credit ruined by [defaulting on] timeshare

[weegie57]

I purchased a timeshare nearly 30 years ago. used it once, paid the ever increasing maintenance fees for a few years until I gave up and quit paying. Finally, as of last month, they filed a collections on my credit report and apparently intend to sue and garnish my wages. I spoke to an attorney who said he could make it go away for $3800. I owe over 27k in maintenance and "special" fees. Anyone have any advice?

 

[DeniseM]

When you quit paying the maintenance fee, what actions did you take to get rid of your deeded ownership, and your contractual obligation?

 

[Rent_Share]

Google FDCPA and dispute the debt, particularly based on the time.

Companies have been know to try to collect outside of the statute ol limitations for debt

 

[jlf58]

Depends on where you live. In Florida if you own a home and are the breadwinner, they can't attach a lien to your house or garnish your pay.

I purchased a timeshare nearly 30 years ago. used it once, paid the ever increasing maintenance fees for a few years until I gave up and quit paying. Finally, as of last month, they filed a collections on my credit report and apparently intend to sue and garnish my wages. I spoke to an attorney who said he could make it go away for $3800. I owe over 27k in maintenance and "special" fees. Anyone have any advice?

 

[Passepartout]

weegie57, thanks for posting this. People frequently post here asking 'What happens if I just quit paying my MF? What can they do?' Some friendly TUGger frequently tells them to just give the thing away and get their name off the deed. At the worst, they can get foreclosed on, sent to collection, credit ruined, and then can't sell the TS because it has a lien. They usually just go away, having not taken what they were told seriously.

Since you have posted the above, now we know. And actually contrary to your title to the thread, the timeshare didn't ruin your credit. You did. By not paying the responsibility you took on when you bought it. Your problem is not the timeshare's fault.

We are sorry for your predicament, but not sympathetic. This is the Timeshare USER'S Group. We use our timeshares. And when some deadbeat defaults on their responsibility, all our payments go up to cover what people like you didn't pay, along with the legal fees to collect it.

So pay up what you owe, then either USE the TS or get rid of it. We can help with that part.

Jim

 

[VegasBella]

If you trust the lawyer and have the money/something to lose, then maybe you should pay him/her to "make it go away." I might do that were I in your shoes so long as the lawyer was a friend or I'd previously done business with him/her.

But I might first try contacting collections and arranging a settlement for about that same amount ($3800). Just get it in writing that this payment clears all debt for this timeshare. You can get free help with that from a reputable consumer credit counseling agency. Key word: reputable. There are also plenty of websites that can help you learn to settle debts and clean up your credit. Google is your friend. Here is one article: http://www.investopedia.com/articles/pf/09/debt-settlement.asp

Also, you may want to examine your need for good credit? Do you really even need or want it? Prioritize! Cash is always more valuable than a high credit score.

 

[Rent_Share]

IWe are am sorry for your predicament, but not sympathetic. This is the Timeshare USER'S Group. We use our timeshares. And when some deadbeat defaults on their responsibility, all our payments go up to cover what people like you didn't pay, along with the legal fees to collect it.

So pay up what you owe, then either USE the TS or get rid of it. We can help with that part.

Jim

Speak for yourself

 

[dougp26364]

I purchased a timeshare nearly 30 years ago. used it once, paid the ever increasing maintenance fees for a few years until I gave up and quit paying. Finally, as of last month, they filed a collections on my credit report and apparently intend to sue and garnish my wages. I spoke to an attorney who said he could make it go away for $3800. I owe over 27k in maintenance and "special" fees. Anyone have any advice?

Find out the statute of limitations for this type of debt.

Find out WHO is attempting to collect. This could be one of those collection agencies that buys uncollectable debt and then attempts to scare people into paying, even though they have no legal grounds. I get them periodically for a bad credit card debt when Cap One issued a card to someone else in my name. Even though it's WAY past the statute of limitations to collect that debt, these agencies who buy the debt for pennies on the dollar still try. I have a letter on file that gets sent to them every time I hear from one, which is at least once a year.

A threat of a lawsuit and garnishment means nothing. It's often just a scare tactic. It's also a scare tactic that could get them in trouble, although you'd be hard pressed to ever collect damages from them.

If you haven't seen your credit report, get a copy. Threats mean nothing. See it in writing. If they have filed an uncollectable debt on your report you have the right to dispute it. However it sounds as though this could be a valid statement.

 

[dioxide45]

When did you give up and quit paying? You owned it for 30 years, but if you gave up about 5 years ago, i don't see how you could have amassed $27K in past due MFs and fees. I really don't know how it all works, but if they have a lien on the property, isn't their only recourse foreclosure?

 

[RX8]

The way I understood it is that he stopped paying about 25 years ago. Seems strange. Here is a link that has statute of limitations by state. Most are less than 10 years.

http://www.fair-debt-collection.com/SOL-by-State.html

Either we don't have the full story by the OP or maybe some unscrupulous collection agency has pulled a very old file and is trying to squeeze some cash out of the OP.

 

[Rent_Share]

With renewal judgments can last 10 + 10 Years but they are not there yet.

The only state with an outrageous SOL is Ohio (15 years Written Contracts), not many Timeshares on the Ohio River

 

[dougp26364]

When did you give up and quit paying? You owned it for 30 years, but if you gave up about 5 years ago, i don't see how you could have amassed $27K in past due MFs and fees. I really don't know how it all works, but if they have a lien on the property, isn't their only recourse foreclosure?

Depending on the original amount, length of time, interest, penalties, late fee's, collection fee's, legal fee's, bogus made up fee's et..... It can add up fast.

They'll hit you with some outrageous trumped up total, then tell they'll settle for a fraction of that amount like 10-20% to call it even. Anything they get is almost pure profit.

