What Can I Do With a Timeshare I Can't Afford?
Full Question:
Answer:
It is true that they are not required to take back the deed and they can sue you for unpaid fees. The answer will depend on the contract terms. If the contract terms don't allow cancellation, it may be possible to rescind a contract for fraud, incapacity, duress, undue influence, material breach in performance of a promise, or mistake, among other grounds. The options and the best course of action will depend on all the circumstances in your situation.
Oftentimes, if a lender or timeshare developer knows there is no way you are going to continue paying, they will offer other options to borrowers, such as a “deed in lieu of foreclosure". A deed in lieu of foreclosure is a method sometimes used by a lienholder on property to avoid a lengthy and expensive foreclosure process, With a deed in lieu of foreclosure (DIL), a foreclosing lienholder agrees to have the ownership interest transferred to the bank/lienholder as payment in full. The debtor basically deeds the property to the bank instead of them paying for foreclosure procedings.Bankruptcy is generally an option of last resort.
Please see the information at the following links for further discussion:
http://www.marketwatch.com/story/when-you-cant-afford-your-timeshare-2010-09-24
http://www.tugbbs.com/forums/archive/index.php/t-51068.html
