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NEED TO RETURN TIMESHARE

Sep 28, 2012

jayjay please get your facts correct. Foreclosure due to non payment of a loan is NOT a foregone conclusion. It IS DEFINATELY one of the potential outcomes, but there are others such as a WDIL = warranty deed in lieu (of foreclosure). This basically forgives the outstanding loan and reverts the TS back to the owner. (NOT the same as a deed-back). It can result in a tax liability to the payee (in the US) depending on the amount foregiven and the current value of the property. Westgate (and SOME other TS owners) use this route as a means to avoid their costs associated with foreclosure since they don't report regular loan activities to the credit agencies as part of their normal course of business.


Dave K.

Last edited by davek194 on Sep 28, 2012 05:59 AM

Sep 28, 2012

davek194 wrote:
jayjay please get your facts correct. Foreclosure due to non payment of a loan is NOT a foregone conclusion. It IS DEFINATELY one of the potential outcomes, but there are others such as a WDIL = warranty deed in lieu (of foreclosure). This basically forgives the outstanding loan and reverts the TS back to the owner. (NOT the same as a deed-back). It can result in a tax liability to the payee (in the US) depending on the amount foregiven and the current value of the property. Westgate (and SOME other TS owners) use this route as a means to avoid their costs associated with foreclosure since they don't report regular loan activities to the credit agencies as part of their normal course of business.

If you had explained what WDIL was in your previous post then I would not have responded as I did. In some cases some resorts will accept a deed in lieu of foreclosure to avoid the high cost of foreclosure. Does Westgate accept all deeds in lieu of foreclosure for whatever reason owners give (ie: if they simply want out)?


R P.

Last edited by jayjay on Sep 28, 2012 08:31 AM

Sep 28, 2012

Jayjay-Thanks for the response and apologies for my comment. Yes, it does appear that Westgate will give WDIL's in most cases of non-payment of the loan, but not without a fight. Usually they use their own in-house collection agency (ICA) first, but when this fails they will offer a WDIL (with a negotiable fee attached of typically $250+). It usually takes about 12-18 months of non-payment and coleections harassment before this happens. Part of the reason they use this approach is due to the way their loans are structured - very high interest rates using money from third parties - not a conventional mortgage and not from the banks. I guess for this reason they choose not to report payment history (either good or bad) to the credit agencies. Since PH in Las Vegas has been sold by WG to Hilton, Hilton is apparently proceding in a similar manner.


Dave K.
Nov 30, 2012

We are current with fees and own at Powhatan Plantation Williamsburg VA. where fees are $1250.00 per yr. We have not used it in many yrs. this is so wasteful and we can't get any help from Powhatan they simply will not return calls. any suggestions as to getting rid of this elephant on our backs....TIA


Christine H.
Nov 30, 2012

christineh300 wrote:
We are current with fees and own at Powhatan Plantation Williamsburg VA. where fees are $1250.00 per yr. We have not used it in many yrs. this is so wasteful and we can't get any help from Powhatan they simply will not return calls. any suggestions as to getting rid of this elephant on our backs....TIA

First of all, the cardinal rule in such a situation is to never, ever pay anyone a large, upfront fee to sell, rent out, market, or "cancel" your timeshare. If you haven't already, you'll probably start receiving calls from operations promising you miraculous help if you pay them a fee upfront.

Try advertising here in RedWeek's Bargain section that you want to give this away. You can also try advertising on E-bay, Craigslist, Bidshares, or My Resort Network.

Also, Timeshare Users Group (aka "TUG; tugbbs.com) has a Bargain Deals section where, for free, you can advertise that you simply want to give your timeshare away. Just follow the directions at the top of that page.

Remember, it takes time to find a taker so don't panic if you don't receive any bona fide inquiries in the first month or so, then turn to one of these parasitic outfits to get you out of your timeshare.


Lance C.
Nov 30, 2012

I just called again and finally got thru... They told me what to do but I had to know the right words. deed back the property worked. Now I will do what I need to do and report back on the process! wish me luck...she said it wouldn't a problem but then I owe nothing and am current with fees so....piece of cake. off to write that letter and mail it off to vegas!


