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/
Can anyone tell me if they have ever heard of Timeshare Rescue ever transferring a title or finalizing a title sale, or paying the mainteance, and any other fees that they promise in the contract?
Hi all,
I would really appreciate it if there is any other non-US citizens (with US timeshare) that is further along (or have completed) the route to foreclosure to share their experience with us. I know there was a couple of them earlier on this page but have not seen anything posted for quite a while! Not sure if that is a good or bad thing!
Hey Trueblue,
I’m in; thanks for doing the research. I am also willing to get involved, it’s the only way to make change happen. I have sued before, and it feels good to win… Dammit!
This is a helpful site and it’s good to know we’re not all idiots, just folks that want to believe in the fairy tale. Makes it difficult to keep a positive outlook with rotten lying creatures like these shamelessly taking advantage of people.
Hello Everyone,
I'm a new member of this site and I'm specifically searching for Tahiti Village Timeshare owners. My friend and I were duped into purchasing timeshare April 2009. All the blogs I've read are the same because we were all systematically railroaded. So, sharing your story will always be the exact same experience that we’ve all had.
I seek to take things to another level with Consolidated Resorts and hope to pull folks together and take action. I've been searching websites to find individuals interested in a class action lawsuit and finally came across this one posted by Ronald Gelbart, July 2009. As the saying goes “Stronger In Numbers”.
I've never sued before. I'm hoping if there are enough responses, someone in the group can get us headed in the right direction.
Talk is cheap! Let's get off our behinds and do something about it. If something becomes of this and if we get organized, I am here to do my part. Oh, and by the way, I am a US citizen.
Hi, I bought from Tahitti Village about that same time, can’t get them to help me and don’t know what to do to get out of this mess. Let me know what you are doing. I supposidly won 6 free trips, then they went bankrupt.
Hi
Can some one help. My wife and I bought a TS in Orlando Florida linked to RCI points in 2004, We are English and resident in the UK. We have finally paid off the mortgage for the TS but have never used the points and will not be able make use of the points in the for seeable future. We have not paid the maintenance fees for the previous 12 months this has been passed to a collection agency who have written and made phone calls to me, I have not told them I do not intended to pay. I have just recieved another bill for the the coming years maintenance bill. We just want to get rid of the TS and annual payments, the TS company will not assist us or take the property back, I have asked and tried to discuss on many occassions how we can give the proerty back to them but they do want to assist and make it clear they will not help.
How long will it take before they take foreclosure proceedings. If they do this will it only affect our credit rating in the USA and not the UK,will it affect us if we travel to the USA.
Can they ony take action to recover any outstanding maintenance fees/legal costs. Can they only recover these costs against the TS in Orlando.
Should we tell them we do not intend to make any further payments or wait for them to take action. Could I ask them if they will agree to deed in lieu of foreclosure.
Thanks in advance can some one help.
Hello,
We bought a timeshare at the Massanutten resort in Virginia a few years ago. During that time, we were doing pretty well financially. Last year I was laid off from both of my jobs (talk about bad luck) and my husband’s hours were cut. At that time, we were in survival mode, just trying to keep a roof over our heads and food on the table. We now owe about $5500 in back mortgage payments (haven’t made a payment in 13 months). Our situation has since improved a bit. My husband got another job so he is now working 2 jobs and I start a new job on Monday. You mentioned that some companies may forgive the amount owed as long as both parties reach a suitable agreement where payments can continue. Do you think that this could work in my situation? And how would I begin to make this happen? Do I simply call the resort and ask them or should I send a letter? I know that as of April, they had not began foreclosure proceedings. Not sure if this is still the case.
Thanks a lot in advance
Hi,
One thing I have not seen mentioned yet, is what happens if the original sale was based on fraud. Our salesman at Bluebeard’s Castle cast numerous lies in order to defraud us. They promised that they would take back the timeshare anytime, resell it at a profit for us, or rent it out for us. All 100% bald-faced lies. According to the law, any contract made under fraudulent circumstances, is automatically null and void.
Call me crazy. Yes a class action lawsuit would be a great idea. I saw someone suggest organizing. Count me in.
