• The TUGBBS forums are completely free and open to the public and exist as the absolute best place for owners to get help and advice about their timeshares for more than 30 years!

    Join Tens of Thousands of other Owners just like you here to get any and all Timeshare questions answered 24 hours a day!
  • TUG started 30 years ago in October 1993 as a group of regular Timeshare owners just like you!

    Read about our 30th anniversary: Happy 30th Birthday TUG!
  • TUG has a YouTube Channel to produce weekly short informative videos on popular Timeshare topics!

    Free memberships for every 50 subscribers!

    Visit TUG on Youtube!
  • TUG has now saved timeshare owners more than $21,000,000 dollars just by finding us in time to rescind a new Timeshare purchase! A truly incredible milestone!

    Read more here: TUG saves owners more than $21 Million dollars
  • Sign up to get the TUG Newsletter for free!

    60,000+ subscribing owners! A weekly recap of the best Timeshare resort reviews and the most popular topics discussed by owners!
  • Our official "end my sales presentation early" T-shirts are available again! Also come with the option for a free membership extension with purchase to offset the cost!

    All T-shirt options here!
  • A few of the most common links here on the forums for newbies and guests!

Stopping payments after only 5 mortgage payments made

Tony Charlton

newbie
Joined
Nov 8, 2019
Messages
2
Reaction score
0
Points
1
Resorts Owned
Taino Beach, Grand Bahama Island
We signed up to buy a timeshare at Silver Lake Resort in Florida in May this year. A couple of months ago we decided we didn’t want to go ahead and emailed them to cancel the contract. We don’t expect to get back our deposit and the payments made so far and we assume that we will now lose any right to ownership of the timeshare. If you stop payments on a home mortgage, the bank will take over ownership and sell the home to recover their costs. Is it somehow different for a timeshare loan?

They are threatening us with late fees now and a debt collector if we don’t pay.

Has anyone else had a similar experience and what was the outcome?
 

TheTimeTraveler

TUG Member
Joined
Jan 23, 2008
Messages
5,952
Reaction score
2,858
Points
648
Location
Florida
We signed up to buy a timeshare at Silver Lake Resort in Florida in May this year. A couple of months ago we decided we didn’t want to go ahead and emailed them to cancel the contract. We don’t expect to get back our deposit and the payments made so far and we assume that we will now lose any right to ownership of the timeshare. If you stop payments on a home mortgage, the bank will take over ownership and sell the home to recover their costs. Is it somehow different for a timeshare loan?

They are threatening us with late fees now and a debt collector if we don’t pay.

Has anyone else had a similar experience and what was the outcome?



A contract is a contract. They can and may make your life miserable. You are well beyond the legal rescission date. At this point you own it and are responsible for it.

With that said I would suggest you contact them directly and try to work out a amicable solution for both parties.

Best of luck with your dilemma.






.
 

Passepartout

TUG Review Crew: Veteran
TUG Member
Joined
Feb 10, 2007
Messages
28,463
Reaction score
17,214
Points
1,299
Location
Twin Falls, Eye-Duh-Hoe
Tony, I'm sorry we didn't have this conversation before (or shortly after) you signed this contract. It may well be a painful decision on your part. This contract, like others is a legally binding agreement for you to pay an agreed upon amount. Now if you want to stop paying, you will lose whatever you have paid and may be obligated to pay legal fees to the seller. This debt may follow you for a decade or more, making getting other credit for a house, car, insurance, school loans impossible or more expensive. Be sure you know the consequences of default before you commit. About half of TUGgers bought our timeshares, didn't default, and now enjoy using them. The reasons you bought are still valid, and your family will benefit from the memories of great TS vacations. You can do worse than buckling down and paying it off. Your good credit will remain and you'll learn about the value of giving your family great times together.

Best wishes whichever way you go.

Jim
 

CalGalTraveler

TUG Review Crew: Veteran
TUG Member
Joined
Dec 21, 2014
Messages
9,749
Reaction score
8,274
Points
498
Location
California
Resorts Owned
HGVC, MVC Vistana
You may be in luck in Florida, because there is a non-judicial, anti-deficiency law that protects TS owners. Read below and consult a lawyer before acting.

