Sell or not pay

Ok, I'm fairly new to this but I need some assistance from someone that knows about time shares. About 4 years ago I bought a Timeshare @ Westgate Villas & know I just want to get rid of it. Is it dificult to sell this, if not how can I do this ? A person has told me that if I can't sell it just stop making payment as it will not affect my credit since it was finance in house & not through a bank, does anyone know if this is true ? Please help out someone as I' have a baby on the way & I just can't afford this extra payment but @ the same time I don't want to ruin my credit.

edwardm109 wrote:

Ok, I'm fairly new to this but I need some assistance from someone that knows about time shares. About 4 years ago I bought a Timeshare @ Westgate Villas & know I just want to get rid of it. Is it dificult to sell this, if not how can I do this ? A person has told me that if I can't sell it just stop making payment as it will not affect my credit since it was finance in house & not through a bank, does anyone know if this is true ? Please help out someone as I' have a baby on the way & I just can't afford this extra payment but @ the same time I don't want to ruin my credit.

Your timeshare debt is like any other debt that you owe even though it was financed within the resort. If you quit paying it will adversely affect your credit rating just as if you quit paying your car or house payment.

edwardm109 wrote:

Ok, I'm fairly new to this but I need some assistance from someone that knows about time shares. About 4 years ago I bought a Timeshare @ Westgate Villas & know I just want to get rid of it. Is it dificult to sell this, if not how can I do this ? A person has told me that if I can't sell it just stop making payment as it will not affect my credit since it was finance in house & not through a bank, does anyone know if this is true ? Please help out someone as I' have a baby on the way & I just can't afford this extra payment but @ the same time I don't want to ruin my credit.

edwardm109 asks, quoted here only in pertinent part:

>> A person has told me that if I can't sell it just stop making payment as it will not affect my credit since it was financed in house & not through a bank.....<< ======================================

As has already been correctly related to you, bad debt is bad debt and bad debt WILL certainly be reported to the credit agencies at some point. Simply ignoring your financial (and contractual) responsibiulity is NOT really a smart or viable option to even seriously consider. Even if the resort foreclosed on you for non-payment, thereby terminating your ownership and associated responsibilities, they would STILL report that foreclosure action to the credit agencies as an unpaid debt. You don't want to have the word "foreclosure" appearing in your credit report if/when you go to apply for a home mortgage. That's a black mark you don't want and which will follow you around forever. .......

The Orlando / Kissimmee area is very overbuilt (but they still keep building there anyhow) and there are hundreds and hundreds of timeshares offered for resale there, most of them offered "free and clear".

My suggestion would be to: 1. Be sure to at least keep up with your maintenance fees, if you possibly can. To do so shows "good faith".

2. Contact the resort at (407) 396-8523 and ask to speak with someone in their sales / resales office. (Don't expect informed or correct answers from a desk clerk whose job it is to just answer the telephone). Once you reach someone knowledgeable and in authority, ask if they will "take back" ownership of your week and release you from the contract, acknowledging (and obviously keeping) whatever payments you've made to date. The answer is most likely no, but it's worth at least asking the question. (This recommendation assumes that you are still making payments on your financed purchase?).

3. You can't possibly sell a financed week which still has debt remaining, since there are so very many Orlando / Kissimmee resale weeks available "free and clear" anytime on the Internet for just a few dollars. You may actually have to advertise to GIVE the timeshare away to someone willing to take over your payments. Your debt amount would obviously have to be less than a "free and clear" resale purchase would be in order for this option to even be a remote possibility).

I'm sorry not to be able to give you good or happy news here, but your objective as a (presumably young) new parent is likely to just "get out" of this obligation and take care of your family. Start with the resort phone call mentioned above......

