Legal Question in Credit and Debt Law in Pennsylvania
My husband and I purchased a timeshare in Pennsylvania for $6700 in 1997. We paid it off in 1998. In 2009 I could no longer afford to pay maintenance fees so I contacted the condo association, explained my situation, and offered to let them have the timeshare back for nothing. They would not accept. I still can not afford to pay the fees which have increased considerably because now they have charged interest. The account has been turned over to a collection agency who has been driving me crazy. I have told them repeatedly that I can not give them money I do not have, because my income has been cut so much that I can barely pay my mortgage. Now they have demolished my excellent credit. Can you help me?
1 Answer from Attorneys
It depends. First, the timeshare company does not have to take back your timeshare. Some timeshare companies will do so. Eventually, the timeshare company can foreclose, which appears to be the case in PA. In some states (I have not had occasion to research PA timeshare foreclosure yet), the timeshare company is limited to taking back the property and cannot seek a deficiency judgment. This is important - if deficiency is allowed, they can sue you. If it is not allowed, then your credit will be affected, but there is nothing they can do to you. However, since your unit is paid for, then the sale should bring in enough to satisfy the maintenance fees.
The other issue concerns the collection agency. You need to stop talking to them and start getting all communication with them in writing. You should send them a letter asking that they not call at work (if they are doing that) and call at home. Or you can limit the hours that they call. Just because they call does not mean you need to answer. No good will come out of your conversations with them so why bother?
The third issue concerns your credit. Whether you do a deed in lieu of foreclosure or allow them to foreclose, your credit is going to suffer and this will stay on your credit report for 7 years.
As an alternative, is there a relative who would want to have the timeshare and be willing to buy it from you for the amount demanded or some settlement? Foreclosure will cost them money and they may be willing to accept a settlement if you can get caught up and sell the timeshare.
With some timeshare companies, I have been able to negotiate a deed of the property back to them. I cannot guarantee any results in your case, but I would be willing to make the attempt for a reasonable fee. The advantage of having an attorney is that the debt collector and the timeshare company cannot contact you in they know that you are represented.
If interested, you can contact me at [email protected]. I need to know more about what is involved.
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