@RCE-Ohio if your timeshare is in Florida there is something called a non-judicial, anti-deficiency rule that can be applied to timeshares. Bottom line: the worst they can do is take back your timeshare, hit your credit score, (and send you some nasty letters).

Read this thread and consult a lawyer before you take action. Because you have a mortgage they will go after you more heavily than someone who has paid off their timeshare and has decided to stop paying Maint Fees.

https://tugbbs.com/forums/index.php...paying-maintenance-fees-what-happened.296893/

Once you are educated on this and with the review of the lawyer, you can contact HGVC and offer to give them back the deed in lieu of foreclosure. If they refuse, then HGVC will have to go through the cost and delays of foreclosure and all they get in the end is the timeshare back on their books. So I would imagine HGVC would have an incentive to take you up on your offer to save the cost and hassle of foreclosure. If your mortgage is with HGVC, then it is really easy for them to take it back. If it is with a bank, there may be serious issues because the bank will want to be made whole on the loan.

YMMV. Speak with a real estate lawyer familiar with Florida laws as we are not lawyers here on TUG. (but now you know to ask the lawyer about non-judicial, anti-deficiency laws in Florida.) BTW...it also applies to timeshares based in South Carolina and California but not Nevada and Hawaii.
 

Tony Charlton

newbie
Joined
Nov 8, 2019
Messages
2
Reaction score
0
Points
1
Resorts Owned
Taino Beach, Grand Bahama Island
You may be in luck in Florida, because there is a non-judicial, anti-deficiency law that protects TS owners. Read below and consult a lawyer before acting.



Thanks very much for that and we will follow your advice.

Tony
 

rickandcindy23

TUG Review Crew: Elite
TUG Member
Joined
Jun 6, 2005
Messages
31,901
Reaction score
9,003
Points
1,049
Location
The Centennial State
Resorts Owned
Wyndham Founder; Disney OKW & SSR; Marriott's Willow Ridge,Shadow Ridge,Grand Chateau;Val Chatelle; Hono Koa OF (3); SBR(LOTS), SDO a few; Grand Palms; WKORV-OF (2),Westin Desert Willow.
Pam Bondi, as Florida AG, put in some protections for timeshare scammers, and I believe developers fall right in line with scammers. I have reported several scams aimed at me with resale companies and "rent your RCI extra vacations with us," scams over the years. I have been able to file official complaints.

However, if that fails to help you get out of this mess, a timeshare hit to your credit is not going to hurt as bad as other creditors. Credit reporting agencies really do look at timeshares as evil. I know because I helped someone write letters to reporting agencies about a default on a timeshare. They were still able to buy the house they wanted.
 

LannyPC

TUG Member
Joined
Jul 5, 2010
Messages
4,779
Reaction score
2,407
Points
448
Location
British Columbia
However, if that fails to help you get out of this mess, a timeshare hit to your credit is not going to hurt as bad as other creditors. Credit reporting agencies really do look at timeshares as evil.

Yeah it is kind of a catch-22. If someone is applying for a loan or credit who previously defaulted on a TS, the lender might look at this with either a glass half-full or half-empty approach. By one stretch the potential lender might look at the borrower and think, "This person took out a loan to pay for something and then let it go into default. Obviously this person does not know how to manage money or make good investments." Or, "If this person defaulted on a mortgage, he might do the same with any money we lend him. He's high risk."

OTOH, the lender could take the glass half-full approach and say, "This person did what he had to do to get rid of this albatross. This will now free up [insert amount of annual maintenance fees here] each year for him to pay the loan back."
 
Joined
Feb 3, 2019
Messages
47
Reaction score
17
Points
19
Location
Maui, Hawaii, USA
Resorts Owned
Hyatt Piñon Pointe (eoy odd)
Hilton on the Boulevard (eoy even)
Hilton on the Boulevard (annual)
Hyatt High Sierra Lodge (annual)
A couple of months ago we decided we didn’t want to go ahead and emailed them to cancel

I’m curious, what changed in these few months that made you decide to get out?
 
Top