Timeshare Contract

[hammercwm]

What is the name of your state? West Virginia
I foolishly caved into sales pressure 2 years ago and signed a contract to buy a timeshare in Florida late one Saturday afternoon. My sister already owned a timeshare through this same company and told me to lie about my income so they would let me into the sales presentation. She would get extra points on her timeshare by referring a potential buyer to them. After 5 hours of high pressure sales from 2 salesmen I finally signed the contract just to get out of there. During the sales pitch they told my sister that if I signed they would pay the taxes and maintenance fees on her property for one year. They also said if I backed out during the "cooling off period" that she would not get these things paid or the extra points. I left Florida that day and kept waiting for them to call me and say they were cancelling the contract themselves, when they verified my information on the next business day (Monday) and realized I was not eligible for the sale. I had a bancruptcy disharged 8 months before signing this contract and my income was less than 1/2 of what they required to be eligible to purchase from them. I later found out that they never contacted my company to verify employment status or income. They also waited 5 weeks after I signed to run the credit check. I thought it was a federal law that any mortgage lender or other financial institute MUST get this information BEFORE a borrower is allowed to sign. This is supposed to be done to prevent the borrower from incurring more debt than they can handle (it's called the income to debt ratio). It is also supposed to help the lender by not giving a loan to someone that they are at a high risk of not collecting from. Can I sue them for causing me to incur more debt than I could handle by not following these lending procedures and get out of this contract? By the way, they only gave her a small portion of the extra points they promised and they paid less than 1/3 of her taxes and maintenance fees. She had to fight with them for 3 months to get them to honor even that much.

 

[justalayman]

you're kidding, right?

you lied to them to fraudulently benefit your sister and now you are upset they approved you for what you signed up for?

Is that the gist of your story?

 

[JETX]

They also said if I backed out during the "cooling off period" that she would not get these things paid or the extra points.

From that, I take it that you did NOT do what the contract said you had to do in order to cancel, correct??
If so, then you are a proud timeshare owner!!!

I left Florida that day and kept waiting for them to call me and say they were cancelling the contract themselves

As you very likely already know... it was up to YOU to cancel... not them.

YOU are responsible for your own actions... and purchases.

 

[hammercwm]

What is the name of your state? West Virginia
My sister already owned a timeshare through this same company and told me to lie about my income so they would let me into the sales presentation. She would get extra points on her timeshare by referring a potential buyer to them.

There are a thousand people every day doing this for their friends and family that own these things. I have been approached before by friends that own them and asked to do the same thing for them but never did. These damn timeshare companies KNOW this goes on. That is why I am pissed. Because they should be verifying information more closely and take it out on the owner of the timeshare for sending them someone they knew could not afford it just to get extra points. The timeshare owners are trying to defraud them, but I am the one that got screwed. I am also pissed at our government. They need to be stepping in and regulating the hell out of this industry. There are thousands of people in this country that are stuck with these timeshares because like me they did not understand completely what they were getting into. I also know there is bound to be a way out of this contract for me. I am looking for helpful advice not chastisement. I was wrong to lie about my income and sign this stupid contract, I freely admit that. But they were also wrong to not follow standard federal banking procedures when qualifying me for the loan.

 

[hammercwm]

From that, I take it that you did NOT do what the contract said you had to do in order to cancel, correct??
If so, then you are a proud timeshare owner!!!
As you very likely already know... it was up to YOU to cancel... not them.
YOU are responsible for your own actions... and purchases.

If you go into a car dealership and apply for a loan to buy a car or a bank and apply for a mortgage, the first thing the salesman or loan officer does is run a credit check and verify income while you are sitting at their desk. If the numbers that he gets back from these inquiries indicate that you cannot afford the vehicle or home you are wanting to buy then he will not hesitate in telling you that your application has been denied. That is what the timeshare company should have done to me but didn't.

YOU are responsible for your own actions... and purchases.

I know I am responsible for my own actions and purchases but they should also be responsible for theirs. They are selling DEEDED Titles to these timeshares therefore they should be held to the same laws that govern all other mortgage lenders, and QUALIFY their buyers.

 

[justalayman]

well, the guy that posted after me IS an attorney. He apparently does not see a way out. I wouldn't expect to find one at this point.

It is the lenders discretion to loan money or not. The reason they check credit etc. is they would prefer not tolend to those that may default. Apparently this was not a concern with the timeshare folks.

What you need to do now is determine how to minimize your damage. You might try callin them and telling them you committed fraud in your application. Maybe they will take kindly and merely sue you for all the expenses they have incured plus a hefty legal fee to let you out of your contract.

Maybe selling your timeshare is possible. Even of it is at a loss, it could be the best move for you.


Curious; what laws are mortgage lenders required to follow that these guys didn't? Not just huffing and puffing and speculation, but actual laws and/or regulations.

 

[JETX]

If you go into a car dealership and apply for a loan to buy a car or a bank and apply for a mortgage, the first thing the salesman or loan officer does is run a credit check and verify income while you are sitting at their desk. If the numbers that he gets back from these inquiries indicate that you cannot afford the vehicle or home you are wanting to buy then he will not hesitate in telling you that your application has been denied.

And of course that is 110% NOT CORRECT.
A lender will look at your credit history and make a decision (based on their own criteria) as to whether you are an acceptable RISK. If you meet their criteria, they will approve you.
Your signing a timeshare contract is entirely different. Hell, they don't even have to check your credit at all, if they don't want to. They simply decide to have a higher risk threshold and then aggressively pursue those who breach the repayment contract. They get their property rights (one week per year per unit) back... and still get to pursue your breach!!

That is what the timeshare company should have done to me but didn't.

See, there is one of your many problems. You simply refuse to accept responsibility for your own actions... signing that contract!!!
You assume it is someone else's fault... it isn't.

I know I am responsible for my own actions and purchases but they should also be responsible for theirs. They are selling DEEDED Titles to these timeshares therefore they should be held to the same laws that govern all other mortgage lenders, and QUALIFY their buyers.

See, there you go showing your ignorance again!!!
There is NO obligation for a lender to check your credit. If your friend asks you to loan them $10... is there a legal requirement for them to check your credit profile?? Of course not. And there is NO legal requirement for them to check your credit history either. It is ENTIRELY up to them as to what risks they are willing to accept.