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 –Â 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/
linda, I cant get you when you ask if they could get our tax returns if we stop paying?
I receive calls from Wyndham, but I just wrote them a letter instead of talking to them.
Linda, what timeshares property do you own? And does anyone know if they could take your tax returns if you stopped paying ?
i have a 3 bed appartment in Westgate Towers. still owe 15k on the mortgage which still has8 years to run with the american bank (i live in UK) what. as a uk resident with a loan for a timeshare with an american bank, what will happen if i stop paying the monthly payments.
Does anyone have any experience in transferring title of a deed from one person to another? Can't seem to get a simple answer on how to do this. I thought it could be done with a quitclaim deed. Any information would be much appreciated. Thanks much
hi, update on my Smart Transfer seminar. Everyone who attended agreed to sign over their timeshares except one who was not paid up. They seem to be on the up and up. but it was going to cost me $3695 to be rid of it. even so I signed up for the deal. I exchanged numbers with a lady at my table so we could keep in touch. She called me the next day to tell me she called her resort to tell them what she did and they offered to take her deed back free. So guess what? I called my resort billing department and hey agreed to take mine back for an $85 closing fee. It will take "2 weeks" to get my paperwork out to me. I then cancelled my transfer smart transaction without any apparent problem–they were very nice–and they are sending my refund check to me. I told them if my resort is pulling a fast one on me, I will call and redo my agreement. Will continue to update you on this.
Okay, this is Lorraine and have another question and hope someone can answer. Besides owning in Cape Cod Holiday Estate (which I have begun not paying maintenance) I also own at Lagonita Lodge in Big Bear. Although maintenance is low, I realize I need to get rid of that also. My issue is that I have to pay a separate property tax bill on this – does anyone know how that would work if you just stopped paying the maintenance and the property tax? I'm going to list it on eBay and Craig's list but don't even know how I would transfer it to anyone. I'm willing to just sign the property over to anyone that might want it ????
lorraine,stacy,dorothy,erica and the rest .
Just keep posted and update us here…we will start the battle//
Well as I've mentioned, I stopped paying at Cape Code Holiday Estates which is handled by VCI Resorts not only because of the high maintenance but because of their special assessment for 2010 of $2,100 so they could upgrade the property. They even offered to let me make payments to cover the special assessment which I would have to pay over the next 5 years. Which would amount to over $1,000 a year for the next 5 years for a place that I don't even use and have to pay to belong to RCI and then pay an exchange fee. Which you never get where you want anyway. Can't do it anymore and decided to just gamble and let it go to foreclosure or whatever happens. I got my first letter stating that I cannot just walk away from my obligations and that if I didn't pay something my account would be sent to a collection agency and I would be responsible for all the fees as well as legal fees. So now I suppose the fun has begun and just need to prepare myself for the hassle. Thank goodness for this website because it helps to know you aren't alone and I feel this is such an awesome sounding board. Besides it helps to get other peoples input. Thanks melham and whoever else responds.
WE want to Give our two weeks of flex time deeded TS back to Polynesian Isles in Kissimmee, FL. Can we use a Quit Claim deed. They are paid for and we have owned for 20 yrs. Do not need them anymore. Help….
dorothy,
welcome to the club, we can make it! we'd rather pay IRS in installment rather than tied up forever we have to save our children from our mistake.
I finally gave in and stopped paying Wyndham in October 2009. Of course the calls have begun 5-6 times a day 7 days a week. I'm getting letters with my past due amount. No collection agency yet. I was brave and answered the phone once to let them know I was unable to pay and all I got was "i need to make a payment by whatever date". I checked my credit score expecting to see it it flat-lined at 300 but it was down in the 600. I tell myself I can always rebuild my credit and or write a statement for the credit bureau (my other debts are spotless) as opposed to the financial stress over trying to pay what I don't have. I have started getting calls and correspondance from companies and people about timeshare relief and renting my points. Probably referred to me by those snakes, WYNDHAM. My timeshare payment was $887 and maintenance fee $202. I'm not worried about my residential home because it is paid for and I have homestead exemption. I spoke to a lawyer regarding a previous matter and he said that homestead property can't be touched. I agree I can pay IRS in installments easier than I can Wyndham for a never-ending debt. And I refuse to settle my children with this insanity.
