Giving up DVC deed

[supersnoop]

The only other option would be for the loan company to agree to the transfer or adding the family member to the deed, which I've never heard of anyone being successful in that situation with a DVC loan but I've only heard of a couple of people who tried that type of approach.

Since the OP didn't include a lot of details and it's my preference anyway, I'll speak to the general situation as much as possible related to someone who owns DVC and can't currently afford it for whatever reason. Often the best option is simply to rent out the points yearly if there's a loan, they should be able to cover dues and most of the monthly payments after they get caught up with the points that are already gone. The OP mentioned a "deed in lieu of foreclosure" and also they didn't want their credit harmed. These are 2 mutually exclusive situations unless the timeshare simply fails to report the info to credit bureaus. NO timeshare is going to take it back unless they think they're not going to get anything anyway AND the owner is significantly behind or it's truly worth more than owed. As noted above, forgiven debt is counted as income, that'd likely add another roughly $2500 bill to this.

It's easy for such an owner to get in the mode that they're losing it anyway so maybe they can help out a family member or friend with a sweetheart deal. Or even worse, transfer it to someone with the intent of bypassing the legalities of the credit & related court systems and continuing to use it themselves. That line of thinking can lead them to a path where they violate state and federal laws if not careful. For most, the difference at closing is more than the amounts quoted by the OP and in this situation, I suspect it will end up being more than quoted as well, given the info quoted, likely around $3500 difference the best they can do.

OP later stated it's a 160 point AKV contract with no 2014 points and she's asking $75/point while owing around $11k. If she sells at $70/per point, she'll cover the loan, but still owe for this year's maintenance plus whatever she's charged for commission. MF should be $955, and commission is what? 10%? So $1,120. Unless she can sell it privately, she'll be out close to $2,175, plus $144 for each dollar under $70 per point. Unless she has to cover closing costs, or "roughly $11k" is $11,999, she won't be close to your $3,500 estimate.

 

[Dean]

OP later stated it's a 160 point AKV contract with no 2014 points and she's asking $75/point while owing around $11k. If she sells at $70/per point, she'll cover the loan, but still owe for this year's maintenance plus whatever she's charged for commission. MF should be $955, and commission is what? 10%? So $1,120. Unless she can sell it privately, she'll be out close to $2,175, plus $144 for each dollar under $70 per point. Unless she has to cover closing costs, or "roughly $11k" is $11,999, she won't be close to your $3,500 estimate.

I think $70 a point on a stripped contract is unrealistic. I was purposefully general because I don't think we have all the details even though we have a lot of them and that's my preference anyway. Looking at specific of this situation as you insist, final sale price around $10K, unpaid fees if on a monthly plan using your numbers, $955 (should be a little less), commission $1K. So were' up to $2955 minus the dues already paid plus any compromise for closing and for 2015 dues since a portion of this will be for 2014 points. Sounds pretty close to $3500 to me.