and I”m not sure how many points you have.
Yes I am interested, I have Wynham Oceanwalk in Daytona Beach, beautiful place, 105,000 points annually, 1 week in high season, paid over $13,000 12 years ago, used it about 16 times but I have to live in another country for awhile & just do not it anymore, but I will not pay to give it away, its worth more to me, had great times & memories.. Currently there are many people looking at it & considering but as of now no one yet has committed, but it wont be long plus it is listed for sale with a free broker in Florida timeshare resales & he said it will not take long so if you want it let me know soon. Thanks
I pay $55 a month maintenance fee.
I have 77,000 deeded points, anytime, fees approx. $40 a month. Will let you have them. If interested, let me know- also reciprocal with RCI
Paid in full I might add.
Mine has sold thank goodness, thru a broker on timeshare resales, it must be fully paid if so then you may have a chance for the broker to sell it, mine took less than a month. Contact r.levene@evanstuart.com & let him know what you got & he will let you know if it can be sold, good luck.
I just received a quitclaim form to sign for Summer Bay. Finally they will take a deed in lieu of foreclosure. Had to get their atty involved.
Hi Valerie,
I too have Summer Bay and am waiting to hear from them. I stopped paying Jan 2011 and lately have not gotten any calls. Can you give me more info on
how you achieved getting the DIL. I will send you my email address if you are willing to share info to help me out……thanks Diane
As of January 2012 we stopped making payment on our Timeshare. The resort has called and we have told them our financial situatiuon and they appoligized for that anD said they would “note the account accordingly and turn to the collectin department”. I am aware that my credit will be damaged, but this debt has never shown on my credit report. It simply does not show up. What does this mean? I keep a close watch on my score and my husbands.
continue from last post. My computer logged me off accidentally. We replied to few calls and told them to go to hell. After 6 months the calls and letters stopped and we haven’t heard from them ever since. They are not on our Canadian nor my husband’s Us credit reports. Don’t waste another dime on these vipers, all you Canadians stop paying.
Hi , Canadian too . This website is a blessing. It answered many questions I had and convinced me to stop payments for my TS. I own three at the same resort in the Orlando area and unfortunately MF fees are paid for 2012 but still have a $3,000 mortgage on one of them. I don’t plan to use any of them in 2012. I found this site only last week otherwise I would started the process for 2012.
I will definitely stop paying the MF next year and but I don’t know what to do with the monthly mortgage. Should I pay the balance so when I forfeit next year, it will be only a MF default or should I just stop paying the mortgage right away ? ( outrageous interest rate ).
My feeling tells that since I’ve decided to drop the TS anyway , I should not throw away money but the fact that it’s the mortgage makes me hesitate . Does it increase my chances of being sued ?
Anyway , I’m ready to take all the harassment and heat they are going to throw at us.
Laurent, any update? What happened to your TS? Please share your experience to a fellow Canadian. Thanks!!!!
Barbara/Laurent….please let me know if you got out of your TS. How long did it take and did it appear on your credit report/rating in Canada? How long did you get collection calls for? Need some advise pls. Only one thing I know for sure, we ain’t paying these scammers not even a penny. Thanks!!!!
RCCC,
I’m in the beginning of the process.
I just stopped paying the mortgage and the calls started immediately. Not from the Collection Agency yet but from the Resort.The usual threats …. I told them they could do whatever they want , I would not send them any money . The only thing I will accept is that they take back the units . They will likely put me in collection this fall and it will probably take close to a year or two before it’s over.
I asked them to stop calling and that further communication be done by writing but of course they keep calling. I don’t talk to them anymore. Altought it may take some time , They will end up taking back the units because that’s their only option and they know it’s a lot harder to sue a foreigner. If for any reason , they decide to go forward and sue me , then they will have more hurdles as I’m a Quebec resident where laws are different .
Last time I visited the resort ( 2011 ), they were still able to attract hundreds of people to their timeshare presentation so it make a lot more sense to take back the units and sell them back to new people.
As slimy as the process is, they think of this as their business — so they spend so much in incentives to get peple to listen because they might get some cash, and they have done an analysis that some people will cave to their collection calls, so they make more by doing collection calls than they do by taking back the unit week. They probably have lots of weeks available, so they will sell others and try to gt cash from you. The collections are the same. Their only income is if they get you to send them money.
Laurent…please keep us updated. Lots of collection calls for sure. Maybe you and I can connect thru email or phone. We’re from ON.
Anyone know anything about the cease and desist letter? I remember reading it here somewhere. What is this for?
Bill – TS’s strategy is to scare everyone with collection calls and ruining credit, so if it works then they collect more $$$? What a way to extort people.
Laurent – any update?
Update-We bought our timeshare in March 2010 from Orange lake Resort. We live in Canada but my husband is an American citizen. We paid off the down-payment a sum of about $2000. However, like I said before we had a death in our family and realized that the timeshare is a fraud and useless so we never paid any of the monthly premiums. They called us daily for the first 3 months and sent numerous letters. W
I bought one from them in Myrtle beach and was thinking about not paying and was wondering if you could tell how this process went for you.
Barbara, what happened to your TS? Did they cancel or you got DIL? How long did it take? Thanks!
