rgallui2000
TUG Member
What happens if you have a fully paid for timeshare in Mexico and just decide to stop paying the maintenance fee and walk away? Rather than hastle the selling for almost nothing part. Does this affect your credit rating?
What happens if you have a fully paid for timeshare in Mexico and just decide to stop paying the maintenance fee and walk away? Rather than hastle the selling for almost nothing part. Does this affect your credit rating?
The contracts which I've seen(including our own) have a provision regarding non payment of maintenance fees. All of the Mexican timeshares I know of are RTU(Right to use), not deeded properties. You are obligated to pay the annual maintenance fee. If it's not paid, you forfeit your right to use your unit, including any pending reservation, until the current and any past due fees are paid. In some cases, after two or three years of non-payment, your membership is terminated. That's about the extent of what they can do.
I do know that some places MAY attempt to collect, but I don't agree that Mexican corporations can use U.S. collection agencies to harass you or file a negative credit report on you. Negative report based on what? As far as using U.S. attorneys to sue for foreclosure; it's a legal impossibility since there's nothing to foreclose on. You don't own anything. All you have is the right to use the property for a specific period of time. Nobody can foreclose on time.
If it were me and I still had some time left down there(just finished up this past January!!), I would use it up unless I was financially unable to continue paying and traveling there or I felt screwed over by the continuous increase in fees, loss of services, etc. In those cases, I would walk. You can't sell, rent or give most of these places to anyone, so why bother?
I know that there will be some flack for my comments, but that's the way I see it. Good luck.