credit ruined by [defaulting on] timeshare

[timeos2]

Yup, the responsible owner ignores the situation they created but someone thinks the resort / BOD owes them. Delusional isn't even strong enough but if anyone was silly enough to believe it an option (while attempting to repair damaged credit) then the legal fees alone will show them the mistake that route would be. Almost as bad as ignoring it 20+ years.

 

[Ridewithme38]

Yup, the responsible owner ignores the situation they created but someone thinks the resort / BOD owes them. Delusional isn't even strong enough but if anyone was silky enough to believe it an option (whole attempting to repair damaged credit) then the legal fees alone will show them the mistake that route would be. Almost as bad as ignoring it 20+ years.

Aren't you the one that said, the BOD is responsible to rent the unused timeshare and all income from that rental go towards all owed MF's??

According to my math, that responsibility to him is ATLEAST $400 a year in rental fees....I wonder if he can collect late fees on that?(J/K about the late fees)

So, our Timeshare contracts are only ok to pay attention to if we can twist them to hurt the owners? Anytime they help us, lets just ignore it....Man is it obvious you were a member of an HOA BOD!

 

[timeos2]

Aren't you the one that said, the BOD is responsible to rent the unused timeshare and all income from that rental go towards all owed MF's?? According to my math, they owe him ATLEAST $400 a year in rental fees....I wonder if he can collect late fees on that?(J/K about the late fees)

So, our Timeshare contracts are only ok to pay attention to if we can twist them to hurt the owners? Anytime they help us, lets just ignore it....Man is it obvious you were a member of an HOA BOD!

Yes, the resort has an obligation to make a reasonable effort to rent the time. A reasonable effort is far below the level of obligation that the owner has to pay the fees. And as mentioned here can be a commission charged (35% or more is not uncommon and completely legal if stated in the collection notice as I'm certain it is - it is standard industry wording) plus late fees (calling them bogus doesn't mean they can't be charged and collected, courts recognize them without question) and accrued interest at a high rate - all of which gets deducted from the rent credited. Plus often times the rental(s) may not be for a full week - it can be tough to find anyone to reserve that way as rentals tend to be to hotel type guests. Often it ends up being for only 3 or 4 days out of 7 - but of course the annual fee has to be for all 7 days.

Most likely the result of that is little or nothing was collected beyond the fees billed and due. Or the resort may have chosen to cap the rental at the total due thus avoiding any overage due to the owner. So the time spent to attempt to collect would likely result in no return amount or an amount so small that it would appear to be a typical class action settlement. From that pittance they would owe the legal fees - not to mention the months or even years that would pass prior to a court decision - and the end result is not a good one for the owner. Yes, the system is designed that way on purpose as it is an obligation not an option to pay while you own the property.

 

[Ridewithme38]

So what you're saying is, he doesn't owe them a DIME.....That would be a fine settlement for the lawyers to make....The BOD take the deedback and erase the debt and neither party has to pay a dime. In the mean time, the BOD is scrambling around trying to find 20 years worth of paperwork that IMO, most likely doesn't exist anymore....IMO, the court and the lawyer costs is worth it just to make the BOD sweat!

Most likely the result of that is little or nothing was collected beyond the fees billed and due. Or the resort may have chosen to cap the rental at the total due thus avoiding any overage due to the owner.

 

[e.bram]

Ride:
This could be done pro se. If you take a paralegal course at the local community college you get access the Westlaw for legal research. Remember this is not a PI case with high damages possible. You could subpoena the BOD members.
The worst you could do lose which is what happens if you pay. IMHO Judges usually push for a settlement, which helps.

Time: Capping the rental charges to damage the owner would be an illegal no no. If the BOD admits to this it would be slam dunk for the owner.

 

[Ridewithme38]

Ride:
This could be done pro se. If you take a paralegal course at the local community college you get access the Westlaw for legal research. Remember this is not a PI case with high damages possible. You could subpoena the BOD members.
The worst you could do lose which is what happens if you pay. IMHO Judges usually push for a settlement, which helps.