Ron
When my parents died, their timeshare deed was transferred to me and my two brothers. We have since had a falling out, and I would like to either get them off the deed or remove me from the deed. I was told by the timeshare company that all names on the deed need to sign to have either one of these options occur. The issue is my brothers will not sign over based on the request, nor will they split the points evenly and have 3 deeds drawn up with one name per deed. The reason for wanting a split of deeds or names removed is because my brothers are not contributing to their portion of the maintenance fees at all, yet they are able to use the timeshare. I do not want to not pay the fees because my credit will also be impacted if the fees are not paid. Any advice is greatly appreciated. thanks
is there any difference between owning a membership verses a deed?
I have a timeshare in Tahiti Village that I don’t want. Experts tell me that it is better to have it paid in full anf to try to sell it at a huge loss. One company wants $3000 to take it off my hands. I still owe $11000 on the share. The wife and I want to stop paying but I fear that eventually, Consolidated resort, which is in Chaper 11, will take the time to sue me. I have assets and live in the US. None of the non US resident stuff applies to me. I really don’t see any good answers here on what happens to US Citizens. Also, has anyone reported a case where you couldn’t sell your home or resolve your estate because you had a judgement against you. I also can’t see enough owners getting together to file a class action claiming fraud. Is the misrepresentation of the true value of the property a fraud? Earlier in these comments someone suggested a collaboration of owners. I’d like to join such a group if it is formed. If we had 100 of owing $10000 each and all we wanted was Deeds In Lieu Of Forclosure without our credtit being hurt it might be worth legal fees to some ambitious Las Vegas lawyer. It is important that Consolidated be liquidated and that any homeowner’s group in Tahiti Village be fair to those people who simply want out. I can’t see how they can maintain this property with raising the fees to at least what they would collect had the properties been rented for a week. If anyone has any ideas on how to proceed with this idea they need to speak out. Hopefully, a homeowners association will be fairer than Consolidated. The trouble is that the HG has hired CMC to run the shares. They will get farther with honesty and fairness then they will with herassment and lawsuits. In the meantime, my plan is to stop paying on the thing and find a good attorney. His fee could be no worse than the $3000 this other agency wants.
I seriously need some help!!!!! I bught a timeshare from Westgate in May 2006 and have up til Jan 09 kept up with payments, but now because of the recession me and my husband are having some serious finance problems. We live in England and we still owe $10,500 and some main.fees, we have tried to give the deed back to westgate but they won’t take it!!! We have been told that to get rid of it we just have to wait until it is foreclosed, we can barely even pay the mortgage on our own home and we are so worried about what will happen if the ts does foreclose, could we lose our house???????
Please if anyone can help me can you email hockeycrazy100@hotmail.co.uk
HI
My girlfriend and I just got back from Vegas, got suckered into buying a time share at the grandview. We paid 10% down $1500.00 approx and first pyt is due july 19th, we live in canada. The contract was signed May 19th. Does anyone know if can get out of this contract, i have sent an email to Grandview and also the mortgage dept, no luck yet. What are they going to do if we live in Canada??? My girlfriend is off work on medical leave, and i am about to lose my job, there is no way i’m paying for this, my monthly expenses and mortgage here are more important.
karen….any update? what happened to your TS?
I own in Mexico, Raintree Vacation Club, and want to find out if it’s a membership then what may happen if it’s not paid – does it go on US credit report even though they have corporate offices in Texas?
My husband and I are having financial difficulty keeping our obligation to keep paying our unpaid timeshare at David Walley’s Resort and Spa.We wrote the resort and the funding resort
telling them our situation, that we would put up our timeshare in voluntary foreclosure,because we can not keep paying it off.We are 60 days late and in counting.The resort told us,that they can not take their property back and the resort funding told us that
it is no option not to pay our monthly debt for the timeshare we told them that we can not keep up with the payment so we want to get rid of the property.We want voluntary foreclosure.
At present we still owe according to resort funding $8000.00
We received a phone call almost everyday and now the latest they said they submitted us to the collection agency.We need help badly,please can someone help us.I know that their our a lot of people/couple like us with this problem.
