One of our users left the following comment on our 10 Steps to Successfully Rescind Timeshare article:
I signed with RCI and Legacy, its past the cooling off period, but I haven’t paid the down payment yet. Does that mean the contract is still valid? should I just cancel the card and not pay? would that cancel my contract?
It would make things a whole lot easier if you could simply cancel your credit card to get out of your contract, but unfortunately that is not the case. According to credit.com, once the seller has your credit card information, they will also be in possession of your social security number. So once you cancel the card, the account will then be referred to a collection agency, at which point they can report it to a credit reporting agency. You will still be responsible for payments and if you do not make them on time, it could hurt your credit score.
It is also likely that your down payment by credit card was processed very quickly by the seller when you signed the contract and that what you now have yet to pay is the bill from your credit card issuer. The good news about making such a purchase on a credit card, however, is that you have the right to dispute the charge if you feel the seller misrepresented the product (in this case, the timeshare) or did not deliver what was stated in the contract. There is a time limit for disputes, however, usually around 60 days. Read your credit card agreement so you know how much time you have.
One of our users commented on our What Happens If I Stop Paying My Timeshare? article about their experience with Wyndham:
Hope this will help some ppl with Wyndham accounts, predominantly Australians. We were on our honeymoon & naive; we bought into trap. We paid about six months of repayments after that we
stop cold turkey. They call insistently once a day, some we’re nice explaining it was part of their job whilst some were a little onmious and some times i could almost it was the same person doing a jekyll/hyde routine. They called my wife a couple of time scaring the bejesus out of her, I promptly
told them under no circumstances were they to contact her and that i alone would take the calls. All
in all it took close to 1 year before they place me in default however it was in default with their own “wyndham” financing company; Ha. It had no impact on my credit rating; I monitored it with a subscription to a credit rating company, before and after the ‘default’. I gone onto refiance my home loan, leased a new car. This website was a godsend and it helped me take stand. Hope this helps.
As we outline in this article, there is no concrete consensus on what will happen if you stop paying your timeshare. We are unaware of any separate Wyndham financing company, but there have been plenty of reports of people defaulting and being foreclosed upon with Wyndham. Has anyone else experienced this? Has your timeshare gone into default with Wyndham and not affected your credit score? Please let us know by commenting or submitting your own story.
If you’ve decided to either gift your timeshare to a family member or sell your timeshare, you will need to transfer ownership of your timeshare to the new party. A transfer of ownership is handled in a formal, and often complex, process. Because of the nature of the process, it might be in your best interest to hire a closing company to take care of the paperwork for you. You can, however, handle the process yourself if you choose. If you decide to do it yourself, follow these steps to ensure a smooth transfer of ownership:
- Make sure you are up-to-date with all payments. You might also want to call the resort to see if they charge any fees for transferring the timeshare. If so, you and the buyer of your timeshare will need to figure out who will pay those fees.
- If it is required by the resort, you might also need to fill out a membership transfer application before continuing with any legal paperwork.
- Draw up an earnest money contract. A timeshare transfer is a real estate contract, and should be just as detailed. Be sure to include:
– the name of the resort and unit number(s)
– the weeks in which the timeshare is available
– whether those weeks are fixed, floating, or tied to a points system
– interest information (fee simple, estate for years, membership, etc.)
– who is responsible for maintenance fees, special assessments, and delinquent fees
– what will happen in the case of default
– names, contact information, and signatures of all parties
– any other relevant terms of the sale
- If it’s a deeded timeshare, you will need to get a new deed with the county clerk’s office in the county where the timeshare is located. Both parties should sign the deed in front of a notary public, and then have copies made for each party. Submit the original notarized deed to the county clerk’s office, along with any required recording fees or tax fees.
- Send a copy of the recorded deed along with a covering letter to the timeshare management company detailing the transaction, including information like the designation of the timeshare, internal account numbers, the week, unit number, and season as well as the social security number and contact information of the purchaser.
If you or the other party is uncomfortable with navigating this process without the help of an attorney or closing company, you may want to reconsider your strategy. Otherwise, be meticulous when filling out your paperwork and you should be able to transfer your timeshare fairly easily.