Timeshare exit strategy

[oldobiwan]

There was a Special Assessment on our timeshare in Jan '21 for several thousands which I did not pay. The "debt" was turned over to a collection agency which tacked on an additional $1,500 to the original amount. I have 30 days to dispute the validity of the debt.
I understand the Homestead, pension protections, etc. in FL
If I walk away, what are the likely consequences?
If I need to "lawyer-up," any recommendations?
Any suggestions for an exit "strategy?"

[Babubhat]

Look at timeshare users group site for advice

How to Sell your Timeshare yourself without paying upfront fees or being Scammed (https://tug2.net/timeshare_advice/how-to-sell-your-timeshare.html)

[Toymeister]

The very first thing that you do without delay is dispute the validity of the debt by certified mail. Keep your dispute and evidence of delivery forever. Keep the letter simple "I dispute the validity of this debt." If they fail to respond in 14 days (I believe), the debt is not valid

Next read the Fair Debt Collection Practices act (FDCPA). Fair Debt Collection Practices Act | Federal Trade Commission (https://www.ftc.gov/enforcement/rules/rulemaking-regulatory-reform-proceedings/fair-debt-collection-practices-act-text)

Next read responses to this thread following mine.

[Bjeanj]

What’s wrong with asking a lawyer?

[Laurawilcox]

We have stopped paying our timeshare as well after almost 40 years. We enjoyed it for awhile. We called and tried to cancel but they said forget it. It was owned by my mother and I, she has passed so exiting. I was informed by our banker that you can dispute the collection on Credit Karma and like with a credit card it puts it in neutral status. Would also welcome other thoughts to this.

[Laurawilcox]

By the way our timeshare is in Kauai which is in high demand and paid off, with only $1200 a year in maintenance for a two bedroom. You will see them for sale for $1. Then if someone says yes it is upwards to $750 per week (we own two) for closing costs.

The ones retaining value are usually associated with the large hotel and timeshare chains.

[Babubhat]

Under what basis is it not valid? Special assessments are not uncommon. Need to check the terms of the contract that was signed

[Toymeister]

Under what basis is it not valid? Special assessments are not uncommon. Need to check the terms of the contract that was signed

In contract disputes, you handle every action as if it will be read by the deciding party. The deciding party for FCPCA debts is the Federal Courts, not the peanut gallery.

Federal judges are rules (procedures) followers. If you dispute and they do not meet the response time you win, period. You do not need a basis for disputing a debt, you simply dispute the validity of the debt.

Will they respond in 14 days?, Probably not. Everyone is entitled to their own opinions, but not their own facts. Read the FDCPA and educate yourself.

[Toymeister]

I was informed by our banker that you can dispute the collection on Credit Karma and like with a credit card it puts it in neutral status. Would also welcome other thoughts to this.

Absolutely wrong. The only way to dispute a debt is to do it yourself (or an authorized agent), in writing, in a way that you can prove it. The Federal Courts have full faith in the Federal employees that deliver US Mail. Send it certified, return receipt required with signature, now you have proof. Does Credit Karma provide irrefutable evidence of delivery, absolutely not.

This is why bankers don't appear in Federal Court on contract disputes or defending the validity of your debt.

[Babubhat]

There is likely nothing to dispute. The contract terms control.

Timeshare Assessments Liens

What people often don't realize is that even if you're current in your deeded timeshare mortgage payments or the timeshare purchase price has been paid off, you could still face a foreclosure if you don't keep up with the assessments. Or you could also be sued for the amount of the indebtedness.

The rules of the timeshare are usually set forth in what is called the Declaration of Covenants, Conditions, and Restrictions (Declaration). The Declaration usually provides that if a timeshare owner defaults in the payment of fees, costs, and assessments, the entire unpaid assessed sum with accrued interest and other charges become a lien against the timeshare interest of the non-paying owner.



Can a Timeshare Be Foreclosed for Nonpayment of Fees or Assessments? | Nolo (https://www.nolo.com/legal-encyclopedia/can-timeshare-be-foreclosed-nonpayment-fees-assessments.html)

[retiredguy123]

My suggestion is to pay the assessment and do everything possible to get rid of the timeshare. There is some good advice on the Clark Howard website, "clark.com". It is not worth ruining your credit rating. The debt will only increase and cause you more anxiety. Even if you avoid the current debt, they can always raise the maintenance fee or give you another assessment later.