This is not your typical timeshare blog. My husband and I bought a timeshare in New Hampshire in the early 80’s with a fixed week and a mandatory annual maintenance fee. We thought we would mostly trade it through RCI, but found we couldn’t go where we wanted, when we wanted, couldn’t fully rent it, and wanted to JUST GET RID OF IT! However, we couldn’t do that either as no one seems to want to buy these as most of them are at a small mediocre resort that you probably only want to visit once or twice, and you are stuck paying a maintenance fee but not getting the vacation you are looking for. However, in 2003 through a friend we got a deal for a week at a fantastic five star resort in Playa del Carmen, MX called The Grand Mayan. This place was spectacular and it wasn’t evenly completely constructed yet! On the ocean, golf courses, spas, largest continuous pool in N America, etc Went to the timeshare presentation and bought in because (1)they took my old timeshare and gave me credit (2)no maintenance fees unless you use the week (and the fee was less than I had been paying at my tiny resort in New Hampshire), (3) weeks are floating not fixed, (4) can always get in when we want, and most importantly (5) they have several equally magnficent resorts in MX to visit (Acapulco, Los Cabos, Nuevo Vallarta, Rivera Maya,etc) and they are building in Hawaii and Argentina so I could see us going here every year. WE LOVE THIS PLACE, we go every year, and have upgraded a few times since 2003. They have a rental arrangement with Wyndham whereby if owners won’t be using all of their weeks, you can rent them on the various Wyndham owned websites such as Expedia, Orbitz, etc. I have read all sorts of blogs about their sales tactics being extremely high pressure, but oddly enough we have never personally experienced that. They have followed through on every promise they have made, and made good on some verbal misunderstandings that they were not contractually obligated to. However, my feeling on sales presentations is “if you can’t stand the heat, get out of the kitchen” and forego the gifts. Bottom line is if you own at a resort that you LOVE and will visit regularly, offers maximum flexibility in terms of locations, timing, and level of accomodations, give you maximum value when you do want to exchange, doesn’t require a maintenance fee unless you use it, and you can rent it when you want, timeshares can offer some real value. But you will only realize the value from using/renting them -definitely not from reselling them.
Isn’t it amazing how they pressure you into buying these albatrosses. What if we advertised to the public in and around these different resorts to people not to buy timeshares that they are scams. Buying something that you will never get rid of and it will only suck the life out of you. I wonder would they consider taking our units back if we advertised what owing a resort is really like. Let’s get together and buy some advertising space and let the world know what these resorts do to you. I bet they would be willing to take back your unit if you don’t advertise. We don’t have to use the name of the resort specifically. I got duped by Westgate resorts. If they can use pressure tactics in selling these timeshare, we the “owners” should use pressure tactics in getting the resorts to take them back because we can’t sell them or give them away. Also they should not tarnish or hurt the creditworthiness that we have worked long and hard for to get established!!!!
I finally got a legal notice from my timeshare stating that it will go in to foreclosure and that we will liable for all reasonable attorney costs, transfer tax etc. I am a non-us resident from the Caribbean, I couldnt make the monthly payments so i definately can not make those legal fees. Can they sue me for the expenses if I cant afford to pay them?
My timeshare foreclosed in 2006 but on my credit report it states that the foreclosue was in 2008 and I owe a balance of $2500.I recently went to apply for a mortgage and the loan officer is requesting that balance to be paid off. I contacted a representative at the timeshare who informed me whats owed is $13000. My question is how can that be when the timeshare only was $8900 when it foreclosed and I never recieved any information on being sued or a remaining balance and is there anyway I can get that past due balance and the incorrect information removed from my credit report.
If your parents have a time share paid in full, except for the yearly maintenance fees obviously, how can they legally enforce the children to continue to pay when your parents are deceased? I refuse to pay anything on my mothers timeshare after she passes and its passed on to my sister and myself. My mother has been trying to sell it for years now with no takers. What do you guys suggest I can do regarding that sad day someday when my mom passes, and then the subsquent headache of this thing. I hate timeshares, have never succumbed to the sales pitches, don’t even go to them, and will NEVER pay a dime on them. There has to be a way kids can refuse taking over these things.
Purchased a Occidental timeshare in Mexico and have stopped paying on the loan because much of what we were told in the high pressured sales pitch were lies. It has been over a year since we stopped paying and I am getting phone calls and letters from a "so-called" collection agency for payment in full which I have ignored. We did not give them our social security numbers at time of purchase so they do not have. What can I expect next with this Mexican standoff? Without SSN's, can they still report this to the US credit bureaus?