Does anyone know if ypu purchase in Mexico and it does not appear on your American credit report, can this affect me if I stop paying? I work for a bank and am concerned it will damage my credit and cause me to lose my job.
Does the Timeshare company that owns the one in Mexico have its HQ there or in the USA?
i believe the hq is in florida
Susan,
Thank you so much for responding. I’m so sorry this happened to you. I’m sorry that it’s happening to all of us. I honestly think that if we were to each calculate how much money we have already given towards our timeshare, the majority of us will see that we’ve actually paid A LOT more than what it was originally bought for. A while ago, I offered someone from Westgate some money to settle this but nope, the amount they actually counteroffered was just $100 less than what is owed. Unbelievable. For many years I have done the right thing by paying them even when they did absolutely nothing for me (I never used the property. Every time I tried to change a week, they would tell me there was no availability so I would have to pay for my own hotel anyway). So since that last conversation, which was probably almost a year ago, I have decided that I tried to reason with them and just like before they were no help so I’m not going to be bothered with them. I will follow your advice. Hopefully these crooks will be put out of business soon!!! Again, thanks so much!!
I am with Westgate resort and I stopped paying them a while ago. There are calls everyday which I ignore but recently we got a call from a “mediator” who said she is not with Westgate, just someone who wants to help me and tell me about my options to get the “issue” resolved.
Anyone ever dealt with someone like this? If yes, how did it turn out? I haven’t returned her call because as far as I’m concerned, they are all the same. But I am a bit nervous about the consequences of not paying my timeshare.
Thanks.
-Mayra
Mayra,
I was with Wyndham. I “owned” 3 different contracts with them (I know, I must have had a giant sign on my back!!)I stopped paying last September 2010 on 2 of the contracts and stopped paying on the 3rd in Oct. 2010. I got all the letters, phone calls etc. I got a call from a third party person offering their help to “get out of the contracts” so I waisted another $3000.00 to receive their assistance. DON’T DO IT. I waisted my money. They did nothing! I was scared to wait it out because they were sending it to foreclosure. So they said! Never happened! In Feb. 2011- just 5 months later. I received a deed in lieu. My advice is do not spend any more money! I firmly believe that the timeshare companys are giving out your numbers to these people to duke you out of more money. How else are they getting them! Good luck to you and stay strong!
You sound just like us! They sure make those sales pitches convincing. We had two with Wyndham and one with Orange Lake. Stopped paying on all around October 2010. So now, we have just received these 1099C forms (“Cancellation of Debt) where they list the “Fair market value” and the amount of debt cancelled. I’m really scared. First of all, this is going to make us owe a lot of money to the IRS, which we don’t have. Secondly, I’m filling out the FAFSA forms for my son to get financial aid for college and it’s going to look like we make twice as much money as we actually make. Does anyone know if there is a way to protest what they call the ‘fair market value’? If this was really the fair market value, I would have been able to sell these things, you would think. I need to figure this out quickly since I need to do our taxes and get the college forms done asap. Any ideas?
Elaine: I am right there with you! Just received the tax form today in the mail and about had a heart attack. We had just finished our taxes and were getting money back for a change and this will probably mess everything up! Had to call the accountant to place our taxes on hold. Haven’t talked to him yet and hope he has a way out of this. I can’t believe they can do this to us. We, too, have 2 children in college and will be filling out the FAFSA forms. I did not even think about what this will do in regards to that. The fair market value is RIDICULOUS!!!! As soon as I hear from our accountant, I will write back.
Did you check with the IRS to make sure Timeshare companies are considered a ‘commercial lender that can legally issue a 1099C. If its from a bank they use for a loan to pay for your timeshare they would qualify but if its just the Timeshare I am not so sure. Read this:
When a commercial lender cancels or forgives a debt that you owe, in order to claim the loss as a tax deduction in its accounting books your lender will issue you an IRS Form 1099-C (cancellation of debt attributed as income).
Did you check with the IRS to make sure Timeshare companies are considered a ‘commercial lender’ that can legally issue a 1099C. If its from a financial institute they used for a loan to pay for your timeshare they would qualify but if its just the Timeshare I am not so sure. Check the IRS Publication 4681 and what I found below:
When a commercial lender cancels or forgives a debt that you owe, in order to claim the loss as a tax deduction in its accounting books your lender will issue you an IRS Form 1099-C (cancellation of debt attributed as income).
Elaine: After talking with our accountant, if you can show your debts are higher than your assets, you can file Form 982, which will discharge the amount they showed in their Form 1099C. Hope that helps!
Could be a collections person dressing in sheeps clothing. Especially since she isn’t working with Westgate. She is working for a collections agency – who else would have a stake in getting this resolved?