Has anyone ever had any positive experiences with unloading their TS? I can't agree more with melham, sounds like a sweet deal until you get caught in the trap. Ever try exchanging your week and not been able to do it and losing the week? Talk about pi**ing money away …. with all I've lost on situations like this I could have taken a really nice vacation for myself.
TS system is really an evil thing, its fun in the beginning but life change.
Hi Stacy ,same here Im one month late, but you know what? I think till 6 months of threatening they will end up forclosing it. Me I dont have a choice I cant afford anymore,Im ready , I also receive letters, but I just put them in a folder, but maybe Ill write them a letter,but of course it wont help just to inform them and for their record .But when the collection agencies turn to call us expect the worst threat and they are so nasty, that's their style to stress us and be freight., but they cant get something that we dont have. also we should expect if ever an IRS form (1099) for the amt of debt cancelled which is taxable (but we can pay it installment to the IRS and that's it! , unlike in TS its FOREVER!! up to our heirs.
Hi Melham. Nothing new has happened. Just been getting about 3 phone calls daily. And a letter every month saying how much I owe (have not paid in three months) and if I don't pay they are sending me to collections. They have been threatening me since I skipped the first payment. I have a load of stress off my shoulders since I stopped paying them. I have been keeping all the letters in a folder and ignoring all the calls.
Does anyone know how to transfer title of ownership to another party without it costing a fortune to do? I thought it could be done by a quitclaim deed. Any thoughts on this would be appreciated. Thanks
@Jason. When I spoke with TS and told them I can't afford it anymore they told me if I pay just a little it won't go on my credit report. They won't send it to your credit unless it's 90 days overdue. Well, I haven't paid since November…I haven't checked my credit report yet. I'll check it within a month or so.
So far I'm just getting mail and phone calls on my cell phone and I hit ignore and than they call my landline and leave a message on both phones. I receive phones calls like 2 to 3x a week. I just let the voicemail answer it.
Jason,
same here, I receive phone calls from Wyndham but unfortunately its in my workplace ,its good that my office mate understand that its TS and they know and they do believe also that I shld stop paying it too, but my reason is I cant afford anymore, I had a good time with it its just that too expensive $600/mo plus for 2 yrs I had only 4x used of it…and its really stupid now to continue it, I have to pay first my credit card and some more important things,I am ready to what will happen to my credit if they ruin it, 2 mos ago I had decided to file bankcruptcy because of TS, but I realized Ill try to default first. As I have researched they can only foreclose it and can even give us IRS form-100-c (debt cancellation)as Income and pay taxes on that.
Jaso,Erica,Stacy,Lorraine hoping for more feed backs from time to time.
According to most STATE LAW Not (sure what yours is) If you contact them IN WRITING that “…this is my place of employment (even if it is your home…you do work there don’t you?) and that your employer does not allow you to receive outside communications while there.” Do the same with your phone but first get their full name and address or number. I have used this law in my state and it always works UNLESS you have given them prior permission to contact you.
Or, in the case of phone calls, either DON’T ANSWER or get a loud whistle or siren and, while speaking softly, ask “Are you sure ;you can hear me?” Then blow their ear off. THIS particular caller will hesitate to call you back. SIMPLE PAVLOVIAN PSYCHOLOGY
Hi all,
Stopped paying Wyndham TS in January. I receive phone calls every day, sometimes 3 or 4 per day, from them. The phone number they have on file is a cell phone, and on the cell phone there is a block call feature that has come in very handy. They never leave any messages. I have only received normal snail mail from them, saying I owe for two months mortgage payments and maint fees, no nasty grams yet. I am us citizen. Have not seen anything pop up on credit file yet.
Hi Linda, like you I love this site. Don't have an answer for you but hope that other people will continue to post their stories whether they be positive or negative (horror). I'm dealing with more than my share of headaches with ts and doing whatever I can to get rid of them. Will keep everyone posted with any of my encounters. Have tried several charities with no luck whatsoever and now going to try listing one of them on eBay and Craig's list. Good luck
Hi, love this site! Have a paid up grand beach ts in orlando. (weeks). only pay maintenance and taxes now, running about 850/yr. Have traded every year through rci and have been happy with my ts. Now I get freq calls from diamond resorts trying to talk me into going to points system–listened once for laughs, would have cost me thousands of $ to switch with fewer places to trade to. told them they were nuts to think I'd put out more money on a ts I'd had paid for years ago. They said this was my only chance==guess what, they call every month with an offer to listen to their spiel for free Branson visits. lol. I have their number on my phone contact list with 'no ring' as the ringtone choice. I'm going to a SMART TRANSFER seminar in two days to see about getting rid of my ts cause I plan to quit work end of this year. have researched all I can online about this outfit and see pros and cons. will post my experience later. my question is why would they take my ts off my hands when other people can't give one away for a $1 on ebay? How did I get on their mailing list to get this seminar offer? Maybe diamond resorts are trying to get at me another way through this transfer smart outfit.lol. I won't burden my kids with this ts. I'll go into default first. I'd like to see more USA people commenting.
