# How does not paying a maintenance fee affect one's credit score?



## Karen G (Nov 6, 2011)

Someone has posed that question to me and I don't know the answer. The timeshare is Foxrun.  Anyone have any idea?


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## DeniseM (Nov 6, 2011)

You have a contractual obligation to pay your maintenance fee, so the BOD will turn you over to collections, and report you to the credit bureaus, for defaulting on your MF.


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## ace2000 (Nov 6, 2011)

Is the OP asking how _much_ will it affect a credit score?


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## Karen G (Nov 6, 2011)

Yes, the person who asked me the question is wondering how much of a hit to his credit score he would take if he didn't pay the maintenance fee. I know it's a contractual obligation and I know all the pitfalls to other members when anyone doesn't pay.

I just have no idea how someone's credit rating would be affected.

More info:  The person's credit rating is 770 right now.


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## ronparise (Nov 6, 2011)

I would depend on how the resort handles it...If its not reported to the credit bureaus..no problem

The bigger question in my mind is why are they thinking of not paying? Financial problems?

Is this a choice?...pay the timeshare or pay something else, but not both?  Or are they just sick of their timeshare and money is not the issue

I would think  that  if they do find themselves in the position that  paying this obligation leaves them short somewhere else......their credit score will be hurt anyway. I would always opt for groceries before my timeshare and not worry about credit score


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## Karen G (Nov 6, 2011)

ronparise said:


> I would depend on how the resort handles it...If its not reported to the credit bureaus..no problem


I don't know the reasons for not paying, but he did say the resort said they would turn it over to a credit bureau if not paid. I think he is wondering what his credit rating would be--700? 500? or worse?


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## DeniseM (Nov 6, 2011)

Is the timeshare paid off?  Has he tried to give it away on TUG?


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## Karen G (Nov 6, 2011)

I found  this article  that might of interest as to how one's credit score can be adversely affected by non-payment or late payment.


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## Karen G (Nov 6, 2011)

DeniseM said:


> Is the timeshare paid off?  Has he tried to give it away on TUG?


 I don't know.


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## easyrider (Nov 7, 2011)

Karen G said:


> I found  this article  that might of interest as to how one's credit score can be adversely affected by non-payment or late payment.



Nice find.


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## bogey21 (Nov 7, 2011)

ronparise said:


> The bigger question in my mind is why are they thinking of not paying? Financial problems?...........Is this a choice?......pay the timeshare or pay something else, but not both?



Good points.  I think there is a consensus on this Board that one should pay his/her MF and that not paying is tantamount to being a derelict.  IMO we need to understand that there are many people today who find themselves in a financial position where for one reason or another they don't have the income they once had and who have to make choices.  Not paying a large MF might be a better choice for them than not paying their car payment or electric bill.

George


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## dougp26364 (Nov 7, 2011)

Karen G said:


> Someone has posed that question to me and I don't know the answer. The timeshare is Foxrun.  Anyone have any idea?



Generally speaking, if the HOA decides to attempt to collect, then it will entually be turned over to collections and, if never paid, be reported as a bad debt right off. If they unit is foreclosed on, a foreclosure action could show up on your report. How that's going to affect a person is going to depend on what else is in their credit files.


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## Tia (Nov 7, 2011)

Interesting. Article is talking about a mortgage which a timeshare is not a real mortgage, as in a house-payment, so am wondering if the negative affect would be less...?



Karen G said:


> I found  this article  that might of interest as to how one's credit score can be adversely affected by non-payment or late payment.


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## ronparise (Nov 7, 2011)

Tia said:


> Interesting. Article is talking about a mortgage which a timeshare is not a real mortgage, as in a house-payment, so am wondering if the negative affect would be less...?



A time share mortgage is a mortgage like any other, so I would assume the article, if accurate for one mortgage would be accurate for another,....

but the op wasnt asking about the effect of not paying a mortgage, rather the question was about not paying a maintenance fee...and that is something different than a mortgage...

additionally the article talked about a 30 day late payment; not stopping payments altogether

The article just dosesnt apply here


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