Instead of kids paying to unload TS, can parents "will" it to Obama?

Hi, thanks. Ours is in Los Cabo Mexico,at the monent we use them and rent them out. But in the future may not and this is good to know. Also, for my sons to know.Does Mexico go by the same rules.

For your TS in Mexico a lot depends on how and who you borrowed any money from and what you actually own. If your loan is from your home country then it's more difficult to "walk away" , however, if it's from the developer and based in Mexico then the chances are higher. You need to do your research and understand the particulars related to your specific TS. Read your contract VERY carefully and understand what you're liable for: where and to whom. Then if you want to get out you know your options.

It is paid for, it was not financed through them. Anyways thanks for all your input. We are dealing with the fact we have this, it is a really beatiful spot and hope to be able to rent it and get our maintence costs, plus will go ourselves sometimes. Cabo seems to be a little better for people if they do choose to go to Mexico. As our friends we took with us this year in Jan., comented At least you have a timeshare that is really top quality and reasonable to go the all inclusive meal plan for $90 a day with drinks included.

I understand. However, my wife and I just came back from staying at a wonderful 4* all-inclusive in Mexico that only cost us $750 a week each INCLUDING round trip air fare from Toronto (Westjet), all taxes, all meals, all drinks etc. $90 a day seems excessive to me - if you exclude our airfare the hotel plus all-inclusive options was only $90/day ($45 each) for two of us - AND I don`t have all the other fees!

Our air fare from Ft,. McMurray in early Jan 2012, I looked up recently for a 5star resort in Los Cabo for February was about $1700 ea all incl. from here. and that was in October. I also inquired from the resort we have our time share what there all inclusive program, air incl was from here and they said $3600, for two..Thgis would be for non owners. Reason being, for people up this way if they wanted to rent the week. It gets difficult to know how much to charge when people are flying from the other parts with the all inclusive rates. I am going by what I am seeing on Redweek listing on my resort, some of them are asking alot and do not seem to get it that you can do the all inclusive cheaper, sometimes if you plan to buy your meals. The buffet is an average from $40 -$50 a head. The other resturant is an average of $20 a head. The pool resturant is about $15 . Alot of people are asking $850 - $950 just for rent for a Junior suite. I rent my unit for $800 Junior suite. US $ that is even less. The food at this resort is out of this world, is huge, service is the best, and so on. The view of the ocean from every suite, large balcony. The unit is about 700 sq ft and some. Has a full kitchen, fridge. Has a free shuttle to town. They have a champane breafast on Sundays, a lobster seafood night, and a theme every night. Anyways, thankis for your input.

I intend to will my Wyndham timeshare to Holiday Inn Vacation Club and visa versa.

annep71 wrote:

I intend to will my Wyndham timeshare to Holiday Inn Vacation Club and visa versa.

You can will what you wish, however neither Wyndham nor Holiday Inn Vacation Club are forced to take them.

Also, why in the world would Wyndham want a Holiday Inn Vacation Club timeshare .... and the same goes for Holiday Inn Vacation club taking a Wyndham timeshare. You would be better off to will them to their own brand name .... even though neither brand name has to take them. If not, then the responsibility goes to your estate and it's executor.

There is a very interesting letter from ADRA (Resort Owners) to the Bureau of Consumer Financial Protection in which they (Resort Owners) basically state that defaulting on a TS loan isn't a major issue and that they simply resell them again anyway with rarely any major effect on the consumer.

So why not just "walk away".

Test from the letter below and you can find the whole thing at http://www.ardaroc.org under "legislative" - note the last 3 sentences.

The timeshare industry has remained resilient and successful throughout this present economic downturn. According to the 2012 Second Quarter Pulse Survey: A Survey of Timeshare & Vacation Ownership Companies prepared by Deloitte & Touche LLP for the ARDA International Foundation, there has been a decrease in delinquencies (Q2 2011 compared to Q2 2010) in timeshare consumer loan portfolios and there is no foreclosure problem or credit crunch as exists in the current residential mortgage market. Additionally, and even more importantly, consumers are not at risk of losing their homes if they default on their timeshare loans. A "foreclosure" of a timeshare does not have the economic impact that it does when a lender forecloses on a consumer's principal residence; and timeshare lenders rarely, if ever, seek deficiency judgments. So in practice, there is virtually no recourse to a consumer that defaults on a timeshare loan. The developer simply takes back the timeshare interest in order to resell it.

