# Contract/Credit Report Technicallity



## njgebo04 (Dec 11, 2010)

I've been looking over this site for a while and found some good advice and I was hoping to squeeze some more out of your experienced minds.  
*Back info*
I bought a timeshare from Silverleaf Resorts in Lee, Mass. "Oak N' Spruce Resort" roughly a year and a half ago.  When I bought this piece of "property" I was told that I could take there outrageous loan rate of 17.5% and get it refinanced at a local bank to lower the rate.  I've been actually trying to get out of the timeshare because of money issues but figured for the time being that I would try to lower the rate.  
*Issue*
When I went to the bank to refinance the loan they said that they could get it approved because of two reasons. (I know they aren't supposed to tell but I know them so...)  1. My credit score was mediocre but not horrible. 2. My credit report didn't have any record of a loan with Silverleaf Resorts which they thought was odd since it is supposed to be reported with in 30 days of signing the papers.  When I talked to Silverleaf over the phone about the issue, they said "At some point they might put it on there."  
*Solution*
Is it possible for me to wipe my hands of the timeshare legally without spending anymore money because they haven't reported it?  It's one of those things where I would pay a lawyer to get it done in a month or two before I would have anymore money given to Silverleaf.  
_Any suggestions?_


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## DeniseM (Dec 11, 2010)

> When I went to the bank to refinance the loan they said that they *could* get it approved because of two reasons.



Do you mean *"couldn't"*?

I can assure you that if you try to default on the loan, it will appear on your credit records.  

At this point you have a contractual obligation to make payments on the loan.  If you default, they will turn you over to collections, you will be hounded by collectors, and you will be reported to the credit bureaus, which will damage your credit.

I hate to tell you this, but this timeshare sells on the resale market for $1.  The rule of thumb is that timeshares are a depreciating luxury purchase that lose 50-100% of their value as soon as you buy from the developer, and if you can't afford to pay cash, you shouldn't buy.  Your situation is a perfect example of why a TS should not be financed.


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## njgebo04 (Dec 11, 2010)

Thats what I thought.  I figured they would if I defaulted.  Seems like I could do something legally to back out of it since they haven't reported it even after I talked to them about it.  Even if there isn't a way, how would I go about refinancing it if it doesn't show up on my credit report?


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## Timeshare Von (Dec 11, 2010)

Not reporting credit activity isn't a license to disregard your obligation to make the contractual payments.


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## njgebo04 (Dec 11, 2010)

I wasn't sure if it was considered a voided contract by them because they haven't really finished there responsibility to report it.  Do they have a time limit to report the loan?  I wasn't planning on defaulting just trying to see if they have violated anything and if in doing so I can get out of my part of the obligation.


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## Steve (Dec 11, 2010)

A loan absolutely does NOT have to be reported to a credit bureau in order to be a valid loan.  A lot of loans are not reported for various reasons, but they are completely valid and binding.  When you take out a loan such as the one you have on your timeshare, the lender has the option of reporting it.  They do not have an obligation to report it.  You, on the other hand, have an obligation to repay the loan according to the terms you agreed upon whether they report it or not. As others have said, I guarantee they will report it if you stop making your payments.

It's unfortunate that you paid so much for your timeshare and financed it at such a high rate.  However, if you truly want to refinance it, I think the most important step you could take would be to improve your credit history.  Then, when your bank/credit union indicates that you would qualify for the loan you are seeking, you could petition the developer to report the loan to the credit bureau.  You could also contact one of the three major credit bureaus (or have your bank contact them for you) and see if they will help get it added.  

Steve


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## njgebo04 (Dec 11, 2010)

Thanks everyone for the advice.  I appreciate it.


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## rickandcindy23 (Dec 11, 2010)

Sorry for all the bad news. I wish you could walk away, I really and truly do.  These timeshare developers and salespeople are truly scum.


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