Hello, I’M from Canada and I buy this summer 1 units in T.S in Grandview at las Vegas, when I receive the document from RCI 3 months later I realize that nothing is available for the vacation and I want to cancell this contract it was just a lies from the sales representatives . I call for stop the paiement of the mortgage do you thing they will take me in cour here in Canada ?? I have more then half paid already . Thank’s Please if some others canadiens know some informations just let me know , I want my money back. What I can do ??
we bought a TS week resale at polo towers in Las Vegas. The problem was the rapidly increasing fees and the special assessments. We stopped paying because the fees were ridiculous. Within 6 months, they used a special NV law to take the TS week. We got a notice that we were being foreclosed, which we did not answer since we wanted them to take it, and heard nothing more. There was no mortgage
we also had a marriott timeshare in Las Vegas with a mortgage. They called and yelled at us on the phone after about 60 days, and after 5 months they offered a deed in lieu — which ended the collection, but the forgiven mortgage showed up as a forgiven debt on and IRS form
fyi — there is a new FTC advisory on time-barred debt that you should read
http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt144.shtm
Hi Julie-please read my post below. I’m Canadian.
hi Julie, any news? i am with the grandview aswell, and looking for information about how to stop my contract.
Elaine thanks for the info keep me advised.
Elaine thanks for the info keep me advised. you were paying on a mortgage right
Elaine were you still paying for your timeshare did you have a mortgage
Yes, we were still paying on the mortgage. One thing we learned (too late) was that once they get you, they are constantly trying to get you to ‘upgrade’ or buy more points. That makes it hard to ever get paid up.
I never fully paid the deposit before realizing this was a bad idea but was past the 10 days to cancel….i called and let them know i wanted to cancel but was unable….i recieved calls for the first two months but they have stopped…because i never payed the deposit in full does it change anything ? should i expect action or is there anything i can do besides just wait it out and see ?
I have a point system and not a deeded property anymore in Branson Mo. I was suckered into changing this over about 2 years ago. Can I just stop paying my payments since it is no longer a mortgage? I pay maintanance fees every 2 years $1000. I just don’t have the money anymore and sure was very stupid in the first place to think we needed a timeshare in Branson. Can someone give me advise?????
thanks
I encourage anyone out there who got scammed and lied to by a Florida resort to file a complaint with the State of Florida Attorney General’s Office. If your salesman lied and/or exaggerated the product, your complaint would be for misrepresentation. You can also send a complaint to the other agencies that I have listed below.
Office of the Attorney General Pam Bondi
State of Florida
PL-01, The Capital
Tallahassee, Florida 32399-1050
The official complaint form can be found under the Florida Attorney General’s website:
Once you are on the website, click on “SERVICES”. Then click on “CONSUMER PROTECTION”. Then click on “HOW TO FILE A COMPLAINT OR CHECK ON A BUSINESS”. Then click on “CONSUMER COMPLAINT FORM”.
The Florida Attorney General’s Office is concerned with all potentially unfair and deceptive trade practices that mislead consumers. By law, this office exercises statutory authority to address consumer fraud under Chapter 501, Part II, Florida Statutes, known as Florida’s Unfair and Deceptive Trade Practices Act. Our office focuses its enforcement efforts on business practices by companies which harm numerous consumers in more than one
judicial circuit. We use complaints to develop information about patterns of business activity which may indicate the need for formal investigation or action by our office to protect the broad public interest.
In addition, you may contact the following consumer agencies as you seek to resolve your individual complaint:
Federal Trade Commission
Toll-free: (877) 382-4357
Internet: http://www.ftc.gov
Better Business Bureau of Southeast Florida (serving Miami, Ft.
Lauderdale, West Palm Beach areas)
Phone: (561) 842-1918
Internet: http://www.bbbsoutheastflorida.org
Broward County Consumer Protection
Phone: (954) 357-5350
Internet: http://www.broward.org/consumer/
Finally, Florida’s Deceptive and Unfair Trade Practices Act provides individuals with a private remedy to bring an action for damages, attorney’s fees and court costs. If you need legal advice, The Florida Bar offers a Lawyer Referral Service which you may contact toll-free at (800) 342-8060. If you cannot afford an attorney, you may be eligible for low cost or pro bono assistance through a local legal aid office. The Florida Bar can assist you with this process. The Bar’s website provides more information about legal aid:
http://www.floridabar.org
Thank you for contacting Attorney General Bondi’s Office. I hope this issue can be resolved to your satisfaction.
I’m in Virginia and we purchased a time that was still “under construction” and they promised that by 2011 they would have an indoor water park and still hasn’t been build plus they promised we could trade our week for anywhere in the world for $170/week but I tried to trade 3 times for Florida and California and they told us they were booked and the price would be around $1000 for a week…. We stopped paying for 6 months now and I am going to file a complaint w atty general here in va….
Oh yes I know all about that one! Did you know there is a real lawsuit:
This is from Insidethegate.com
http://www.insidethegate.com/gatehouse/2011/10/eastern-usa-october-1-2011/
Colonial Crossings Resort, its HOA and developer Land’Or of Williamsburg are being sued by 465 timeshare owners for breach of contract. Essentially, the group is seeking $30 million over a water park that was promised but never got built.
According to the lawsuit, Land’Or touted an indoor water park called “Cascade Taverns” that was supposed to span 22,000 square feet and feature six heated indoor and outdoor pools when done by 2007.
The defendants began to market and sell timeshares in 2005 with the claim that the water park was the resort’s central theme and the main reason to purchase there. To further entice buyers, the developer offered free single-day water tube passes, 50% off unlimited access, and year-round access to the water park even if they were not staying at the resort.
