Can't make payment on my timeshare. What are the consequences? Please need some help.

jessicaw349 wrote:

Why is everyone calling it a foreclosure and a mortgage? You don’t own anything with a timeshare, you can’t sell the property and you can’t rent it out. So how is this a mortgage???

Not factually correct, as stated. Many / most (but not all) timeshares are in fact deeded ownerships. We've owned several such deeded ownerships for many years, still do. Timeshare deeds get officially recorded (usually in the applicable County, in most of the U.S.), just as with other real estate. Deeded timeshare ownerships (unlike vacation club or "pure points" RTU contracts) are literally real estate ownership, with accompanying annual property taxes. Accordingly, when maintenance fees are not paid for a period of time (regardless of whether or not there is an associated loan), foreclosure will ultimately occur and the developer or HOA will retrieve ownership of the deeded interval.

Timeshare ownerships can indeed be rented by the owner of that interval, if the account is paid up to date. However, a timeshares with an attached unpaid loan obviously cannot be sold until or unless that loan is satisfied. No buyer wants any part of assuming someone else's debt --- and timeshare loans are usually not transferable anyhow.

Defaulting on a loan is distinctly different from foreclosure. Defaulting on any loan will result in a negative credit report; foreclosure on a fully paid timeshare rarely has any such negative credit report consequences.

A mortgage or in this case a loan only pertains to the financial aspect. Ownership is another thing . It is considered real estate and must be transferred to another party to remove the owners responsibility to the home resort .

I have to agree with the above comments. if it's paid for, you can walk away. However, if it is deeded (deeds usually only exist in the U.S.), the developer needs the legal right to resell the timeshare as a clear title. He wants to resell it and generate another profit.

Offer it back to them.

Nothing will happen to them. They are not U.S. citizens and do not live in the U.S. - and DO NOT have U.S. social security numbers.

The timeshare company is merely scaring them. They want the sales manager only to sell them another timeshare.

I have worked in the timeshare industry for over 15 years as a sales and marketing representative, and then as a director of sales and marketing.

As with any piece of real estate, even one as inconsequential as a timeshare, it can be sold, rented, inherited, etc. The fact that it there is an indebtedness or a lien attached to the property, makes it worth less than if there were not. The mortgage must be paid above all, if it is not the mortgage co can foreclose. If annual fees are not paid, the property owners association can proceed with foreclosure. Details depend on your contract and the state law where the property is located or as designated as controlling in the contract. The time share owner has the right to the excess proceeds if the property sales for more than the amount owed, plus costs, but that is highly unusual when you add in attorney's fees etc. Your best bet is to get current and sell it on a reputable timeshare owner site (not the scam artists on the phone-NEVER give money up front!!!!!) or advise the timeshare that you will be providing them a deed in lieu of foreclosure. (If you do this by phone, always follow up with an email that you file away and keep. Legal matters should always have a written trail). Ask them to have their attorney send you a deed and tell them that you (and your wife if applicable)will sign the deed in the presence of a notary public with a raised seal and overnight it back to them. THEY MUST THEN RECORD THAT DEED WITH THE COUNTY AND SEND YOU A COPY OF THE RECORDED (Stamped) DEED. Let them know you know this. After all this, you no longer have an interest in the timeshare.

Jess, it actually is a mortgage and it can be foreclosed but who really cares about that, your right, you don’t own anything other than your right to use a week or points on a giving day according to contract, however it is a mortgage and because it is, it has many benefits to a real mortgage owner, especially if your paying or paid off your house, many don’t think about it but because it is considered a mortgage and you can write it off as a tax write off . It’s true, I do it every year. I’ll probably get forclosed on 2 soon but I took on better deals before they do. You can rent them if you know how and they can pay for themselves and you can sell them once they are paid off.

I still disagree. You are advising them as if they a U.S. citizens. They are foreigners and have no obligation to even email the company. It is not going to affect them in their country, nor will it prevent them from entering the U.S. with their visa. It is not a criminal matter.

I agree that they need to mail the deed so that the resort can resell it. But, the resort will do that anyways to resell it. It's always about the money - for the resort. The couple has no obligation to do anything.

Likewise, if an American purchased a timeshare in Mexico, there is no obligation to do anything. Period.

I have worked in the industry for over 15 years with foreign developers. There are timeshares developers who sell right to use and points and have been sold out for years, and continue to sell "air."

Just walk away and remove the headaches from your life, folks.

Your choice who you want to listen to.

I agree, you don’t have to do anything other than stop paying for it.

I wouldn't be so hard on yourself for succumbing to the allure of the timeshare vacation. Most people buy a timeshare because it promises a vacation in places and accommodations that you wouldn't afford were you renting the rooms. I often try to rent comparable accommodations when I can't find a particular time or location in my timeshare ownership, but find it too costly. I own timeshares and use and rent them. I believe timeshares are coming into their own because many people see value in the vacations and flexibility they offer. I also sold the first timeshare I bought after 10 years of use at $4000 less than I paid for it, and this after using and renting it without skipping a season. It took a long time, but I did it myself without a RE agent, etc and it went very well for me and the buyer. (The value had gone up, but the buyer got a discounted price.) Not everyone wants to rent their timeshare. That's why owning a single week or two that you will use is practical. Unfortunately timeshare owners often don't realize what they own and are prey to many unscrupulous people who want to relieve them of their ownership so they can reap the benefits. Often, even companies who will rent your "points" or weeks will take a loss at your expense while they collect their commission for renting your weeks. This is another topic altogether.

Regarding the parents buying s timeshare they cannot afford, there are many traps out there. Buyer beware. But if you buy a timeshare in a popular location, that is well maintained, and that you have an interest in visiting again and again, or that you have the ability to exchange for other desirable places, you usually will be okay.

I never put any money down except there 100. Can they sue me?

jessicam1068 wrote:

I never put any money down except there 100. Can they sue me?

If you voluntarily signed a valid contract in the U.S., they could take legal action against you for “breach of contract” if you fail to meet the terms and obligations of that contract. However, the reality is that they will not do so — it is simply not worth the time, bother or the legal expense to file suit against you.

That being said, if you also signed loan / financing paperwork as part of a U.S. purchase contract, , they most likely will file a negative credit report against you for your failure to meet the loan payment terms that you previously agreed to under signature. Negative credit reporting action doesn’t really cost them much of anything and it could then remain a matter of record for 7 years.

You do not indicate the country in which this purchase took place. If it was in Mexico, just walk away right now and forget all about those parasites. They will certainly forget all about you as soon as they realize that you do not intend to send them another penny — and there will be no credit report consequences either. A U.S. contract and / or loan default is a different story however, as already described in preceding paragraphs. Defaulting on a loan in the U.S. most likely will have negative credit report consequences and any such negative credit report could then remain in place for 7 years (but with no further consequences and without you being "sued"). I hope this info helps to clarify matters a bit for you.