What Are the Adverse Effects of Stopping Payment on My Mexico Timeshare?
Most persons would agree that it would not be wise to simply walk away from a U.S. based timeshare mortgage without analyzing the full financial consequences involved. Although, for many unhappy Mexico Timeshare buyers, the question that is most asked is, “What will occur if I simply stop making payments and cancel the credit card number?” Most are unsure as to what truly could occur to them if they choose to walk away from the timeshare payments and not officially “Cancel The Timeshare Mortgage” .
Some buyers are shocked but not really surprised to find out that the timeshare purchase made in Mexico a few years prior in which they stopped making payments found it’s way to their credit report even two years after the fact! We hear, “I can’t believe this is happening”, and “Why didn’t I take the time to Cancel My Timeshare Mortgage”! Even worse, the discovery of the fact tends to happen at the worst of times like when trying to buy that new house and/or making a car purchase. A little voice finally gets the courage to say, “If I would have just taken the time to officially cancel my timeshare mortgage none of this would be happening right now! However, on the flip side of the coin, it’s important to note that NOT ALL Mexico Timeshare Resorts send their defaulted contracts to a collections agency. In fact, some resorts are happy to get the inventory back without having to refund any money whatsoever due to the default status of the contract. When this occurs the timeshare resort can resell the inventory at a higher price than what the inventory was originally sold for in years prior. So there you have it, some Mexico Timeshare Resorts will report you to collections and others will not. Important Note: If the contract you signed contains a Promissory Note then know that the timeshare resort will indeed use a Collections Agency to pursue performance on the UNPAID loan.
Is There A Mortgage On A Right-To-Use Mexican Timeshare Contract?
A Right-To-Use or Vacation Club contract does not have a standard mortgage since it is a leasehold agreement and not deeded inventory. The proper term to use instead of mortgage is LOAN in which the buyer is asked to sign a promissory note which is the IOU that contains the promise to repay the loan. Mexico Timeshare financing agreements are generally connected with American based finance companies who are able to pursue the IOU in very similar ways as a standard timeshare mortgage. In which case the most common method to pursue payment is via a Collections Agency.
How Will Stopping Payment On The Timeshare Loan Affect My Credit Report?
A timeshare owner who stops making payment to the resort and is sent to collections will certainly have their credit report score affected in a negative way. By simply having the account sent to collections can drop your credit score 160 points and if the account is ultimately foreclosed on then reports state a total drop of 230 to 280 in your credit score. Reports also state that the negative mark on your credit report will stay there between 7 to 10 years. In the end, this negative mark could affect future loan approvals as well as future job opportunities. It is now common practice that employers examine the credit report of a potential hire since all of the major credit agencies – Experian, Equifax, and Transunion – base their credit scores on information contained in court public records.
What Are My Options In Cancelling My Timeshare Mortgage?
The standard options to take in order to Cancel My Timeshare Mortgage are the following:
- Cancel the contract within the standard 5 day period.
- If you are beyond the 5 day period, sell the timeshare to a third party for the amount still owed.
- Hire a Timeshare Attorney to assist you if you have written proof of being deceived and/or your consumer rights were abused.
The second and third option do require a sizable time investment and in most cases are long shot bets but at the same time have netted results for some. The third option will also require upfront monies to be paid in order to secure a retainer.
What Truly Is The Best Option To Cancel My Timeshare Mortgage?
The very best option in our minds is Official Timeshare Cancellation! Upon the official Timeshare Cancellation all debts owed and all future obligations will become null and void. Yes, when your timeshare contract is officially cancelled by the resort then the balance is no longer owed. If you have been sent to collections and the Timeshare Contract is officially cancelled then the negative mark will be removed from your credit report! If you compare the above second and third option with official Timeshare Cancellation it becomes easy to understand why we at Mexico Timeshare Advocate believe it’s the best overall bet. Why? Please explain.
The chances of reselling the timeshare for the balance owed can be a long shot since the resale market has the same inventory for generally up to 70% less the developer price. The fact that more upfront money would need to be paid to retain a Timeshare Attorney presents another financial risk since there are no guarantees he/she will be able to win your case. The Timeshare Cancellation Process handled by Mexico Timeshare Advocate requires no upfront money or credit card information from you, the client. Even more, M.T.A is a performance based outfit which means that payment will only be asked upon the job getting done officially and correctly! By operating as such, it takes a limited time investment and no financial risk!
Learn More About Mexico Timeshare Advocate and Its Creators: Click Here!
Mexico Timeshare Advocate’s daily mission is to assist Mexico Timeshare Owners in need, whatever the case may be. We opened our doors to serve others who have been deceived and/or have had their Mexican Consumer Rights abused. We also offer knowledge and answer questions of any kind that pertains to the Mexico Timeshare Industry. Never despair if you are feeling trapped! Contact Us today for a Free Consultation and allow us to begin advocating for you!