Debt questions from around the world, helping each other by giving and receiving advice on UK based debt.

Moderators: TalbotWoods, JaneClack

By H20s
#470393 Looking for your valuable advice..!!

We are living in the UK, and number of years ago we purchased a 2 week slot - timeshare - in Vistana Spa, Florida whilst on holiday. We paid in full for the 2 bedroom apartment 2 weeks slot, with only the regular yearly maintenance payment.

We are in a situation whereby we are unable to pay for the yearly maintenance and notify the company of this and stated the they could take our ownership, which we are now happy to lose. They have sent us letters advising that they are not interested on our ownership and want their maintenance paid asap. Yet again we have verbally advised them of our current situation and responded that they couldn't help us and reminded us that we would incur interest of overdue payments..

So, we are in a situation that we cannot afford to pay them and we do not want our ownership, plus its is difficult to sell on to anybody.

Obviously, we will be going the road of where we will be in debt to them, so can you advise us whether the American debt collectors are able to chase us in the U.K for this debt owing in Florida for the Timeshare...??

Many thanks in anticipation for any help, as it would be appreciated as my wife is very worried about this..
User avatar
By TalbotWoods
#470413 Hi H20

Please have a look at this thread, I know it wont answer all your questions, but will start to.

viewtopic.php?f=11&t=117103

As the laws regarding Timeshares in the US are quite different to anything we normally deal with, I will see what else I can find out for you.

Tim
By H20s
#470433 Hi Tim,

Many thanks for your reply and the link which we have read..
My wife's concern being the debt we owe which will grow, and the potential of receiving their debt collectors mail. For us the only solution would be to release our ownership to them, so that the sale will cover the outstanding payments..

Question 1 : as this is an ownership could we not foreclose this asset to them, so that the resale can cover the outstanding debt.

Question 2: if we did nothing what will be the implications, as we don't have any financial ties in the US. Obviously, we will receive mail chasing for the outstanding debts. The way that I see this and understand, as there's no outstanding mortgage, the debts collectors will not be able to enforce their collections on us as we are outside of the Florida state, due to international Data Protection Rules, judiciary rules, international conventions, etc.

Once again many thanks for your valuable advice..

Rick.
User avatar
By TalbotWoods
#470483 Hi Rick

Sorry for the delay, but I have been waiting for a response back from a friend I have in the US on this.

In response to your specific questions.

1. The time-share is only a part ownership of the property, and they will need to find a new owner to take on your share, BEFORE they will take it back in full. Until that has occurred you will be liable for all costs associated with it.

So yes you can offer it back to them, but the return to them after sales costs, legal costs, ect., may mean a loss to them. Basically until it is sold you pay them!

2. As per the previous thread, and as the law hasn't changed, there is nothing they can do UNLESS you signed up for the Time-share through a third party company in the UK, in which case the whole thing would be covered by UK/English Law (you need to read the paperwork if you signed it the UK)

If the Time-share was signed for in the US, and all dealings are carried out in the US, then they effectively cannot chase you in the UK, except as preciously pointed out they can moot your Bankruptcy in the US (they wont as it would affect all the other part owners).

Remember that this tack CAN affect you ever going back to the US in the future!

Generally time-shares rarely end easily, due to the complex nature of the beast. The overall owners are only interested in making money off of you, the other owners will refuse to pay your share of any costs, no one will want to pick up the bill and costs of re-marketing the time-share, and overall the only way out if you can do it is to walk away.

Now check your contacts and see where there were signed and which jurisdictions apply.

Tim
By H20s
#470563 Hi Tim,

Many many thanks for your valuable feedback. We purchased our slot many many years ago and was completed in FLORIDA, with no UK references in the contract, and paid in full.

Its a real shame that we have to go down this route as we loved it there, but atlas we cannot continue with the financing of this item.

Obviously, my wife is hesitant about leaving it this way as she likes to do everything the right way, but we cannot afford to do this.

As we will be walking away from this issue, are there any listing to find out whether you are black listed for a VISA to America, as we would like to travel there some time in the future when our financial situation allows us..

