Stop paying loan

[tgerika]

So what happens if you stop paying your loan? Can they garnish your wages?

 

[dioxide45]

First they need a judgement to garnish wages. I don't know how the Cabo collection with Diamond works. Is the loan administered in the USA? If you stop paying, you could get collection calls, foreclosure, a hit to your credit and a possible 1099-C with tax implications.

 

[tgerika]

First they need a judgement to garnish wages. I don't know how the Cabo collection with Diamond works. Is the loan administered in the USA? If you stop paying, you could get collection calls, foreclosure, a hit to your credit and a possible 1099-C with tax implications.

I have the US collection. Thank you for your response.

 

[tgerika]

Hello. We believe the lies the last time we added more points. They told us that we can pay for our loan with our equity that we will get from the contract with them. Now we are paying $800 monthly on the loan. $7000 yearly maintenance fee. We cannot afford it anymore. We purchase in Vegas and we are from California. Besides the credit hit. Can they garnish our wages?

 

[HuskerATL]

This is better in the DRI/HVC group since you bought Diamond but I am curious how many points did you buy to have a $7000 MF bill?

 

[tgerika]

$33 K with the club points. and I have 10 K with polo towers. In the polo towers week I pay $1 K for maintenance and that loan is paid off.

 

[Talent312]

They will likely refer you to collections who will hound you.
Eventually, they'll foreclose and your credit rating will suffer.
They may or may not go after you for personal liability.
-- In a non-judicial foreclosure, they forego that option.

In some states, certain assets and income are exempt from
the claims of creditors. Then there's the Bankruptcy route.
You should consult an attorney who deals with that subject.

.

 

[Passepartout]

Hello. We believe the lies the last time we added more points. They told us that we can pay for our loan with our equity that we will get from the contract with them. Now we are paying $800 monthly on the loan. $7000 yearly maintenance fee. We cannot afford it anymore. We purchase in Vegas and we are from California. Besides the credit hit. Can they garnish our wages?

You are a long way from facing garnishment. They would have to first foreclose, then get a court to give them a judgement, and I've never heard of something like this happening over a timeshare.

You REALLY need to see a lawyer in your area with experience in consumer debt.

Jim

 

[HuskerATL]

So, you have 43k points with $8k MFs? That is 0.186 MF/pt.... pretty high compared to many in HGVC have 0.12 or less. Our latest weeks that we bought are 0.09.... so half. You have expensive points so I would be looking at how to get out also but I am not sure how to do that unless you just walk away.

 

[geist1223]

$33 K with the club points. and I have 10 K with polo towers. In the polo towers week I pay $1 K for maintenance and that loan is paid off.

Is it 33,000 Points or $33,000 dollars worth of Points. Are these Points in Cabo Azul or Points in MAX? We own 19,000 points in Cabo Azul and our MF's are under $2,000 per year.

 

[tgerika]

Is it 33,000 Points or $33,000 dollars worth of Points. Are these Points in Cabo Azul or Points in MAX? We own 19,000 points in Cabo Azul and our MF's are under $2,000 per year.

33 K diamond points in the US collection. I did not convert into max.

 

[tgerika]

So, you have 43k points with $8k MFs? That is 0.186 MF/pt.... pretty high compared to many in HGVC have 0.12 or less. Our latest weeks that we bought are 0.09.... so half. You have expensive points so I would be looking at how to get out also but I am not sure how to do that unless you just walk away.

Yeah I know not a good deal. The polo towers week is on a different contract and I already pay that loan. I wonder if is worth it to keep it or if they will let me keep it if I stop paying for the Club.

 

[geist1223]

We did not pay that high of MF's even when we were in the Hawaiian Collection.

 

[dioxide45]

I have the US collection. Thank you for your response.

In order to garnish wages they will have to foreclose and have recourse on any outstanding debt. Then with that outstanding debt they have to sue for further judgement to collect. Timeshare forclosures won't usually get to this. They will foreclose and may have recourse, but then they will generally write it off. That write off event is what could trigger the 1099-C.

 

[tgerika]

In order to garnish wages they will have to foreclose and have recourse on any outstanding debt. Then with that outstanding debt they have to sue for further judgement to collect. Timeshare forclosures won't usually get to this. They will foreclose and may have recourse, but then they will generally write it off. That write off event is what could trigger the 1099-C.

Thank you for the info.

 

[tgerika]

Hello If I stop paying the loan on my points? Can I still keep my home week at Polo Towers? It is on a different contract and is I already paid off.

 

[CalGalTraveler]

They prob would freeze your account so you could not reserve.

 

[GT75]

I would also expect the same but I don't think that I have read anyone reporting their experience with this.

 

[TheTimeTraveler]

Hello If I stop paying the loan on my points? Can I still keep my home week at Polo Towers? It is on a different contract and is I already paid off.

Your best bet may be to get your paid off home week out of your name entirely, i.e. gift it to family member.......

Doing so will no longer link your home week ownership to the existing loan.






.