Grandparents are in a difficult position

vacationhopeful · Aug 17, 2014

CrescentWrench said:
... Westgate gave one of the aunts that is being somewhat proactive a folder with information on renting out the unit next year.

You truly need to understand the terms of the RENTAL AGREEMENTs. Most developer/site manager's terms are BAD and UGLY. Really BAD and UGLY.

I know Wyndham via Extra Holidays (their rental arm) charges a 40% commission on the gross amount of the rental. If only 1 day is rented, the other 6 don't get rented (as it "uses" that reservation in total). The owner gets to pay all charges - credit card fees, processing fee (taking the order), advertising cost, etc... And if they can rent any of your reservation, it is at WHATEVER rate THEY claim - so, I might get 20-30% net of 1 night rental --- if they rent ANY days. And once turned over, you cannot find out if it is rented or for how many days. End of the month following your reservation end date, you either get a check or not.

I don't know what Westgate does - but I can't see them being any better than Wyndham's ways.

Rent_Share · Aug 17, 2014

Let it go to foreclosure

alwysonvac · Aug 17, 2014

vacationhopeful said:
I think a FAMILY DINNER is necessary - the new husbands should be brought up to date on their wives' financial PROBLEM which will DING their credit BIG TIME.

AND I still say to you and YOUR PARENTS, not one more cent gets paid out of their bank accounts for the timeshare anything! Let the debt rain down on the girls - esp the one who has been using it for FREE every year (and apparently, guilt free usage to boot).

Ditto!! Let it go and see what happens.
I don't know much about bankruptcy but I'm assuming they can file later if it becomes ugly.

I'm sure the default consequence for timeshare loans and maintenance fees varies by timeshare resort developer. Folks generally don't come back here to share what happens when they stop payment. I hope you come back to share their experience after a year or two.

Good Luck

pacodemountainside · Aug 17, 2014

alwysonvac said:
Ditto!! Folks generally don't come back here to share what happens when they stop payment. I hope you come back to share their experience after a year or two.

Good Luck

GF did own at PH and stopped paying both MF and loan.

For about 6 months got phone calls, e-mails, letters, etc. demanding payment.

Said no way. Keep sending revised agreements and wanted me to co-sign and just tore in 1/2 and sent back.

Finally she called and said condo was foreclosed, have over $30K in CC debts, living on SS diand IRA and FICO score is undrer 500. Verify if you want.

You have 2 weeks to accept deed back and issue general release or I will use deed to start bar-b-que fire.

They finally agreed as it was clear this was cheapest route.

Of course, this is extreme case, but one can play hard ball with Westgate.

Pat H · Aug 17, 2014

Like others have said, your grandparents should not spend another cent on payments on the loan or the maintenance fees. At this point in their lives their credit score doesn't matter much unless they will need to buy a car or another house. Taking their name off the deed doesn't matter, it's the loan that counts. I'm sure your grandparents are old school and believe that they should always pay their obligations but this time they have to do what's best for them. $9600 in yearly payments plus a couple of thousand in m/f's is a lot of money that they could use themselves. Stop paying now.

pacodemountainside · Aug 17, 2014

Over Simplifying

IMHO this is getting beyond TS Experts expertise.

Basically we have an underwater ownership situation and several people liable for debt.

In this case it is TS, rather than SFR, Condo, boat, airplane, car, etc. Granted most items some residual value while most TS are resting on ocean floor, but problems are pretty much the same.

This is really a legal/financial problem that is best addressed by lawyer/financial expert, etc. with all of the details and the ramifications identified. From limited information available it appears co-signers have large equity in house that could be leined while others live pay check to pay check.

If bankruptcy and no homestead exemption, where do they live? What are personal property and car exemptions?

That family is involved further complicates.

From the flag pole, maybe letter from grandparents attorney advising dead beats that they need to forgo big screen TVs, fancy electronics, TGIFing, cut up credit cards, new supersudser, etc. or collection action will be commenced.

I think this is what Ann, Abby, DOC Phil, et. al. call "enabling".

Since everyone else is is happy and grand parents are suffering the ball to do something is in their court!

sue1947 · Aug 17, 2014

CrescentWrench said:
Sorry for questions. I am still a young and ignorant 25 year old with a poor credit rating myself due to stupidity when I was 18/19.

Just want to give kudos to the OP for helping the grandparents out. We were all pretty stupid at 18/19 and even later. You seem to have a pretty good head on your shoulders at 25 when many (like your aunts) still haven't wised up.

Personally, I'd pay for some time with a lawyer to lay out the facts of life for all concerned. Once the grandparents have all the information and have decided how to proceed, you should back out of it. This has family feud written all over it.

Sue

vacationhopeful · Aug 17, 2014

pacodemountainside said:
IMHO this is getting beyond TS Experts expertise.

Basically we have an underwater ownership situation and several people liable for debt.

In this case it is TS, rather than SFR, Condo, boat, airplane, car, etc. Granted most items some residual value while most TS are resting on ocean floor, but problems are pretty much the same.

This is really a legal/financial problem that is best addressed by lawyer/financial expert, etc. with all of the details and the ramifications identified. From limited information available it appears co-signers have large equity in house that could be leined while others live pay check to pay check.

If bankruptcy and no homestead exemption, where do they live? What are personal property and car exemptions?

That family is involved further complicates.

From the flag pole, maybe letter from grandparents attorney advising dead beats that they need to forgo big screen TVs, fancy electronics, TGIFing, cut up credit cards, new supersudser, etc. or collection action will be commenced.

I think this is what Ann, Abby, DOC Phil, et. al. call "enabling".

Since everyone else is is happy and grand parents are suffering the ball to do something is in their court!

Paco - you have offer lots of GOOD ADVICE - and it seems you were on the sidelines with a friend who had to do WHAT these grandparents' path must be. Professional legal and financial services need to be obtained ... these co-owners might OWE much more money (credit cards) and OWN no assets. The grandparent's can't rebuild their finances if the ONLY assets are the stuff they own.

TO CrescentWench: Paco is absolutely level headed and giving GREAT ADVICE. There are so many variables with the 2 daughters (and now NEW HUSBANDS who are not on the Westgate loan). For instance, your parents own their house as H&W; as is their mortgage on the Westgate debt. The sisters brought the property as SINGLE PERSONS; their assets now might be "protected" under the innocent spouse ownership or in retirement accounts. Someone else mention, Homesteading - is a protection of the HOME assets by some states laws.

Please stay on top of this - just DO NOT SIGN ANYTING, not even for their lawyer. After all, their lawyer WANTS his fees paid.

Grandparents are in a difficult position

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