Once again many thanks and what a great website, as I have read other post which has been very interesting..

Rick..
User avatar
By TalbotWoods
#470583 Hi Rick

From what I understand it will depend on how the manageent company deal with this.

If they sell the share and there is overall profit, then there will be no effect on Visa applications.

If they make a loss, it will then depend entirely on if they register it or not, and that will depend in the size of the debt.

I believe that unless the move to the more extreme end of dealing with the debt, then it 'shouldn't' affect a Visa application, this sounds vague, simply because it is, it will depend on how the state laws reflect on the national laws.

At present don't forget you can get a visa waiver for visits of 90 days or less to the US if you are a British Citizen through the ESTA and VWP programmes.

Tim
By H20s
#470613 Tim,

Yet again many thanks for your very informative feedback.. As the debt based on the yearly maintenance, and that we don't owe them anything on the time share, we are hoping that they will eventually cease chasing us as we outside of America....

As for the visa situation, wont the ESTA waiver program check for black listed individuals..??

Once again many thanks and we really appreciated your time on out issue..

Rick...
User avatar
By TalbotWoods
#470623 Hi Rick

with regards the ESTA, all I do id re-iterate

"I believe that unless the move to the more extreme end of dealing with the debt, then it 'shouldn't' affect a Visa application, this sounds vague, simply because it is, it will depend on how the state laws reflect on the national laws."

And I do think if they make there costs back without major significant loss, then it wouldn't escalate to the stage of you being black listed.

Is it not possible for you to sell your share through some of these online companies that buy and sell in them. OK I know it would in all probability be at a much reduced return, but it may give a return.

If you generate a return that clears the debt to the management company, and would stop any potential black listing

Tim
By H20s
#470643 Hi Tim,

Thanks again.. We have discussed the possibility of selling but we need to pay off the maintenance before we can enter the sale with an agency which we cant afford at the moment, also, all the sale companies want money upfront, so again more added cost..

Cheers for all your wonderful feedback...

Rick....
By Ellied
#472498 Does anyone have an update to this thread? In a very similar situation to Rick. Tried to sell the 2 weeks in the timeshare in Las Vegas (Grandview at Las Vegas) but no buyers. Offered it back to the owners but they refused. Now had the letter from the Florida based debt collection agency.

All documentation signed in USA under State of Nevada law, all business admin in USA. Was affiliated with RCI to deposit weeks, but RCI do not appear to be the owner of the timeshare.

Live in Scotland therefore subject to Scottish law. Expect them to foreclose and repossess (which is best outcome for us). Presumably no change in law so they cannot pursue this domestic debt through Scottish sherrif court or affect credit rating? There is no outstanding mortgage.
By sally1
#472500 Hi Ellied,
As far as I am aware, the situation is no different to 'Rick's' even though you live in Scotland and there has been no significant change in the law, so although you may get demanding letters, there is little they can do to enforce the debt in Scotland.
By alanbb
#472558 Hi, new on here.

Bottom line. Can I be issued a CCJ from a timeshare debt in Florida. Debt is quite big, about $30,000. But because verbal promises haven't been kept by them, I've stopped my mortgage payments and will accept foreclosure. I know I'll have threats, probably a ban on a future visa etc. But the thought of a bailiff knocking on my door is worrying.

Am I safe from that ?


Thanks
By sally1
#472560 Hi Alanbb,
I'm afraid we can't advise on American Law but I can tell you that currently money owed to an American Company cannot be sued for here in the UK if the debt accrued in the USA. The debt could be sold on to an English company who could then sue you for it, but in reality, if you don't pay, the lender will foreclose on your timeshare and attempt to sell the timeshare on to recover the debt. Hope this helps
By alanbb
#472562 Thanks for replying Sally. I have 2 timeshares, both at Orange Lake. One in Orlando, the other in Panama City. I'm told that foreclosures are sold on the cheap, so what would then happen as I'm sure there would be a shortfall ?.

Any advice would be useful.

Many thanks.