P.S. Someone suggested rental as an option for you to at least stay afloat. That's not bad advice, but you must remember that this a geographic area where there is just SO much available for sale and for rent at ANY time that you would be competing with many, many others. In short, you may not actually find a renter at all.....

ken1193 wrote:

edwardm109 asks, quoted here only in pertinent part:

>> A person has told me that if I can't sell it just stop making payment as it will not affect my credit since it was financed in house & not through a bank.....<< ======================================

As has already been correctly related to you, bad debt is bad debt and bad debt WILL certainly be reported to the credit agencies at some point. Simply ignoring your financial (and contractual) responsibiulity is NOT really a smart or viable option to even seriously consider. Even if the resort foreclosed on you for non-payment, thereby terminating your ownership and associated responsibilities, they would STILL report that foreclosure action to the credit agencies as an unpaid debt. You don't want to have the word "foreclosure" appearing in your credit report if/when you go to apply for a home mortgage. That's a black mark you don't want and which will follow you around forever. .......

The Orlando / Kissimmee area is very overbuilt (but they still keep building there anyhow) and there are hundreds and hundreds of timeshares offered for resale there, most of them offered "free and clear".

My suggestion would be to: 1. Be sure to at least keep up with your maintenance fees, if you possibly can. To do so shows "good faith".

2. Contact the resort at (407) 396-8523 and ask to speak with someone in their sales / resales office. (Don't expect informed or correct answers from a desk clerk whose job it is to just answer the telephone). Once you reach someone knowledgeable and in authority, ask if they will "take back" ownership of your week and release you from the contract, acknowledging (and obviously keeping) whatever payments you've made to date. The answer is most likely no, but it's worth at least asking the question. (This recommendation assumes that you are still making payments on your financed purchase?).

3. You can't possibly sell a financed week which still has debt remaining, since there are so very many Orlando / Kissimmee resale weeks available "free and clear" anytime on the Internet for just a few dollars. You may actually have to advertise to GIVE the timeshare away to someone willing to take over your payments. Your debt amount would obviously have to be less than a "free and clear" resale purchase would be in order for this option to even be a remote possibility).

I'm sorry not to be able to give you good or happy news here, but your objective as a (presumably young) new parent is likely to just "get out" of this obligation and take care of your family. Start with the resort phone call mentioned above......

P.S. Someone suggested rental as an option for you to at least stay afloat. That's not bad advice, but you must remember that this a geographic area where there is just SO much available for sale and for rent at ANY time that you would be competing with many, many others. In short, you may not actually find a renter at all.....

edwardm109 has stated, quoted here only in pertinent part :

>>Thank you so much for taking your time & explaining as I do agree with you. <<

===================================== You're very welcome. I wish I had more positive news or input to offer you, but I assume you want honesty and accuracy --- not razzamatazz and happy talk. =====================================

>> do you really think a timeshare is worth having ?<<

======================================= That depends entirely on the individual situation and a number of important and relevant factors. If you buy a timeshare week on the resale market (i.e., NOT from a developer or resort), pay cash (no financing), buy at the right price, and buy something which you will actually use at a place you want to go, it surely is worth having and using ---- and enjoying. (This also assumes reasonable annual maintenance fees and competent management at the particular resort).

For every one of the above specified conditions which are NOT met, however, the wisdom and value of timeshare ownership certainly decreases. Viewed only as a financial "investment", there are certainly very few things much (if any) worse than timeshare ownership... =======================================

Hi,

Sorry to hijack the thread slightly.

Does anyone know if not paying for your timeshare in America will affect your credit rating if you are from the UK.

Thanks Stephen

edwardm109 wrote:

Ok, I'm fairly new to this but I need some assistance from someone that knows about time shares. About 4 years ago I bought a Timeshare @ Westgate Villas & know I just want to get rid of it. Is it dificult to sell this, if not how can I do this ? A person has told me that if I can't sell it just stop making payment as it will not affect my credit since it was finance in house & not through a bank, does anyone know if this is true ? Please help out someone as I' have a baby on the way & I just can't afford this extra payment but @ the same time I don't want to ruin my credit.

