Help...can't pay my timeshares anymore...what to do?

Can anyone help me? I have had timeshares since 2006. I have given over 40000$ so far...I have still 50000$ to pay on my timeshare mortgage. I have lost my job on account of health reasons...I have found a new job, however, I am making a lot less money...almost half of my old salary...so I don't have the money to pay 1300$ a month for the Timeshares and still have 9 years to go on the mortgage...Is there a way on negotiating with the Timeshare company to settle for the amount of points that 40000$ is worth...or do I just lose everything?

Unfortunately, in this economy, lots of people are struggling to pay for their timeshares, and the resorts don't want them back. If you stop payment, the loan company will turn you over to collections and it will damage your credit. Even if you get the timeshare developer to take the timeshare back, you will still be obligated to payback the loan. You probably need legal help.

Losing Everything Might Be Getting Off Light.

brissom said:

Is there a way on negotiating with the Timeshare company to settle for the amount of points that 40000$ is worth...or do I just lose everything?

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It's possible that losing the timeshare could be just the start -- for instance, if the timeshare company starts coming at you with bill collectors & court action, etc., to go after the rest of what's owed on the timeshare after they repo the timeshare.

That is, if you bought it from a timeshare company at full freight, there's no way it's worth anything close to the big bux you paid for it.

I feel bad about sounding so harsh, but it does you no favor to soft-pedal the bad news.

Sounds like a situation calling for the expert opinion of experienced financial advisors.

It's also a situation illustrating once again -- as if any more illustration were needed -- why buying a timeshare resale for cash is so much more advantageous than committing to a big load of debt to buy a big-bux, full-freight timeshare from a timeshare company.

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​

If the timeshare developer is "holding the paper"---that is---is keeping the contract for the timeshare, you might want to explain your situation to them, and see if you can "just walk away" from the contract, and the developer takes back fulll ownership of the timeshare. More than likely, they WILL NOT want to do that.

Then, if that is the case, you could explain to them, again, that, due to your new situation, you cannot afford to keep paying for the timeshare. Tell them that you know it will hurt your credit, but you have no other choice but to stop paying for it.

Your credit rating (probably) will take a big hit, but you have to do what you have to do "to survive". If the facts are explained to the developer, it would be in the best interest of them to "take back" the timeshare---would be less costly for them.

If a "third-party" bought the note, you should inform them of your situation, and see "what can be worked out". Many times, the "third-party" is also affiliated, or wholely owned, by the developer.

I believe it is amost "always best" to inform a creditor of "problems", rather than to just "stop paying". They don't know your situation, if you were to no longer make the monthly obligations, and would just assume you became a "deadbeat". Keep everybody informed.

Tony

Totally agree with Tony - talk to them, see if something can be worked out. Far better to try and fail than to just quit paying and risk worse consequences.

Sorry on your job loss, congrats on being employed again!

I have spoken to the sale rep. that sold me my last installment, and he told me that financial services may work something out. I then called financial services and they told me that they will foreclose on my timeshare...they didn't offer any more info. Being a Canadian, I don't know anything about foreclosures and the consequences...is it possible to "downgrade" on my Timeshare to what I have paid out already and settle...or is that impossible? I am presently at one of the resorts and an owner's update is scheduled for Saturday...should I go and explain my situation to them or should I run? I am very nervous...

You need to talk to an attorney or other financial advisor to determine your best course of action. The sales staff at the resort doesn't have the authority (or the motivation) to help you with your situation, so I wouldn't bother talking to them at the owner update.

Best of luck

brissom said:

I am presently at one of the resorts and an owner's update is scheduled for Saturday...should I go and explain my situation to them or should I run? I am very nervous...

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The timeshare salesmen are not your friends in this situation, and they have nothing to do with your loan. They will have zero motivation to help you and I would not go to a sales meeting...period.

That Is So True That It Deserves Repeating.

DeniseM said:

The timeshare salesmen are not your friends in this situation, and they have nothing to do with your loan.

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Absolutely correct.

Go tell your story to the timeshare sellers & they will listen sympathetically & tell you they have a deal for you that will take care of your problem if you just sign on the line. You sign & soon discover that you've just committed to buy another full-freight timeshare for big bux, meaning you're in deeper financial trouble than you were already in.

Get professional financial counseling if need be, but stay far away from any timeshare sellers & timeshare companies -- & above all have nothing to do with any of those timeshare salvation & timeshare riddance & timeshare exit & timeshare liberation type organizations.

Click here for a hypothetical nightmare scenario illustration why you should steer clear of those folks.

Good luck.

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​

Contact the resort and tell them you don't recall buying it.

1950bing said:

Contact the resort and tell them you don't recall buying it.

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I don't think that will work since the OP has been making payments on it.

Sue

You bought for over $90,000, is that right? If it is, what TS sytem do you buy? (Hope you'll say westin or Marriott in Hawaii) Because many of the Hawaiian TS are still worth alot of money. And you may be able to sell for about what you owe.