However, not only has no water park been constructed, but the park was never included in original site plans and no application was filed with York County to get approval for a water park.
The lawsuit further states the same pitch still continues. Those who purchased a timeshare in 2009, for instance, were promised that the water park would be fully operational in two years. The same promise of “within two years” is still being made, according to the suit.
Besides restitution, the plaintiffs are seeking to have their timeshare contracts voided.
The lawsuit also states, “The defendants are harassing the plaintiffs with daily phone calls when plaintiffs refuse to pay for a water park that they were promised and does not exist.”
Colonial Crossings claims that the water park is not specifically identified in contracts signed by the buyers but would instead fall under the generic mention of “amenities,” and the document reserved the right to “discontinue any amenity.” On the website, the water park is among a list of “proposed” amenities.
Well, at least 465 timeshare owners aren’t buying that argument. Stay tuned for what the courts eventually decide…
Besides Erica, is there any other person out there who has stopped paying mortgage payments and maintenance fees to the crooks at Palm Beach Shores Resort and Vacation Villas? This resort is under the control of Palm Beach Resort Development Group or The Berkley Group out of Ft. Lauderdale. Erica, has been extremely helpful to me regarding this matter. However, I’m just wondering if anyone else has dealt with these shameless hucksters?
I stopped paying to these crooks in June or July of this past year, 2011. I am getting divorced so we just stopped paying as we knew it was a bad deal even before the divorce. We both have new phone numbers, but they found us. Luckily we closed the bank account that they drew from, so they aren’t getting any money. There were a lot of calls and threats to collections. My ex now said that there was a packet mailed to her the other day. I’m anxious to see what it is. I’m going to get it this weekend. They can’t really sue us and make us pay their lawyers’ fees can they? I’m getting a little nervous now. We had $6,000 remaining, up to $7,000 now with late fees, etc. I live in the midwest, and purchased this in 2005.
According to just about everyone on this site, the most that the timeshare scum will do is foreclose on the unit, report you to the credit bureaus, report you to the IRS, re-sell the unit, and then try to collect the difference between what they got for the unit at the sale and what was owed. I spoke with a Florida attorney, Susan Budowski, who specializes in fighting the timeshare crooks. She told me that the timeshare companies rarely make the effort to sue the owners who are in default. I hope that she is right. If Palm Beach Shores Resort tries to sue me, I would hope that my dozens of complaint letters describing their misrepresentation of the product will help my case. I have also filed official complaints with state, federal, county, and private agencies.
Greg keep me advised to what action they take if any against you. my only issue is my daughter is on the paper work we have no deed they never sent one.
thanks
Just an update. I am fully divorced now. I was going to purchase a townhome. I surprisingly wasn’t denied because of the timeshare, however I got to see it in my credit report. I got to see all 3, and it has affected one of them, by 100 points. When I go to the timeshare line, it shows it is in collection since 11/2011. I haven’t heard from any collectors though. Nothing appears in the credit report in the public records area, as in forclosure. There is an M9 next to it, meaning it was “charged off”. It has a “PP start date of 11/2011”, meaning it went into collections then, but there is a PP 9 that I don’t know what that means. Is there a possibility that this isn’t doing to be “foreclosed” and just written off, or am I in for a rude awakening soon? Anyone else see what their timeshare looks like in their credit report? Thanks.
Josh – I too let go of a Timeshare due to divorce. Mine shows it went into Foreclosure in May of 2010, as of last week it shows that they have started the filing process in the courts (I have yet to find anything filed). It is showing on 2 of the 3 credit reports, and is stopping my new husband and I from being able to qualify for a home loan. BEWARE – an ex-bankruptcy Judge told us that we are screwed, they will 100% come after us for the monies owed…and a Divorce Decree – if you listed the timeshare in it as being the responsibility of one party or another…is NOT A LEGAL DOCUMENT!!!!!!! They don’t care what it says, you are both on the timeshare you both owe all the money. Hate these stupid crappy companies!
Josh:
According to just about everyone on this site, the most that the timeshare scum will do is foreclose on the unit, report you to the credit bureaus, report you to the IRS, re-sell the unit, and then try to collect the difference between what they got for the unit at the sale and what was owed. I spoke with a Florida attorney, Susan Budowski, who specializes in fighting the timeshare crooks. She told me that the timeshare companies rarely make the effort to sue the owners who are in default. I hope that she is right. If Palm Beach Shores Resort tries to sue me, I would hope that my dozens of complaint letters describing their misrepresentation of the product will help my case. I have also filed official complaints with state, federal, county, and private agencies.
the final light at the end of the tunnel is the financial statute of limitations, after which they cannot successfully sue you for anything. it varies by the state you live in but is usually five years or less. if one of them sues you, you answer legally to the court that it is beyond the time allowed.
there is a new FTC advisory that discusses this
http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt144.shtm
Hello Josh and Greg,
I have stopped paying since November of 2010 with Palm Beach Shores. They have stopped mailing me and of course stopped calling me (since I have changed my phone number). The only thing that has showed up on my credit report was the collection from the maintanence fee, not the acual mortgage of the resort. So, I’m only actually showing $1000 and some change that I owe to the collection agency (problem them as well). But, nothing else is showing in my credit report.