Time: Capping the rental charges to damage the owner would be an illegal no no. If the BOD admits to this it would be slam dunk for the owner.

I am considering buying Harborside just to try this out...Right now i'm saving for my summer vacations, but maybe after August i can really look into buying it and researching what happens when you don't pay for a desirable week.

My plan is to call a week or so before the MF's are due and telling them, "I will NOT be paying my MF's this year" then calling each day on the day of deeded week and requesting my deeded room. If it's not available i'll ask for an equivalent room and ask how much it would be per night. If it is available, i'll ask how much it is a night and deduct that from the total rental income....

Of course this doesn't account for the 6+ month late fees or the commission, but it will give me a pretty broad idea of how much i'll have to pay after it is rented

 

[timeos2]

Arguing the absurd just for the sake of arguing doesn't help anything.

As for the OP why would they want to try any of this when they brought this on themselves and now just want it over? Wasting time, effort and money on any potential court action would delay any resolution and likely leave them where they are or worse. Of course it all could have been avoided by merely handling what is likely an easy sell of what may be an in demand week. But that too is past history and now they need to get it resolved ASAP if it is going to have a lesser impact on their credit today.

It should be a warning to those that want to take the "ignore it & it goes away" path that it doesn't. And it haunts you when you can least deal with it.

 

[timeos2]

I am considering buying Harborside just to try this out...Right now i'm saving for my summer vacations, but maybe after August i can really look into buying it and researching what happens when you don't pay for a desirable week.

My plan is to call a week or so before the MF's are due and telling them, "I will NOT be paying my MF's this year" then calling each day on the day of deeded week and requesting my deeded room. If it's not available i'll ask for an equivalent room and ask how much it would be per night. If it is available, i'll ask how much it is a night and deduct that from the total rental income....

Of course this doesn't account for the 6+ month late fees or the commission, but it will give me a pretty broad idea of how much i'll have to pay after it is rented

Which makes almost as much sense as buying a point system in order to use the points to pay the maintenance / taxes for the timeshare. Why would anyone do that? Let the insanity rein.

 

[Ridewithme38]

It should be a warning to those that want to take the "ignore it & it goes away" path that it doesn't. And it haunts you when you can least deal with it.

With an inept and useless BOD and/or a worthless resort, i agree, ignore it and it goes away, doesn't work.....

But, this is a valuable week at a beautiful resort....There is no way he should have been charged what he got charged considering the obvious margins this place makes between rental and MFs....$27,000 is every dime of his maintenance fees over 30 years....There is NO WAY he owes that!

Timeos2, are you really telling this guy to just blindly pay a $27,000 debt that he DOES NOT owe? Please let me know if you are ok with that...Because i'll HAPPILY send you a bill for $27,000 for something you don't really owe, since you are ok with paying things like that.

 

[Ridewithme38]

Which makes almost as much sense as buying a point system in order to use the points to pay the maintenance / taxes for the timeshare. Why would anyone do that? Let the insanity rein.

When these timeshares eventually close down, the land, buildings and other miscellaneous are worth big money, of which you own a (very)small percentage of...IF you get the ownership for only a couple hundred and NEVER have to pay a MF....you Could profit....

Without the MF's it's a lot like buying stock, sure, it may never go up in value, or it could go down....But you buy based on what you THINK it could be worth...In fact, i'd say it's exactly like owning stock when you take the MF's out of the equation....and with the (tiny) possibility of making a profit without paying anything...It's even more of a value

 

[Ridewithme38]

I feel like i should ask this question in it's own thread, has anyone not paid a year and had what they owed go down because the Timeshare rented the week?

 

[Passepartout]

Ride, you argue over details you can't possibly know. Like whether or not the OP owes $27k or nothing. Or to whom? The resort, or it's hired collector? You profess that his contract reads that the resort has some feduiary responsibility to rent his unpaid week and credit the proceeds (if any) to the week owner and not the resort's coffers to pay the help an keep the place up- which incidentally the OP doesn't seem to give a rip about.