Two issues are involved in answering your question. One, is the debt for the purchase of the timeshare and the second is the debt for the annual maintenance fees.

1. Whether or not you financed the purchase of the timeshare through a third party (bank, etc) or the seller financed it for you is immaterial to your liability for the debt. You signed a promise to pay the debt and you are contractually obligated to pay the debt and a default can certainly affect your credit. If you still owe money on the original purchase you might consider offering a settlement offer to the one holding the debt. They might be willing to accept less than the amount owed to at least salvage something. If you walk away they get nothing.

2. The second issue involves the maintenance fees. You did not sign an agreement to pay these but you are obligated to pay these because of the declaration filed in the county deed records by the original developer. The declaration is like a deed restriction many neighborhoods have to protect the value of their property. It binds all future purchasers. That is, future puchasers of the property are bound by the terms of the declaration. JayJay will say and has said that this debt is just like any other debt you owe but in reality it is somewhat different in that you did not personally sign a promise to repay the debt. You are obligated because of the declaration on file. Most of us never read these declarations when we purchase the timeshare although our title insurance will certainly include a brief statement referring to the declaration to protect the title company.

You are personally liable for the purchase money mortgage (described in 1 above) and failure to pay will in all probability adversely impact your credit and could lead to a judgement against you that will impact your credit even more.

The declaration says you are personally liable for the maintenance fees and the resort will certainly take the position that you are. A declaration is clearly a unilateral instrument intended to protect the developer. Whether or not you are personally liable when you did not sign a promise to pay the maintenance fees will turn on state law. If you are not personally liable the debt cannot be reduced to a judgment and the resorts only recourse is a foreclosure.

Hopefully your property is free and clear of the original purchase money debt and you have only the maintenance fees to worry about. JayJay has said many times that the maintenance fees are the bread and butter of the resort and that if you don't pay the other owners will have to take up the slack. That is stating the obvious and is of little help to a person who owns a timeshare that cannot easily be rented because of market saturation and cannot be sold even if one reduces the asking price to zero and agree to pay closing costs.

Most declarations include a provision requiring the timeshare to maintain sufficient reserves to maintain the property. Any special assessment would almost be a defacto admission of the board's failure to do so. You could have a cause of action against individual members of the board for the failure to carry out their fiduciary responsibility to you. This would apply only in situations where there are excessive special assessments.

I suggest you contact the resort management and attempt to negotiate a deed in lieu of a foreclosure. A foreclosure will be reported on your credit report and will adversely impact your credit. You should try to avoid it if at all possible. The resort management will initially reject your offer for a deed in lieu of foreclosure and will in due course refer the matter to a collection agency. This will probably be your first experience with a collection agency and the collectors who work on a commission will scare you to death. There are many safe guards for consumers built into the FDCPA (Federal Debt Collection Practices Act), a federal statute that protects your from collector abuse. If the matter is referred to a collection agency familiarize yourself with the federal statute. Violations by the collector can result in severe penalties to the collection agency. In time the collection agency will give up - that is, if you don't pay and the matter will go back to the resort. This is the time to again offer them a deed in lieu of a foreclosure because foreclosures costs them money and they would prefer not to throw good money after bad.

CGlenn

stephenc107 wrote:

Hi,Sorry to hijack the thread slightly.

Does anyone know if not paying for your timeshare in America will affect your credit rating if you are from the UK.Thanks Stephen

Yes, if you cease payments for your timeshare in America it will affect your credit rating in the UK (or anywhere else in the world). The world is becoming a global economy and instantaneous communication is at hand to track down nonpaying offenders worldwide. The best you can do is to pay off your timeshare, enjoy it and use it to your advantage.

stephenc107 wrote:

Hi,

Sorry to hijack the thread slightly.

Does anyone know if not paying for your timeshare in America will affect your credit rating if you are from the UK.

