About Andreas Rossler Expertise I'm able to answer general questions on timeshares and specifically in regard to purchasing, renting or exchanging timeshares on the secondary or resale market and through the Internet. I have expert knowledge in sales, mechanics (how and why timeshares work), and timeshare exchanges.
I am also well versed in timeshare financing and may be able to guide you to better financing or refinancing options for your timeshare purchase.
If you ask questions of a legal nature, or those requiring tax advice - I may not be able to answer fully.
Experience I have 10 years of industry experience in sales, management and processing. I'm currently CEO of Timeshare Village, a resource for timeshare owners and industry professionals.
Organizations Mensa - Life Member
Publications I have been interviewed by Channel 7 News in the Bay Area of California regarding my opinions on Worldmark, the Club timeshares as developed by Trendwest-Wyndham Resorts.
Education/Credentials MBA - Master's in Business Administration
BS - Mathematics
BA - Economics
California Real Estate Broker
Question QUESTION: My wife and I purchased a timeshare a couple of years ago from Vacation Village and regretted the purchase as soon as we got back from our Vacation (7 days). We were both 25yrs old and figured it would be a great way to get to travel but we were not qualified to take on such an obligation. Our income at the time was far less than it is now and we felt conned into this purchase from the time we walked out the door but it was our only way out... after spending several hours of being tag teamed by different sales reps. It was a miserable experience and one I wish I could take back. A few months ago we ran into some financial troubles that caused us to fall 90 days late on the payment of this timeshare and we also have not paid the ridiculous $795 in maintenance fees. We are great at paying any debts we have but feel that we can no longer pay for something we'll use maybe once. It's just too expensive... monthly payment, maintenance fees, plane tickets to get there. I tried selling it with that piece of crap company Timesharesonly and man was that a waste of $695. It's been there for over a year and I haven't even gotten one call.... heck, at this point I would even take a prank call in regards to the sale of the timeshare. I also looked into a company that stated they were a part of Century 21 and could sell it for us super fast but they wanted $400 plus upfront with a promise to pay that back once the timeshare was sold. I have put so much money into this thing that I'm scared to just keep throwing more away so I didn't pursue that option. Was is legitimate? My question is this. I know that if we don't pay this it will eventually hit our credit. We've come to terms with that and are prepared to do that but I'm wondering how the debt will show up, and is it like a credit card (can the debt be settled for a portion of the amount).What I mean by how the debt shows up is... does it show up for what we owe ($8000) or would there possibly be a lesser amount. I don't know who to turn to on this question. I've run out of options at this point. I know that if you lose a home they have to sell it... whatever is the difference from the price owed to the price it was sold for is what goes on the credit report. Is it the same for timeshare? I want to let it go but if it's in our best interest to keep it than we'll have to figure something out. I know this isn't your specific realm of expertise but any info or guidance you could offer would be a blessing. Thank you in advance.
Sincerely,
Jamie
ANSWER: Jamie,
A good question. As you know, there are literally hundreds of timeshare companies and each has different (and similar) policies when it comes to maintenance fees and loans. I don't know the inner workings of Vacation Village, but allow me to give you some general information (I'm going to go over a bit of ground, bear with me, it is to help others who might be reading this).
Basically, there are two different obligations. One is the loan and the other is the maintenance fee. Most timeshare companies sell their loans to third parties and do not service the loans themselves. That is the company you'll have to deal with on the loan issue (either way, if they do service the loan, then you'll deal direct). If your timeshare is deeded, then they will foreclose on the timeshare and it will show up as a timeshare foreclosure. However, different companies report it differently - most likely it will simply show up as a bad debt.
The maintenance fees are usually paid to the resort and is more like a gym membership. That is how they would appear on your credit report. If you don't pay maintenance fees you cannot use the timeshare or transfer it to a new owner.
Now, as you know, if they wanted to, they could take you to court and try to collect. Don't worry about the timeshare not being worth $8,000 - if they are actively selling them, I am sure they are selling them for more than $8,000 - so they can't declare in court that it is not worth $8,000. The maintenance fees they can collect on.
If you have ever been in collections, bad debts are usually sold to collection agencies - basically experts at scaring and hassling you. Eventually, they will go away.
On the other hand, a recent questioner told me that he spoke to an employee at Silver Leaf Timeshare who told him that Silver Leaf does nothing. They take back the timeshare and don't even report it. However, I would not count on that. On the other hand, I have not seen a timeshare company go to court - it just isn't cost effective because the most they will get is the timeshare back - which they get without going to court. If you plan on not paying your maintenance fees, you might as well not pay the loan and let them foreclose (that way, the maintenance fees will stop). Either way, this will affect your credit.
Also, never pay an up front fee to sell. The psychological trick is to tell you that your timeshare is worth more than it really is, collect the money and leave you hanging in the wind. I am a timeshare reseller and I don't charge my sellers a single dime to sell (most of the time I even pay for the mailing of documents). I charge AFTER I have completed my job - to sell your timeshare. All who charge up front fees are liars and cheats - period.
You might want to check eBay for some selling prices on timeshares. You can also try Leisure Credit for some alternative financing - might make it easier to pay.
---------- FOLLOW-UP ----------
QUESTION: Thank you so much for your response. It helps much more than you can imagine. My last question is... what do you charge (on the back end) for selling a timeshare and how can I get in touch with you to discuss details?
Answer In general, after the timeshare has sold and we have secured the buyers funds - we charge $600. However, in certain circumstances we negotiate on the back end - our goal is to try and ensure the seller is never out of pocket (as you know, some timeshares sell for less than $500).
You can contact us at sales@timesharevillage.com
In this forum, we can't promise to help, we would need more details on what you own, but we can at least discuss options and then you can do what works best for you.
