Paying off a timeshare early

My wife and I have recently been suckered/pressured into purchasing a Westgate timeshare in Las Vegas. However, we live in Australia after looking into it all, i believe it is to risky for us and wish to pay it off now and try sell it (even though we stand to lose a lot of money).

I was wondering if Westgate would allow this to happen or are they likely to try weasel their way out of it.

If they are likely to turn down my cash out option, it would be really great if anyone would be able to provide me with some information on how I be able to proceed this issue. My thoughts would be to contact the Florida Attorney General/BBB/ARDA etc.

thanks.

nathanm50 wrote:

My wife and I have recently been suckered/pressured into purchasing a Westgate timeshare in Las Vegas. However, we live in Australia after looking into it all, i believe it is to risky for us and wish to pay it off now and try sell it (even though we stand to lose a lot of money).

I was wondering if Westgate would allow this to happen or are they likely to try weasel their way out of it.

If they are likely to turn down my cash out option, it would be really great if anyone would be able to provide me with some information on how I be able to proceed this issue. My thoughts would be to contact the Florida Attorney General/BBB/ARDA etc.

thanks.

If your timeshare is financed via Westgate then I see no reason why you couldn't pay it off early. The best thing to do is ask Westgate or whatever company that it's financed with.

Our first timeshare we bought from the developer via a processed loan because we would have had to transfer some funds from one account to another when we signed and we didn't have time to to that so we financed .... we don't like debt so we paid it off immediately after transferring the funds with no negative repercussions.

Be aware that timeshares, especially in overbuilt areas such as Vegas, might have little to no value. It depends on the supply and demand of your time owned (ie: special events, Christmas, New Years etc).

Since you're from outside the US one of your options is just to walk away and cease all payments. I know this seems unethical and immoral, but it works. Westgate finances all their TS sales using private financing with high interest rates that have a built in recovery for default. They will threaten foreclosure and credit damage, but my long history dealing with Westgate has shown this to be all that happens - no actions are usually taken and a deed-back is then usually offered. Also to have your credit affected it needs to be registered in your home country - a US debt (or even foreclosure) will not show on your credit anyway. However, I would write to them and suggest that you're likely to follow this approach and see what happens. I've seen many deed- backs achieved from Westgate using this approach, especially when you're not from the US.

Some additional information for Westgate owners of Planet Hollywood in Las Vegas. WG have sold their rights in this venture to Hilton who now run the operation and the HOA. However, any loans prior to the sale are still with WG. WG is now offering LPOA's (limited power of attourney) to their owners to allow them to "sell them on" at no cost (also zero revenue) to the owners. It's a good opportunity to get out if that's what you want. If you're from out of the US there are no fees either (if you push back). Within the US they try to get a fee - up to you to "negotiate"

davek194 wrote:

Since you're from outside the US one of your options is just to walk away and cease all payments. I know this seems unethical and immoral, but it works. Westgate finances all their TS sales using private financing with high interest rates that have a built in recovery for default. They will threaten foreclosure and credit damage, but my long history dealing with Westgate has shown this to be all that happens - no actions are usually taken and a deed-back is then usually offered. Also to have your credit affected it needs to be registered in your home country - a US debt (or even foreclosure) will not show on your credit anyway. However, I would write to them and suggest that you're likely to follow this approach and see what happens. I've seen many deed- backs achieved from Westgate using this approach, especially when you're not from the US.

You seem to think that just because the OP is from Australia that he can merely cease making timeshare mortgage payments and he will be rid of his financial obligation with no repercussions ..... this is just not true. The world has gotten smaller and with instant communications around the world anyone's credit can be ruined from non-payment of a signed legal contract no matter the country of residence.

You're correct that the world is smaller and yes, it is feasible that credit can be affected for a default in the US in another country. However, for this to happen the debt needs to be registered in THAT country and this is an expensive and time consuming excercise for the TS owners (or their agents). My personal experience (and that of many others out of the US) is that "usually" the TS owners choose the path of least resistance and either issue a deed-back or just stop bothering to chase you. Even a US foreclosure is only registered in the US and will not show up on credit reports in the UK or Australia unless pursued and registered there, that's the law in those countries. Even for me in Canada this applies. We have laws which restrict that activity. To reiterate: it's not impossible to affect credit outside the US, but HIGHLY unlikely for a TS loan. See below a legal opinion from a Canadian source:

It doesn't matter that the credit files are run by the same companies. The systems in the two countries are governed by different laws and therefore can't be mixed. They are entirely separate.

Here's some more input regarding the US and Australia wrt credit reporting. NB: I realise that it's not really ethical or moral to walk away, but it is a viable option.

I own a house in the US and have been trying to sell or rent it for some time now. If I cannot do so by October, I've been advised to just "walk away". Turn in my keys to the bank and let them foreclose. I realize this will drastically affect my credit in the US. Will it transfer over and prevent me from getting any kind of credit in Australia?

No it doesn't affect you in AU, you will start a new credit history here. But personally if you ever return to the US your assets can be seized and all sorts of bankruptcy proceedings taken against you.

For now that might not be anything but who know what happens 10, 20 years down.