Summer Bay Resort TimeShare

[needinganswers]

Our chapter 7 was filed, discharged back in 06/05, 12/05 respectively which listed Summer Bay Resorts (aka Grand Flamingo Terraces) timeshare located in Las Vegas, NV as one of the creditors. In 02/07 I received a letter from Summer Bay Resort acknowledging our filing and discharging of our Chapter 7 BK and asking that we sign a DEED IN LIEU OF FORECLOSURE document which I ignored because we no longer own this timeshare when we filed for BK to begin with. As far as I'm concerned, this was two years ago, and I don't own the property. However, I notice that a 3rd servicing company suddenly appeared on my TransUnion credit report stating that I am 120 days past due delinquent since 03/07. This is illegal. The letter says " . . . and is therefore not attempting to assert that you are personally liable for payment of the Note. If you convey the timeshare unit week back to Summery Bay Partnership, it will also assume responsibillity for any unpaid homeowners association maintenance (if any) and real estate taxes (if any). It will pay all costs associated with recording the deed and releasing the Mortgage of record." This is double jeopardy. If I don't sign, then they will not remove the delinquency in my credit report. If I sign, then I assume responsibility of the timeshare again. If I'm reading this correctly, then I need advise on how to fight them. Any suggestions and help will be greatly appreciated.

[Boscoe]

. . . and is therefore not attempting to assert that you are personally liable for payment of the Note. If you convey the timeshare unit week back to Summery Bay Partnership, it will also assume responsibillity for any unpaid homeowners association maintenance (if any) and real estate taxes (if any). It will pay all costs associated with recording the deed and releasing the Mortgage of record."

I am reading this as "IT will also assume responsibility...." as the time share association will assume this responsibility, not you. Obviously, you need this clarified before you DIL anything.

But them holding your credit hostage is not legal. You can fight that separately and probably should. You were discharged, so you CAN'T have a debt listed or past due.

[needinganswers]

Thank you, Boscoe.

I still don't get it "If we do not receive the deed within (15) days from the date of this letter, we will have no alternative but to institute a foreclosure action. As you might conclude, it would be in your best interest to sign and return the deed in order to quickly conclude this matter and to avoid being named as a defendant in a foreclosure action (although personal liability for payment of the Note would not be asserted)." If this is the case, then why must I still sign the deed of foreclosure when I don't need to pay any liabilities back? If this deed is simply to "formally" turn over ownership of the timeshare back to them, then that's not a problem. I still don't understand the part why I have to sign it. Like I said this is done with 2 years ago.

[kiddles]

The BK did not change the ownership of the timeshare. Two years ago when you BK's, you should have taken care of changing the ownership then. Unless you signed something (and there are several ways to change ownership - surrender, sale, DIL, etc) granting ownership to the association, you do still own it and have owned it for the past 2 years.

If they are reporting bad debts incurred SINCE the BK, that's legal. BK wipes out debts at the time you file, not ones you incur in the future.

And it's not "double jeopardy" - that only applies to criminal actions, not civil.

[Boscoe]

Go see a real estate attorney - will be well worth the consultation!!! Good luck.

[CindyLou]

Needinganswers,
What happened was....you filed BK and wiped out the debt, but they never foreclosed on the "property" You still own the deed on the timeshare. In order for them to transfer ownership you have to sign the deed in lieu of foreclosure, otherwise you will continue to own the property and incur homeowners associations fees even though you are unable to use the property. Your attorney should have explained this to you at the time. Timeshares can be confusing....... You may have to pay the fee that have accumulated thus far although if you call them and agree to sign the papers they may agree to waive the fees....it's worth a try.

[needinganswers]

Cindy and the rest who helped,

Thank you for the explanation. Now I understand. Yes, the lawyer did explain this to me, but as far as we're both concerned Summer Bay Resort didn't respond to our BK until only this February 2007. This was 2 years ago. I will go ahead and sign the documents and mail it back. We better not be penalized because for one, they missed the deadline long after we have already been discharged! I guess they're slow in the process. Thank you again everyone.