Affect of default on CS?

[Anonymous]

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@NRB525 wrote:

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@Anonymous wrote:

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Don't think anyone will buy the TS because the company who owned it went bankrupt. 

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Ok, and the Slow Reveal continues... you didn't mention that in the opening post?

If the TS is going through bankruptcy, then there is a bankruptcy court hearing that is going to determine how the value / ownership of those TS shares is going to be handled. DD may end up with no value if the assets are sold off anyway, and the handling of the maintenance fees would need to re-start under a new ownership program, potentially a completely new TS agreement, which may or may not include a distribution of assets if any remain. I would not walk away from the TS paperwork just yet, because a lot can happen.

Contact the group that is handling the bankruptcy hearing, there should be some level of bankruptcy court filings and notice to the TS holders about what is happening. DD should have already gotten some sort of notification.

You have research to do, grasshopper. Get to it.

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Thanks for keeping up with me.

That "meeting" about the bankruptcy was in 2012. Another TS company bought it, and they tried transitioning us over, but we have to pay $10k to transition, which is something we do not want to do. 

That's why the only option right now is to just default on it, and I was wondering if my dad could still get a mortgage with his default.

[NRB525]

wow, nice operation.

Was there an option to leave the TS without paying the $10k extortion fee?

[Anonymous]

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@NRB525 wrote:

wow, nice operation.

Was there an option to leave the TS without paying the $10k extortion fee?

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HAHAHHAHA "extortion"

I know right -__-

>___<

and nope, no other way...

They won't buy back either lol....

[NRB525]

When does DD want to get a mortgage?

What state are you in? Which state laws rule this Timeshare agreement?

Does that state have a "no fault" mortgage default rule? The reason for asking, states like Florida require a bank to go through a judge to foreclose on your property, but states like Washington do not require any judge, it is an administrative process. In states like Florida, the federal government counts the foreclosed value as income. In states like Washington, the foreclosed value of the home is not counted as income. States like Florida were granted some reprieve for a few years after the housing crisis, where this "foreclosed income calculation" was not enforced, but I think that IRS rule has expired. States like Washington have always had this "free out".

So it may pay to check into this, to see whether the $10k will be counted as income, or even if the regular mortage rules, the potential to count this as income, even applies here.

For the $10k, if you can get out of it with only a default on your credit report, that sounds like a fair trade, rather than continuing to throw good money after bad.

[note to self, rent, do not buy, timeshare properties]

[Anonymous]

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@NRB525 wrote:

When does DD want to get a mortgage?

What state are you in? Which state laws rule this Timeshare agreement?

Does that state have a "no fault" mortgage default rule? The reason for asking, states like Florida require a bank to go through a judge to foreclose on your property, but states like Washington do not require any judge, it is an administrative process. In states like Florida, the federal government counts the foreclosed value as income. In states like Washington, the foreclosed value of the home is not counted as income. States like Florida were granted some reprieve for a few years after the housing crisis, where this "foreclosed income calculation" was not enforced, but I think that IRS rule has expired. States like Washington have always had this "free out".

So it may pay to check into this, to see whether the $10k will be counted as income, or even if the regular mortage rules, the potential to count this as income, even applies here.

For the $10k, if you can get out of it with only a default on your credit report, that sounds like a fair trade, rather than continuing to throw good money after bad.

[note to self, rent, do not buy, timeshare properties]

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Exactly. I will never buy a TS in my life. It's a liability, not an asset because you have to pay fees even if you don't go....incredibly stupid.

I see what you mean, but I don't have any of the documents (and neither does my DD). Should I tell him to consult a lawyer?

Edit: I'm in CA. No clue, gotta research. 

[Imperfectfuture]

Think I know the property and buyers (interesting Google search).

You will need a lawyer. If the mortgage was paid, you need to go to the bankruptcy court, and get the deed that was on file. You are not the only ones they are doing this to, and no one can give these away. Charity will not even take them (because of the fees, and that extortion clause).

But googling should get you started with a lawyer, and also brings up the chapter 11, and the purchase agreement. Hope you did not get into the points system. Some folks are paying way more than 800. And, they do not get to use the rooms, since they are "always" rented out.

[Imperfectfuture]

More links to consider. One was able to get the 10k down to 3k, might be cheaper than a lawyer.

http://www.bbb.org/southern-nevada/business-reviews/resorts/diamond-resorts-international-in-las-veg...

http://www.reviewstalk.com/complaints-reviews/diamond-resorts-international-l398.html

http://www.bbb.org/southern-nevada/business-reviews/resorts/diamond-resorts-international-in-las-veg...

http://www.sec.gov/Archives/edgar/data/1514608/000119312511286137/d247292dex101.htm

http://www.nolo.com/legal-encyclopedia/california-timeshare-foreclosure-right-cancel-laws.html

[Anonymous]

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@Imperfectfuture wrote:
Think I know the property and buyers (interesting Google search).

You will need a lawyer. If the mortgage was paid, you need to go to the bankruptcy court, and get the deed that was on file. You are not the only ones they are doing this to, and no one can give these away. Charity will not even take them (because of the fees, and that extortion clause).

But googling should get you started with a lawyer, and also brings up the chapter 11, and the purchase agreement. Hope you did not get into the points system. Some folks are paying way more than 800. And, they do not get to use the rooms, since they are "always" rented out.

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Yeah, they wanted us to convert to points system. We declined that bs.

[Bankrupt2019]

well, I think I just learned everything I needed to know about timeshares!