Posted on: 05th Apr, 2011 09:36 pm
Hi I new in this web site I found very interesting information regard to time shares, and I have question on my own. Few years ago my husband and I make the biggest mistake in our lives and ended to buy a time share, few months later I discovered that the vacations dreams it was scam, now I am paying my mortgage monthly, but I am trying for 2 year to sell or broke the contract, however I am continuing paying because we have excellent credit, now my question is why the resort who play us a lender for my mortgage isn't on my credit report????, I am checking few times a year and never showing like mi other debts?, I decided to hiring a lawyer to review our case and they told us "if the lender doesn't showing" on your credit report, is not going to showing if you stop to pay to them, but I am not sure about that, I have family member that has the same property at the same resort and they stated that their credit report hasn't been affected and they stopped payments, can anybody tell me your experience, I hope I was clear with my question.
Welcome milegon,
If you had taken out a mortgage on your timeshare, then the lender should have reported it to your credit report. It is most likely that the lender won't report it to the credit bureaus if you stop paying off the loan now.
If you had taken out a mortgage on your timeshare, then the lender should have reported it to your credit report. It is most likely that the lender won't report it to the credit bureaus if you stop paying off the loan now.
If a lender decides to report a tradeline, it will appear. The only way in which you can determine if a tradeline will appear is to discuss this directly with the lender itself, in my opinion.
Not all mortgage lenders are required to report to the credit bureau. Those not required to do so, may do so voluntarily.
It sounds like the mortgagee of your time share does not report to the credit bureau.
If it is not reported to the credit bureau, your credit score may not be affected by your not paying unless the mortgagee processes a foreclosure and a judgment which may appear on your credit report.
However, that does not mean you will or will not be affected. If you do not pay and the lender forecloses, it may appear as a judgment in a judgement search even if it does not appear on your credit report. Actually, if a judgement is filed it may appear as a judgment on your credit report.
If you do not pay, it is possible nothing would ever show up on your credit report or your title search. However, no one can guarantee that and we are not in the business of advising people not to pay.
It sounds like the mortgagee of your time share does not report to the credit bureau.
If it is not reported to the credit bureau, your credit score may not be affected by your not paying unless the mortgagee processes a foreclosure and a judgment which may appear on your credit report.
However, that does not mean you will or will not be affected. If you do not pay and the lender forecloses, it may appear as a judgment in a judgement search even if it does not appear on your credit report. Actually, if a judgement is filed it may appear as a judgment on your credit report.
If you do not pay, it is possible nothing would ever show up on your credit report or your title search. However, no one can guarantee that and we are not in the business of advising people not to pay.
John, I hope that didn't confuse anyone, for this is one of the most confusing situations to discuss to begin with.
As noted, a non-reporting creditor could always begin reporting - that could be an issue with a timeshare that you default on.
Also, as John pointed out, if they obtain a judgment or file for a foreclosure, each of those occurrences is a public record. Most credit agencies will pick up all public records; hence, such an occurrence will undoubtedly turn up on a credit report, even if they've never reported the loan itself.
And, of course, I'm in total agreement that it is not our place nor our habit to encourage anyone to default on a legal obligation.
As noted, a non-reporting creditor could always begin reporting - that could be an issue with a timeshare that you default on.
Also, as John pointed out, if they obtain a judgment or file for a foreclosure, each of those occurrences is a public record. Most credit agencies will pick up all public records; hence, such an occurrence will undoubtedly turn up on a credit report, even if they've never reported the loan itself.
And, of course, I'm in total agreement that it is not our place nor our habit to encourage anyone to default on a legal obligation.
Something I would like to add that no one else has said yet, is that many timeshare companies like West Gate will actually threaten you to ruin your credit for months and months, and around 11 months after your final payment they will send you a deed of lieu and if you sign it and send it back with a certain amount of money they will let you out of your time share and not hurt your credit at all, even after all the threats.
Look up "Westgate timeshare deed of lieu" you should find many people that realized that it was a scam and got out of it with out hurting their credit scores, of course this may also back fire, so use your own judgment and due of diligence.
This is just my advice from my experience - because my family too once had a timeshare with Westgate and still do with Wyndham, but I do enjoy going to Wyndham, just wish I wish we would have realized the mistake the first time, at least we got out of Westgate untouched.
Good luck.
Look up "Westgate timeshare deed of lieu" you should find many people that realized that it was a scam and got out of it with out hurting their credit scores, of course this may also back fire, so use your own judgment and due of diligence.
This is just my advice from my experience - because my family too once had a timeshare with Westgate and still do with Wyndham, but I do enjoy going to Wyndham, just wish I wish we would have realized the mistake the first time, at least we got out of Westgate untouched.
Good luck.