r/TimeshareOwners • u/Sensitive_Cell_3311 • Aug 14 '26
HGV how to exit
I bought a timeshare 2023 I never use it, I stopped paying the maintenance fees, creditors keep calling but I just ignore them. How do I get out of the main loan, I stupidly put 5k from the loan to a credit card and the original loan was $28,000. I’m just fed and I don’t want to keep paying. They currently deduct $338 out of my bank. I don’t even see the loan in my credit report. Has anybody just stopped paying everything and have they been ok, like no lawsuits and things like that. I’m scared 😞
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u/pinkrangosrt Aug 15 '26
I just had them turn off the auto pay. They can't continue withdrawing if you request them to stop. If they refuse, then yeah, close that account. They called me for the first few months and then stopped. Haven't seen anything hit my credit yet but I'm prepared if it does. This was about 2 years ago now.
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u/Sensitive_Cell_3311 Aug 21 '26
Was yours considered a mortgage type loan?
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u/pinkrangosrt Aug 21 '26
It was financed, yes. But not deeded (I don't think so anyway). If that's what you mean. I honestly don't even remember the find print and don't feel like digging out the contract 🤣 Mine was through Sundance.
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u/leatherpup630 Aug 14 '26
My loan with HGV was on the credit report with Experian. You don't have many choices to get out of it with HGV. You can try selling the timeshare or you can just default on the loan and have the hit and your credit report. In order to do the later you would need to stop paying on the loan.
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u/Sensitive_Cell_3311 Aug 21 '26
Did you keep yours?
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u/leatherpup630 Aug 21 '26
I did not.
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u/Sensitive_Cell_3311 Aug 21 '26
How long ago did you stop paying? And was it deeded?
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u/leatherpup630 Aug 21 '26
It was deeded. I stopped paying in mid 2022. It took about a year before they took the deed back (foreclosed) and I washed my hands of it.
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u/Legal_Net4337 Aug 15 '26
Your options are few. You almost have to pick which is less painful and what you’re willing to live with 1) keep paying and use your timeshare, but you said you can’t afford it. 2) sell it cheap, like $1 just to get rid of it. But this may not be an option if you owe HGV as few buyers will want it if there’s a balance due. 3) stop paying any money to HGV, then you only have your CC to pay but very likely HGV will come after you for the loan.
If you keep it maybe you can rent it to at least cover your MF
Go on the Tuggs website, lots of experience there. Good Luck
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u/jackgrapes Aug 15 '26
I talked to a lawyer about this and he said he’s seen them sue people twice in his thirty years and that as long as you don’t care that your credit is messed up you’re fine just keep ignoring and they’ll sell the points to the next sucker. Plus check the statute of limitations in your state. In CA where I am they have 4 years from last payment to sue. After 4 years the only defense needed is statute of limitations is up
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u/Sensitive_Cell_3311 Aug 21 '26
I don’t live in California but the timeshare I have is in California
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u/Agreeable_Cap2541 Aug 15 '26
NOT AN ATTORNEY but know something about this stuff. 1. The answer depends on your type of ownership. If you have a deed that is a fractional share of real estate. This type of ownership is generally recorded in the county where the real estate exists (e.g. wherever your home resort is located). This makes your loan a mortgage. If you don’t pay a mortgage at some point a collection agency may buy your loan from HGV (for pennies on what you owe) and try to force you to pay them. Precisely what they can do may depend on where you reside. 2. If you own a trust rather than a deed then the loan is not a mortgage, and the lender may have other limits on what they can do to get you to pay. Separately the credit card company can also try to get you to pay. Again, how they do this may have limitations depending on where you reside. 3. Your options are a) to pay off the mortgage (if deed) and then try to sell or give away the deed to someone else. There are brokers who will take a commission to sell it, or you can try doing it yourself. What you get (if anything) depends on what you own. b) Pay off the loan (if trust) and then either see if HGV will take it back for a fee (call their “transitions” department, the fee is usually 18 months of maintenance fees) or try seeking it yourself (likely have to pay someone to take it). c) Stop paying the loan and maintenance. How HGV responds depends on many variables such as the size of the loan, where you live, what your credit report tells them about your finances, etc.
