[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

[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

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]

Originally Posted by Babubhat

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]

Originally Posted by Laurawilcox

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

[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]

Originally Posted by Babubhat

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.