Timeshare trouble

[dwood30]

We currently live in Indiana, but lived in Colorado when we bought the Colorado timeshare (does that matter?)
Anyway, we are unable to meet our obligation, (we owe over 9k and only have about 1200 in "equity.") Is the timeshare developer(who holds the loan) under any obligation to agree to a deed in lieu of foreclosure? We are currently 90 days past due. If we "walk away", what can they do to come after us? Obviously our credit will be trashed (but I don't know how long.) Can they garnish wages? Could they sue us for the entire amount?

I want to feel like I know what I'm up against if this is the way we have to go.

I am hoping that the law/credit bureaus view the timeshare obligation differently than a principal mortgage obligation. We are absolutely current in our mortgage and all other debts.

 

[FlyingRon]

We currently live in Indiana, but lived in Colorado when we bought the Colorado timeshare (does that matter?)

Yes, it matters. While the "foreclosure" and the contract will be covered by Colorado law, some of the potential recourse will be governed by Indiana.

Is the timeshare developer(who holds the loan) under any obligation to agree to a deed in lieu of foreclosure?

No.

If we "walk away", what can they do to come after us?

Depends on the nature of the timeshare. Most likely you have some sort of right to use contract. Review that, it probably spells out what happens if you default. But essentially, yes they can go after you in court for all you owe (plus fees).

Armed with a court judgement they can come after you in Indiana and Indiana permits (subject to limits) wage garnishment.

I am hoping that the law/credit bureaus view the timeshare obligation differently than a principal mortgage obligation.

They do. But it's not in your favor.