Hi Mandie – I agree and hope more people come on this site and share their experiences whether it be negative, positive or just horror stories. I have tried several places looking to donate Lagonita Lodge without much success. One listed on this site said they aren't taking any more timeshares, Property Donation Group said that their brokers didn't feel Lagonita Lodge was in a desirable location. However, the recommended Timeshare Relinquishment Program but of course there is a catch and not sure if it is just another scam. The fee for this program is around $900. If I knew for sure that would resolve the issue I would pay it just to be rid of this timeshare. Sure would love to hear from anyone that has had any positive experience on donating their TS. Hope to hear from more people on this site. Certainly has been an eye opener for me and since we are all in this same horrible situation, it does help to be able to talk with other people.
Hi Lorraine,
I am still around – working on upgrading the site and getting more content out there for everyone!
As for donating, have you tried the places listed in this post? – http://rcivip.com/2008/charities-accepting-timesh… Someone also told me recently their local NPR station accepted their timeshare as a donation, so that is something worth looking into as well.
It is so nice to see everyone working together on this site and sharing information. Hopefully in the next few weeks I will have the new site up and we can get even more people involved.
Keep up the good conversation everyone!
Mandie – miss your input on things – hope to see you back on line soon. Trying to donate but can't find anyone that is interested. Anyone have any suggestions?
Anyone owning or is a member of WESTGATE TRAVEL CLUB? I do, and I want to know what will happen if I stop making my monthly payments. I don't live in the US nor do I plan to. I have not tied in any mortgate to it. All I made was a $300.00 downpayment and signed a document stating I will pay pay $99.00/mth for 1yr. After reading all these bad testiments about WESTGATE, I want no part of it. I want to cut my loses now.
Does anyone have any idea what are the consequences?
Thanks to everyone that post comments. I now check this site every morning and helps me with the stress of dealing with TS. I am writing my last letter to Cape Cod today and that is t until I begin the harrassment. I have another one I'm going to try and donate – Lagonita Lodge in Bear Bear. Maintenance is paid until the end of the year but I want to just be rid of it. Anyone interested, will gladly turn it over to you – 1 bedroom, floating week and maintenance is less than $500. Any interest – email me at rainer1019@sbcglobal.net — Once again thanks everyone and keep posting your experiences, it does really help.
Bill,
thank you so much as Ive read and heared it can be done, though we should be prepared for their calls, but that's their job.
Any one that got rid of their TS please post their experiences in this site, it is a big help for us who are having stress and agonies while in the process of getting away of TS.
we bought a wyndham in Newport on ebay, so it did not have a mortgage, just maintenance fees in about 2004. We stopped paying maintenance in Fall 2007. We got collection letters, and finally an attorney letter in Fall 2009 that if we paid a $250 fee, we could get a deed in lieu or pay no fee and it would be foreclosed. We said we could not afford $250 and they asked for a smaller amount, which we paid.
We had a Marriott TS in Las Vegas with a mortgage. We stopped paying in January, were harassed beginning in March, got black marks on our credit in June, they offered a deed in lieu which we signed in November. Be sure to watch out for the unexpected w-something for taxes, since they report the written off part of the mortgage principle as income. (Get a phone with caller ID and donm't answer — even better et a phone that allows selective call blocking and the phone doesn't even ring)
We are in the process of getting rid of several TS that we have owned. My first piece of advice is to look at ebay and see what timeshares like yours are currently selling for. After shock, you should ask yourself if you really want to keep paying a mortgage. My second comment relates to stopping the payments. At other sights, they talk about what can happen if you stop. A key part of the discussion is the statute of limitations on debt — there is a different number of years for each state, but basically, if you stop paying, and make no more payments, the clock starts. After so many years, e.g. 4 years in PA, a court case cannot be brought to collect anything owed. Just make sure that you make no payments of any amount to collectors or the TS or to anyone. If you pay the collectors even a dollar, the clock restarts.