Anybody had any experience with defaulting on Celebrity? I’ve got a TS that I’ve been unable to sell/donate/giveaway that is paid up but their exorbitant annual maint/taxes (half of which are to assist them in recovering unpaid debt!) are killing me being unemployed. Anybody with experience with stiffing Celebrity?
I’ve been getting more and more frequent emails (and a couple of voicemails) for my unpaid debt as it is now 65 days late. It is difficult not getting worried about it but still holding on to the hope that the fact that I am in the UK will deter them from pursuing this matter too far!
I am in two minds as to whether I should remind them about the lies they sold me and request a deed in lieu or whether I should just wait it out and ignore their communication completely untill something gives.
Any updates from those that are a bit further in the process than me would be much appreciated!
How about suing the timeshare company? How long do you think it takes and financially, the cost w/lawyer’s fee in case it drags into long court proceedings. Worst case scenario,if we don’t win the case the court will order us to pay the balance and moreover we have to deal w/ compounded unpaid lawyers fee. The dilemma is whether to ignore and face being served,foreclosure or apply Bankruptcy. I checked The Owners Advocate, seems they can help cancel your ownership but it depends in each unique case.
I have been 6 months late in payments. I was laid off and now have a new job making less money. I just bought a house and am having trouble with those payments. Last week, I was served papers from River Run timeshares taking me to court for $9000.00 (the balance). I now seem to think, after speeking to there attorney, that they want the money without giving me back the timeshare. I am very frustrated. Help!!!!!!!!!!!!!!!!
Well, it appears that my tactics are getting to Consolidated Resorts / Tahiti Village. Joseph La FAMINA, their Account Manager, Mortgage Recovery sent me 51 replies this morning to my email all within 3 minutes!!!! He called both mine and my wife’s parents and started harassing them as well, they told him to pound sand. No reputable company would behave in such a manner, this is obviously a desperation move because somebody’s not getting their commission from me.
Dave- I outlined the answer to your question in my last post. Yes they can attempt to successfully get a judgement against you. In Nevada, there are 2 types of foreclosures. The sale of deed foreclosure (which is what we are both into) where they sell the deed and then would have to sue for the money they don’t get. They have to advise you (in a way that will satisfy the court) of the proceeding including the foreclosure sale as well as the new amount owed before they can do anything. At this point you would have an option to respond and dispute. IF a judgement is levied against you it is enforceable in the jurisdiction of the judgement. Canada is not in the US jurisdiction. They would further have to apply to QB court in Canada to have the ability to enforce in Canada. Upon a judge reviewing the facts in Canada, if they allowed the judgement to be enforced in Canada, then they would have to hire somebody to locate you and properly serve you. A lot of time and money that would be better spent on hooking another unsuspecting victim into their web of lies and collecting more money for a time share you’ll never be able to use and costs more than any trip. The internet is a great educational resource. As far as the credit issue, they would by law report to the US Credit Bureaus. Canada has their own, it’s all governed by law and they can’t just go and put derogatories on your credit in Canada. They have never reported. Go pull a credit report (Equifax.ca) and see.
They won’t take it to court because then they would have to answer to the disputes and breaches of contract that they are in the wrong. If the harassment and scare tactics don’t work, they’ll cut their losses and move on. Frankly, I don’t care if they go the whole way with me and try to ruin me. I have now learned to live within my means and that if it seems too good to be true, it probably is.
I own a timeshare at Tahiti Village in Los Vegas. Got this with my ex 1 year ago when we were common law. We are both on the deed and have paid up to 10% of the $22,499 balance. Unfortunately we cannot afford the TS anymore for various reasons, mostly recession related. My question is can the timeshare screw up our credit if we default (walk away)? The thing is we are both Canadian with all the financial backing tied up in America. Can they come across the border to get money?