So, they have yet to send me anything in mail about foreclosure. Since I haven’t heard from in way over a year. I am assuming they have just closed it out and resold it to someone else. It’s not worth the money for them to try to foreclose it and pay all the fees, when they get just as easily resale it to someoone else.
You have nothing to worry about. Just don’t pay them a single dime!
I really had struggled with the though of not meeting an obligation when I had stopped paying on my timeshare. Although I know I had been had by the Sales person I felt since I signed the paper I had
committed to a long financial obligation in which I tried to for fill until my wife because of her physical
condition had to retire early and our income dropped dramatically. I kept getting phone calls in which I
didn’t answer for months, then one day I received a letter from a collection agency who was representing the resort I had gotten the timeshare from. I owed 31k on this timeshare and in the letter they said if I would pay 5k and sign the release of deed then I my wife and I would be released from all financial obligations past and future which included the maintenance fee which I hadn’t paid for the year, and that
all negative credit reporting would be erased. I was able to pay this money and finally its all over for us.
what a relief to not have to deal with this financial burden anymore. I knew I could never pay 31K so 5K verses 31K didn’t seem bad. Thanks for sharing all of your stories throughout this trying time and I wish everyone who has gone through what we have the best and hope you get your questions answered.
E. Lyon
Unfortunately what they did not tell you is that the IRS can come after you for the unpaid portions as if they were unclaimed income and when they do they will usually send you a bill WITH penalties AND late fees since you didn’t know this was coming you of course didn’t pay and the IRS will say you should have known AND gotten a tax form showing the released amount of debt from the company showing as INCOME by forgiven debt….
It has happened to us 2X and we have never received this tax form “the company” claims they sent. One even sent us a letter saying that we would not be responsible for any future repercussions (it meant nothing).
ASK QUESTIONS before you pay anything!!!
Vikki: So, did you claim this forgiven debt as income on your taxes? We just received a tax form that apparently we have to show as income, which is a bunch of B.S.! Just wondered how you handled this. Thank you.
FYI…To donate your timeshare it can cost you literally thousands!!!1 I called a company about donating our Vacation Village @ Parkway and with legal fees, transfer fees, maintenance fees that will be due in January and their fees it would be well over $4000. But wait…I get to take that off my taxes. IF we’re able to itemize…We were able to give back our Plaza Resort Club in Reno just by asking nicely. We’ve owned that for over 20 years and have hardly been able to use it. We’ve paid maintenance fees for that long. We were duped into the Vacation Village by believing that we’d be able to use the points for things like airfare and hotels. Yeah…if we had about 500,000 more points!!!! They failed to say that with 74000 there isn’t much you can do and when they expire every two years, you can’t even save them up long enough to use them for anything. I’m convinced that all these comapnies that say they can get you out of your timeshare are really working for the timeshares themselves. It’s a way for them to not only take your resort back but get you to pay again to get out of it. What a racket!!!!
We bought a timeshare at the Grandview in 2007 and never used it. Then we went to Vegas for a few days when the Grandview sent us a notice for 2 “free” nights and got suckered into buying a “better” one. We have never used the TS and now don’t ever plan on it. I wish I would have known what I know now. I plan on stopping my credit card that is the payment source for our payments after reading all of these posts, for hours now…..a good thing though! My question is, is it true that if the TS “mortgage loan” does not show up on your credit now, showing your payment history, can they report it after the fact? I was told that they can’t report if they haven’t all along. Does anyone else know about this?
Hi there, I was here in April looking for help about the same thing be trapped in a Time Share feeling kind scared because my credit, but now is Oct 11/2011, and I got a phone call from my lawyer, to said that is over, Orange Lake take back the deed and I am debt free from those li-ers so I am so happy, I know I have to pay to my lawyer, but I followed what they told me to do and finally is over, I didn’t have any recovery’s from them, but I take as and learned experienced to go to those places with out checked who they are and how they take the money from honesty people. So don’t be scared ask for help, and I want to let the person who ever attacking me in this website becaused I shared this information, the lawyer is not my family or I ever meet her imperson, I got the information from here and I went online read her credentials and hired her, and that was the best thing I did. I was waited to get my case resolved before I can tell everyone there, you are not along. My email is milegon@yahoo.com, if you need any information. Have a great day.
We have heard nothing from Wyndham for months. We dropped our home phone a month or so ago, so maybe they just can’t reach us. But we have not received anything by mail, either. So we’re just waiting to see what is going to happen. BTW, we stayed at Bonnet Creek last year (just before we stopped paying) and it was really nice. I’m sorry we won’t get to go back, but this whole timeshare thing was just ridiculously expensive and we just couldn’t continue to pay. It’s too bad. We had some nice vacations. As far as negative results, our credit rating is pretty bad right now, but there are other factors besides the timeshare at work there, so I can’t say how bad the hit was. It’s amazing how fast your credit rating can go from excellent to poor when your income is cut in half and you can’t pay all your bills.
Stopped paying Wyndham last year got a 1099c last week – over $4,000 in taxes. Have you gotten anything like that? Does anyone out there have any suggestions for mitigating this?
