timeshare in default

[fezwhy]

I have a friend that got sucked into a timeshare.
It is currently in collection and he is getting constant calls on it. I believe he owes 15k on it still. He has tried to sell it but has no options. Nobody wants a timeshare that isn't fully paid. He can no longer afford the payments and has exhausted his forbearance on his many student loans.
His credit is terrible because of the missed payments on his 5 student loans. The bank won't loan him money and his family can't help. Is this considered consumer debt and falls off after sol have expired?

[Mrs_hambright]

Not sure if this is correct feed... Maybe you should post this question in the rebuilding form

[fezwhy]

I wasn't sure where to post this.  Maybe a moderator will move this to the correct place.

[StartingOver10]

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@fezwhy wrote:

I wasn't sure where to post this.  Maybe a moderator will move this to the correct place.

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I asked a mod to move it earlier.

As to the timeshare...that is considered more of a foreclosure issue. It is serious. Sounds like your friend needs to work out his entire budget and figure out where to get additional income. He can rehab his loans. Have him check into the IBR repayment info for student loans too. This is not a quick fix.

[pizzadude]

Moved to rebuilding

[fezwhy]

His student loans already have been rehabbed.
I do know he also has a car payment with 2 years left on it. Around 90k in student loans. He is considering moving to a cheaper place to save some money.
He did mention to me his rent has gone up every year for the last 4 years.
Unfortunately he bought the car and timeshare without doing his budget first. Put school loans on forbearance to get the bills paid. Rehabbed his loans to get his payment lowered but is still struggling.

[fezwhy]

I made a suggestion to him about maybe someone getting a personal loan and using that to payoff the time share. Once it's paid off he could try to sell it.

[Ridewithme38]

With Retail timeshare purchases their are usually two seperate fees held by two seperate companies, a loan to pay for the Timeshare itself and an annual maintenance fee. How much is each yearly fee?  A lot of timeshare companies, if pushed hard enough, will 'take back' the timeshare for a fee, but it's not a simple as just a good will letter.   It takes dozens of phone calls made over weeks and weeks of trying, hoping to talk to someone who will take mercy on you.

I own two timeshares and have got to admit, although they are expensive, i pay around $2,500 a year for 2 weeks of vacation lodging, i'm very happy with them.  I've gone used them all over the place and really have enjoyed their use.

Has he considered renting to help pay the yearly Maintenance fees and yearly loan fees? He MAY not be able to rent for the full amount he owes, but it'll help cover some of the losses.  I like TUGBBS and Redweek for rentals.

I don't know how much specific information you want to put here, but if we knew where he owned and which week, it might help get a better idea of  what he can rent for. For instance if he owns a Disney Timeshare or Harborside resort at Atlantis or even the Marriott Ko Olina he maybe able to even make a profit renting. 

[fezwhy]

I talked to him today and said there is no yearly fee that he is aware of.  But he did pay a startup fee of something however he doesn't remember how much that was.

As for renting it out no he hasn't ever thought of that.  He is about 3 months behind on payments so according to him it can't be rented out if he is behind on payments.

He has never used the time share and has no idea where he can travel to.    He is a sucker for pyramid schemes or anyone selling something.   

He says he just wants out, but I informed him you can't just get out of it.  He has exhausted all resources in trying to sell the timeshare with money still owed on it but again was scammed and investigated by the fbi.  I have told him there are very bad consequences for letting this sit defaulted.  Almost as bad as a foreclosure.

He informed me he also has 2 quick cash loans for a few thousand each that are in default also.  No bank will approve him for a loan.  He is trying to see if possibly his parents can possibly get a loan and maybe use that to pay the time share off.

[RobertEG]

Debt usually does not "fall off" as a result of expiration of SOL for bringing legal action or credit report exclusion.