Deed paid completely, but stopped paying maintenance fees for Mexican timeshare

[jdwrightman82]

My aunt owns a Mexican timeshare that she paid off completely in 2003 after purchasing it in 2002. After paying it off, she received from the resort a Certificate of Membership and Promissory Note that stated it was paid in full. The deed expires in 2027. In 2017 she wanted to get rid of the timeshare since she cannot travel anymore due to her age and other medical conditions. She hadn't even used it in over 10 years. Her circumstances have changed since then and she is now only living off a social security check (is considered low income). The fees are now over $1000 per year which she cannot afford. They started out at $300 per year. Last year (2023) I don't believe she even received a bill which she normally does each summer.

In 2016 she paid a timeshare transfer company (Nationwide Settlement Solutions) $2000 to get rid of it and at the time they told her to stop paying the annual fees. Unfortunately I believe that was bad advice and I believe the company is a scam. The transfer company hired an outside attorney/firm who reached out to my aunt and asked for some documentation (deed, etc). She provided what she could. It turned out that the attorney sued the timeshare transfer company and he is no longer working with them or within the industry of timeshares. After a few years of someone trying to her to pay the annual fees they stopped emailing and calling (2019?). Annually the resort mails a bill with just the balance for that year (not referencing she owes prior years).

Her credit score/report is not impacted in anyway as it has never shown up for a lack of payment. I spoke with the attorney in 2021 (he actually called me back) and he explained at the time he was working the case (2017) the resort wanted a flat fee of $2700 in order to cancel the contract. He didn't believe this was reasonable considering she already paid the transfer company $2000 and is low income.

The attorney said unless they take her to court in some way or she receives a summons in the mail from a US court, she should just let the contract expire and move on. We have a little over 3 years left in the contract. We don't want to contact the resort as to "poke the bear" and have them realize she owes all of the missed maintenance fees. We don't even want to contact Nationwide Settlement as to give live to this.

Is it possible they did a non-judicial foreclosure of the timeshare and took it back? I asked an attorney about this and he said that is a possibility. Is there a way I could anonymously inquire about it? Should we just let it die and move on? It seems they have subpar collections at this resort anyway as she doesn't receive calls or any past due notices. Anyone with any advice is greatly appreciated.

thanks,
JD

 

[Fido Chuckwagon]

Should we just let it die and move on?

This. A lot of the Mexican timeshares aren't even true timeshares or tied to real property interests, so foreclosures aren't necessary. If you haven't heard anything about it in 3 years just move on with your life and don't stress about it. The timeshare "transfer" company you paid $2,000 upfront to was definitely a scam, you probably need to write that off as well although feel free to report them to your local AG's office / law enforcement.

 

[jdwrightman82]

This. A lot of the Mexican timeshares aren't even true timeshares or tied to real property interests, so foreclosures aren't necessary. If you haven't heard anything about it in 3 years just move on with your life and don't stress about it. The timeshare "transfer" company you paid $2,000 upfront to was definitely a scam, you probably need to write that off as well although feel free to report them to your local AG's office / law enforcement.

I'm still concerned they could turn around and say my aunt owes for all the missed maintenance fees. Given that they never reference them in the previous billing statements (last received in 2022), maybe they just don't realize she never paid.

 

[davidvel]

Listen to Fido. Move on with life, and throw anything they send in the trash. If it hasn't shown up on credit it likely never will. Since she can't pay, it doesn't matter either way. Don't contact anyone, including the scam exit company.

 

[Fido Chuckwagon]

I'm still concerned they could turn around and say my aunt owes for all the missed maintenance fees. Given that they never reference them in the previous billing statements (last received in 2022), maybe they just don't realize she never paid.

Even if they did, your aunt can just ignore them. What are you worried is going to happen? That they're going to take the time to sue your aunt in a US court, get a judgment, and then somehow collect on that judgment? The odds of all of that happening are basically zero.

 

[jdwrightman82]

I guess I am concerned they may try to put a lien on her home for lack of payment. But I assume they would need to start some sort of legal process which they haven't. Thanks for all the advice I do feel better about this. We will let the contract expire and let this die.

 

[Fido Chuckwagon]

I guess I am concerned they may try to put a lien on her home for lack of payment.

What state does she live in? This scenario is so unlikely that it's not worth worrying about. You're probably more likely to be struck by lightning.

 

[jdwrightman82]

Massachusetts.