Full question:
We own a time share in Arizona. We paid 13K. They raised the maintenance from 600 to 900. They will not take the deed. They said if we send it they will not receive it. They said if we stop payments they will take us to court. No one will buy it. We have tried to give it away. We are desparate. What are our recourses???
- Category: Real Property
- Subcategory: Sales
- Date:
- State: Texas
Answer:
It is true that they are not required to take back the deed and they can sue you for unpaid fees. The answer will depend on the contract terms. If the contract terms don't allow cancellation, it may be possible to rescind a contract for fraud, incapacity, duress, undue influence, material breach in performance of a promise, or mistake, among other grounds. The options and the best course of action will depend on all the circumstances in your situation.
Oftentimes, if a lender or timeshare developer knows there is no way you are going to continue paying, they will offer other options to borrowers, such as a “deed in lieu of foreclosure". A deed in lieu of foreclosure is a method sometimes used by a lienholder on property to avoid a lengthy and expensive foreclosure process, With a deed in lieu of foreclosure (DIL), a foreclosing lienholder agrees to have the ownership interest transferred to the bank/lienholder as payment in full. The debtor basically deeds the property to the bank instead of them paying for foreclosure procedings.Bankruptcy is generally an option of last resort.
Please see the information at the following links for further discussion:
http://www.marketwatch.com/story/when-you-cant-afford-your-timeshare-2010-09-24
http://www.tugbbs.com/forums/archive/index.php/t-51068.html
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
