Rci canceled us...

[horsegoer Junior Member Find all posts View Profile Close horsegoer]

Ok, we were behind on our payments(about 5 months), not to my knowledge, an my fiancee called today to make that payment and they said we were canceled. They said we could speak to a manager to see what could be done. The manager called back and said he would call back tomorrow and tell us what we could pay to get it back.

Now the question. Is it worth it keep paying toward this? We have owned this since 2005. It hs a 14% interest and total payments(with finance charges) will be $18,417.00. It is a points system and our home resort is Divi Aruba Phoenix and we have 77,000 points per year. I can't even explain how upset/p.oed I am that we were canceled. I mean I understand them cancelling us but I had no idea.

Also, if we have a way to keep this and we don't use our points can't we rent them out or something like that.

THANKS very much for any input/help

[Nancy Platinum Contributor Find all posts View Profile Close Nancy]

I'm confused what got cancelled and by whom. Was it an RCI exchange?

Nancy

[GrayFal Silver Contributor and supermoderator Find all posts View Profile Close GrayFal]

Ok, we were behind on our payments(about 5 months), not to my knowledge, an my fiancee called today to make that payment and they said we were canceled. They said we could speak to a manager to see what could be done. The manager called back and said he would call back tomorrow and tell us what we could pay to get it back.

Now the question. Is it worth it keep paying toward this? We have owned this since 2005. It hs a 14% interest and total payments(with finance charges) will be $18,417.00. It is a points system and our home resort is Divi Aruba Phoenix and we have 77,000 points per year. I can't even explain how upset/p.oed I am that we were canceled. I mean I understand them cancelling us but I had no idea.

Also, if we have a way to keep this and we don't use our points can't we rent them out or something like that.

THANKS very much for any input/help

from another TS Board

Ok, we were behind on our payments(about 5 months), not to my knowledge, an my fiancee called today to make that payment and they said we were canceled. They said we could speak to a manager to see what could be done. The manager called back and said he would call back tomorrow and tell us what we could pay to get it back.

Now the question. Is it worth it keep paying toward this? We have owned this since 2005. It hs a 14% interest and total payments(with finance charges) will be $18,417.00. It is a points system and our home resort is Divi Aruba Phoenix and we have 77,000 points per year. I can't even explain how upset/p.oed I am that we were canceled. I mean I understand them cancelling us but I had no idea.

Also, if we have a way to keep this and we don't use our points can't we rent them out or something like that.

THANKS very much for any input/help.:bawl:

They (DIVI Phoenix) have cancelled your right to use your ownership - they have NOT CANCELLED YOUR DEBT.

You STILL OWE ALL THE MONEY but because you are so far behind, you can not even use your ownership.


You can not get out of the debt even if they take away your ownership for non-payment

Are you understanding what has really happened???

[BoardGirl Senior Member Find all posts View Profile Close BoardGirl]

Probably you now know that you should have made the phone call at teh first sign of not being able to pay your debt. It doesn't matter whether you knew, remembered, cared, were in a hospital, whatever - you didn't make the required payments.

I think you have no points at your disposal, that you lost the right to use them when you didn't make your payments.

To gain use of your points, you would have to bring your account up to date and quite possibly pay penalty fees. Not doing so just digs you in deeper and drags your credit even farther down the crapper.

How is RCI involved in this?

[tonyg Goomba & Super Moderator Find all posts View Profile Close tonyg]

Bankrupcy could end your debt, should you need to go that way and I would suggest mentioning it as an option in any negotiations.

[GrayFal Silver Contributor and supermoderator Find all posts View Profile Close GrayFal]

Bankrupcy could end your debt, should you need to go that way and I would suggest mentioning it as an option in any negotiations.

And what does a bankrupcy do to your credit rating?
Or if you want to purchase a new home?

[Glitter Brunello Super Moderator Find all posts View Profile Close Glitter Brunello]

And what does a bankrupcy do to your credit rating?
Or if you want to purchase a new home?

I think Tony may have meant to mention it while negotiating, not necessarily to act on it?

[GrayFal Silver Contributor and supermoderator Find all posts View Profile Close GrayFal]

I think Tony may have meant to mention it while negotiating, not necessarily to act on it?

Over on TUG, they are telling OP that if he has lost his TS due to non-payment, he also does not owe any money....I just don't get it.

How is he 'forgiven' this financial obligation?

[Glitter Brunello Super Moderator Find all posts View Profile Close Glitter Brunello]

Interesting. Do we know how many developers act on these bad loans beyond foreclosing on the timeshare? It would seem better for them to foreclose and take back their weeks. If the weeks are really worth what they are selling them for, then they can't put liens on homes, etc... for any shortfall... the foreclosure gets them back the "real estate" that was subject to the mortgage, and the payments end. That's how it works with home mortgages, unless the home value does not meet the amount of the mortgage. Not something I think the developers want to argue... Still would have a negative impact on one's credit rating.

[PigsDad Senior Member Find all posts View Profile Close PigsDad]

Interesting. Do we know how many developers act on these bad loans beyond foreclosing on the timeshare? It would seem better for them to foreclose and take back their weeks.

Most likely, the debt was sold to a third party, and the developer has nothing to do with the debt at this point. In that case, taking back the weeks would do nothing for the third party holding the loan.

Unfortunately, the owner is in a bad situation. Outside of paying off the loan (which may be difficult, as the OP can't even make payments), bankruptcy may be the only option in the end.

Kurt

[Glitter Brunello Super Moderator Find all posts View Profile Close Glitter Brunello]

Most likely, the debt was sold to a third party, and the developer has nothing to do with the debt at this point. In that case, taking back the weeks would do nothing for the third party holding the loan.

Unfortunately, the owner is in a bad situation. Outside of paying off the loan (which may be difficult, as the OP can't even make payments), bankruptcy may be the only option in the end.

Kurt

So I guess that's where the negotiation potential is - cutting a deal with the mortgagor on payments once the account is in collection to see if they'll take a structured plan at less than the total amount due. Mortgagor would still have to foreclose otherwise, right? Or is it different for points systems? For a deeded week, it would have to be foreclosed.

[tonyg Goomba & Super Moderator Find all posts View Profile Close tonyg]

Most likely, the debt was sold to a third party, and the developer has nothing to do with the debt at this point. In that case, taking back the weeks would do nothing for the third party holding the loan.

Unfortunately, the owner is in a bad situation. Outside of paying off the loan (which may be difficult, as the OP can't even make payments), bankruptcy may be the only option in the end.

Kurt

Third parties that bought contracts may or may not have a clause for taking back the weeks and returning them to the resort, at any rate they really don't have any use for most of them and without such a clause, they may not have any desire to take the week back---particularly in the current resale market. The threat or filing of bankruptcy certainly can make a partial payment settlement more attractive than no money and the timeshare deed.

[Jya-Ning Silver Contributor Find all posts View Profile Close Jya-Ning]

Yahoo! has a report a while ago, may or maynot apply to this situation. Anyway, someone did a short sell on their main resident, than after a while, when they think they are out of mess, they found out that the bank still want them to pay for all the loss in that short sell. Does not say what happen, but I suspect in current situation, it will be forgiven in the end.

At this moment, I am pretty sure the OP's credit is close to be ruined if not already so with several unpaid payment. Although it still be a big different between low credit score and bankrupcy, it may not be that much. Andyway 500 and 300 to me are the same.

If you can get out, try the best to get out. You will need a local (your own) legal advice not free internet suggestion.

Jya-Ning