I have, and it’s a lot more than $4,000. I’m trying to figure out what to do about it.
i GOT 1099-A FROM WYNDHAM LAST YEAR POINTS IN CR WENT DOWN,NOW I HAVE A HIGH SCORE IN CREDIT BUT HAVE NOT RECEIVED 1099-C YET AND DENIED TO BUY A HOUSE MY CREDIT SCORE BECAME 730
i’m guessing that the 1099A was for your interest payments made in 2010. if your credit rating is down, that would be because they filed a foreclosure on your credit report. the real question is how much are you willing to pay to maintain your credit rating, since you would have to pay off the mortgage, which is much more than the taxes, and you would still need to pay them a thousand a year in maintenance fees.
I’m sure a lot of people now have bad credit reports. it does make me wonder how these clowns expect to keep selling while working over so many former buyers
what happens with mortgages on foreclosed homes?
wow, this is a long, long pages of comments. there seems to be EVERY opinion and good/bad stuff about resorts, resale companies, and anything in between. I was reading on timesharescam.org and their information seems good? A lot of it made sense to me, but I was hoping to get other’s thoughts/feedback on the site.
thanks
Hi everyone this is Ruth here, its been 3 months since we signed our DIL. we haven’t heard from TS people. I went to India for vacation in June and just returned back. It was lovely vacation and I had most wonderful time with my family. Just wanted to let all of you know who have burnt out with TS just like me. This vacation was planned by me and my husband and we stayed and enjoyed according to our leisure. After the sleepless nights and worries for more than 6 months our nightmare is over, so just stop paying for this JUNK called TS. There is a hope. hey life still goes on.. God bless..
Thank you Ruth, I have been reading the TS post for hours now and yours is the one that has lifted my spirits! I think I just needed someone to remind me that this isn`t the end of the world, that life does go on. I have decided to just quit paying and take the hit on my credit, and what a relief this decision has brought me. I am so glad that you and your husband enjoyed such a wonderful vacation and hope you have many many more. Thanx again!!!
YES,YES,YES! Exactly what I did and it works. The ONLY penalty for not paying MAINTENANCE fees is you get no use of the “system”. HOORAY!
I posted here last November regarding not paying my maintenance fees (my initial membership had been paid in full). My account was sent to a collection agency and after a few back and forth letters, I finally brought the hammer down when I could show in my contract that there was no provision in writing for continuing ones maintenance fees indefinitely. The only penalty for not paying the maintenance fee is losing the right to use the facilities. I lost my original purchase money but was able to get out of the maintenance fees. The collection agency sent a letter of apology and this is over.
DON’T PAY ANYONE TO “GET YOU OUT OF YOUR TS”. THEY ARE A BUNCH OF SCAMMERS THEMSELVES.
Last month I got suckered into a TS with Bluegreen in Branson Mo and suffered all the same issues most of you have suffered. After not realizing I needed to cacel within 5 days a month later I find myself way in over my head. I have considered using a company that guarantees they can get me out of the agreement or my money back after 12 months. I don’t think I can justify throwing more good money after bad. I live in Ks so does anyone have experience with walking away and allowing foreclosure. Can anyone share their experiences with Bluegreen.
Thanks and I have lowered my stress level substantially after reading this blog. Great input.
Ken any updates on what happened with your ts?
I was able to cancel the contract working with the Mexican Consumer Protection Agency…Profeco. We asked to cancel within days of returning home. So that helped. We lost our deposit but didn’t have to pay anything further a d could have fought for a refund but it may have lingered and we wanted it to be done. Tough lesson learned. These TS co’s don’t want bad press and they won’t to move on to the next victim so be tough a don’t give in or call them back. Work with Profeco…depending how long you’ve owned will determine your options. Don’t try to sell your TS to a group as those are scams as well. Good luck !!!
Ken,
Can I get more info on this? I have had regrets since I have been back home. I can’t stop thinking about it and how we made the wrond decisions.
marsha says:
August 31, 2011 at 1:33 pm Hi Everyone
I am a fellow(sucker) for westgate sacmas and an early one at it. I just bought on the 16th, lossed my briefacse on our way back home so didnt have neough info to rescind properly and now thattime has lasped and with all my research, countless hrs reading, asking ?/, i have decided to try this at another angle. Now i signed with Blue Tree resort orlando and i dont know if we all havethe same type of standard contract form, but at the back states i have 90 days to cancel the waiver for loss of life fee. This amounted to over 1000 which was added to my mortgage price. My theory is, if i send that certified letter requesting it be cancelled, wouldnt that mean the mortgage total will change and an NEW agreement for new figures have to be drawn up? If so then i am going to forward a letter to them stating that until this mortgage figure is revised due to my cancellation rights, i am not paying anything. As it stands i have already only paid the deposit. My question to u fellow wastegate victims isthis:
1. Do u all havethat cancellation clause on ur contracts as well?
2. Has nayone ever just never paid thier timeshare instalments and wht has happened to them…
3. I am not american or canadian, if i just dont bother to pay, how can they come after me….my credit? would they sue?
Pls, advise andthank u all for ur time and acknowledgement of my fears
Marsha – i left my email after i saw your post..are you back? Please share your update…thanks!
Hi RCC
I Cant seem to find the post!!!
