Current info on walking away from a timeshare

maryr474 wrote:

Could someone please clarify the consequenses between walking away from a timeshare with a morgage vs paying off the morgage and walking away from only maintenance fees/taxes?

If you walk away from only the maintenance fees, then the resort will come after you with collection agencies and other resources to try to collect your due maintenance fees. Your credit score and report will be adversely affected.

If you walk away from one with a mortgage still owing, then the mortgage broker (a different entity altogether from the resort) will also come after you.

Other consequences are that, if you fail to pay your maintenance fees, the other owners at the resort will get a bill to cover your unpaid maintenance fees.

I read that many people are just walking away from timeshares (tellittoal.com, at dowjones.com, February, 2011). According to this guy, it's an epidemic. Credit score or not, it looks like the smart thing to do is to just stop paying. The timeshare industry's time has come and gone. It will soon collapse.

joeb585 wrote:

I read that many people are just walking away from timeshares (tellittoal.com, at dowjones.com, February, 2011). According to this guy, it's an epidemic. Credit score or not, it looks like the smart thing to do is to just stop paying. The timeshare industry's time has come and gone. It will soon collapse.

It's sad but I have to agree with you ..... when you can rent for less or the same as maintenance fees then why own.

What I would like to know is what line of action resorts and developers planned, in the beginning, after such a collapse and resorts have to close their doors .... surely they knew it would happen eventually since all bubbles burst.

FYI. For Diamond Resorts International (DRI) owners.

Greetings, Here is a way to improve how you use your DRI deeded ownership and if you must a way to get out from a unit you own free and clear. For those that are deeded weeks owners that trade on RCI you might consider becoming an RCI points member so you can trade your deeded DRI (former Sunterra weeks) for RCI Points. You'll then have the flexibility to do RCI points trades into all their points properties. I actually had to buy an RCI points trading timeshare (Vacation Village at Parkway in Orlando) on eBay to make me eligible to join RCI points (no additional fee over your RCI weeks membership). Now my 4bd/4ba lockoff units at Historic Powhatan Plantation in Williamsburg can either be deposited in RCI weeks (one 4bd/4ba or two 2bd/2ba units) or deposited as 40,000 RCI pts per 2bd/2ba. So my 4bd/4ba units equal 80,000 RCI points per year. Lots of choices for trading into all the RCI points properties so for me this is the ultimate in flexibility. One added data point, you can easily buy the Historic Powhatan or the Vacation Village for under $100 on eBay plus closing costs (approx $400). DRI may be over pricing the MFs, but they are improving the properties. My point would be if you want to avoid the very high DRI cost of converting your deeded units to points, enjoy the best of both worlds by buying deeded units cheap and when desired trade for RCI points vacations for flexibility.

Hope this helps.

EC

PS: If you just want out of your DRI points or deeded units and don't think they will sell for anything DRI will accept them as surrendered units for following fees: $250/points membership surrendered and $85/deeded unit surrendered. MFs must be current. Call the loss mitigation unit at DRI - phone 1-800-279-7764. BTW: They do this to have more resort inventory for their high cost point membership sales.

We recently gave our timeshare to Charity it cost us about $1700.00 but we did get rid of it. We can write some of the cost off on taxes but this was the best we could find on getting rid of it. It was from Dave Ramsey and says that it was legit. I will post later when I find my info on it.

My timeshare is willing to take back my week, and I own it free and clear. But the maintenance fees are high and we would rather use the money elsewhere. I have a question. Once I deed back the property, can I take a tax write off? It is not a charity donation but it is a donation!!

Susan Rochester, NY

cary4 wrote:

My timeshare is willing to take back my week, and I own it free and clear. But the maintenance fees are high and we would rather use the money elsewhere. I have a question. Once I deed back the property, can I take a tax write off? It is not a charity donation but it is a donation!!

Susan Rochester, NY

No, but you're lucky that the resort is willing to take your deed back .... most won't.

Has anyone actually turned in a timeshare per ermanc's claim above?

"PS: If you just want out of your DRI points or deeded units and don't think they will sell for anything DRI will accept them as surrendered units for following fees: $250/points membership surrendered and $85/deeded unit surrendered. MFs must be current. Call the loss mitigation unit at DRI - phone 1-800-279-7764. BTW: They do this to have more resort inventory for their high cost point membership sales."

I am a former ILX owner and when DRI took over, they said we could not turn our timeshares in. Trust me, there were plenty of us that wanted to. We just want out of the maintenance fees. I can't afford to pay over $1,000 per year for these.

bethm199 wrote:

Has anyone actually turned in a timeshare per ermanc's claim above?

"PS: If you just want out of your DRI points or deeded units and don't think they will sell for anything DRI will accept them as surrendered units for following fees: $250/points membership surrendered and $85/deeded unit surrendered. MFs must be current. Call the loss mitigation unit at DRI - phone 1-800-279-7764. BTW: They do this to have more resort inventory for their high cost point membership sales."

I am a former ILX owner and when DRI took over, they said we could not turn our timeshares in. Trust me, there were plenty of us that wanted to. We just want out of the maintenance fees. I can't afford to pay over $1,000 per year for these.

You have been provided above with a specific phone number. Have you actually called that number yet to get a direct, current answer "straight from the horses mouth"???

I worked with Vale Professionals and they did everything they said they were going to do. Yes, of coarse there are costs involved. But more importantly, this company did what they said they were going to do. My husband called the resort, after my contact at Vale informed me our transfer was completed, and sure enough the representative at the resort had no idea who my husband and I were, and could not pull up our account. We had several friends who wanted out of their timeshares and Vale helped them too. if you want out, this is the company to hire....

I smell a SHILL.

I just called Diamond and they said they are no longer accepting any properties!

I have heard of other companies who help you donate your timeshare to a charity. If you do that I heard that you get a tax deduction the next time you file for taxes.

Another forum titled "Getting rid of your timeshare" has covered this topic in detail with positive and negative comments, direct IRS quotes and regulations, specific and detailed answers, and leaves very little unclear in the end. It will answer almost all the questions raised here. Take a few minutes to read it before asking for opinions on your concerns.

I am very aware of the other topics and have read them. I am simply giving them my input that if they wish to walk away from timeshares they can simply donate it like I read about. Plus my post was not a concern it was simply a statement. No need to get all riled up.

victorial73 wrote:

I am very aware of the other topics and have read them. I am simply giving them my input that if they wish to walk away from timeshares they can simply donate it like I read about. Plus my post was not a concern it was simply a statement. No need to get all riled up.

You can't donate a timeshare the donation foundation doesn't want .... also many former donation foundations (ie: donateforacause.com) ask for several years of maintenance fees before they will take it IF they will take it at all.

victorial73 wrote:

I have heard of other companies who help you donate your timeshare to a charity. If you do that I heard that you get a tax deduction the next time you file for taxes.

And you'd better research the IRS for any tax deductions for donating a timeshare.

I understand that there are charities that do not take timeshare donations. But there are others who do. Yes, they might charge you but the point is that it goes towards helping others. The IRS does provide tax deductions as long as the charity is a 501(c)(3) non profit organization.

if your unit is paid off you can donate it to charity and take a 5000.00 deduction on your taxes...i donated one to a fla. veterans group

ronaldk85 wrote:

if your unit is paid off you can donate it to charity and take a 5000.00 deduction on your taxes...i donated one to a fla. veterans group

How much did FVG charge you to donate it to them?