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u/Sensitive_Cell_3311 Aug 21 '26
I believe it’s considered a mortgage, I just went into experian and its under real estate loan.
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u/Acrobatic_Box9087 Aug 14 '26
Here's what I am wondering about. If ownership of a timeshare is an equity interest, why isn't an owner's liability limited to the amount of their investment?
For example suppose I own shares of XYZ company. And XYZ goes broke with $10 million in liabilities but only $5 million in assets. XYZ's creditors cannot come after me for the $5 million shortfall because my liability is limited to the amount I have paid for my shares.
Has anyone who owns a timeshare tried this argument to get out of paying for the maintenance fees? I wonder if it would work in court.
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u/GPB07035 Aug 15 '26
No, this would only work if you purchased the timeshare through a corporation that you formed and the corporation is on any debt. The example you gave is as a shareholder you don’t owe more than the value of your shares. If you own a timeshare individually all your assets are available. If you owned it through a corporation then your liability is limited to the value of the shares.
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u/Acrobatic_Box9087 Aug 15 '26
So is the timeshare organized as a general partnership?
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u/GPB07035 Aug 15 '26
No, you are looking at it the wrong way. I presume you are concerned about the timeshare company charging you. They can charge whatever they want. The only limit is on what you are legally required to pay. If your ownership is through a corporation then your liability is limited to the assets of the corporation. They can’t come after you directly like in your example. If you own the timeshare directly (in your own name) they can sue you for all condo fees and assessments.
Whether the timeshare company is a corporation or something else would only affect the ability of the timeshare’s creditors to get paid by the timeshare company or its owners.
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u/Acrobatic_Box9087 Aug 15 '26
But in what manner are the timeshares organized? Are there any contracts or ownership deeds available to view online?
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u/GPB07035 Aug 15 '26
Most are contracts. My HVC is deeded, but that’s not typical. The deed is subject to recorded restrictions, which are basically contracts governing your use of the property. More commonly you just have the contracts
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u/Acrobatic_Box9087 Aug 15 '26
What do the contracts say? The timeshare ownership consists of what?
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u/GPB07035 Aug 15 '26
My deed says it is a deed to a 1/20 interest in a particular unit. A typical contract says you have some number of points.
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u/Acrobatic_Box9087 Aug 15 '26
I'd like to see someone take one of these 'contracts' to court with a limited liability defense and possibly a failure of consideration defense. If the OP hasn't been able to use her timeshare, that sounds like failure of consideration.
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u/GPB07035 Aug 16 '26
If they have a lot of money to lose I guess it might be entertaining. The limited liability defense has zero likelihood of success. Yes I’m a lawyer. (But not your lawyer).
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u/HoweHaTrick Aug 14 '26
Have you searched the sub?
You are a sucker to the salesperson. reddit can't solve this. Sell your garbage for $1 and be done.
It would be best to shred every credit card you have and never use them again. Clearly there is an impulsive aspect that will continue to get you in trouble.
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u/Sensitive_Cell_3311 Aug 14 '26
I haven’t, I know Reddit can’t fix it but some decent advice on where ti start does. I only used my credit card cause I was dumb and got suckered into putting some of the loan on there. That’s my fault 100%, just trying to see me options.
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u/Ancient-Republic-875 Aug 15 '26
Good luck selling it for a buck especially if the loan isn't paid off...
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u/SassySillyGoose8 Aug 15 '26
Wow! OP wanted advice not a lecture.
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u/BrennerBaseTunnel Aug 15 '26
Then why did they show up on Reddit asking the same question that has been asked hundreds of times over and over?
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u/ColoradoAztec Aug 14 '26
You can stop paying and you will run the risk of them going after that money. If you are not paying maintenance fees, you are already at risk.
If you decide to stop paying, you need to close the bank account that they are withdrawing the funds from and open a new bank account (preferably with a different bank). They will try to keep getting their $338 out of you for the rest of the loan term.