Timeshare - Foreclosure in U.S. can they sue me in UK?

Ethereal_Gaz

[FONT=Verdana, Arial, Helvetica]Hi, myself and my wife bought an RCI timeshare in Vegas with a "friend" a few years back. We agreed to split the payments 50-50. Unfortunaely this has never happened as up until the middle of last year I'd paid approximately 80%!

We had accepted this until then as we were both working but when we were due to have our first child I spoke to my friend about this and he agreed to take over payments until he'd caught up. After that we'd continue paying 50-50.

I'd been in contact with Eldorado resorts in January as they told me he was behind again but that he was in contact with them. He then also apologised and told me he was about to sort things out.

I've now received a bill for almost £2,000 dollars and a voicemail stating that unless I pay this immediately they will foreclose on the mortgage!!

What can I do about this. I'm unable to pay the outstanding amount. My wife was the primary signatory so I guess they'll try to recoup the full amount from us???

I live in the UK. Am I likely to be sued?[/FONT]
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[FONT=Verdana, Arial, Helvetica]Can anyone offer any advice on this? Up until now I haven't hated the timeshare experience. Bizarre I know.[/FONT]
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[FONT=Verdana, Arial, Helvetica]Thanks[/FONT]
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[FONT=Verdana, Arial, Helvetica]Gaz[/FONT]

eslick

if they foreclose they just take the place off you i think

Ethereal_Gaz

I'm very angry about what my so called friend has done but I can live with it and move on if I know that RCI won't be able to sue me for the outstanding balance in the UK.

getmore4less

I think it depends on state.

No idea which but google is your friend here

Ethereal_Gaz

I've tried google but am not entirely sure what to look for. Surely it would also be dependant on the company. This is RCI. The mortgage department is Washington but we signed the contracts in Vegas.

They contacted me again yesterday to say I needed to pay $500 immediately of foreclosure is imminent. I explained that unless one of us can find my "friend" then there's no point me handing any further amount over as foreclosure would be inevitable.
I've now been passed to their "legal department".:eek:

Ethereal_Gaz

Anyone else here had a U.S. mortgage foreclosed???

cinnamon_whirl

What happened after you stop paying the payments for the RCI Timeshare?
Did they still try to pursue you in the UK?

My friend is in a similar dilemma in that ina moment of madness, they bought a RCI Timeshare in Las Vegas recently. The problem is now they haven't the money to pay for it and the date where they could cancel the contract has passed, so they emailed RCI and got an irate American caller from Washington saying that they noted what was the problem but that my friend still had to pay the contract and it could not be broken. They still took the money for the first payment off my friend's credit card.

I don't know what else to advise them to do except to cancel any payment (which they did and sensibly advised the credit card lender of the situation). If I send another letter (recorded delivery) to say my friend doesn't want the timeshare so take it off their hands (even if it means losing the money paid so far) - will this work? Will they send foreclosure forms?

I'm worried that they will send some sort of debt recovery agent to get the money or try to sue my friend. Worse still, I have heard that since the contract is subject to US laws, they could go to court in the USA without my friend being present and get judgement for the contract, so that if my friend tried to go the US again, they might get caught for 'fraud' (a criminal offence) or they can enforce this judgement and sue in the UK. Is this true?

Any advice from your experience would be most welcome as your original thread is the closest to what my friend has done.

Anyone else with advice is most welcome as I'm very worried about what to do next and if cancelling the credit card was a wise move?

martindow

Might be worth posting this on the house buying and renting board. There are occasional threads on there about international property sales. Within the EC debts can easily be pursued from country to country. Probably more complicated USA/UK.

cabbage

HI

I had the same sort of query at work and contacted our specialist support unit at CAB. I can't remember all the jargon etc but the upshot was that they could ask a UK court for jurisdiction in the UK and pursue you for the debt.

scottishperson

cinnamon_whirl wrote: »

they bought a RCI Timeshare in Las Vegas recently.

You need to find out if this mortgage is recourse or non-recourse. If its non-recourse then you are not liable for any shortfall between the eventual house sale and the amount of the mortgage remaining. IF it isn't (likely) then they can go and get a deficiency judgment against you.

cinnamon_whirl wrote: »

I'm worried that they will send some sort of debt recovery agent to get the money or try to sue my friend.

If its a non-recourse mortgage they can't. If it isn't they can. Whether a US judgement has any effect in the UK is very doubtful. Whether they pursue you in the UK, or even have the power to do so, you would need to talk to a solicitor who specializes in that field.

cinnamon_whirl wrote: »

they could go to court in the USA without my friend being present and get judgement for the contract, so that if my friend tried to go the US again, they might get caught for 'fraud' (a criminal offence)

Fraud is moral turpitude, but is ONLY relevant with regards to US travel when a person has been arrested, convicted (or admits) the offence. Whether the actual mortgage was taken out fraudulantly I don't know. They should go to court to get a judgement though.