The simple fact is that he chose to blow off the required MF payments. Required by his purchase agreement. That much we know because we all made those agreements with our own TS purchases. Maybe I missed him mentioning that it says in his contract that the mgmt will rent his week absent input from him and credit his account. I don't think he said that.

Your arguments for the absurd are lacking in facts and are pure fantasy. If you wish to follow weezie into the land of folly by defaulting yourself, have at it, and see how mush rental income you get. I'm wagering it won't take up much room in your wallet. Maybe as much as all those winning lottery tickets you keep in there, saving them up for a rainy day to cash in when you really need the money.

 

[AwayWeGo]

You Typed A Mouthful.

Ride, you argue over details you can't possibly know. Like whether or not the OP owes $27k or nothing. Or to whom? The resort, or it's hired collector? You profess that his contract reads that the resort has some feduiary responsibility to rent his unpaid week and credit the proceeds (if any) to the week owner and not the resort's coffers to pay the help an keep the place up- which incidentally the OP doesn't seem to give a rip about.

The simple fact is that he chose to blow off the required MF payments. Required by his purchase agreement. That much we know because we all made those agreements with our own TS purchases. Maybe I missed him mentioning that it says in his contract that the mgmt will rent his week absent input from him and credit his account. I don't think he said that.

Your arguments for the absurd are lacking in facts and are pure fantasy. If you wish to follow weezie into the land of folly by defaulting yourself, have at it, and see how mush rental income you get. I'm wagering it won't take up much room in your wallet. Maybe as much as all those winning lottery tickets you keep in there, saving them up for a rainy day to cash in when you really need the money.

You are correct, sir.

It is greatly to be hoped that newcomers to this web site will be discerning enough to distinguish between sound advice & straight-out foolishness.

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

 

[Ridewithme38]

Your arguments for the absurd are lacking in facts and are pure fantasy. If you wish to follow weezie into the land of folly by defaulting yourself, have at it, and see how mush rental income you get. I'm wagering it won't take up much room in your wallet. Maybe as much as all those winning lottery tickets you keep in there, saving them up for a rainy day to cash in when you really need the money.

My arguement was based solely on what Timeos2 said...If it is absurd for the BOD to be responsible to rent an unpaid week and use that money to offset MF's due....That was Timeos2 absurd point that i was just expanding upon....Not mine

I believe Timeos2 is a very knowledgeable member of this community....I'm sorry that you disagree with him on this point that much.

 

[TUGBrian]

you are expanding on a topic based on a snippet of what someone said and using that to paint a HUGE brush over all Timeshare owners.

its ridiculous to assume that the resort will be successful in renting your unit out for you simply "not paying" and you know it.

you do folks a disservice by making wild claims that have no impact on you or your financial/credit situation, but can have dire ones on theirs.

 

[Ridewithme38]

its ridiculous to assume that the resort will be successful in renting your unit out for you simply "not paying" and you know it.

This is why it's soo important to review your resorts rental history and only even consider this if you have an amazing week at an amazing location....

I said that, but people tend to ignore the common sense so that they can find anything else to complain about....It's starting to get silly the comments people are making without actually reading my posts

 

[buzglyd]

Rental credit varies greatly from resort to resort. It would be spelled out in the owner's manual.

In many cases, no rental credit is applied if an owner is past due.

I don't thinkn ridewithme is playing with a full deck these days and arguing is fruitless.

 

[Ridewithme38]

Rental credit varies greatly from resort to resort. It would be spelled out in the owner's manual.

In many cases, no rental credit is applied if an owner is past due.

I don't thinkn ridewithme is playing with a full deck these days and arguing is fruitless.

Ahh, thats different than what Timeos2 said....That changes everything....You need to read your Ownership Documents(which you should have done already) and confirm what type of rental credit is applied...I'm going to include that in my new response to all threads that ask "How do i get rid of my Timeshare"

 

[Fredm]

I don't thinkn ridewithme is playing with a full deck these days and arguing is fruitless.

Oh, he is playing with a full deck alright

Those that play into to his absurd posts ..... well, I will leave it at that.

ridewithme is taking you all for a ride. His tug name invites you to jump aboard, and you do!

