Getting Rid of a Timeshare

Sorry for the long post, but here our current scenario:

Decided to stop paying MF and TS loan back in Feb 2019. Got tired of never being able to use it our RCI, endless fees, TS company bait and switching us at sale, etc. Attempted to use it with hotel points transfer also. But that was a waste. So, here we are:

TS purchased for - $20,000; Value based on research - <$2,000 TS Loan amount owed - $16,000 MF per year - $1,200 and climbing. Amt owed with fees now - $1,809 Wrote letter after TS Company sent foreclosure letter asking for Deedback in Lieu with no summary judgement based on fraudulent and unethical behavior Received letter from TS company They say "we...are confident we have complied with the applicable laws of the states of...blah, blah, blah. However, we are willing to accept a Warranty Deed and transfer of title (back to them) for... Past due MF - $1,809 and a portion of the balance of loan = $7,401 (???) So, what do I do? See below.

1. Tell them to foreclose on it. Credit is 840 and TS Loan has never been listed on either credit report. 2. Write back and reiterate I am paying nothing and reiterate their unethical practices and threaten to send requests to BBB, and Attorneys General. Which probably means they will foreclose. 3. Write them back and try to negotiate lower pay off. ie. MF and just enough to pay closing costs = $3,300 4. Accept their proposal and make "payment arrangements" for the $9,200, which to me means $500/mo to get this albatross gone. 5. Recommendations...

Thanks for the help!

3

You are lucky they have made an offer to let you exit.

Keep negotiating, while stating what you really want to do is just stop paying altogether.

"Pay off the debt. Some collectors will accept less than what you owe to settle a debt. Before you make any payment to settle a debt, get a signed form or letter from the collector that says the amount you’re paying settles the entire debt and releases you from any further obligation. Also keep a record of the payments you make to pay off the debt.

You also can get a collector to stop contacting you, at any time, by sending a letter by mail asking for contact to stop."

https://www.consumer.ftc.gov/articles/debt-collection-faqs#targetText=The%20FTC%20enforces%20the%20Fair,practices%20when%20they%20collect%20debts.

The thought occurred - if no record of timeshare purchase via loan or credit on any credit reports, then how might a default on maint. fees be submitted by TS company and recorded by credit agencies?

billm752 wrote:

The thought occurred - if no record of timeshare purchase via loan or credit on any credit reports, then how might a default on maint. fees be submitted by TS company and recorded by credit agencies?

If I understand what you are asking, all they have to do is report the delinquency to the credit agencies.

It has nothing to do with the purchase being "recorded". - - - - - - Somewhat related to your question . . . how can a resale timeshare buyer be bound to maintenance fees when there is no purchase contract? . . . if you will look at the wording on standard TS deeds, the verbiage binds the buyer to the obligations of the timeshare plan.