Tiomeshare Foreclosure

Guest

Have a timeshare in HI, still owe on it. Unexpected changes in my financial situation make it impossible to make payments. paid on it for 6 years, never missing one or late.
It is with Shell Vacations Club. It is on a points basis and I don't think it is deeded. (still checking into that, with not much help from the club)
Bottom line - need to get rid of it. Tried every avenue to sell - owe too much.
Is a timeshare default like real property. Can they actaully foreclose and sell it at auction? Or is it treated like a delinquent bill and they send the debt collection agency after me?
Need this info to make an informed - and proactive decision on weather or not to let it go. I have good credit still. But I need to pay my home mtg. and cannot afford the timeshare anylonger.
Please advise on the Hawaii Timeshare Foreclosure process if possible.
Thanks

jenkin7 · Posted: Thu Apr 02, 2009 2:58 am Post subject:

Hi tamyoung,

A time share is treated as a real estate property. Thus, just like a home is foreclosed on if you default on payments, a time share can also be foreclosed on by the lender. The time share foreclosure proocess is just like a real estate foreclosure where the lender acquires the ownership of the property upon payment default and it is sold off at the sheriff's auction to the highest bidder. The foreclosure will affect your credit by almost 230-280 points.

gmakerley · Posted: Thu Apr 02, 2009 8:15 am Post subject:

tamyoung, i have to surmise that a foreclosure on a timeshare isn't going to affect you long term anywhere near as much as such an action on any other type of real estate would.

i don't know if that 230-280 point drop is accurate or not; i don't get into that. but i can claim, with some reasonable certainty i think, that lenders in the future aren't going to get into a lather because you let go of a timeshare instead of your primary residence. your overall credit record is going to be given more credence and i would guess that criticism over your letting this property go won't be rampant. i hope that's making sense to you.

chtnggd · Joined: 25 Mar 2009 Posts: 16 5.17 Dollars($)

Ask for a break but repay it because bad credit is very harmfull

Guest

What happens if I close the checking account currently used to pay my timeshare mortgage and maintenance fee?
Can I request another method of making the payment?

gmakerley · Posted: Thu Jul 16, 2009 12:43 pm Post subject:

yes, chuck, you can make other arrangements.

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