Well, my wife and I were sucked into TAHITI VILLAGE in Las Vegas last may. That’s TAHITI VILLAGE- hopefully googlebots pick up on this so more people find this thread. TAHITI VILLAGE is a scam. After paying about 4k in “mortgage” fees and maintenance for a resort that I’ll never stay at, I am finished. Expensive lesson, but a good lesson to learn. I have not made a payment since December 2008. Right now, we receive about 20 calls per day from them, I responded with 20 emails with a form letter I drafted outlining their breach of contract. (Says no rentals at TAHITI VILLAGE, but anybody can go on Expedia and rent a room there) I now have 2 days to pay or my mortgage will be defaulted. Go ahead. I am a Canadian citizen and at this point, having read this and other blogs on timeshare, I will never pay another cent.
I have researched US Judgements enforced in Canada for those interested. IF they foreclose and sell at a reduced rate on the open market then try to obtain a judgement for the difference, the judgement is only enforceable in the US. Under Canadian law, they would have to apply via Court of Queens Bench to have the judgement enforceable. ALOT of work for money that they know they’ll never get. I am now 4 months in arrears and nothing is on my Credit report from both Equifax and Trans Union.
DON’T PAY THOSE PIECES OF SHIT ANOTHER DIME. Vegas was built by the mob- how do you think it happened? By scams just like timeshare.
Hi Ron,
What happened to your timeshare? Are you out of it?
Ron/Dave….any update? What happened to your TS? Are you both out of it, thru cancellation or DIL? Thanks!
ICA is actually part of Westgate, dont get into dialogue with them, just ignore everything they send you, you will eventually get your WDILF
Rhada, good to hear from you after a long time…
Tracy, i was also into WG at Orlando. Im not a US citizen/resident and quit my payments in nov 08. After 3 months without hearing a word from them i started receiving letters about the due amounts.. then a letter with a "warning" about them sending the case to a collection agency and after that i have received a couple of letters from this so called collection agency being the latest letter a very short and polite one saying something like "we do have more options than what you may think. Contact us"…
the name of this agency ICA (International Collections Agency).
the only thing i have done is sending them an email stating the only option i can carry on with is having WestGate taking the property back. Let's see what they reply…
So what happened? I am hearing from other timeshare owners, that the foreclosure dings credit and so on.. but I am unclear as to what else happens. I'm interested myself, though I get a lot of different answers. Is the loan paid off? I heard from research that if it isn't they could go after assets, but again, I don't know firsthand or what they do now.
According to the credit report, it will be bad for future purchases, car, job.. a woman who is advising me not to do it says it dings it pretty bad.
I can’t believe how stupid I was to get suckered into the whole TS scheme. I bought one in Orlando, FL. You feeling good while your on vacation. I didn’t know abouth these extra fees I got hit with a huge 725 fee separate from the mothly fees. Come Jan I stopped paying, spoke with the TS company to see if they would take it back…all they want it is their money. I am 3 months behind and they have sent it to their legal department and that it will soon go into foreclosure. I don’t give a damn,this is one of the biggest scam industries. I don’t know what I was thinking. I have a bunch of friends with bad credit and they seem to be managing. With this bad economy does anyone know if these companies won’t sue and claim your asset?
Hi Chm,
please email me directly at ilanatay@gmail.com
The home resort is in Ft Lauderdale, Pompano Beach and is 35 miles from Miami. It’s literally right on the beach and ownership comes with RCI membership (savings of $90 a year) so if you were to bank the points, you can get 4 weeks vacation with it. Then you could go anywhere there’s a Wyndham or other resort if you know how to do the searches but I can suggest where to find the info. I pay the fees monthly and it runs $52
Let me know if you need to know more.
Hi Lana, could you tell me how much is the annual maintenance fee and How many points that your timeshare entitled for? Where is the timeshare home base? Thanks.
I also have a fully paid Wyndham Points timeshare which seems to be good resort according to reviews but I cannot keep it due to loss of job and I have it up to date as of April 2009, there is no loan owed on it, it was purchased resale. I am happy to give it up with closing costs and resort transfer paid by buyer.
Otherwise I want to know what will happen if I stopped paying the Maintenance fees on it even though it’s paid off, will Wyndham go after assests and savings and car or is that a lie? I’m in the US and the timeshare is in state of Florida. If anyone knows, please let me know and if anyone is interested in purchasing more Wyndham Points for a steal also get back to me. The whole place is new and has a whirlpool tub in unit with new fixtures.
How about defaulting the M/Fs on my fully paid timeshare? The timeshare I owned is under a secured promissory note. Can I still do a deed in lieu of foreclosure? Or is there a different type of timeshare foreclosure for this type of ownership?
