What are the procedures or consequences in timeshare defaults?

Question

has anyone been in the mess of having a timeshare and needing to let them go back? and why are there so few people who know nothing about timeshares? guess that's how they get folks like me to buy into them! i have been on the internet for months seeking advice as to how to get out of my contract or let it go back. it isn't paid for so i can't donate it and NOBODY wants to buy one, especially in today's economy.

Answer 1

it is considered by most lenders as a foreclosure so if that helps. They are very hard to sell

Answer 2

Default

1. The foreclosure will be visible on your credit history. Lenders will take it into consideration that you didn't pay a debt before loaning you additional money. You will either not get the new loan or will pay a much higher interest rate.

2. The timeshare lender will report the foreclosure to the IRS. They will show the amount of money that was still owed at the time of the foreclosure as well as the value of the property at the time it was sold.

Let's say you paid $10,000 for the timeshare, had a remaining balance of $8000 and the timeshare is now wroth $4000. For tax purposes you have a $4000 non-deductible loss (timeshares are personal use property) and a $4000 cancellation of debt income. If you are not insolvent or bankrupt, the $4000 will be added to your income in the year of the foreclosure as 'other income.' (The loan is considered separately from the property so the $4000 loss doesn't reduce the COD income at all.)



To resale or rent  a timeshare is a hard task, the basic rule is not to pay money up-front, don’t be another victim of a scam.

Unfortunately over 50% of people that really need to sale their timeshare falls for this resale scams where they charge money upfront and less than 10% of them use their only real option wich is to post it or offer it trough free advertising options as much and as many sites as you can (it is ok to pay a few dollars to post in a great place but no more that $20 to $30).

Timeshares do not have resale value and in most situations you would take a loss in what you paid for, as they resale for less than $1000 USD.

There are some free classified adds where you start can posting:



http://timeshareownerscommunity.com/

http://tug2.net/

http://craigslist.com

http://ebay.com

http://recycler.com/

http://usfreeads.com/  

http://www.inetgiant.com/