[OrangeBlossomBaby]

The only way to unload this scam property is to scam someone else for it. Sad but true. You got suckered. Timeshares are money-sinks. There are scam companies that will take it off your hands by buying your debt (and thus, the entire timeshare contract), and then turn around and sucker someone else. That's how timeshares work.

[Babubhat]

We don’t have the terms of the contract. They dictate procedures

[retiredguy123]

Timeshare Assessments Liens. Nola website

What people often don't realize is that even if you're current in your deeded timeshare mortgage payments or the timeshare purchase price has been paid off, you could still face a foreclosure if you don't keep up with the assessments. Or you could also be sued for the amount of the indebtedness.

The rules of the timeshare are usually set forth in what is called the Declaration of Covenants, Conditions, and Restrictions (Declaration). The Declaration usually provides that if a timeshare owner defaults in the payment of fees, costs, and assessments, the entire unpaid assessed sum with accrued interest and other charges become a lien against the timeshare interest of the non-paying owner.
Isn't that the same situation for any property owner?

[Babubhat]

I would expect so. If the timeshare has no value the lien is of no value. That’s the timeshare catch. They want the property and the fees. That fellow based in Vegas has created an empire on foreclosed property.

In sum they would like you to pay them to take the timeshare back.

[Toymeister]

There is likely nothing to dispute. The contract terms control.



And how many decades have you worked with contract disputes? More than four?

How many times have you appeared in Federal Court?

[Babubhat]

You are addressing an irrelevant topic. He can only delay the inevitable. Read up on timeshares. It’s a dirty business. Why they are so profitable.

Let him dispute it but don’t give him false hope of discharging the debt unless he is willing to spend a lot on legal fees.

[retiredguy123]

I would expect so. If the timeshare has no value the lien is of no value. That’s the timeshare catch. They want the property and the fees. That fellow based in Vegas has created an empire on foreclosed property.

In sum they would like you to pay them to take the timeshare back.
I agree. But, because the lien has no value, they hire a collection agency, and if you don't pay, they can ruin your credit rating, or even sue you and seize your assets.

[Babubhat]

The other fellow here seems to know more than we do. Timeshare lawyers have perfected their contracts over decades. Good luck trying to find an out without spending a tidy sum in legal fees

Can a Timeshare Be Foreclosed for Nonpayment of Fees or Assessments? | Nolo (https://www.nolo.com/legal-encyclopedia/can-timeshare-be-foreclosed-nonpayment-fees-assessments.html)

[Laurawilcox]

Thank you for your responses, I had seen something before but your suggestions prodded me to look again. If you go to eBay and put your timeshare name in to both current auctions and advanced/sold, you will see many selling. Here is what the brokers are doing and we can likely do it ourselves. The owner pays a year of maintenance fees and closing costs. These have multiple bids like up to a whopping $18. Maybe $150. May be worth trying.

[jimkerr]

You need to pay what you owe then sell it. Timeshares are a huge waste of money.

[Girlcopper]

There was a Special Assessment on our timeshare in Jan '21 for several thousands which I did not pay. The "debt" was turned over to a collection agency which tacked on an additional $1,500 to the original amount. I have 30 days to dispute the validity of the debt.
I understand the Homestead, pension protections, etc. in FL
If I walk away, what are the likely consequences?
If I need to "lawyer-up," any recommendations?
Any suggestions for an exit "strategy?"
Pay it like youre supposed to then try n sell it

[jimbomaybe]

Time Shares are just a rip off, decades ago I went to one of those events where you are promised a TV for just attending and hearing the presentation. I listened to their BS. after I asked a lot of questions nobody at our table wanted to buy, needles to say I never got the TV.

[bowlingal]

I gave mine back to the timeshare company . It was impossible to sell.

[rlcooper70]

One option is to tell the collection agency that you don't give a hoot about their efforts and that you will never again need credit so you don't care what they do.

Then go to the credit rating agencies and lock your accounts. No one will be able to see your credit at that point. And you won't be able to get loans.

If that's the case then they will give up and you can walk.