Sorry, the $40,000 you've paid already is very likely lost.

Other than the Westin & Marriott TSs in Hawaii, most are TS are selling for 30% or less ( some much less) of what the developers are charging.

brissom said:

I have given over 40000$ so far...I have still 50000$ to pay on my timeshare mortgage. I don't have the money to pay 1300$ a month for the Timeshares and still have 9 years to go on the mortgage.

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OUCH! Forgive me here for kicking you while your down, but what the he** were you thinking??? that's $15,600 a year plus maint fees???
I agree with a previous poster, you need some legal help with this one.
I don't think there's a silver bullet here that can answer your situation, you are almost half way into a $90K commitment. any equity in your home?
rolling the 50K into a HELOC, or taking a second morgage really isn't a smart financial move,but it might lessen the monthly nut.
The Sales Rep isn't someone you need to be calling, He/she isn't your friend!
the sales rep is the @$$%$#@ that put you into this situation! RT

roadtriper said:

OUCH! ...the sales rep is the @$$%$#@ that put you into this situation! RT

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No... He just accommodated the op

Tell them you don't recall any payments either.
It works in Washington !:hysterical:

Bill4728 said:

You bought for over $90,000, is that right? If it is, what TS sytem do you buy? (Hope you'll say westin or Marriott in Hawaii) Because many of the Hawaiian TS are still worth alot of money. And you may be able to sell for about what you owe.

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But it will be very tough to do that logistically, because of the note on the property, won't it?

Let's say you found a buyer willing to buy for $30k. At that point, you'd need to talk to whomever holds the note and convince them to take that amount in leiu or foreclosure. If you can't extinguish the note, you can't ever pass clear title, and so you'd be forced to come up with the difference yourself (or take out another loan to cover the difference).

Yuck. Yuck. Yuck. Sorry about this.

Perhaps there's a loophole (appears to apply to a primary residence though) based on the amount you mention you owe, to get refinanced or to get a modification of terms under the recently announced foreclosure relief plan.

Has anybody read the news lately on the housing market? Foreclosures are at an all time high. We are in troubling times and the rules we all usually abide by have changed. See a lawyer? Think that's going to be cheap?

Hate to say it, but if you can't afford it anymore, ditch it. If your credit takes a hit, you'll find comfort in the fact that hundreds of thousands of people who lost their primary residence are in a lot worse shape than you are.

Not uncommon problem

Somebody above is questioning the amount paid for the condo. It is high, but definitely possible if in Maui (Ocean front Westin) or Oahu in the Hilton property.

Many are just walking away. Since you have financed, the unit will be foreclosed and yes your credit will be take a hit as indicated above. You are not a bank and do not qualify for a bail out. You are in a high end timeshare and the associations in such timeshares are willing to work with you. It sounds like your timeshare is still in the development phase, which as also stated above gives you more bargaining power. So, to answer your question you have to get rid of this timeshare. Deed it back. Sell it on ebay or at TUG at a loss but enough to somewhat cover your losses. We here at TUG love to by timeshares at the lowest possible price. Last resort, walk.

Harry

brissom said:

Can anyone help me? I have had timeshares since 2006. I have given over 40000$ so far...I have still 50000$ to pay on my timeshare mortgage. I have lost my job on account of health reasons...I have found a new job, however, I am making a lot less money...almost half of my old salary...so I don't have the money to pay 1300$ a month for the Timeshares and still have 9 years to go on the mortgage...Is there a way on negotiating with the Timeshare company to settle for the amount of points that 40000$ is worth...or do I just lose everything?

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If you pay $1300 a month on a $50,000 loan for 9 years, that is about an interest rate of 30% - I know Timeshare companies have huge interest rates, but it can't be that high.

Additionally, if you have 50k to pay, at $1300 a month for 9 years, you are looking at $140,400 in payments. Something isn't adding up right here.

The 1300$ a month is in canadian funds including the maintenance fees, so 730$ mortgage plus 250$ for maintenance fees in US funds.

brissom said:

The 1300$ a month is in canadian funds including the maintenance fees, so 730$ mortgage plus 250$ for maintenance fees in US funds.

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I'm sorry for your troubles, but I can't believe you agreed to this. Did you try to refinance it for better terms?

It would help if you could be morpe specific about what you purchased. We are getting distracted by trying to imagine what you would own that would cost $3000 in annual mf's.

eal said:

It would help if you could be morpe specific about what you purchased. We are getting distracted by trying to imagine what you would own that would cost $3000 in annual mf's.

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Actually, because of the TUG no advertising rule, the OP is not permitted to post that info. here. Once you say that you want to sell or rent your timeshare, posting specific details may be interpreted as advertising.

But they can update their Profile to add their resort name

Log in
Select "User CP" from the menu bar under the TUG BBS banner.
From the Control Panel in the left hand column under Settings & Options, select Edit Profile
Scroll down and in the last section titled Additional Information type in your Resort Name in the text box titled Resorts Owned (optional).
Click Save Changes