Default on MF's - what happens?

[Phydeaux]

I did a search, as this has undoubtedly already been asked, but didn't find anything. Just curious what happens when someone chooses to default on their annual MF. I've read this is not advisable, but what exactly happens? The resort hires legal reps to go after you? Your assets? Does anyone here have first hand experience? I'm not interested in conjecture.

Thanks!

 

[siesta]

Your unit will be foreclosed, your credit will be affected, creditors will harrass you, and if the resort sues you in court they may receive a judgement against you.

 

[Ridewithme38]

The general belief is after a foreclosure you lose around 160 Points off your Credit score and it lasts from 7-10 years....With a severally crippled Credit score, you will be unable to get new credit cards, property loans, car loans, if your insurance is private, you could be lose your insurance, if your mortgage is 'adjustable rate' your rate could double or even triple over night...ALOT of companies are checking credit scores before hiring people, if you need a new job, you will NOT be able to get it....

Basicly, its the end of your life for the next 7-10 years...And everything you have done up to then to build your credit will have been pointless

 

[Phydeaux]

Thanks for the replies. Where did you get this information? First hand, second hand? Just curious, since I always try to considerthe source for processing purposes.

 

[Ridewithme38]

Thanks for the replies. Where did you get this information? First hand, second hand? Just curious, since I always try to considerthe source for processing purposes.

The information about what happens after a foreclosure is available everywhere...A foreclosure is a foreclosure is a foreclosure...BUT, i have no idea what happens when you stop paying

 

[oldbuyer]

If the contract is paid in full and you are current on your MF fees contact the resort and they might release you from your contract.
I am aware of one resort that will take back contracts from customers that are "current" without negative repercussions. The same resort said they do not release owners that owe money on their contract or are in the rears on their annual MF fees.
You should contract your particular resorts VLO or Sales Manager and ask as it appears to be on an exception basis.
You might also try and list it on the free to good home TUG listings if you haven't already.

 

[Phydeaux]

If the contract is paid in full and you are current on your MF fees contact the resort and they might release you from your contract.
I am aware of one resort that will take back contracts from customers that are "current" without negative repercussions. The same resort said they do not release owners that owe money on their contract or are in the rears on their annual MF fees.
You should contract your particular resorts VLO or Sales Manager and ask as it appears to be on an exception basis.
You might also try and list it on the free to good home TUG listings if you haven't already.

Thanks again for the insightful reply. I'm not to the point of bailing out, but just like to know now, in the event. My home resort, the Royal Resorts, is not operating up to my expectaions, and I have no intention of strapping my son with an anchor, in the event something happens to me. Or, if I reach the breaking point myself and just want out.

 

[siesta]

Thanks again for the insightful reply. I'm not to the point of bailing out, but just like to know now, in the event. My home resort, the Royal Resorts, is not operating up to my expectaions, and I have no intention of strapping my son with an anchor, in the event something happens to me. Or, if I reach the breaking point myself and just want out.

as suggested, deeding back to resort or givng away free should be attempted first.

btw, if your sentiments/worries about royal resorts has anything to do with the AI, in the short term this may increase resale prices as people who enjoyed staying there by exchanging or renting will now be forced to own, pay the AI fee, or stay elsewhere. So sit tight, and dump it when the time is right, at the very least you should be able to give it away fairly easily at this point.

And most importantly, mexican timeshares are RTU, with an expiration on ownership. Im not sure which resort you are referencing though.

 

[pjrose]

Thanks again for the insightful reply. I'm not to the point of bailing out, but just like to know now, in the event. My home resort, the Royal Resorts, is not operating up to my expectaions, and I have no intention of strapping my son with an anchor, in the event something happens to me. Or, if I reach the breaking point myself and just want out.

Phydeaux, I deeded back a Simpson Bay (formerly Pelican Club) which is part of The Royals. ISCO had a very basic Owner Surrender (or something like that) form. I'm not certain that this applies beyond Simpson Bay, but it might. Giving away on TUG is also an option.

You should be able to sell it, though; Royals aren't in the $1 on eBay category.