Here is my email address: RWASEALES@YAHOO.COM email me there and i’ll send the link. Trust me, u’ll love it there. WG had someone call prentending to want to help me sell, they left a message, but i know the only way out is to ignore them, and so i have.
Awaiting ur email.
Marsha
Thanks & Regards
Hi Marsha, I got your email on July 25th on my yahoo account but you didn’t give me the link. Please send it via email again, not sure who contacted you before but that wasn’t me. Thanks!
I got a timeshare in the dominican republic about 3 years ago. The contract was signed in the dominican republic for a property in the dominican republic . The contract clearly says its under Dominican Republic Law. So my question is.. If I stop paying this how can this affect my credit score in the US , if a foreclosure happends , it will happend in the Dominican Republic , so the debt is in DR , …???
Wharever timeshare company you have this info will help you. I know this will not help the protestors in Europe, but it will help the American protestors. Contact the FTC. I called last week and was told the only way the government can sue DRI is if there are enough complaints concerning the same issue. The FTC must then get the go ahead to sue through legal means. If you look on the FTC website, you will see they have successfully sued timeshare resale scammers in Florida. Next, go to the BBB site and complain. DRI has to respond, and the good part is the complaint goes against DRI grade. Hey, you may even get what you want. It looks like some people have from the statistics on the company. Anyway, DRI’s grade was A – a few months ago, now it is an A. It does not seem like much but the 1/2 grade drop were due to the recent increase of complaints. Go to the DRI headquarters and view the dates and reason for complaints.
European protestors: E. Brennan told a European protestor they can not complain to the BBB. This is true about the FTC, however with the BBB all you want is the complaint logged in the system so DRI’s grade drop :whether DRI solves it is not important. BBB is used as a go between between customer and company. BBB tries to solve disputes. I am just glad I see the progress in their grade dropping.
uh, maybe a dumb question, but isn’t the current A better than the previous A-? it is usually like, B-, B, B+,A-, A, A+…. but i have been wrong before
Ed you are correct,. I gave nit been in school for some years. However, DRI CO
PLAINTS have increased nob the less. I just want this company to stop conning us out of money when vacations can be taken for more cheaper than what DRI is charging.
This is a warning to all readers who are thinking about purchasing a timeshare from a resort in the Berkley Group Timeshares, which is also known as Palm Beach Resort Development Group, LLC., which is also Vacation Village Resorts & Affiliates. In March of 2010, my wife and I were duped and conned into purchasing a timeshare at Palm Beach Shores Resort & Vacation Villas in Palm Beach Shores, Florida. The salesman lied to us about several issues that were very important to us. The primary misrepresentation that was committed by that resort and salesman was the exaggeration of resort availability regarding the RCI exchange program and extra week program. They showed us this huge, thick catalogue of resorts and then made us believe that we would have no problem getting into any of the resorts. It was all a lie. If you want a nice resort on the beach or if you want a nice resort that is in an appropriate location for the season you are traveling, forget about it with this company. We are completely dissatisfied with the resort availability. We now realize that my wife and I will never get the resort that we want during the time when we want it.
Everyone whoever holds your timeshare complain to the FTC and BBB. This is working. DRI’s headquarters ratings went from A- to A in about 2 months due to the complaints.
My father recently died. He has a paid timeshare. We don not want it nor do we want to pay maint. fee. Will Affidavit of Disclaimer make it go away?
Thanks
Read the contract and see if there is any provision for continuing the maintenance fees indefintely. If it is not in writing, just write to them and mention that fact to them. If it is not in writing, then there is nothing they can do. I really think death would absolve anyone of the maintenance fees.
Bluebeard’s in St. Thom? No, but I have 2 at Elysian beach which is its sister site.
was looking to compare notes with other BC owners to establish the pattern of fraud.
Any Bluebeard’s Castle Owners?
Hi Ron i was a bluebeard catle owner,
I was talking to William.
What they’re saying is TRUE according to them. We have over 400,000 anytime points and can’t use even 1 unless we catch up on ALL of our maintenance which is well over $5,000 and that’s not gonna happen. Give it up, cut your losses, you will NOT win.
Hi Mary
Have you ever heard of this before?
We own two TS at the same resort. One in Feb. and one in July.
We have stoped our maintenace payments on the Feb. week only.
The resort has come back to us stating that if we don’t pay our Feb. maintenace fee we can not use our July week. The units are two seperate contracts. Is what their doing legal or is this just a scare tactic?
You must be new to this WEB SITE. We don’t need another web site, and we ALL need to do is stop paying maintenance fees, and send in a “hardship” letter to your time share provider. There is usually a clause in most contracts for “hardship. Can’t hurt to try, we did and it worked. Got us out of the one we financed, and we just stopped paying maintenance on the two we bought outright with cash.
Mary,
Are you talking to me or zees.
Any who,
DRI Collections(?) stated over the phone that this will continue to try and obtain the money for another 6-7 months, and then foreclose. I believe this is to lengthen this out so that I will owe the maintenance fees for next year. All I want is to not be a member of DRI. By their bylaws, after 45 days of non payment, you are no longer in the club and they take your points and put it back in the trust. Is there a way for me to force the foreclosure. I know I will have to wait on them but I do not want them to add this maintenance fee. Will the loan and fee be included together or separate on the credit report
So where do I look in all the paper work for the address of whom to send a hardship letter to?
