I defaulted on a timeshare loan

[dianaisme]

Hello! This is my first post on this forum. I've just started the credit repair process a month ago. I had a timeshare loan that I wasn't able to pay anymore (along with all my other bills) and I stopped paying 01/07. When I recently pulled my credit reports, the loan company was reporting the balance (14,000) with $578 past due. On my credit summary page, the balance was included in my current debt. The title of the timeshare was redeemed to the company as reported in 07/07. I thought that I would no longer owe this amount since I no longer owned the timeshare. I contacted the loan company and they updated my credit report to foreclosue but kept the balance on there.

Do I still owe this money since it was foreclosed? How can I find out? I've tried researching this online and I'm still not sure because the company was able to redeem the title and resell my "portion" of the timeshare.

I appreciate any input you may have.

[Debt Guy]

Diana

Two different issues.

The first is how the debt is showing on your credit report. It may or may not be accurate. I don't have enough information to answer that question. In any event, the CRA (credit reporting agency) is only reporting the information they receive from the DF (data furnisher).

You have the right to dispute directly to the DF. It is hard to predict what they would do.

The second issue is the debt. Just because it was foreclosed does not usually mean that you are released of liability. The creditor will resell the collateral, credit your account with the proceeds less sales costs, and then establish a deficiency. The creditor can sue you for the deficiency and they can report the deficiency as a debt they are owed.

The only times a deficiency would not be the case would be if (a) the collateral sold for an amount greater than the amount your owed (extremely unlikely) or ( the note is a non-recourse note (merely very unlikely).

I would encourage you to pull out your paperwork and read it carefully in order to assess your liability.

[dianaisme]

Thanks for your reply. I definitely do need to find out what the original contract says. I disputed the account through experian and they changed from charge off with the balance still showing to foreclosure with the balance showing. It was also reporting the same on transunion. I didn't dispute with them yet but it was updated to show charge off on the account and at a zero balance.

[Robert Nashville/Savannah]

Disputing it and even getting it off your credit reports (if that happens) isn't going to do a thing about the debt.

Perhaps since it's a timeshare they won't bother to come after you but I doubt that and I wouldn't count on it...has no one, even the original creditor, contacted you about the amount still owed?

[dianaisme]

No, I have not been contacted about this amount. When I was six months past due on the loan, I basically told them I didn't have the money to pay it. I was sent a letter notifying me that they were taking back the title to the timeshare. I was going through a rough period during that time and so, honestly, I didn't really care nor pay attention to the status of the account. Since then, I have not been contacted at all.

When I pulled my report last month, I saw this amount on there and contacted them to find out more info. They transferred me to a dept that offered me to reestablish the account with them but I would have to pay about 3000 towards the loan and one and a half years of maintenance fees for the timeshare which would be about another 1500. I don't have the money to pay.

I don't even think I still have the original paperwork regarding the loan and what my liability would be if it was foreclosed. (I've been looking). If I don't have the paperwork, the only source I would have for that information would be the timeshare company themselves. Unfortunately, I haven't found any representatives at that company so far that actually knows the answers to my questions.

Why would they update transunion to a zero balance and not experian? It said foreclosure-collateral sold.

Oh and it is still with the original creditor.

[Robert Nashville/Savannah]

No, I have not been contacted about this amount. When I was six months past due on the loan, I basically told them I didn't have the money to pay it. I was sent a letter notifying me that they were taking back the title to the timeshare. I was going through a rough period during that time and so, honestly, I didn't really care nor pay attention to the status of the account. Since then, I have not been contacted at all.

When I pulled my report last month, I saw this amount on there and contacted them to find out more info. They transferred me to a dept that offered me to reestablish the account with them but I would have to pay about 3000 towards the loan and one and a half years of maintenance fees for the timeshare which would be about another 1500. I don't have the money to pay.

I don't even think I still have the original paperwork regarding the loan and what my liability would be if it was foreclosed. (I've been looking). If I don't have the paperwork, the only source I would have for that information would be the timeshare company themselves. Unfortunately, I haven't found any representatives at that company so far that actually knows the answers to my questions.

Why would they update transunion to a zero balance and not experian? It said foreclosure-collateral sold.

Oh and it is still with the original creditor.

As far as your CRs go, you may simply be seeig a timing difference but I really dont' know.

Perhaps someone with some specific experience with timeshares will offer some insight!