Legal Question in Real Estate Law in California

Re: Timeshare give back with positive credit

Timeshare sales people do a great job of selling people on these places. In reality, you could go accross the street to real estate offices who resell them for 30-40% of what people pay for them.

I do not think you will have much luck in returning it and maintain your credit. Getting the original sales company to sell it for you at a higher rate is not likely, either, because they probably still have plenty of inventory to sell.

Re: Timeshare give back with positive credit

Bad credit with one problem isn't that bad. Especially if it comes from exigent circumstances that you do not control. There are Federal and State Statutes that you can refer to concerning your credit rights. It's the Time Share folks that will be reporting your status to the three major credit reporting companies. They may not report it. However, they'll most likely refer the matter to a collection agency. These companies as a regular practice make bad reports on your crdit report. And since they transfer these accounts. Over the next several years you'll be hearing from a number (4 to 5)of them. The good news is that they rarely sue anyone to recover any money. They rely on calling and writing you. You may want to pick up a couple of credit cards at this time to hold in case you need emergency money later. If you have any svings, and could spare a couple of thousand. You might make an offer to compromise the debt for a lessor sum.

Re: Timeshare give back with positive credit

I do not think the concept of "giving it back" applies. I am assuming for this reply that the money you owe is a "purchase money mortgage" - i.e., money loaned to you by the lender to purchase the time share. Under California law, a time share is an interest in real estate, and I am sure the lender took back a deed of trust. If you have not refinanced the loan, then you simply stop paying.

Under California Code of Civil Procedure 580b, there cannot be a deficiency judgment against you. The lender is deemed to have looked only at the land and not you for credit. And so, you may want to assert that no report can or should be made to a credit reporting agency on the default. You may not win with the lender on this one, but your threats may convince the credit reporting agency to omit the item from your report.

You may continue to owe any pro rata assessments to the timeshare management company while you own it. If you want to give it back in this manner,it is probably worth a few hours of an attorneys time to help advocate your position along the way.

NOTE: Please understand that the information provided in this reply is for informational purposes only and does not create an attorney-client relationship. It also may not be complete, and is designed for general information to parties under California law. Before you make any decision that might possibly have legal implications, you should consult with our office, or another qualified professional, so that thorough legal advice can be provided in a manner that relates to your specific circumstances. Thank you.

Reply Posted By:

Wayne V.R. Smith

Attorney at Law

P.O. Box 3219

Martinez CA 94553