Thanks Melham – this is an awesome sight and it certainly helps to chat with others that are going through this same hassle. I have until the 1st to pay and decided it just isn't worth it anymore and getting myself geared for the hassle of a collection agency. Hope I can lean on anyone out there for support. Much thanks.
Lorraine,Ivy others,
I have read in some postings that if you are ready to ruin the credit (if it ruin) or expect the harassment of collection agency (so be it!)it will stop eventually and they will foreclose it. Harassment of collectiona gency is to be expected that's their job, so dont mind them, buying TS we feel we are stupid It was really very hard to go during the sale, If only I could surf first in the middle of the sale I shld have not sign, I found this website but its too late ,I paid for 2 yrs, and now I have no more to pay.
I have really been stupid over these past several years and didn't learn my lesson, until now. Sure wish I was smart enough to read websites like this before hand. I now own 3 separate timeshares, one of which I will be paying for another 5 yrs. Everything they told me was a lie and I unfortunately bought into it. I actually believed that by buyng this third one they would sell my first two. What a mistake that was. My first timeshare is up in Cape Cod, Mass. and this year they are hitting us with a special assessment of $2,100 on top of $650 maintenace. This is crazy in this economical situation so I am going to gamble and just not pay it anymore. I've tried selling it, donating it to charity and even surrendering it to Cape Cod but they won't take it back. Any suggestions from anyone … this is stressing me out so much – just isn't worth it anymore. Thanks
me and my friends bought a ts thru shell vacation 3 years ago however we stopped paying september of last year 2009. now we recd a letter from collection agency. how do we handle this?
for J-dog or anyone in a similar situation. Curious – how have you made out with not paying your maintenance any longer.
thanks, stacy I will PM you…
Melham,
I am deffnatly in to do whatever possiable to start against Wyndham Resorts. My email is Rosest1009@yahoo.com
I stopped paying for three months already and I am getting phone calls every two hours from 6 in the morning till 11 at night. Have not picked up any calls yet. I already have almost a thousand dollars saved just from putting that money aside that I would have been giving to them.
My wife and I got suckered into the Grandview Resort in Vegas 2 years ago. Maintenance fee's have significantly increased since. My wife lost her job and we want out. The resort told us that they do not resell units. THATS A LIE RIGHT THERE because we refused the original "high" figure. As we were walking out, the manager came over and offered a RE-SELL for half the price!!!
We are in Ontario, Canada. We would gladly do one of two things:
a: Travel to the resort sale centre as a large group and "hinder" there ability to sell to new suckers until they agree to take back our units.
b: Join in a class action against the resort. My email is paul.baker@campuspublications.ca
Any scammer tracking these comms who even thinks of emailing me to attempt to "rescue" us for a fee, forget it. I am hardline out after all the scammers in this line of grey business.
Any update Paul Baker? Please share.
I have also been scammed by Westgate. Recently I have been getting calls on my home and cell phone from Westgate resales They have given my personal info to about 30 of these rip off resellers that just charge you an upfront fee and do absolutely nothing.HOW DARE THEY! I WAS UP TO DATE ON MY PAYMENTS BUT HAVE HAD IT WITH THIS RIP OFF SCAM COMPANY.Do not give your timeshare company your phone number, they will sell it!!
As well There has been absolutely no mtce on our unit in 10 years! Gee they collect 52 times 900 and they do not even replace furniture? Screw them I live in Canada no more payments from me
Hi Guys!!
like Milena, any one here to start against Wyndham Resorts?
March 31, 2011 NOT ONE ANSWER???????????????
Forget this. Take Ken’s (and others’) advice and
just STOP PAYING.
