[ 2022 ] Timeshare Default Credit Report/Collection Tracking

[Grammarhero]

Some of you know I have been tracking this. Out of four (4) more TS defaults reported on TUG Facebook, one (1) got his credit affected.

I have tabbed the following stats(updated 5/2022):

TS defaults w credit drops: 47 out of 107

TS defaults w collections: 12 out of 107

TS defaults w liens: 2 out of 107

MF defaults w credit drop: 10 out of 53

Mortgage defaults w credit drops: 38 out of 54

TUG BBS defaults: 36 MF/ 30 loan

TUG FB defaults: 17 MF/ 24 loans

Canadians default on US TS w credit drops: 0 out of 12

Intls (inc. Canadians) default on US TS w credit drops: 0 out of 13

US defaults on intl TS w credit drops: 4 (all MX, 3 loans, 1 MF) out of 9 (8 MX, 1 Aus)

Wyndham defaults w credit drops: 6 (5 loans, 1 MF) out of 11 (8 loans, 3 MF)

HIVC defaults w credit drops: 6 (5 loans, 1 MF) out of 8 (7 loans, 2 MF)

Diamond defaults w credit drops: 1 out of 8 (all 7 MF)

VV defaults w credit drops: 1 (loan) out of 7 (3 loan, 4 MF)

Welk default w credit drops: 4 out of 5 (all loans)

Exploria default w credit drops: 1 (loan) out of 3 (2 MF, 1 loan)

Westgate defaults w credit drops: 2 out of 4 (all loans)

BG defaults w credit drops: 2 out of 3 (all loans)

Hilton defaults w credit drops: 2 out of 3 (all loans)

Sheraton defaults w credit drops: 2 out of 2 (1 loan, 1 MF)

Silverleaf defaults w credit drops: 3 out of 3 (all loans)

Marriott defaults w credit drops: 1 out of 2 (both MF)

WorldMark default w credit drops: 1 out of 1 (loan)

independent/other: 9 (3 MF, 6 loans) out of 22 (7 loans, 15 MF)

undisclosed: 11

@Fredflintstone @CPNY @Passepartout @RX8 @CalGalTraveler

 

[CalGalTraveler]

Thanks for collecting this info. It is very helpful to all.

Is it possible to differentiate how many were international vs. USA owners. For example, I have heard that they cannot report to a Canadian credit agency.

What systems reported the most to the credit agencies? I am particularly interest in the MF default reporting - to me this is the most vindictive measure. Will know whom to avoid in the future.

 

[RX8]

This is very good information. So many people come to TUG looking for the answer as to how a default will affect their credit. While we still can’t give anyone a definitive answer @Grammarhero ’s data compilation will at least give people an idea of their odds if they decide to walk away.

 

[Grammarhero]

Thanks for collecting this info. It is very helpful to all.

Is it possible to differentiate how many were international vs. USA owners. For example, I have heard that they cannot report to a Canadian credit agency.

What systems reported the most to the credit agencies? I am particularly interest in the MF default reporting - to me this is the most vindictive measure. Will know whom to avoid in the future.

@CalGalTraveler @RX8
These are some stats below. It's hard to extrapolate from relatively small sample size. Even though 84% of all new TS owners will tell us the rescinded amount, only 63% of TS defaulters will us whether their credit got affected. Instead of a 43 sample size, we should be having a 68 sample size, at least. Nevertheless, Sheraton seems particularly bad WRT MF defaults, as 2/2 got reported to the credit agencies. Another DRI and Marriott Owner got their credit affected with MF defaults.

CR drops: 13 out of 43

Liens: 2 out of 43

MF default: 4 out of 26

Mortgage default: 9 out of 17

Canadian: 0 out of 8

Intl (inc. Canadians): 0 out of 9.

Wyndham: 2 out of 7 (both loans)

Sheraton: 2 out of 2 (1 loan)

VV: 1 out of 5

Diamond: 1 out of 2 (no loans)

Silverleaf: 2 out of 2 (both loans)

BG: 1 out of 2 (loan)

 

[LannyPC]

Thanks for compiling those interesting stats. Hopefully people who come on here asking what will happen if they default on their mortgage and/or MFs will get a clearer picture.

Have there been any reports about defaulting owners getting reported to collection (not credit) agencies? And if so, what was the outcome?

 

[TUGBrian]

want me to change the title of this so its more accurate? or more general vs the numbers above?

 

[Grammarhero]

want me to change the title of this so its more accurate? or more general vs the numbers above?

That is a good idea.

 

[Grammarhero]

Thanks for compiling those interesting stats. Hopefully people who come on here asking what will happen if they default on their mortgage and/or MFs will get a clearer picture.

Have there been any reports about defaulting owners getting reported to collection (not credit) agencies? And if so, what was the outcome?

@LannyPC got three reports of collections: 1 Sheraton Broadway MF default, 1 Hilton FL MF default, and 1 WM mortgage default.

 

[bocamike]

This tread is like giving ammunition to the enemy...

 

[Grammarhero]

TUG FB reported three new TS default results. We finally have fifty (50) TS default data points. @RX8 @Fredflintstone @CalGalTraveler @LannyPC

Even though 84 percent of TS rescinders report rescinded amounts, only 63 percent of TS defaulters report whether their credit got affected. Understandably, it's a lot more of an embarrassing situation.

The credit drops are as below.

CR drops: 17 out of 50

Liens: 2 out of 50

collections: 4 out of 50

MF default: 4 out of 28

Mortgage default: 13 out of 22

Canadian: 0 out of 8

Intl (inc. Canadians): 0 out of 9.