Thanks Stephen

Stephen, I suggest you contact the credit reporting agencies in the UK for an answer. We may live in a global economy but there is not yet an international credit reporting agency. Certainly the three major USA credit reporting agencies would report a failure to honor a contractual promise to pay covering a US timeshare but I doubt that they - any one of the three, TransUnion, Experion, etc - would report the failure to their counterpart in the UK. Again the best way to get an authoritative answer is to call the UK credit reporting agencies.

CGlenn

edwardm109 wrote:

Ok, I'm fairly new to this but I need some assistance from someone that knows about time shares. About 4 years ago I bought a Timeshare @ Westgate Villas & know I just want to get rid of it. Is it dificult to sell this, if not how can I do this ? A person has told me that if I can't sell it just stop making payment as it will not affect my credit since it was finance in house & not through a bank, does anyone know if this is true ? Please help out someone as I' have a baby on the way & I just can't afford this extra payment but @ the same time I don't want to ruin my credit.

As someone already suggested, you would do best to try renting out your Westgate. I'd suggest getting a week during the Christmas vacation period. Families often want to take children there while school is out. Orlando DOES get sold out at that time. Ask enough to cover AT LEAST your maintenance fees and some payments. You can always come DOWN if you need to! Watch RedWishes for people seeking your week as well as posting it for rent on RedWeeks or another site of your choice. MD

carvana wrote:

Certainly the three major USA credit reporting agencies would report a failure to honor a contractual promise to pay covering a US timeshare but I doubt that they - any one of the three, TransUnion, Experion, etc - would report the failure to their counterpart in the UK. CGlenn

I disagree strongly with this statement. Why wouldn't the credit agencies in the U.S. not report a debt default purchased in the U.S. by someone in the U.K. to their credit agency counterparts in the U.K. or any other country for that matter? I don't believe it works that way.

The problem that many people have is thinking that just because they bought a timeshare, and it's a frivilous purchase, that it's not the same meaningful signed contract as a car, home or any other major purchase and they think they can just quit paying and it will not affect their credit rating. When you sign on that dotted line for anything, you are then responsible for that purchase and it doesn't matter what country you live in.

jayjay wrote:

carvana wrote:

Certainly the three major USA credit reporting agencies would report a failure to honor a contractual promise to pay covering a US timeshare but I doubt that they - any one of the three, TransUnion, Experion, etc - would report the failure to their counterpart in the UK. CGlenn

I disagree strongly with this statement. Why wouldn't the credit agencies in the U.S. not report a debt default purchased in the U.S. by someone in the U.K. to their credit agency counterparts in the U.K. or any other country for that matter? I don't believe it works that way.

The problem that many people have is thinking that just because they bought a timeshare, and it's a frivilous purchase, that it's not the same meaningful signed contract as a car, home or any other major purchase and they think they can just quit paying and it will not affect their credit rating. When you sign on that dotted line for anything, you are then responsible for that purchase and it doesn't matter what country you live in.

Your comment, "I don't believe it works that way" indicates you really don't know the answer. Again, I suggest anyone wanting a definitive answer to the question call or write a U.K credit reporting agency for an answer and not depend on speculation posted on U.S. blogs.

Hi stephenc107

I'm also in the UK and in the same position (I imagine) as you. I'm trying to find out the same information as you. If I find out any more I'll let you know and visa versa, please. I often check my credit repor in the UK and nothing regarding my timeshare has ever appeared on there. This however doesn't mean that it will not. I pay every month on my credit card. Do you do the same. I'm going to cancel the card as that certainly appears the best way to stop payments! Regards Rick

richardd234 wrote:

Hi stephenc107

I'm also in the UK and in the same position (I imagine) as you. I'm trying to find out the same information as you. If I find out any more I'll let you know and visa versa, please. I often check my credit repor in the UK and nothing regarding my timeshare has ever appeared on there. This however doesn't mean that it will not. I pay every month on my credit card. Do you do the same. I'm going to cancel the card as that certainly appears the best way to stop payments! Regards Rick

Once again, ceasing your payments will affect your UK credit rating and foreclosure will follow. It's a global economy and a time of instant communication. Don't let anyone here talk you into ceasing your timeshare payments or maintenance fees if you want to protect your credit.

