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Author	Topic: bankruptcy sale
myip TUG Member Posts: 361 From: Registered: Sep 2002	posted 05-24-2005 10:13 Does resort be able to transfer ownership of the timeshare if there are register lien or loan still outstanding to a new owner? If I use title search, will this protect me? What question to ask for if it is a bankruptcy sale? IP: Logged
Bill4728 TUG Member Posts: 436 From: Sumner, WA Owner: Club Intrawest, Monarch Grand Vacation & Mountainside Lodge Registered: Apr 2004	posted 05-25-2005 09:29 {{A bankruptcy will normally discharge all debts on a property. BUT if the bankruptcy is brought by the resort and there is an underlining mortgage owed, the mortgage debt will not be discharged. }} this is not right - Sorry - see my post below A title search should find these kinds of un-discharged debts. Good Luck ------------------ Bill [This message has been edited by Bill4728 (edited 05-25-2005).] IP: Logged
pt181 TUG Member Posts: 9 From: Rochester, NY, USA Registered: Jun 2001	posted 05-25-2005 10:02 Could you please clarify? Here's an example (sounds like a 5th grade math problem): - In 1998 Sue buys a timeshare for $15000 with a mortgage of $12000. - In 2005 Sue goes through bankruptcy and the timeshare ($10000 is still owed on the mortgage) is sold off by a liquidation company. - Mary purchases that timeshare from the liquidation company for $2000. - Is Mary liable for the $10000 mortgage before she can take ownership of the property? Maybe there are different kinds of mortgages in which the property may or may not be used a collateral? Thanks for any replies. -pt IP: Logged
Bill4728 TUG Member Posts: 436 From: Sumner, WA Owner: Club Intrawest, Monarch Grand Vacation & Mountainside Lodge Registered: Apr 2004	posted 05-25-2005 11:41 quote: Originally posted by pt181: Could you please clarify? Here's an example (sounds like a 5th grade math problem): - In 1998 Sue buys a timeshare for $15000 with a mortgage of $12000. - In 2005 Sue goes through bankruptcy and the timeshare ($10000 is still owed on the mortgage) is sold off by a liquidation company. - Mary purchases that timeshare from the liquidation company for $2000. - Is Mary liable for the $10000 mortgage before she can take ownership of the property? Maybe there are different kinds of mortgages in which the property may or may not be used a collateral? Thanks for any replies. -pt OK I'm sorry I got confused between bankruptcy and foreclosure. Bankruptcy VS foreclosure Bankruptcy -- You list all the moneys you owe and the court decides which will be wiped away and which will stay. You must sell or forfeit most of your property. So in a bankruptcy you lose the TS and the lien holder / bank gets the TS and the mortgage is discharged. BUT, if there was a lien not listed in the bankruptcy it would not be discharged. Foreclosure -- The bank, mortgage holder or resort, which is owed money, goes to court and takes away your property and sell it for whatever it can. Normally the mortgage holder is the first one to foreclose and the resort or any lien holders are out of luck. The new buyer owes only what is paid for the property. So in the example Sue would have to give the TS to the bank and the mortgage is discharged. Then the bank & liquidation company would sell the timeshare to Mary for $2000 and free of all other mortgages. Sorry for the confusion ------------------ Bill IP: Logged
maiwah TUG Member Posts: 40 From: New York Registered: Mar 2005	posted 05-26-2005 21:54 I will get title insurance if I were you. IP: Logged
Jim C TUG Member Posts: 271 From: Batavia, New York. Krystal Vallarta Registered: Jan 2001	posted 05-27-2005 11:48 I'd skip the deal altogether. ------------------ Jim IP: Logged
Harry TUG Member Posts: 381 From: Mesa, Arizona USA - Timesharing for 25 years -2 in AZ, 3 in Ca and 2 in HI Registered: Dec 2000	posted 05-27-2005 13:33 Under the facts submitted, should be no problem. However, under the new bankruptcy laws signed by the President last week, there could be complications. IP: Logged

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