Timeshare Payment Default

Discussion in 'Other Debt, Collection, Garnishment' started by Mac_, Feb 2, 2005.

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  1. Mac_

    Mac_ Law Topic Starter New Member

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    I own a timeshare but the monthly payments have become a burden and I wish to get rid of it. Two years ago, I contacted a real estate company in an effort to sell the timeshare. They collected fees related to valuation of the property etc., but to date it has not been sold. My question is: what happens if I simply stop paying? Can I get into legal, financial/credit problems by doing this. I don't care if I lose what I have already invested, I just don't want to keep paying. Grateful for any informed advice.
     
  2. ipamir

    ipamir New Member

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    Timeshare

    I am in exact same situation and very interested in the answer to this question as well.
     
  3. judysmsb

    judysmsb New Member

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    Timeshare Default

    My husband and I are also in the same position. When we contacted the timeshare property ownders to tell them we would forfeit payments to date to end the contract we were told that they could ruin our credit. They said they would sue us for the remainder of the loan and we would have to pay all of the legal fees. They implied it would cost us just as much as staying in the contract and our credit would be ruined. They said our only way out was to sell the property. We also paid money to a timeshare resale with no results. That appears to be a racket in and of itself.
     
  4. frankw

    frankw New Member

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    Collection problem on timeshare

    I have a friend that stopped making payments on a timeshare many years ago and was hounded for a long time by a collection agency. They eventually stopped for a few years, but then found her again and have begun sending threatening letters.

    Assuming that she simply stopped making payments way back when, what can or should she do now to get out of this collection crunch? Are her existing assets (such as a modest condo) at risk? My friend is of minimal means.
     
  5. laurajay

    laurajay New Member

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    stop payment on timeshare

    I would really like to hear answer to this one. Surely there is some way out of it without completely screwing up our credit.
     
  6. lwpat

    lwpat Moderator

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    Timeshare foreclosure

    Unfortunately there is no easy way out. If you stop paying they will foreclose and you will be responsible for all costs plus what you still owe. This will ruin your credit for seven years and make it difficult, if not impossible, to even obtain a car loan.

    Your best bet is to sell, even at a loss, and take the hit. You do not want to go through a regular real estate company to sell a timeshare, you need someone that specializes in them. I will do some research and try to post back. It would help if I had a little more information on the area, length of the timeshare, and about how much we are talking about.
     
  7. gatornative

    gatornative New Member

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    My husband recently went through this when he and his X-wife got a divorce. The payments got way behind and one wanted to own while they wanted the other to pay. The timeshare company actually offered an in-lieu offer, that if they would sign the timeshare over to them, they would pay them $250.00 and the only thing they would owe would be the maintenance fees if any were due. Supposedly this will alleviate them foreclosing and not go bad against their credit. You might see if your timeshare company has such an offer.
     
  8. Michael M. Wechsler

    Michael M. Wechsler Administrator Staff Member

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    This is good advice although lwpat is usually right on target. There is frequently little penalty in finding out whether such a deal can be struck since most simply want to get their money with the least pain possible. They realize that the alternative might be getting just a fraction of the money by selling it to be collected elsewhere.
     
  9. shutterbug

    shutterbug New Member

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    Our time share recently imposed an emergency assessment upon us. The timeshare has been progressively declining and we feel the management has not met the condition of the agreement that states they will maintain the property in good condition at all times. We do not own a deeded timeshare, but pay our fee as members of the Club. We have been members for over 10 years and long ago paid our purchase fee.

    The maintenance feel of this timeshare have been progressively rising and at the same time the property continues to decline. It is next to impossible to sell, even at a low price. If we do not pay this emergency assessment, I understand we would be in default. We do not want the timeshare and they can 'repossess' it and do as they please.

    Would we be legally liable if they have not upheld their part of the agreement? Obviously we do not want to ruin our credit - but this has become a real 'albatross' around our neck.
    Thanks for your help.
     
  10. Malibu_Barbie

    Malibu_Barbie New Member

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    If the timeshare company has breached the contract, then I would send it a letter via Certified Mail to notify it of it's default in maintaining the premises pursuant to the contract. If the default is not corrected within a reasonable amount of time (specify a reaonsonable amount of time to correct the problem), then I'd threaten to sue them for breach of contract. :)
     
  11. g5flier

    g5flier New Member

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    How to get out of your timeshare!

    Hello,

    I read this forum about a month ago while I was doing research on how to get rid of my timeshare. I to had a mortgage but I found a company by the name of timesharelegalgroup.com. I was skeptical at first but once the drew up a game plan the got me out of my contract. They went as far as even contacting the person who sold me the timeshares. I am not advertising but they do what they say. They even help with timeshare resale scam refunds.

    timesharelegalgroup.com
     
  12. piper8083

    piper8083 New Member

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    My timeshare is paid for, but I'm still paying maintenance fees. What will happen if I quit making those payments?
     
  13. guestpost

    guestpost New Member

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    If it's a Mexican timeshare owned by a Mexican company, just walk away.
     
  14. guestpost

    guestpost New Member

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    What a joke! You can't sell you can't even give it away. Royal Sunset in Cancoon will charge you 5x the maintenance fee just to cancel. Good luck!
     
  15. rie23

    rie23 Guest

    Review your contract to see if there is any penalty for cancellation. if not, I don't believe there is anything they can do if you walk away. You are not in violation of contract. I was told this from another timeshare company (telling me to just walk away)
     
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