Giving up your timeshare after it has been paid in full

I've read some threads about foreclosure and credit problems associated with not paying off your timeshare/s. In my situation, I have paid off the time share years ago but do to health problems the last 3 years I've been lacking in the abiltity to keep up with all my bills. The time share now is 3 years behind with some interest in penalties of 850.00 Not a great deal for most but for my situation I have to pay the bare neccessities first. So my question is if I call the office to give up my timeshare and opt not to pay the 850.00 in maintainance fees will it affect my credit? The timeshare is Coral Princess, Cozumel, Mexico. And although I rarely used it in the 13 years I've had it. When I did, it was well worth it. I tried to ask family members if they wanted to take it over, but I guess I'm not much of a salesman. :p

Again question is, will my credit be affected by not paying past maintainance fees and giving back the timeshare. I haven't really thought about this timeshare as a real estate loan since it was paid off. But now I have to consider it.

bertm14 wrote:

I've read some threads about foreclosure and credit problems associated with not paying off your timeshare/s. In my situation, I have paid off the time share years ago but do to health problems the last 3 years I've been lacking in the abiltity to keep up with all my bills. The time share now is 3 years behind with some interest in penalties of 850.00 Not a great deal for most but for my situation I have to pay the bare neccessities first. So my question is if I call the office to give up my timeshare and opt not to pay the 850.00 in maintainance fees will it affect my credit? The timeshare is Coral Princess, Cozumel, Mexico. And although I rarely used it in the 13 years I've had it. When I did, it was well worth it. I tried to ask family members if they wanted to take it over, but I guess I'm not much of a salesman. :p

Again question is, will my credit be affected by not paying past maintainance fees and giving back the timeshare. I haven't really thought about this timeshare as a real estate loan since it was paid off. But now I have to consider it.

First of all, please clearly understand that whether or not you can just "give back" your timeshare to the resort is NOT actually YOUR decision to just make on your own. Only the resort HOA can actually decide whether or not to accept "'deedbacks" --- and most resorts do NOT accept deedbacks. The fact that your timeshare is Mexican complicates things a bit further, since it's likely not a deeded ownership in the first place, but more likely some form of contractual Right to Use (RTU) membership of pre-specified, finite duration.

If you are several years behind on maintenenace fees and you haven't already been contacted by collection agencies, that *MAY* suggest a lack of initiative or energy at the Mexican end. Foreclosure (which applies to deeded ownership) is an expensive undertaking for a resort, so they will pursue any and all other alternatives first. If it's not actual deeded ownership in the first place however, and Mexican to boot (and paid up), they MAY well be less energetic and just shrug it off.

In specific regard to your credit question, that will depend mostly upon the extent to which the resort is proactive in reporting account defaults. My GUESS would be that a Mexican facility would not even bother going to a credit reporting agency regarding a fully "paid up" RTU timeshare over back maintenance fees. After all, they can just endeavor sell another RTU membership to someone else. You won't really get a clear, definitive answer here in these forums unless your inquiry is read by someone who has "been ther, done that" at your exact same resort ---and recently. Otherwise, it's just a guess as to the resort practices and policies on defaults. It may be worth a phone conversation directly with the facility manahgement for you to find out directly...

bertm14 wrote:

Not a great deal for most but for my situation I have to pay the bare neccessities first. So my question is if I call the office to give up my timeshare and opt not to pay the 850.00 in maintainance fees will it affect my credit?

In a word, yes, it will affect your credit unless you come to some kind of agreement with the resort to take back the deed. Just because it's an RTU in Mexico doesn't mean they won't come after you for back debts owed if you live in another country. It's best to talk with someone at the resort about your situation instead of merely ignoring your debt (back maintenance fees owed) obligations.

jayjay wrote:

bertm14 wrote:

Not a great deal for most but for my situation I have to pay the bare neccessities first. So my question is if I call the office to give up my timeshare and opt not to pay the 850.00 in maintainance fees will it affect my credit?

In a word, yes, it will affect your credit unless you come to some kind of agreement with the resort to take back the deed. Just because it's an RTU in Mexico doesn't mean they won't come after you for back debts owed if you live in another country. It's best to talk with someone at the resort about your situation instead of merely ignoring your debt (back maintenance fees owed) obligations.

This is my second attempt with this answer. -- Not to worry! Go to an Attorney who specializes in Bankruptcy Law, as I did. Initial consultations are usually free. Bring a copy of your Credit Report if the TS blurb appears on the credit report. They will tell you that any derogatory TS info can be removed from your CR because the TS comglamorate gets the TS back and can resell it to another perspective buyer. The blurb should never have appeared on your CR in the first place.