Hi I just would like to any one diling with a time share scam from Orange Lake resort, we already are a group of 16 suit this company for damages and we need more people ready to enjoy the group, my email is. milegon@yahoo.com
hi all, thanks Mandy for setting up this site. It has been really useful reading the blogs. I am a UK resident, bought the timeshare on our first trip to Florida at the Bonnet Creek Resort with what was then Fairfield resorts now Wyndham vacation resorts, in 2005. What a waste. We are putting it down to an experiece , a really bad one, and that we were young and naive . It has been a real eye opener, dealing with the time share industry. The Reps are the scum of the earth. We bought the timeshare even though we knew we won't be able to visit US every year, because we were given false information and promises about the associated exchanged company RCI. They made it sound all so easy, and showed us dreams of how we could be having fabulous holidays all over europe every year. The truth is that you will be luck to get an exchange with RCI in any place other than Tenerife! As lots of TS places in Europe other than Tenerife, are still owned by Week owners , who are not willing to exchange with people who have points. we have just decided to stop I
paying the maintenance fees. Tracey (UK) and Herman's blogs have given me courage. Just one question guys, i do not want to give one more penny to the blook suckers. How can I have the Deed in Lieu of Foreclosure without paying any fees. Any suggestion would be much appreciated. Best Regards Sam
mirjie,
that's their threat to people to ruin our credit, if you are not ready then go ahead, it will be a lifetime nightmare (maintenance fees ( increase every yr) are forever pass on to your children) , they will of course bring you in current they need your money.
My husband and I purchased a timeshare at the Massanutten Resort in June 2006. We fell behind on payments, because I lost my jobs in 2008 and he lost hours at his due to the recession. A few months later I called and told them our situation and tried to work things out with them. I asked them to take it back, asked for a loan modification, and they said no. The only thing they would do it take half of the arrears we owed ($1309) and that way we could avoid foreclosure proceedings. We didn’t have the $1309. Fast forward-got a letter from their attorney saying that we need to pay $9700 (THE TOTAL AMOUNT OF THE LOAN) by March 19 which we don’t have. If we don’t, property could be sold at a foreclosure auction. We are now able to pay ALL of the arrears, and bring our account current and go back to making our monthly payments, but would they allow us to do so? Any help would be greatly appreciated.
So far just phone calls and mail. At first I was answering the phone calls and telling them I couldn't afford paying it anymore to take it back, but of course they wouldn't. I asked if they would take the deed back instead of foreclosure….NO to that as well. Last time they called me said I have one more week to pay at least something like a $100 so I wouldn't get reported to the credit. They said they give the person 90 days to get their account updated. Which I stopped paying 3 months ago. I said I'll try, but I was lying I had no attention of paying them another dime. That was 2 weeks ago, so they are calling me and I'm ignoring the phone calls.
Oh yea…they suggest I ask family members or friends to help pay for my timeshare. I said are you guys crazy…I have 2 family members laid off from work and why would my friends help me pay for something that is a luxury…not a necessity. Of course she couldn't respond to that.
So all it has been about 3 months of not paying them.
Eric,
Keep on updating us, on what's going On.
Erica,
Exactly!! you are right. I got VIP plan knowing I can use them more but counting it ,I only used it 4x for 2 yrs and I already pait $14000 in 2 yrs excluding Down payment, plus everytime I use it there are some fees ($30, etc) on line for booking in excess of 3x on line. But the most reason is My life change, I got divorced and diagnose of cancer , I had already 3x of surgeries and coming next month..so I would rather pay my medical bills ,I cant afford anymore, you are right, I dont care of 7 yr hit on my credit, what else can it give a good credit to us, we cant even buy stuff now with the High interest giving us..plus all my payments went only to interest ….what else can I say more.
Melham and Tasha. Why pay for something that you won't be able to use anyways? I just stopped paying and going to take the hit on my credit history. Just get it over with…rather take the 7 year hit on my credit report than deal with them for the rest of my life. With the constant raising of the maintenance fee. I calculated I paid last year $6000 in payments not including the maintenace fee. Out of the $6000 in payments only $1200 went towards my principal. The rest was all interests!!!! I could have taken a better vacation with that amount including airfare…probably multiple vacations.
I figured I just stop paying them and if they do come after me with fees I'll be ready for it. Cause the money I will be giving them I will be saving it instead of them taking it.
Timeshare owes money from us we just give them money, but we cant get anything we are suppose to harrass them …we dont get anything we just gave our signature and that's IT!!! unlike if we purchase a car which we use ,but this….we just make them rich ,I am a VIP member with a 300000 points in Wyndham but I can only book twice…always no available or shld be 8 mos before departure. But whatever it is, our life has change with this hard economy, everybody is in hardship Time share is the first to go.
Melham, what happened to your TS? Did they cancel or you got DIL? Please give us an update. Thanks!
Tasha,
I just paying too this month I cant afford either are they harassing you? what can we do, they cant take something we dont have .