 

[PassionForTravel]

The other key thing to remember is if you are past he statute of limitations and you pay anything, the clock starts again. It's what some of the unscrupulous collection agencies do and then they sell the debt for more than they paid for it because its back within the statute of limitations.

Ian

 

[Passepartout]

Speak for yourself

Sorry if the 'inclusive we' confuses you. Read this for explanation: http://en.wikipedia.org/wiki/Clusivity

 

[SmithOp]

Sorry if the 'inclusive we' confuses you. Read this for explanation: http://en.wikipedia.org/wiki/Clusivity

and I was sure it was nosism, oh well...

http://en.wikipedia.org/wiki/Nosism

 

[csxjohn]

I purchased a timeshare nearly 30 years ago. used it once, paid the ever increasing maintenance fees for a few years until I gave up and quit paying. Finally, as of last month, they filed a collections on my credit report and apparently intend to sue and garnish my wages. I spoke to an attorney who said he could make it go away for $3800. I owe over 27k in maintenance and "special" fees. Anyone have any advice?

If this timeshare is still in you name you are incurring MF debts annually. Although you may be past the statute of limitations on some of the earlier years, you are probably on the hook for the recent years.

I would like to hear the full story, like when you stopped paying, did you get your annual MF notice every year, did they send out requests for delinquent payments and thinks like that.

I'd also like to know where you own.

 

[bogey21]

Find out WHO is attempting to collect. This could be one of those collection agencies that buys uncollectable debt and then attempts to scare people into paying......A threat of a lawsuit and garnishment means nothing. It's often just a scare tactic.

This is really important. Find out who you are dealing with. It may change the way you look at things.

George

 

[dougp26364]

If this timeshare is still in you name you are incurring MF debts annually. Although you may be past the statute of limitations on some of the earlier years, you are probably on the hook for the recent years.

I would like to hear the full story, like when you stopped paying, did you get your annual MF notice every year, did they send out requests for delinquent payments and thinks like that.

I'd also like to know where you own.

It would be VERY important to know if the HOA ever foreclosed on the unit. If they foreclosed, then I'm assuming the ownership transfered out of the OP's name and to the HOA. If not, then debt continued to accumulate and I'd have expected that the OP would have continued to receive MF invoices each year.

There's a LOT we don't know about this and I don't believe the OP has returned to enlighten us. For all we know it's some joker with a PCC trying to scare people into thinking their services are legitimate. Next thing you know TUG could see a rash of spam from these sorts of scammers.

Right now this appears to be a hit and run post and not something I'm inclined to be to concerned with aside from the fact it's provided some interesting conversation.

 

[Bill4728]

The other key thing to remember is if you are past he statute of limitations and you pay anything, the clock starts again. It's what some of the unscrupulous collection agencies do and then they sell the debt for more than they paid for it because its back within the statute of limitations.

Ian

In most states this is true. NEVER PAY ANYTHING TILL YOU SPEAK TO YOUR OWN LAWYER!

 

[TUGBrian]

just another quick question, have you verified that its on your credit report?

was it the resort that told you this, or the random folks contacting you to collect?

 

[artringwald]

just another quick question, have you verified that its on your credit report?

was it the resort that told you this, or the random folks contacting you to collect?

Getting a free credit report is an excellent idea. Collection agencies almost tell as many lies as timeshare sales people. This is the only site that give you free credit reports without using fine print to trick you into signing up for useless services:

https://www.annualcreditreport.com

 

[BocaBum99]

I purchased a timeshare nearly 30 years ago. used it once, paid the ever increasing maintenance fees for a few years until I gave up and quit paying. Finally, as of last month, they filed a collections on my credit report and apparently intend to sue and garnish my wages. I spoke to an attorney who said he could make it go away for $3800. I owe over 27k in maintenance and "special" fees. Anyone have any advice?

You should probably hire an attorney, but one that you trust and know. Not someone who cold called you.

The biggest mistake you made was allowing this liability to linger for so long without doing anything about it. You could have paid someone years ago to help you liquidate it.

Today, the options for liquidating timeshares are dwindling because so many timeshares have zero or less value. They need to go out of business and there is no way for them to do so. So, you are in an uphill battle.

In your settlement with the HOA, make sure that you help other owners who also want out of their timeshare ownerships at your resort by including a term in your agreement that the resort must agree to making a deed back program for all owners at some price. There are loads of HOAs that are against it and some TUG members who support such horrible policies. You can do you part by supporting other owners such as you who want out and your HOA won't let them out.

 

[Rent_Share]

In your settlement with the HOA, make sure that you help other owners who also want out of their timeshare ownerships at your resort by including a term in your agreement that the resort must agree to making a deed back program for all owners at some price. There are loads of HOAs that are against it and some TUG members who support such horrible policies. You can do you part by supporting other owners such as you who want out and your HOA won't let them out.

OVER THE TOP

Why not also stipulate a percentage be donated to the federal government for deficit reduction and an equal percentage to the United Nations to promote world peace.

If the OP does get a settlement, it more likely will have a clause that says the terms of the settlement are confidential and any breach of that confidentiality will negate the settlement and the entire amount is due

You having multiple timeshares are looking for an orderly liquidation, the OP just wants this monkey off his back, he owes the other owners at the resort nothing

 

[Brerrabbit]

You could probably file bankruptcy on it if there was no other alternative

I have seen ads for lawyers who will do bankruptcy cases for much less than $3800.

 

[Beefnot]

Sorry if the 'inclusive we' confuses you. Read this for explanation: http://en.wikipedia.org/wiki/Clusivity

I don't get what you are trying to convey. In any case, even as a TS user, I am sorry for OP's predicament and sympathetic.