So sad that you have to give this up because of health reasons. Also sad to say, that your family finds it hard to recognize a gift when they see one. If they don't have to be embroiled in mortgage payoffs, name changes, title transfers and closing costs, possibly, two or three family members of simular age and simular interests can agree to assume the property "As Is" and split the Yearly Maintenance Payoff ($250.00 or more per person is easier to handle --- $25.00 a month), and get to enjoy a week in Mexico or somewhere else around the world together (luxury vacation apartments can run $250.00 a nite, never $250.00 a week). So, they are buying a vacation very cheap. This worked with my family. A family attorney can draw up the "In Trust" paperwork . The family members who agree to assume the annual maintenance payments must understand that this is their annual baby for life or for the life of the property.

Good luck and Angel blessings.

Smoochez

Thanks for all the replies. Although I still don't seem to know if the Credit report will be affected. I do appreciate your time for posting a reply. I hate to give this TS up. But it's been 3 years of back issues coming and going. And being self employed and very inconsistant work load since this crazy war, people are holding on to thier money tightly. So our field, as with everyone else is suffering greatly.

I too think my family would have recognized a great deal with giving up the TS to anyone or all of them. But they are unfamiliar with how it works and also wonder what the future will hold for the economy. One brother has offer to lend me the money to cover the 850 fees, but with another years fees coming up and the winter coming (which means very little work for construction) I don't want to owe them money back. It's more likely I will have to sell my house or rent it out soon, if possible. So I'm stuck at the moment.

Thanks again for everyones replies.

smoochez1

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They will tell you that any derogatory TS info can be removed from your CR because the TS comglamorate gets the TS back and can resell it to another perspective buyer.

This is called foreclosure and any type of foreclosure will affect your credit rating unless you come to some kind of understanding/agreement with the resort HOA or management to take the deed back.

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The blurb should never have appeared on your CR in the first place.

Being behind on a bill of any kind, including past due maintenance fees, will appear negatively on your credit rating. A maintenace fee bill is like any other bill you owe. I don't understand why some people think just because it's a timeshare resort maintenance fee bill that they can just quit paying .... like you could just quit paying on your car note or your house note or credit card payments ... it's just not like that in the real world.

When someone signs a contract to buy a timeshare (whether developer or resale) they are committed to paying maintenance fees forever or until it's sold .... it's part of the contract.

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So sad that you have to give this up because of health reasons.

Yes, it is sad, however he might consider putting it on Redweek or Ebay (depending on what he owns and season owned) for what he owes in maintenance fees

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Also sad to say, that your family finds it hard to recognize a gift when they see one.

Timeshares given to family members are not necessarily a good thing and I can understand why many family members wouldn't take a free timeshare with neverending (rising) maintenance fees and possible special assessments. Timeshares can be considered the gift that keeps on taking.

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and get to enjoy a week in Mexico

That might be easier said than done since whomever took possession of the timeshare would have to fly to Mexico, and with the high cost of airfare (and extra fees for any checked luggage) I'm not sure many people would want to take on the expenses and aggravation of flying.

Ask if the TS will deed back the property so you can dump this never ending trap. Understand your friends and relatives osition. Who would want to assume a liability for the rest of their life especially if they cant get rid of the liability themselves down the road. The real criminals are the ones who lied to you about selling the TS, not telling you about high escalating maintenence fees and being able to exchange for desirable locations when they sold it to you. Even if it affects your credit what choice do you have?

bertm14 wrote:

I've read some threads about foreclosure and credit problems associated with not paying off your timeshare/s. In my situation, I have paid off the time share years ago but do to health problems the last 3 years I've been lacking in the abiltity to keep up with all my bills. The time share now is 3 years behind with some interest in penalties of 850.00 Not a great deal for most but for my situation I have to pay the bare neccessities first. So my question is if I call the office to give up my timeshare and opt not to pay the 850.00 in maintainance fees will it affect my credit? The timeshare is Coral Princess, Cozumel, Mexico. And although I rarely used it in the 13 years I've had it. When I did, it was well worth it. I tried to ask family members if they wanted to take it over, but I guess I'm not much of a salesman. :p

Again question is, will my credit be affected by not paying past maintainance fees and giving back the timeshare. I haven't really thought about this timeshare as a real estate loan since it was paid off. But now I have to consider it.

So what gives?

Hello. I had a timeshare in Mexico but the last time I was there it was not being maintained like it was when I bought it. Plus they lost my reservation and I had to spend the night in a hotel while they figured out what happened. I love Mexico, but I'm not willing to continue to pay the maintenance fees on a resort that isn't properly maintained. I'd like to travel to Mexico but I'm concerned that there might be some legal ramifications. I don't want to spend time in a Mexican jail because I won't pay my maintenance fees. Is there anyone out there that understands Mexican law. Should I be worried.