If foreclosure wasn't allowed abroad for USA bought timeshares, then NO timeshares would be sold to anyone outside of the USA, and vice versa, if an American bought a timeshare in the UK (or anywhere else in the world) and stopped paying financial obligations, the same thing would occur ... foreclosure and default affecting one's USA credit.

To think that anyone can just stop paying their financial obligations is absurd thinking. If the case was such then every foreigner would come to the USA and make all their purchases and then not pay with no repercussions whatsoever and vice versa.

Sorry, the world of global finance just doesn't work that way. It's really common sense.

I have a Christmas week in Kissimee Florida that the maintence fees are $761. yearly that I want out of and am behind this year as I am feel they are to high. Does a deed in lieu of forclosure they offered to me for $750. in fees sound like a god idea to get rid of this timeshare?

Jm

jamesm628 wrote:

I have a Christmas week in Kissimee Florida that the maintence fees are $761. yearly that I want out of and am behind this year as I am feel they are to high. Does a deed in lieu of forclosure they offered to me for $750. in fees sound like a god idea to get rid of this timeshare?

Jm

Few resorts offer "deedbacks" in lieu of foreclosure. If this option is available to you and you just want "out", I recommend that you proceed with "deedback" without any delay or hesitation.

There are just SO many timeshares available in overbuilt Orlando / Kissimmee, selling for "a dime a dozen", that it likely would be difficult for you to sell yours --- at any price. Even if you sold it for a penny, you would STILL have to resolve the unpaid current year maintenance fees (unless the informed buyer was willing to do so) in order to effect a "clean" closing. I'd take the "deedback" offer in a second, in your shoes. However, I'd also want to see the deedback in lieu of foreclosure offer expressed to me in writing, bearing the name and signature of someone in actual authority at the resort. Good luck.

Thank you for your response and good advice. The resort Oak Plantation wants to charge me $750. in advance of sending me any documents to look at and sign to get out of this albatross of a deal. Does this sound like another scam to get more money. They will not even email me information about this process so I can make a informed decision. I have two weeks to make the decision or they will foreclose as I have not paid for this year MF yet. It just sounds very underhanded. Another option is to try to donate the TS. Any experiance with this route?

Thanks for reply JM

jamesm628 wrote:

Thank you for your response and good advice. The resort Oak Plantation wants to charge me $750. in advance of sending me any documents to look at and sign to get out of this albatross of a deal. Does this sound like another scam to get more money. They will not even email me information about this process so I can make a informed decision. I have two weeks to make the decision or they will foreclose as I have not paid for this year MF yet. It just sounds very underhanded. Another option is to try to donate the TS. Any experiance with this route?

Thanks for reply JM

Do you have anything in writing signed by a corporate officer of Oak Plantation setting out their proposal? If not, definitely don't send a check. A Deed in Lieu of Foreclosure is a win-win for both you and the resort because foreclosures are expensive and time consuming for the resort and it keeps your credit report free of a foreclosure. But, you must be very careful when dealing with folks over the phone who may have no authority to act on behalf of the company. Get it in writing or no deal.

Get everything in writing signed by a corporate officer and when you send a check to the company be sure to include a restrictive endorsement on the back setting out the terms of your agreement with a clause indicating that their endorsement frees you from all debts and obligations to the resort.

Your last question relates to donating the TS to a charity. Be aware that if you cannot sell your TS because of a saturated market in Orlando it is probable that a charity will not want it either. Remember their goal is not to help you out of a bind but to raise money for their charity and if your TS has no value the charity will not take it.

As others have mentioned above, make sure that you have a signed contract stating that the deed will not go into foreclosure if you follow through with paying the $750.

Yes, if it's legitimate, I think it's a good deal instead of paying maintenance fees/possible special assessments forever.