QUESTION: We purchased a time share back in 2006 and only made about a years worth of payments. Never got anything from them saying we had made late payments and now they have sold the debt to I guess a collection agency? It has been a long time with out payments, is there anything we can do? We do not want to get a judgement from them.
Once the debt is transferred to a collection agency the next step is foreclosure. This will effect your credit but they can't go after any assets in most cases. There are organizations that are successful at getting owners out from under their timeshare loans but I am not sure if they can help you if you have been sent to collections. A simple google search should yield a few results of companies that can help you in your situation.
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QUESTION: We were offered a much smaller settlement amount of $4,300 and the agency Blackwell Recovery said we would still own the timeshare after we had finished paying in full. Does this sound like a normal thing? The original amount we owed was over $12,000. The bank that owns the loan for Consolidated is now HSBC bank. How could I find out if they are telling the truth of still owning the property after paying the $4,300 to them, who should I contact?
Request they send a contract outlining the entire thing. Make sure it shows that you will be the owner free and clear with no liens or back fees attached to the deed. Blackwell Recovery is a legitimate organization with an A rating with the BBB and actual physical address and contact information posted right on their website, which is a good indication of them not being a scam.
This is a normal thing. The last thing the developer wants is for you to stop paying anything so they will get whatever they can. The real money is in the reoccurring maintenance fee obligation. They are willing to make less or even break even on the original purchase as long as you remain the owner and pay the yearly fees.
I would suggest having an attorney look over the contract if it does not make sense to you.