[allsport]

Absolutely wrong. The only way to dispute a debt is to do it yourself (or an authorized agent), in writing, in a way that you can prove it. The Federal Courts have full faith in the Federal employees that deliver US Mail. Send it certified, return receipt required with signature, now you have proof. Does Credit Karma provide irrefutable evidence of delivery, absolutely not.

This is why bankers don't appear in Federal Court on contract disputes or defending the validity of your debt.

My husband was postal inspector and said you send 2, 1 certified and 1 regular. If they refuse the certified and the regular does not get returned unopened, you have all the documentation you need. I did it all the time when notifying fed employees about personnel issues they refused to respond to and it worked in court.

[davbrindle]

We had a timeshare on Maui, assessments went through the roof shortly after the purchase. Went to one of the many companies that guarantee they can get you out of the ownership. The one good thing they said was to not make any further payments; I never made another payment, was contacted numerous times pay Diamond Resorts regarding consequences. Contacted Hawaii attorney general’s office and was advised by them the Diamond Resorts was being investigated by them for unscrupulous business practices. Bottom line, I just walked away and it never effected my credit scores, I never had to go to court. I haven’t heard from them since 2017 and my life has moved on, granted I did take an initial financial hit but was better than the alternative.

[rtinder]

I gave mine back to the timeshare company . It was impossible to sell.
I did, too. After I stopped paying, we made a deal. They canceled the debt and I signed over the deed. No impact on my credit report.

[retiredguy123]

One option is to tell the collection agency that you don't give a hoot about their efforts and that you will never again need credit so you don't care what they do.

Then go to the credit rating agencies and lock your accounts. No one will be able to see your credit at that point. And you won't be able to get loans.

If that's the case then they will give up and you can walk.
It's not true that locking your credit will prevent everyone from seeing your credit report. Insurance companies, employers, landlords, and others use credit reports to determine their rates, who to hire, etc., and they can still see your credit report, even if it is locked.

Also, how do you know the collection agency or timeshare company won't sue you in court and try to seize assets that you own? If they get a court judgement, a lawyer can legally remove money from your financial accounts before you even know it is gone.

[Travelhunter123]

The very first thing that you do without delay is dispute the validity of the debt by certified mail. Keep your dispute and evidence of delivery forever. Keep the letter simple "I dispute the validity of this debt." If they fail to respond in 14 days (I believe), the debt is not valid

Next read the Fair Debt Collection Practices act (FDCPA). Fair Debt Collection Practices Act | Federal Trade Commission (https://www.ftc.gov/enforcement/rules/rulemaking-regulatory-reform-proceedings/fair-debt-collection-practices-act-text)

Next read responses to this thread following mine.

Excellent advice

[juscause]

I was able to give my Marriott timeshare back to Marriott. No money exchanged hands either way. This is a relatively new concept---When it was a Starwood timeshare, before being sold, they wouldn't take it back. Marriott paid for the lawyer's fees and I got a filed complete release. Worth a try with whoever manages your timeshare.

[DAVES]

The very first thing that you do without delay is dispute the validity of the debt by certified mail. Keep your dispute and evidence of delivery forever. Keep the letter simple "I dispute the validity of this debt." If they fail to respond in 14 days (I believe), the debt is not valid

Next read the Fair Debt Collection Practices act (FDCPA). Fair Debt Collection Practices Act | Federal Trade Commission (https://www.ftc.gov/enforcement/rules/rulemaking-regulatory-reform-proceedings/fair-debt-collection-practices-act-text)

Next read responses to this thread following mine.

Re: certified mail
I am not an attorney. My belief may not be valid but, certified mail cost like $7.00. Priority is like $5.00. Priority will provide delivery date. Certified you get back that green delivery card. Typically it is not signed, you may get the card back with a rubber stamp or a signature that is impossible to read. The post office, it says, will try to deliver three times and then will return the letter to the sender. I THINK, if it is not accepted by the sent to address it still is legally delivered.
My experience I sent a letter in Florida certified mail. It is now two weeks later and I have not gotten the card back yet.

Re: time shares
I suppose like every SCAM, they are copied, they grow until everyone knows it is a SCAM. They invited us toward the end. We got a free meal and RAN. Sadly, every scam catches some. Time shares caught MANY so it was a good one.

