Westgate Deed in Lieu of Foreclosure

Hello there -

I mistakenly bought a Westgate timeshare about 20 years ago. I never paid it off and stopped paying maintenance fees several years ago. I recently received a letter from Westgate threatening foreclosure. They also offered the option to execute a "Warranty Deed in Lieu of Foreclosure"

It says "This document, once signed, notarized and forwarded to this office with he applicable processing fee of $1,735.00, will enable us to release you from your obligations and all further liability. Your account will be closed and negative reporting will be withheld from the applicable credit agency."

I have tried to find an attorney to review this before I proceed but haven't had any luck finding someone decent. I hate to spend that much money but it might be the best way out for me.

1. Has anyone else taken advantage of an offer like this and is it legit?

2. Does anyone have a recommendation for an attorney to review this?

Thanks for any feedback or recommendations!

If you are dealing directly with Westgate then there should be no problem .

drewl44 wrote:

I mistakenly bought a Westgate timeshare about 20 years ago. I never paid it off and stopped paying maintenance fees several years ago. I recently received a letter from Westgate threatening foreclosure. They also offered the option to execute a "Warranty Deed in Lieu of Foreclosure"

It says "This document, once signed, notarized and forwarded to this office with he applicable processing fee of $1,735.00, will enable us to release you from your obligations and all further liability. Your account will be closed and negative reporting will be withheld from the applicable credit agency."

I have tried to find an attorney to review this before I proceed but haven't had any luck finding someone decent. I hate to spend that much money but it might be the best way out for me.

1. Has anyone else taken advantage of an offer like this and is it legit?

2. Does anyone have a recommendation for an attorney to review this?

Thanks for any feedback or recommendations!

Westgate has had a "deedback" program ("Legacy") in place for some years now, charging $1,800 for "deedbacks". However, the customary requirement (just as with any other company allowing "deedbacks") is that there be no unpaid loan balance and that all maintenance fees are fully paid up to date. By your own description, you fulfill neither one of those customary requirements, so the "offer" seems a bit unusual. Are you quite certain that the correspondence you received is from Westgate and not from some scam operation? I would recommend contacting Westgate directly by phone to verify to your personal satisfaction the legitimacy of this "offer"; Westgate corporate offices are located in Ocoee, FL. It could be legit; Westgate might be easing restrictions in order to generate cash from delinquent accounts. The actual legitimacy of this offer is something that you need to verify for yourself, directly with Westgate.

If you can verify the legitimacy of the communication you received, I'd recommend proceeding without further delay and get out of any and all further obligations to Wastegate --- legally, cleanly and permanently. Also, in my personal opinion, if the offer is indeed legitimate, you don't really need to pay an attorney good money just to "review" something as straightforward as the plain English content of the document you have quoted above.

Westgate is ultimately going to foreclose anyhow, with or without your cooperation, if you already haven't been paying your fees "for several years". It's likely that the only reason they haven't foreclosed already is the unpaid loan balance. If legit, an important difference with this particular "offer" is that you would apparently not get a credit report "ding" for defaulting on your loan obligation. Frankly, I've never heard of any such offers before, but if it's legitimate I'd get your notarized signature and check ready and get yourself removed from any and all further association with Westgate.

On the other hand, if you don't care about your credit rating, pay Westgate nothing further and just let them go ahead and foreclose. If you choose that option, it is possible (even likely) that you would receive a negative credit report "ding" for defaulting on the unpaid loan balance (developers seldom bother with negative credit reporting when it's only for unpaid fees). The effects of that negative credit report would then remain in place as a matter of record for 7 years.

Ultimately, it is your personal decision and choice --- after direct inquiry and verification with Westgate. Good luck.

drewl44 wrote:

...stopped paying maintenance fees several years ago. I recently received a letter from Westgate threatening foreclosure.

How many years ago is "several years ago"? Have you received any other letters from Westgate during these years that you haven't paid maintenance fees? I would suspect that Westgate would have sent you letters before now demanding that you pay. If you have not paid for "several years" now, I wonder why Westgate hasn't already foreclosed.

But, as KC suggested above, either pay the $1735 and get out of your obligation permanently and cleanly or don't pay, let it go into foreclosure, but risk a credit hit.

drewl44 wrote:

Hello there -

I mistakenly bought a Westgate timeshare about 20 years ago. I never paid it off and stopped paying maintenance fees several years ago. I recently received a letter from Westgate threatening foreclosure. They also offered the option to execute a "Warranty Deed in Lieu of Foreclosure"

It says "This document, once signed, notarized and forwarded to this office with he applicable processing fee of $1,735.00, will enable us to release you from your obligations and all further liability. Your account will be closed and negative reporting will be withheld from the applicable credit agency."

I have tried to find an attorney to review this before I proceed but haven't had any luck finding someone decent. I hate to spend that much money but it might be the best way out for me.

1. Has anyone else taken advantage of an offer like this and is it legit?

2. Does anyone have a recommendation for an attorney to review this?

Thanks for any feedback or recommendations!

Hi Drew,

What was your final outcome? Was this a scam? Did Westgate allow you out with the $1700 plus payment?

I would sign up with a legal shield program that is about 30.00 a month and u get a free benefit of 25 page contract review and they have ability to review all states. I would have them look over the agreement and you can determine if u can add no negative reporting. Then determine if I u want to pay the processing fee. You can also link up with lexington law which provides reasonable assistance and help with credit report. They give a free look at ur report and consultation Or call 888-226-5977 »

reginad105 wrote:

I would sign up with a legal shield program that is about 30.00 a month and u get a free benefit of 25 page contract review and they have ability to review all states. I would have them look over the agreement and you can determine if u can add no negative reporting. Then determine if I u want to pay the processing fee. <snip>

I despise Westgate and everything about it. That clearly said, Westgate has a long standing reputation for having absolutely no fear of litigation. Westgate keeps a cadre of well paid and capable attorneys quite busy and their sales contracts are iron clad. With all due respect, it is (in my opinion) just delusional to believe for one moment that a "Legal Shield membership" would be in any way useful or in any way effective in dealing with Westgate (the actual topic of this particular thread), but it's your money.

Credit report only stays for 7 years starting from the first missed payment that leads to the foreclosure. Assuming you have stopped paying for 4 years, the hit essentially stays just 3 years on the credit report. Is it correct?

pengx wrote:

Credit report only stays for 7 years starting from the first missed payment that leads to the foreclosure. Assuming you have stopped paying for 4 years, the hit essentially stays just 3 years on the credit report. Is it correct?

My own understanding is that a negative credit report, once filed after a foreclosure, begins upon foreclosure filing date, remaining in place for seven years thereafter. I don’t believe that your interpretation stated above is correct, but I could certainly be mistaken.

Frankly, I just cannot imagine that lenders (banks, auto loan originators, mortgage companies, etc.) would ever tolerate a system in which they are left completely unaware of a multi-years, ongoing, unpaid debt record preceding actual foreclosure proceedings.

pengx wrote:

Credit report only stays for 7 years starting from the first missed payment that leads to the foreclosure. Assuming you have stopped paying for 4 years, the hit essentially stays just 3 years on the credit report. Is it correct?

Based on what you've said and what you said in the other thread Get Out of Westgate Resorts, are you currently in a situation where you might have to stop payments and wondering what your next best option is?