 

[timeos2]

I feel like i should ask this question in it's own thread, has anyone not paid a year and had what they owed go down because the Timeshare rented the week?

Every year at our resorts as at year end the rentals are applied to all delinquent accounts and if there was income the total due is reduced by that amount.

 

[buzglyd]

Oh, he is playing with a full deck alright

Those that play into to his absurd posts ..... well, I will leave it at that.

ridewithme is taking you all for a ride. His tug name invites you to jump aboard, and you do!

Ahhh a fisherman I see.

 

[timeos2]

Rental credit varies greatly from resort to resort. It would be spelled out in the owner's manual.

In many cases, no rental credit is applied if an owner is past due.

I don't thinkn ridewithme is playing with a full deck these days and arguing is fruitless.

Even if the rentals do not have to be credited to the individual week of delinquent owner (although usually they do if they can be identified) the owner would still get "credit" as the overall bad debt charged to all owners would go down by the total amount of all rentals, thus lowering the fees and the amount the delinquents owed. A resort cannot "double dip" and rent the time for income and charge the owner the whole amount due. They must show the rental as income and reduced delinquency somewhere.

To even think it will be what is owed - forget MORE than what is owed - is the height of folly. Not going to happen over a whole resort for a whole year regardless of area or demand. It just isn't possible to get the number of rentals required to exactly match the inventory available and the income needed.

 

[TUGBrian]

Ahh, thats different than what Timeos2 said....That changes everything....You need to read your Ownership Documents(which you should have done already) and confirm what type of rental credit is applied...I'm going to include that in my new response to all threads that ask "How do i get rid of my Timeshare"

and ill just delete your posts if you do that.

 

[Ridewithme38]

To even think it will be what is owed - forget MORE than what is owed - is the height of folly. Not going to happen over a whole resort for a whole year regardless of area or demand. It just isn't possible to get the number of rentals required to exactly match the inventory available and the income needed.

If i own a fixed week in a fixed room...I do in my Wyndham ownership....And they rent that week and room...That gets credited to the whole resort, or just to my ownership?

My Wyndham is week 27th, so July 4th in Williamsburg....Not a big seller, so i wouldn't expect it to cover even 25% of whats due($886 MF + 7 months of late fees by July + 25% commission about $2000)especially since the 'rack rate' for the whole week is only $1,948.60....But if that rental income goes towards the 'bulk' instead of just my ownership....I doubt if it would even be 1-2%

I was working off the assumption based on Timeos2's post, that when someones specific ownership was rented that credit would go back specifically to them....if that's not accurate, everything i've said is wrong

 

[timeos2]

If i own a fixed week in a fixed room...I do in my Wyndham ownership....And they rent that week and room...That gets credited to the whole resort, or just to my ownership?

My Wyndham is week 27th, so July 4th in Williamsburg....Not a big seller, so i wouldn't expect it to cover even 20% of whats due($886 MF + 7 months of late fees by July + 25% commission about $2000)especially since the 'rack rate' for the whole week is only $1,948.60....But if that rental income goes towards the 'bulk' instead of just my ownership....I doubt if it would even be 1-2%

I was working off the assumption based on Timeos2's post, that when someones specific ownership was rented that credit would go back specifically to them....if that's not accurate, everything i've said is wrong

As always it depends. How are the doc's at the specific resort written? What are the applicable State laws? Is it a fixed, float or mixed time ownership resort? It is impossible to state that XXX is wgat would apply. You do have to read the rules and regs.

In general one thing that can be said is IF it is rented (and again it is at most a "best effort" - that doesn't have to be much) then the income, if any, does have to be accounted for. If the unused (delinquent) time is under HOA control (vs Developer) then it has to go toward bad debt and/or to the reduction directly of unpaid fees. As someone mentioned the docs may preclude directly crediting week X to that specific owner. Instead all rentals of delinquent time may be pooled and credited to reduce the overall bad debt thus reducing what an individual delinquent owner would owe. Read what the docs and laws say to know how it applies to any specific resort. There are a whole different set of possibilities if the Developer holds rights to the delinquent time.