Herman, It would cost them far too much money to try and pass it on to a collections agency. Most of these timeshare companies use their own inhouse collections dept, and make it look like its an external agency, when in fact its not. As you dont live in the US, the chances of them trying to collect are virtually zero, apart from the letters and phone calls! It is more cost effective for them to issue the deed in lieu, take it back and re-sell, which is what the majority of them do, so just sit back and wait, and enjoy the extra money your not giving away to those con merchants!
I bought a timeshare from a friend in 2006. It is in Cancun Mexico. She had paid it off in full, but there is a maintenance fee of around $500 yearly. The contract that she signed was for 30 years in 1992, and is full of small print. I had bought it to use for trading, however it is near impossible to trade. I would like to just walk away and forfeit the money I paid her. Now I read on your website that I am liable for paying the maintenance fees for another 13 years–is this true? As far as I know the deed was never transferred–I don't even know if there is a "deed" as it is a Mexican company, but I did sign a letter stating that I would assume all rights and obligations of her membership. I do not want to risk my credit rating over this…but I have no use for it at this point. HELP.
Hi Tracy,
Thanks for the advice! Do you really think they will eventually send the Deed in Lieu? Would they not rather go through the full foreclosure process and pass me onto the credit collection agencies? I'm not looking forward to the harassing calls and letters!
And yes, will hang in there, refuse to pay any more money to these crooks!
Dont get into dialogue with them. Ignore all of the calls and letters. I havent had any correspondance yet, and Ive missed 2 payments, but I expect I will start getting letters soon. If you get into dialogue with them, you run the risk of them convincing you to pay less, or them giving you a smaller unit for a lower price, just ignore them. They will eventually get bored, and after sbout 6-8 months, you should receive the Warranty Deed In Lieu of Foreclosure, which you need to sign and send back to them, this effectively gives them back the timeshare, and you will be free of it. We were promised the earth by Westgate, which was all bullsh*t, and have been trying to sell ours for 4 years, but they are a con, and in no way are they an investment! Ive found it much much cheaper to book my holidays separately, for a lot less than what I was paying them!
Just hang in there, you will eventually be free of it!
sounds like timely advice but how do you know all this when you have only stopped 2 months payments?
Hi Tracy,
I’m a UK resident, and after making 2 payment for my TS I have fallen behind on 2 payments. I’ve now decide to no longer continue paying and let it go to foreclosure.
I have not yet to received the deed for my TS – was told by the TS company that the deed is only sent out after 6 payments.
So, will I get a Warranty Deed In Lieu of Foreclosure? Or is my case different?
Would love to hear from other non-US citizens with regards to their progress and consequences of non-payment so far. I received my first call the other day (3 weeks after missing first payment). I then re-sent email explaining personal circumstances and got a (quite friendly) reply that there is nothing to be done and if non-payment continues that they will go through the various collections steps and eventually foreclosure as it is a deeded property.
In my letter I have said that when TS was sold to me it was stated (not in writing of course) that TS was good investment and will keep value, which of course is false. No comment/reply were made to this statement though.
Anyway, thanks for everyone's comments and advice so far.
Couple of comments. Yes I have had luck rescinding the purchase of a timeshare and everything was returned on a sale in Florida.
As far as credit reports. When we bought our home, they ran the report and the TS did not show up, but if you default on one they will report it. I think that they don't have to report the sale because if you finance it's usually done through a private company as opposed to a national lender, so they don't report it on there.
Note to John: You're math is wrong. If you owe 15k and have paid 13k the balance on the deed is 2k, so if they sell it for 1k than the remainder of the contract that will be owed is 1k, which they will write off and then report to the IRS as the balance of the foreclosure and yes you will have to pay taxes on that. In any foreclosure the sale of the home is still treated as a sale and will be taxed by the IRS.
I strongly encourage anyone on this chain to DO YOUR RESEARCH! It's always encouraging to read other writers' trials and tribulations, but at the end of the day, it's your responsibility and you must do your own research before making these types of decisions because it will be you and no other person on here that must live with the consequences.
Yes it's a scam, but it's still a legal purchase and in a country where lawyers rule and we are victims of unintended consequence.