ARDA = American Resort DEVELOPER Association .... If a week is bought from a developer and the loan is paid off then some developers may take it back, BUT many resorts are run by HOAs and it's up to the HOA as to what to do about non payment of mortgages and maintenance fees.

Also, there are many 3rd party lenders (not resort developer lenders) that couldn't care less what a legally signed contract was signed to buy .... they want their money, so ARDA doesn't speak for all resorts concerning non payment of loans and maintenance fees.

ARDA is a voice for resort developers, not timeshare consumers. If I were a resort developer, I would not condone the above info from ARDA concerning foreclosures.

I find the above statement by ARDA hard to believe .... in economic hard times luxuries (timeshares are a luxury) are the first things to go .... have no idea why ARDA is trying to pull the wool over our (or resort developer's) eyes.

jayjay - the letter was written trying to avoid having to give "loan estimates" and "closing disclosure" forms when providing funds to purchase a timeshare. As you're aware our "friendly" TS salesmen will try anything to get you to sign and really don't care whether or not you can afford the unit. The letter was written 6th November 2012 (and another one in September 2012).

I'm just an advocate of understanding all your options and also understanding the "dark" side of the industry and the tricks that they'll use to part you from your $$.

There is a lot of other information in the letters. You might want to read them.

BTW: On the website they also have a TS resales tab with some interesting information

davek194 wrote:

jayjay - the letter was written trying to avoid having to give "loan estimates" and "closing disclosure" forms when providing funds to purchase a timeshare. As you're aware our "friendly" TS salesmen will try anything to get you to sign and really don't care whether or not you can afford the unit. The letter was written 6th November 2012 (and another one in September 2012).

I'm just an advocate of understanding all your options and also understanding the "dark" side of the industry and the tricks that they'll use to part you from your $$.

There is a lot of other information in the letters. You might want to read them.

BTW: On the website they also have a TS resales tab with some interesting information

Repeating my message in this thread:

I appreciate your interest in informing the consumer of options in getting out from under a timeshare mortgage or yearly maintenance fees, but you tend to state unequivocally that ARDA states that all one has to do is stop making payments and no repercussions will occur to their credit.

Again, I don't even understand why ARDA (American Resort Developer Association) would make that statement in the first place .... they have no idea what ALL developers or HOAs would do in case of defaults.

If ARDA is so concerned about the lies timeshare salespeople tell to make a sale, then it's up to them to clean up the industry and to clean up developer sales presentations ..... they need to set up strict guidelines and if a developer salesperson is caught lying then that resort should be banned from ARDA .... actually, I've always thought all developer timeshare presentations should be tape recorded.

That's the only way the industry will become clean in the future in that now it's just the 'he said' .... 'she said' (verbally) syndrome .... when it's all said and done it's only the written legal contract that is binding in a court of law.

ARDA must be in the forefront by cleaning up the industry.

You ask why would Wyndham want Holiday Inn and visa versa - I'm hoping to cause each the pain of dealing with the other.

jayjay - we agree! I am totally with you in regard that the TS developers need to clean up their industry. However, if you read all the letter and the associated report by Ernst and Young I don't believe that's what they're trying to do. In fact they are lobbying to maintain the status quo whereby they can conduct "tours" and then complete "same day" sales complete with their rediculously high prices and interest rates. It's partly why they can afford the deed backs.

As far as "walking away" goes - it worked very well for me with ABSOLUTELY no effect on my credit (exactly as stated in the ARDA letter), and the same is true for many others who were stuck with Westgate. I realise that this may not be the case for everyone, but ARDA do claim it to be correct and there are many developers whose names are listed in the letter including Hilton and Wyndham.

annep71 wrote:

You ask why would Wyndham want Holiday Inn and visa versa - I'm hoping to cause each the pain of dealing with the other.

I love the idea and totally share your sentiments - they are a real pain to deal with. Unfortunately neither of them will likely accept the will and then, as jayjay says above, the estate will be stuck with them, complete with any associated debts and fees. At that point the best scenario for the estate would be to default and let them "do their worst"