I didn’t look anywhere. I just sent a hardship letter. period.
1ST, ANYONE HAVING PROBLEMS WITH DIAMOND RESORTS, THERE IS A SUPPORT GROUP RAN BY AP(DRIP.ENJIN.COM) HE WILL ASK YOU QUESTIONS TO VERIFY YOU ARE WHO YOU ARE. HE MUST GIVE YOU FULL MEMEBERSHIP. THE GROUP IS BASED IN EUROPE BUT THERE ARE AMERICANS(MYSELF INCLUDED)ON THE SITE.
EVERYONE PLEASE GO TO THE FTC. GOV SITE AND COMPLAIN. I CALLED TODAY AND WAS INFORMED THAT FTC MUST GET SEVERAL COMPLAINTS AND GO THROUGH LEGAL PROCESSES TO SUE ANY TIMESHARE COMPANY. I NEED SOME ADVICE ABOUT DIAMOND RESORTS TIMESHARE AND FORECLOSURES.
1. I OWN A POINT BASED TIMESHARE WITH LOAN. I TOLD DRI BEFORE THE 1ST PAYMENT WAS DUE THAT I AM NOT GOING TO PAY THEM DUE TO MISLEADING AND LYING ABOUT THE SAVINGS OF TIMESHARES. I WAS INFORMED THAT THE TIMESHARE WILL GO INTO FORECLOSURE OR REPOSSSEION DUE TO NON-PAYMENT. MY QUESTION IS HOW LONG WILL IT TAKE FOR THEM TO FORECLOSE? I HAVE TOLD THEM IN EMAILS THAT I WANT THE FORECLOSURE. I HAVE NOT PAID ANY ON THE LOAN. WHAT WILL THE TIMESHARE COMPANY DO?
ALSO, I TIRED TO CANCEL THE LOAN WITH THE COMPANY THAT I BORROWED THE MONEY FROM WITHIN A MONTH OF SIGNING THE TIMESHARE. THEY CONTINUED TO STATE I WAS NOT IN THEIR SYSTEM. WAS THAT DUE TO IT STILL BEING IN ESCROW.
We’re all in the same boat, so when you file the class action let us all know so we can join in, Thanks!
Ditto.
no one has been as dumb as us we baught 5 and all good times and locations.
charity will not taake them unless they excepting them.
we have lost by scameing sales people wanting to sell them for us money up front , don’t do it they are aall liers and scamers.
what we all need to do is contact each other and start a legal web site and tell the world where we stand with scum like timeshaires. it wont cost us anymore thaan what we are sending them for fees. and good chance we could get a llawyer to send letters to the gov. wishingotn dc. we wish mnow we got our own lawyer to read the contract first. people never sign a contract with out reading and understanding it all small print included.if everyone would gang togetheir maybe we can change things with washing dc.let get someone whos willing to set up a web site to tell the truth about timeshaires and scams they are pulling when they sell them don’t you think if we all got togetheir we can make a difference. we all could afford $100.00 to $500.00 instead of the time share fees for a lawyer if we all had the same lawyer we might win. it ould be better to pay a one time fee than to continue to pay timeshaires fees each year for ever.i say let join togetheir where ever we are from or have our timeshaires. let s look at it this way if we have to apy $100.00 per timeshaire we own is stil cheaper than yearly fees .i,m betting we can find thousands of people like us looking to get out. well thats my idea whats yours? we can open a trust fund so the money is safe.signed fight fire with fire we can find people in the same boat by sending out messages looking to buy timeshares no money up front thousands will reply . even if it cost us up to $500.00 per unit its worth it. free at last free at last that my thoughts whats yours???????? together we stnad seporate we fall to the lieing timeshares
I have west-gate, they are liars, I quit paying in Jan 2011. So far all I have gotten is phone calls. They sent out a form to fill out because i told them I can not afford to pay, They wanted bank accounts pay stubs, tax records. I ignored them. Now all they do is call, It is now turned over to a collection agency. I have never heard of anyone’s credit being ruined or going to court. I decided if they sue me I will bring several people who they have lied to with me. Then I will file a class action on them. I told this to the last person I talked to and she said “I don’t think they will take you to court. I do not care at this point if they do.Will keep everyone posted.
Bonnie – Any further action since7/26?
Thanks
At the very very top of the home page there is a link. You can always go to justask.com and ask any professional a question and you select the price you’re willing to pay. If you don’t like or didn’t get anything out of the answer, you don’t have to pay.
Also, for a small fee you can go to the legal team mentioned at the top of this blog.
Hi Mary where is the area where the legal team is located on top of his blog? I don’t see it. Just in case i need help one day.
First, they can’t take away anything that isn’t paid in full. Second, check with your bank about them attaching your acct. Third, look up on internet the Secretary General’s Office for your state. What state are you in? Also, if you qualify financially, contact Legal Aid in your county, or try one of these TV lawyers that might give you additional advice on who else to ask.
Thanks for the advice. I will go by my bank on Monday. I live in Florida.
My daughter works for a credit union and she thinks they can freeze my bank accounts and take away my cars. Does anyone know if this is true?