[JayK!]

There was a Special Assessment on our timeshare in Jan '21 for several thousands which I did not pay. The "debt" was turned over to a collection agency which tacked on an additional $1,500 to the original amount. I have 30 days to dispute the validity of the debt.
I understand the Homestead, pension protections, etc. in FL
If I walk away, what are the likely consequences?
If I need to "lawyer-up," any recommendations?
Any suggestions for an exit "strategy?"

You signed a contract stating you are financially responsible to pay any additional fees assessed by your condo board. If u still want the condo, bite the bullet and pay. Lawyering-up only adds to your total bill.

[DAVES]

There was a Special Assessment on our timeshare in Jan '21 for several thousands which I did not pay. The "debt" was turned over to a collection agency which tacked on an additional $1,500 to the original amount. I have 30 days to dispute the validity of the debt.
I understand the Homestead, pension protections, etc. in FL
If I walk away, what are the likely consequences?
If I need to "lawyer-up," any recommendations?
Any suggestions for an exit "strategy?"

Re: collection agency
Clearly they are playing hardball with you. I have no experience with timeshare, one scam I was not caught in.
MY OPINION wish to state clearly, it is my opinion any loss, expense is yours. I'm sure you are not the only one dealing with the TIME SHARE SLIME. Turning you over for collection is their SLIME procedure. My guess if they are charging you for their collection SLIME it is roughly 10% of what they are trying to collect from you so they are trying to collect 15,000 from you. It is probably time to seek legal advice. A call to the bar association which is FREE, will get you some advice and a list of attorneys who are specialists in dealing with this SLIME.

As far as collection agencies and time shares. A safe bet everyone knows they are SLIME.

[DAVES]

You signed a contract stating you are financially responsible to pay any additional fees assessed by your condo board. If u still want the condo, bite the bullet and pay. Lawyering-up only adds to your total bill.

The original post asks for an exit strategy. They do not want the time share. It does not say it is a condo. I do not like lawyers or our legal system but, my OPINION as far as ANY time share the time to consult an attorney is before you sign Time shares are one sided agreements and that side is not the person buying.

[retiredguy123]

OP, you may want to try to find the contact information for other timeshare owners in the same development as your timeshare. Then, contact them and see if you can make a deal for them to purchase your timeshare. Some timeshare owners are actually happy with their timeshare and may want another one. Good luck.

[Jacob85]

I think you should take all your information to seniors V Crime probably on a Wednesday from 10-2 don’t need an appointment and it’s in the sherifs annex. O one number 352-689-4600 extension 4606 before going to an attorney as our service is free as a project of the attorney generals office. If we can’t help you can also, go to the attorney later.

[OrangeBlossomBaby]

I think you should take all your information to seniors V Crime probably on a Wednesday from 10-2 don’t need an appointment and it’s in the sherifs annex. O one number 352-689-4600 extension 4606 before going to an attorney as our service is free as a project of the attorney generals office. If we can’t help you can also, go to the attorney later.

I don't know what seniors v crime would do about it, there's no crime in a timeshare company adding a new assessment and payment requirement to the time share property. The OP agreed to the contract when he bought it. They added a fee, he CHOSE not to pay it, so now he's in arrears and has to pay the debt plus interest and any contracted fines.

This is what happens when you buy a time-share. Your future credit is at the mercy of the property management company, who can fine you til the cows come home and there's really nothing you can do about it, and most people won't want to buy your time share, because they'd also be buying your debt.

[Gulfcoast]

I've never owned a timeshare so I have no specific advice to give you, however, you might want to check into Dave Ramsey. He has taken a pretty firm stance against timeshare companies. You might find some of his advice to be helpful with regards to getting out of that contract once and for all. I happened to see one of his videos on Youtube and it made an impression on me.

[retiredguy123]

I've never owned a timeshare so I have no specific advice to give you, however, you might want to check into Dave Ramsey. He has taken a pretty firm stance against timeshare companies. You might find some of his advice to be helpful with regards to getting out of that contract once and for all. I happened to see one of his videos on Youtube and it made an impression on me.
Yes. He recommends the website, "timeshareexitteam.com". Also, Clark Howard at "clark.com", has some good advice for getting out of a timeshare.