The combination of an iffy economy, declining property values, and high-pressure sales techniques on the part of timeshare sellers has resulted in large numbers of people wishing they could dispose of their timeshares.
Most timeshare buyers are reassured, in the purchase discussion, that their timeshares will hold their value and will be easy to sell should their circumstances change. But that's not likely, as many timeshare owners find to their dismay.
Many people think timeshare owners can simply turn the timeshare back or walk away from the contract without repercussions. Wrong! A timeshare is treated the same in terms of law as regular real estate. A timeshare is foreclosed in the same way as a home mortgage. The only difference is that a is also a consequence if your timeshare property is fully paid off and you are obligated only for the maintenance fees.
What happens if you're unable to keep up payments on your timeshare? That varies depending upon the terms of your particular contract and whether yours is a deeded timeshare or a right-to-use agreement. But the general pattern is that your timeshare resort's collection company will begin calling when your first payment is missed, late fees will be imposed, and within a few months, the Internal Revenue Service may be notified of your payment status.
Timeshare companies aren't keen to foreclose, so some time will elapse before proceedings will begin in most cases. During this time, some resorts will be amenable to negotiate a satisfactory arrangement, such as lowering the payments or amount due on the principal, reducing maintenance fees or making them due every two years, or adding perks to your timeshare package. Some may offer you the chance to sign over a Deed in Lieu of Foreclosure. But don't count on it. This is a time when it's a good idea to seek the services of a qualified
If your timeshare company proceeds to foreclosure, you aren't going to emerge unscathed. You'll receive notice that your timeshare will be sold at a public auction or trustee's sale. This is a legal proceeding, a matter of public record, which will be reported both to the IRS and credit bureaus. There goes your credit for the next seven years: you'll find it difficult, if not impossible, to finance a car, get a loan or buy a home. And that's not the worst of it: a trustee's sale or auction rarely raises the amount that's owed, including late fees, by the time a timeshare property is foreclosed on. Your timeshare company can still take legal action against you, suing for the balance owed.
All of this is a matter to think carefully about before you commit to a timeshare. If you have one, and find yourself in the crunch because of an unanticipated change in your circumstances, a marriage dissolution, job layoff or major medical expenses, for instance, you'd be well advised to seek legal counsel and review your options before you miss your first payment.
If you would like information on how to avoid without hiring an expensive timeshare lawyer visit and request a free consultation.
For every timeshare owner who finds owning a piece of a resort or holiday chain a great deal, there's at least one who's having second thoughts. One of the techniques in the arsenal of the sales staff of many timeshare resorts is the staged sale.
Showing posts with label Foreclosure. Show all posts
Showing posts with label Foreclosure. Show all posts
Tuesday, October 2, 2012
Tuesday, June 26, 2012
A Structured Process For Your Foreclosure
There will be a structured foreclosure process, the time that a foreclosure is registered, in every state. In a judicial state, the time starts when the lawsuit, is filed.
In a non-judicial state, the timing starts when the notice of default or notice of trustee sales is filed. This is the pre-foreclosure stage. You will make the most money in this stage, which we will talk about this later in this text.
Step 1
Ordering a Trustee Sale Guarantee (TSG): This is another name for a Title Report.
Step 2
Sending notice to every person or entity that has a beneficial interest in the property: This would include everyone who has a lien on the property, including mechanic's liens, a second mortgage, or the IRS.
Step 3
Substitution of trustee: In a non-judicial state, there is always a Substitution of Trustee. This stems from the three tiered approach, which consists of:
1. The Trustor, the one who borrowed the money
2. The Trustee who is a beneficiary
3. The Trustee, the one oversees the process
You may see a Substitution of Trustee posted at the County Recorder's Office. This trustee only handles foreclosures and will follow the process to the end.
Step 4
Post legal notices: In nearly every state, the laws require the county to post legal notices. These notices may appear in regular newspapers or other publications. Some of these other publications include a legal newspaper, sometimes called a county recorder, in order to follow the requirements of the law. In addition, most states require that the foreclosure notice be posted at the property.
Step 5
Maintain continual contact: Continual contact is maintained with the title company to make sure no other liens are attached to the property. One thing that can stop the whole process is bankruptcy. Bankruptcy is a federal filing lawsuit that supersedes the state statute.
Step 6
Prepare a credit bid: The beneficiary or mortgagee prepares a credit bid, which is the starting bid/amount at the auction, depending on the state and the state statutes. In most states, the credit bid will include the principle balance plus all of the arrearages, including:
1. Bank interest
2. Penalties
3. Legal fees
Other arrearages can include second mortgages and homeowner's association fees. In a judicial state, the lawyer for the mortgage company/bank will prepare the credit bid. In a non-judicial, the Trustee will
prepare the bid.
Step 7
Make payment and reinstate the loan: The owner can perform this task.
Step 8
Suspend or cancel the sale at any time: The beneficiary or mortgagee can do this, if suitable arrangements have been worked out with the owner beforehand.
Foreclosure can happen to anybody anytime without any fault of their own. If you are in this position of foreclosure then make sure you take initiative at an early stage. Taking immediate action and following the above mentioned 8 steps can make a huge difference as to whether foreclosure becomes a reality in your life or whether you can manage to prevent it forever.
In a non-judicial state, the timing starts when the notice of default or notice of trustee sales is filed. This is the pre-foreclosure stage. You will make the most money in this stage, which we will talk about this later in this text.
Step 1
Ordering a Trustee Sale Guarantee (TSG): This is another name for a Title Report.
Step 2
Sending notice to every person or entity that has a beneficial interest in the property: This would include everyone who has a lien on the property, including mechanic's liens, a second mortgage, or the IRS.
Step 3
Substitution of trustee: In a non-judicial state, there is always a Substitution of Trustee. This stems from the three tiered approach, which consists of:
1. The Trustor, the one who borrowed the money
2. The Trustee who is a beneficiary
3. The Trustee, the one oversees the process
You may see a Substitution of Trustee posted at the County Recorder's Office. This trustee only handles foreclosures and will follow the process to the end.
Step 4
Post legal notices: In nearly every state, the laws require the county to post legal notices. These notices may appear in regular newspapers or other publications. Some of these other publications include a legal newspaper, sometimes called a county recorder, in order to follow the requirements of the law. In addition, most states require that the foreclosure notice be posted at the property.
Step 5
Maintain continual contact: Continual contact is maintained with the title company to make sure no other liens are attached to the property. One thing that can stop the whole process is bankruptcy. Bankruptcy is a federal filing lawsuit that supersedes the state statute.
Step 6
Prepare a credit bid: The beneficiary or mortgagee prepares a credit bid, which is the starting bid/amount at the auction, depending on the state and the state statutes. In most states, the credit bid will include the principle balance plus all of the arrearages, including:
1. Bank interest
2. Penalties
3. Legal fees
Other arrearages can include second mortgages and homeowner's association fees. In a judicial state, the lawyer for the mortgage company/bank will prepare the credit bid. In a non-judicial, the Trustee will
prepare the bid.
Step 7
Make payment and reinstate the loan: The owner can perform this task.
Step 8
Suspend or cancel the sale at any time: The beneficiary or mortgagee can do this, if suitable arrangements have been worked out with the owner beforehand.
Foreclosure can happen to anybody anytime without any fault of their own. If you are in this position of foreclosure then make sure you take initiative at an early stage. Taking immediate action and following the above mentioned 8 steps can make a huge difference as to whether foreclosure becomes a reality in your life or whether you can manage to prevent it forever.
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