Resale Mexican Timeshare

[simon63]

Somebody know why if must of the timeshare in Mexico are RTU, owners try to give away free or for a few dollars and pay a broker, if I think there are not legal problems for just stop paying maintenance.

 

[LannyPC]

There usually are not any legal problems if you stop paying MFs on an RTU.

 

[simon63]

Obviously many brokers don’t mention it to his customers

 

[easyrider]

It's not a problem only if the RTU mf is paid to a Mexican company. That is the case for many older Mexican contracts. In recent years Mexican developers have started working with American based companies which could give some Mexican developers the right to take you to court in the USA depending on the verbiage in your contract. My guess is that many older weeks contracts are not enforceable in the USA and many of the point system contracts with an American affiliation are.

So it depends. But then there is the age factor. At a certain age most people can survive just fine with a ding on their credit, imo.

Bill

 

[Passepartout]

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.

 

[CarlosRobayo23]

I’m looking for a FAVC (Fiesta Americana) resale. If someone wants to give it away. I will more than happy to receive it.

 

[rboesl]

Not sure I understand the original question. What maintenance fees would there be to pay on a RTU: Right To Use contract? With that type of contract, which I have with Vidanta, the only time I pay a fee is when I want to use a week.

 

[simon63]

For many Mexican timeshare the MF is mandatory even if you don’t use your weeks

 

[easyrider]

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

 

[simon63]

It would be interesting to know if someone had been taken to court or affected in his credit for stop paying mf

 

[rboesl]

For many Mexican timeshare the MF is mandatory even if you don’t use your weeks

I guess I don't quite understand. Are you saying there's a maintenance fee AND a usage fee when you want to use the week?

My understanding of Right To Use is that you pay a fee only when you want to use your contracted week. I currently have 2 contracts in Mexico. One has an annual maintenance fee that I have to pay every year, regardless of whether I use the week or not. But, I do have the option to call the company and bank that week for the next year's use. The other one I don't pay a fee unless I call and reserve a week.

 

[rpennisi]

I guess I don't quite understand. Are you saying there's a maintenance fee AND a usage fee when you want to use the week?

My understanding of Right To Use is that you pay a fee only when you want to use your contracted week. I currently have 2 contracts in Mexico. One has an annual maintenance fee that I have to pay every year, regardless of whether I use the week or not. But, I do have the option to call the company and bank that week for the next year's use. The other one I don't pay a fee unless I call and reserve a week.

I believe he meant what you wrote above for your first contract..you pay every year regardless whether you use the week or not. Once the MF is paid, it can be used, extended for the following year (some if not all RTU orgs) or banked in RCI, II, etc.

 

[easyrider]

I guess I don't quite understand. Are you saying there's a maintenance fee AND a usage fee when you want to use the week?

My understanding of Right To Use is that you pay a fee only when you want to use your contracted week. I currently have 2 contracts in Mexico. One has an annual maintenance fee that I have to pay every year, regardless of whether I use the week or not. But, I do have the option to call the company and bank that week for the next year's use. The other one I don't pay a fee unless I call and reserve a week.

A " Right to Use" timeshare gives the buyer a right to stay at the property outlined by the contract. A "deeded" timeshare is when you own a fraction of the property.

Some rtu's are like yours where you only pay when you use the property. I think many Vidanta contracts are like that. Most rtu's are either annual or every other year for a set amount of time that can be perpetual.

Bill

 

[rboesl]

A " Right to Use" timeshare gives the buyer a right to stay at the property outlined by the contract. A "deeded" timeshare is when you own a fraction of the property.

Some rtu's are like yours where you only pay when you use the property. I think many Vidanta contracts are like that. Most rtu's are either annual or every other year for a set amount of time that can be perpetual.

Bill

Ok. Based upon what you said, a timeshare that's not associated with a deed should be considered Right To Use. And they come in 2 varieties. 1. Pay a usage fee when you make a reservation. 2. Pay a "maintenance" fee for the interval you're contract for (Annual, bi-annual, etc.).

 

[TheTimeTraveler]

I don't believe any Mexican Timeshares are actually deeded...... I think all Mexican Timeshares are RTU.




.

 

[easyrider]

Ok. Based upon what you said, a timeshare that's not associated with a deed should be considered Right To Use. And they come in 2 varieties. 1. Pay a usage fee when you make a reservation. 2. Pay a "maintenance" fee for the interval you're contract for (Annual, bi-annual, etc.).

Yes and no. Some systems are called clubs. Worldmark sells a membership to their " Club" which is pretty much a rtu, imo.

Most rtu contracts are paid yearly or every other year. Vidanta has some rtu's contracts that allow payment only when the week is used. Vidanta is the only developer that I am aware of that does this. Vidanta also charges a special assessment every five years equivalent to one mf.

Bill

 

[Eric B]

Yes and no. Some systems are called clubs. Worldmark sells a membership to their " Club" which is pretty much a rtu, imo.

Most rtu contracts are paid yearly or every other year. Vidanta has some rtu's contracts that allow payment only when the week is used. Vidanta is the only developer that I am aware of that does this. Vidanta also charges a special assessment every five years equivalent to one mf.

Bill

Vidanta has changed their contract formats periodically over the years; some older 25-year ones had a refurbishment fee of one MF every five years and a similar renewal fee at the 25 year point up to 100 years. It wasn’t a special assessment, but instead set out in the initial contract so it was predictable. @pittle has posted the history of the contract formats a couple of times; current ones have 1 registered week and annual “alternate use” weeks for the first ten years, accompanied by two variously named bonus weeks good for 10 years and renewable every 10 years up to a hundred for an MF each. They generally also provide access to 2 additional bonus weeks through SFX. The contracts themselves require MF payment for the registered week, but it’s either modified by addendum to not be required or it’s just for one use anyway.

 

[pittle]

Yes and no. Some systems are called clubs. Worldmark sells a membership to their " Club" which is pretty much a rtu, imo.

Most rtu contracts are paid yearly or every other year. Vidanta has some rtu's contracts that allow payment only when the week is used. Vidanta is the only developer that I am aware of that does this. Vidanta also charges a special assessment every five years equivalent to one mf.

Bill

The 5 year fee is in the contract and called a Renovation Fee. Some no pay unless you go contracts have the 5 year reno fee, but pretty much every contract until they started the 10 year renewal program has the reno fee.