Christine H.
Nov 30, 2012

I successfully used deed backs on two timeshares last year. They really do work. You have to use the home resort to do it easily. You must be current in your mainteanace fees and assessments. I had to pay the next years taxes and a minimal fee to process the paperwork. Just follow all the instructions to the tee and you should be allright as long as its through the home resort.


Don P.
Dec 10, 2012

debbies455 wrote:
so sorry.. JayJay -after transaction and legals, I make about $199.00 per transaction.. I make a little on the vacation club when I sell it individually also..(many companies charge thousands for a lesser product, mine is $499.00). I have had many people say they would love to be a member of the club but they were locked into timeshare.. this lead me to search and after a year I partnered with a company that will service my clients. I don't make millions. I don't think you have to take people to the cleaners in order to make a living. A slow and steady growing business makes me happy and I don't have to look over my shoulders because no-one is chasing me! :)

So how much is it to have an every other year 2 bedroom at Mystic Dune taken off someone's hands?


Sabina O.
Dec 11, 2012

Christine - We're in the exact same boat as you - Powhatan, paid up, etc. Can you provide a name/phonoe number that worked for you? You'd be saving a life!!


Tim S.
Jan 07, 2013

davek194 wrote:
Jayjay-Thanks for the response and apologies for my comment. Yes, it does appear that Westgate will give WDIL's in most cases of non-payment of the loan, but not without a fight. Usually they use their own in-house collection agency (ICA) first, but when this fails they will offer a WDIL (with a negotiable fee attached of typically $250+). It usually takes about 12-18 months of non-payment and coleections harassment before this happens. Part of the reason they use this approach is due to the way their loans are structured - very high interest rates using money from third parties - not a conventional mortgage and not from the banks. I guess for this reason they choose not to report payment history (either good or bad) to the credit agencies. Since PH in Las Vegas has been sold by WG to Hilton, Hilton is apparently proceding in a similar manner.

I have a timeshare @ The Grandview & El Dorado Resorts is offering a WDIL and says if I pay the quoted settlement amount they will cancel the mortgage and remove it from my credit report. I haven't done anything yet because I figured it was a way to get a response and if I paid it they wouldn't really contact and remove it from the credit bureaus. What do you think? Know of anything about Grandview and/or ElDorado Resorts Corp? If I don't then formal default proceedings will be taken & may obtain a deficiency judgment against me. Thoughts/opinions?? I mean I'm not sure what to do because I don't know if I can round up what they are even asking for. I lost my job in 2008 after my husband passed away from cancer then I also lost my house and am still unemployed with health issues. Things have been hard since he died and I tried working it out with them awhile ago after he died but they wouldn't. Now they want to when I have nothing. Again, Thoughts/opinions??


Michelle R.
Jan 07, 2013

You might consider walking away from it. If you lost your house and have a negative credit rating what else can they do to you ? They can't get blood from a stone. I doubt they would pursue you in court and spend time and money to get nothing. You might notify them of your situation and ask them to take it back through a deed back. That is just a simple quit claim form and it saves everyone the expense of costly legal action. Good luck.


Don P.
Jan 23, 2013

So are you saying that if you only owe maintenance dues that if you just stop paying these maintenance dues, there would be nothing reported against your credit. We have three timeshares and all are paid for but to be honest with you I am tired of paying maintenance on something that I really dont feel like I get the benefit out of. I contacted Donate for a Cause, thinking I could just donate our timeshares to charity and receive a tax write off and I was told that I would need to pay 2495.00 for the processing fee and 598.00 for the transfer fee to take the deed out of my name. I was surprised by this. Apparently this is the only way you can take a writeoff on your taxes. I am at a loss on what to do.


Kathy P.

