… nobody ever lost money betting on the ignorance and innumeracy of the American people.
intercst
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I doubt many here would even click on that link – too smelly.
d fb
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Nothing smelly about that link. Just the WSJ reporter explaining the problems in the industry and the additional fraud being perpetrated on time share owners when they try to get rid of their “investment”.
Kudos to the Washington State Attorney General who filed suit against the “Time Share Exit Team” which scammed customers for an upfront fee and then failed to deliver results. Personal finance entertainer Dave Ramsey is a co-defendant on the strength of the $30 million in advertising & marketing fees he earned while promoting the scam to his audience. (That’s almost half of the $70 million alleged to be taken in the fraud.)
intercst
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Choices have consequences. It also depends if the timeshare is sold or if it is really a long-term lease with a finite end (i.e. 20-30 yrs out).
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I have a general question. Mortgages on regular homes in most states are non-recourse, that means that when you can’t/don’t pay, they can only go after the property itself. When you take a loan on a time share, apparently that isn’t the case, because they can go after you and your other assets. Is there a way to structure your timeshare purchase as a regular non-recourse loan?
Not that I would ever buy a timeshare, but if someone does, maybe they should find a charity they hate … and leave the timeshare to that charity in their will. 
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If you are a permanent owner of your timeshare week(s), then it is your personal property (right to use). Read the sales contract to see what happpens when you die. You may NOT be allowed to transfer it to someone else. The rental time(s) may revert to the developer so they can be resold (for just that reason).
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As long as none of the heirs to the estate take title to the timeshare, I don’t see how the financial obligation could survive the death of the owner and the closing of Probate. Of course, many people do advance planning to avoid probate. But if there’s a timeshare in the mix, maybe that’s a reason to run the estate through the Probate Court where you can finally get the timeshare discharged?
intercst
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Actually not. Mortgages are recourse loans in most states. Only 12 states have non-recourse home mortgages and Florida isn’t among them.
{{ While banks don’t usually offer loans that are non-recourse, residential real estate loans (mortgages) are treated as non-recourse in twelve states: Alaska, Arizona, California, Connecticut, Idaho, Minnesota, North Carolina, North Dakota, Oregon, Texas, Utah, and Washington. Even in these states, there may be exceptions outlined in state law. }}
intercst
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When you get a loan, read the fine print! We sold our house and used part of the proceeds to invest in the building that was going to be erected in its place with the idea of getting the pent-house as out payout. Unfortunately Venezuela ran into financial difficulties and the project needed additional financing. The promotors arranged a bank loan which was to be secured by all the project’s shareholders. I refused to join. The lead financier of the project asked me to explain remarking, “Maybe I can learn something!” I read to him the conditions of the loans security. Each and every cosigner was liable for the full amount of the loan. Then I said, if you don’t pay your share I have to pay millions that I don’t have. He turned to the promoters and asked angrily, “Why was I not told of this?” The loan was standard practice but since they usually worked out, no one paid much attention to pesky little details.
The Captain
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Captain true story, thanks
I chose my condo complex based on their surplus. Or someone can be stuck holding the bag.
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