Expert: Andreas Rossler - 12/28/2007

Question
I purchased a Timeshare in 1998 in Phoenix, Az. It was in Kona, Hi at the Paiolo Greens ( mis-spelled! ) All was fine. I paid it off and the yearly fees were reasonable. Summer of 2006, June. I used my timeshare like I had many times before ( and loved it ) and sat down with the sales guys so I could save some money on some tours. Well, as you are knowing..... they had me convert my bi-yearly timeshare into the points system.... AND by doing it now they through in "extra" points. I really did not want to purchase this as I had everything paid. They have an answer for everything... they said I could rent out my timeshare for hundreds of dollars and they are doing this themselves. They had one of their employees come talk to me and she said she rents them out "all the time". She said she does it herself but if I didn't want to do that they have agencies that will take care of it for me. I asked several times about having any issues of renting. She said, "No way, this is the best place for rentals...thousands of people come to Hawaii and use rented timeshares" I thought, if I rented it out twice a year I would be about even and that would be great. I chatted with the lady who did her own rentals and asked for the agencies for rental help. She gave me two agencies. I chose one and they charged me a fee of $500 for two years of listing and paperwork. To date, they have never rented my timeshare. The end of last year I had them list the rental for $100 for a week, just to see if it would move. Nothing. I feel like it is a fake agency that lists these properties and never rents them. No one ever answers the phone...all voice mail, like there is really not an office. Anyway, year and a half later. I am not paying my monthly payments, which are $278 a month with another $80 for maintence. I bought it for about $11,000 and they set me up with $278 for 10 years...HOW much this that!!??
What I would like to know is: Knowing President Bush signed the debt forgiveness stuff... I know my credit will be toast but I am willing to live with that.
1) After foreclosure... will they pursue me for any money? 2) If they get a judgement, would they try to garnish wages?
Basically, what are all the bad things that would and could happen. I can deal ( or not deal ) with the collection calls/letters but my biggest concern is if they garnish wages. Thank you

Answer
The worst case scenario is as you mentioned, they can foreclose and possibly get some sort of judgment and garnish wages.  However, after scaring you like that, let me tell you what will probably happen.  After speaking with numerous individuals in your situation, what usually happens is that they foreclose, take back the timeshare and you are done with it.  They may report it to the credit bureau as well - but that is about it.