Cheers,
J
When you say IRS tax for non paid TS is it one time or yearly. please clarify that also, that will be very helpful. Thanks in advance.
Hi Mandie, this is a very helpful and informative site. I have 2 timeshare units in puerto vallarta, fully paid and up-to-date with maintenance fees payments up to and including 2009. I was in Orlando last week and I was offered a timeshare and I was promised in writing that if I purchased ts from them, they will assure me that the two time share interests that I own will be taken out of my name by the end of 2009 and before the 2010 maintenance billing. How would they take my name out? What is the guarantee that the Puerto vallarta resort will not go after me?
By the way, I still have a few days to cancel the ts in Orlando as it is stated in the contract that I have 10 calendar days to cancel it. Will I be able to get my downpayment back of $ 1500 if I cancel?
Hi, I have 2 timeshare units in puerto vallarta, fully paid and up-to-date with maintenance fees payments up to and including 2009. I was in Orlando last week and I was offered a timeshare and I was promised in writing that if I purchased ts from them, they will assure me that the two time share interests that I own will be taken out of my name by the end of 2009 and before the 2010 maintenance billing. How would they take my name out? What is the guarantee that the Puerto vallarta resort will not go after me?
Anyone being an executor of an estate,
I was an executor of my aunt's estate and the lawyer somehow did not pay the Social Security check back to the government. After being notified of this 3 years later, I checked the paperwork, and yes, it was not paid by the lawyer. I paid the $800.00 and alas, the Social Security office put a 120 day late strike on my credit report. I have tried disputing this and they changed it as paid in full, all except Equifax. I too have a t/s in Thunder Mountain Condos in Steamboat Springs. I have not paid the maintenance fees which were due by October of 2008 and just got a letter from a collection company. Mine is paid in full, just the maintenance fees due every year. I have offered to give it away, pay all the transferring fees and can not find a sucker to take me up on the deal. Will a warranty deed in lieu of foreclosure work for me. It is a deeded timeshare. Anyone want this beast.
so what are you saying john?? that if you default on the ts then does it show up on credit report….
I am a UK citizen. I own at Tempas Palms (1week) & Orange Lake (2 weeks). I want to get rid off my week at Tempas. If I just stop paying my mortgage finance and maintenance fee can Tempas foreclose on my weeks at Orange lake which I am still paying for?
Also can I be stopped from entering USA to use my weeks at Orange Lake resort?
I have no problems so far with Orange Lake but have only managed to stay once at Tempus and have lost numerous weeks because I have not recieved the maintence bill until too late to deposit my week with Internal International as I own in week 6.
Also as my husband has recently passed away my & daughters do not want the TS weeks to be left to them (both resorts are deeded)it appears to me that I am just wasting good money after bad.
They dont show up on my credit report, but thats probably because I live in the UK. From what I understand, if your payments dont show up on your credit report, they cant report defaulted payments, but if you were to foreclose on the timeshare, without completing the WDIF (Warranty Deed in Lieu of Foreclosure), then I believe they can report the foreclosure. None of this affects anyone who lived outside the US, like myself, as none of it would show up on my credit report here.
To be honest I think having dodgy credit for a while is worth not having to pay these bloodsucking timeshare companies any more hard earned money!
ONE MORE THING: you people talk about credit reports have any of you pulled a report they don't show your paying so what gives them ther right to show a default? plus they never ran my credit at time of sale or qualified me? So you better check on that loop hole…. look if i loan you a paper amount but never really took cash out to give you and lets say you use my house and I were to give you a room to use for a fee and you bailed on me how can I call a credit report agency and file a claim of default unless I'm a paying member and report monthly payments or defaults!!! thinking about it that way!!!! I looked at my reports and the time share isn't even reporting my payments!
bk filng is bankrupct… now what is this crap about IRS SCARING???
if you owe 15k paid it to 13k and defaulted the 13k and they sell it for a grand to a buddy how are you paying taxes on 12 grand???? its all non-cash paper losses… the deed was never transfered until a full payment was made!!!! this IRS CRAP IS JUST THAT CRAP!!!!
THEY REPORT THERE PAPER LOSS TO THERE GAIN YOU JUST CAN'T REPORT A LOSS ON YOURS I CALLED THE IRS AND ASKED!