Last edited by kathyv27 on Jan 24, 2013 04:49 AM

Jan 23, 2013

Anytime you default on payments it can be reported to the credit agencies. If the HOA decides to report the non payment they can but that is their decission. I contacted two HOA's two years ago and explained to them that I would be willing to transfer the titles back to them by a deedback. They both agreed and all I had to do was have all my payments up to date and pay the next years taxes and a nominal fee to transfer the titles. It saves the HOA the time and expense of forclosing on the property and not receiving maintenance fees.

Not all HOA's will do the deedbacks and in some instances it's on a case to case basis. If they realize it is in their best interest to take them back they will agree to it. If you can convince them that it would be best for them to go along they might agree to take it back. Just make sure you talk to someone who understands the process and nicely present your case. It worked for me. Good luck.


Don P.
Jan 23, 2013

kathyv27 wrote:
I contacted Donate for a Cause, thinking I could just donate our timeshares to charity and receive a tax write off and I was told that I would need to pay 2495.00 for the processing fee and 598.00 for the transfer fee to take the deed out of my name. I was surprised by this. Apparantely this is the only way you can take a writeoff on your taxes. I am at a loss on what to do.

Don't be fooled by the potential tax write-off. Claiming a tax deduction for donated property is a complicated, risky process.

If DFAC is charging "only" $2495, then likely it's one that can be easily resold. Try giving it away yourself for a lot less money. As DonP suggested, try contacting the resort's HOA and see if it will take the unit. Even if the HOA asks you to pay one or two years' maintenance fees, it will still work out cheaper than paying an entity $2500.


Lance C.
Jan 24, 2013

I talked to the DFC rep yesterday at length and he said that if we deed the timeshare back to the resort or if we give it away we will not get any write off on our income tax return. Whereas if we give it to DFC they will appraise it for us for a 150.00 fee(This fee is part of the 2495) and once the process is over, we will receive all the tax documents that will allow us to write off the appraised value of the timeshare plus the 2495 fee plus the transfer title fee plus any maintenance dues we have paid for 2013. I dont know if this is true or not.


Kathy P.
Jan 24, 2013

Don't get sucked into the phony tax deduction. The IRS rule is that you can only deduct the actual value of the item donated. Since timeshares have little or no value you won't be able to deduct the donation. They will promise you anything to get your money. Once the IRS disallows your deductiuon you will be on the hook for the taxes. I would advise you to use the deedback if they accept it. Forget the scammers promising you a deduction. They only want your money and then they disappear after giving you a useless piece of paper stating that you can deduct the timeshare from your income taxes. We have nothing to gain by telling you the truth. Lance, Jayjay and I have been in here warning people no to fall for the scammers pitches.

Do some homework and talk to an accountant and you will see that they are lying to you about deducting their fee and the phony appraisal. I will guarantee that if you decide to go with the scammers you will have many sleepless nights worrying that you gave them your money and got ripped off. There are many people in here with the same problem. 99% of them would gladly use the deedback than get involved with scammers. The scammers make their living off the 1% that believe they can beat the system.


Don P.

Last edited by donp196 on Jan 24, 2013 12:54 PM

Jan 25, 2013

So what should I do, contact the resort and see if they will take it back or try to sell my wyndham points. What other options are there?


Kathy P.
Jan 25, 2013

It can't hurt to do a little exploring. I read an article in Timesharing Today that suggested calling the home resort and asking if they will take it back through a deedback. It's important that you state your case properly. I informed them that I was going to rid myself of the timeshares with or without their assistance. They both agreed to take them back with just a quit claim deed. I just had to be current with my maintenance fees and assessments. I just had to pay the following years taxes and a nominal fee to transfer the deeds. Make sure you get the right party at the resort that deals with these matters. It worked for me.

I also heard that Wyndham points have value. You might be able to sell them on the open market. Good luck.


Don P.
Jan 26, 2013

Thanks so much I will look into both.


Kathy P.
Feb 07, 2013

What if it was given to you as a Christmas gift? This has quickly become a nightmare. I wasn't duped by a slick salesperson, and yet I'm stuck with the crappy consequences and dinged credit. Meanwhile, I'm paying for something I've only used once.


Olive T.

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