I doubt strongly that a Mexican TS company will even take an 'owner's to court. As soon as it's brought up that the contract has no value, their only case is for 'Breach of Contract ', and the only likely penalty is loss of use. And that's what the defaulting buyer wants anyway.
I pretty much agree with you Jim.
A Mexican company can't take an American to court in the USA for loans made in Mexico. They can't report your default to the USA based credit agencies either. All they can really do is sell your debt.
Regarding American companies doing business in Mexico, Vacation Internationale is an example, they can sell a rtu and they can take you to court or collection in the USA. If you were in breach of contract in the USA on a rtu you could end up in civil court where a judgement is awarded. The presiding judge could issue a judgement that a management company could enforce by garnishing wages or levying bank accounts for amounts owed. If a deeded timeshare goes into default the process is foreclosure. In this process it could go to two ways, judicial or non-judicial. Judicial meaning a collectible judgement on the debtor. Non-judicial meaning a paper shuffle that allows the company to re-sell.
So it depends, imo. Before deciding to default a person better know what they have which also just my opinion.
Bill