Wyndham: 3 (all loans) out of 8 (6 loans, 2 MF)

Sheraton: 2 out of 2 (1 loan, 1 MF)

VV: 1 (loan) out of 6 (2 loan, 4 MF)

Diamond: 1 out of 3 (no loans)

Silverleaf: 2 out of 2 (both loans)

BG: 1 out of 2 (both loans)

HIVC: 3 out of 4 (all 4 loans)

Westgate: 0 out of 2 (1 loan, 1 MF)

 

[RX8]

Great information to share. Thanks for putting the effort in that will helps so many people.

 

[Grammarhero]

Great information to share. Thanks for putting the effort in that will helps so many people.

Just some trends I noticed.

Out of 50 data points, 14 percent of MF defaults get reported to the credit agencies, while 59 percent of mortgage defaults do.

Canadian or foreign owners of US TS have less reason to worry about credit score drops.

Wyndham and Vacation Villages seem reasonable on MF default, but Wyndham and HIVC seem to report mortgage defaulters to the credit agencies.

 

[fiat1bmw]

Check out the use of Slander of Credit in your state as an attempt to deter them from reporting to a credit agency. (This is not legal advice nor is an attorney-client relationship being formed with this posting.)

 

[qwerty]

Some of you know I have been tracking this. Out of four (4) more TS defaults reported on TUG Facebook, one (1) got his credit affected.

It’s a start, but I have tabbed the following stats:
1) out of 43 reported defaults, 13 got reported to the credit agencies
2) out of 26 MF defaults, 4 got reported to the credit agencies.
3) out of 17 TS mortgage defaults, 9 got reported to the credit agencies.

@Fredflintstone @CPNY @Passepartout @RX8 @CalGalTraveler

I would like to know if any tugger who did not owe any money on the sale of their timeshare (mortgage, etc.) had their credit rating get a hit after not paying the resort M/F.

 

[terrygee]

I would like to know if any tugger who did not owe any money on the sale of their timeshare (mortgage, etc.) had their credit rating get a hit after not paying the resort M/F.

I do not know how the data was compiled but I stopped paying the MF on Wyndham's Elysian Beach Resort in 2016 and FICO score and CR was never affected. Account went to a collection agency after a year, I received a few scattered mailings which went to trash instantly and two (screened) phone calls which I then blocked. (TS was purchased resale for $2k cash in 2000.)
Not a peep since then.

 

[TUGBrian]

I would like to know if any tugger who did not owe any money on the sale of their timeshare (mortgage, etc.) had their credit rating get a hit after not paying the resort M/F.

is that not line 2 of the first post?

 

[Cruiser Too]

Friends of ours are in their late, late 80's.
No kids or relatives they associate with.
Don't travel anymore and stopped paying their MF.
They sold their car and primary residence and moved into a senior care home.
They couldn't care less if they're reported to any credit bureau !!!
LOL !!!

 

[Seadog13]

We have a timeshare in Mexico owned by a Mexican company. Our contract was for 20 years with the option to renew. Well, 20 years is up and they are claiming we have to pay MFs for life. They said if we don't pay, they will have the Meridian Collection Agency (part of Interval International) come after us. Does anyone have experience of defaulting on MFs with a Mexican-owned TS? In the data provided in this string, I don't see anything about default experience with a foreign time share company.

 

[Cruiser Too]

As long as you have your contract stating "...for 20 years with the option to renew"
I'd tell them to 'go ahead and try to get me to pay'.
It's saber-rattling hoping you'll bite and spend the rest of your life paying MF.

 

[Grammarhero]

@RX8 @Fredflintstone @CalGalTraveler @LannyPC @qwerty @TUGBrian


Updated figures:

TS defaults w credit drops: 18 out of 51

TS defaults w collections: 4 out of 51

TS defaults w liens: 2 out of 51

MF defaults w credit drop: 4 out of 27

Mortgage defaults w credit drops: 14 out of 24

Canadians default on US TS w credit drops: 0 out of 8

Intls (inc. Canadians) default on US TS w credit drops: 0 out of 9.

Wyndham defaults w credit drops: 4 (all loans) out of 9 (7 loans, 2 MF)

Sheraton defaults w credit drops: 2 out of 2 (1 loan, 1 MF)

VV defaults w credit drops: 1 (loan) out of 6 (2 loan, 4 MF)

Diamond defaults w credit drops: 1 out of 3 (no loans)

Silverleaf defautls w credit drops: 2 out of 2 (both loans)

BG defaults w credit drops: 1 out of 2 (both loans)

HIVC defaults w credit drops: 3 out of 4 (all 4 loans)

Westgate defaults w credit drops: 0 out of 2 (2 loans) Interestingly, we've had thirty-five (35) TUG guests/members who did not provide whether their defaults lead to credit drops. Of those thirty-five (35), twenty-two (22) had loans, eleven (11) only MFs, and two (2) did not tell whether they had a loan.

 

[Grammarhero]

I would like to know if any tugger who did not owe any money on the sale of their timeshare (mortgage, etc.) had their credit rating get a hit after not paying the resort M/F.

is that not line 2 of the first post?

@qwerty @TUGBrian

These 4 TUG MF defaults resulted in credit drops:
https://tugbbs.com/forums/threads/s...-notice-of-default-and-intent-to-sell.295884/

[ 2019 ] anyone has stopped paying maintenance fees, what happened ?

I’m not a lawyer and this is not legal advice. I just looked up Hawai’i non judicial anti deficiency foreclosure: Hawaii does have an anti-deficiency law, but it only applies to nonjudicial foreclosures. (Haw. Rev. Stat. § 667-38). Deficiency judgments are allowed in judicial foreclosures...

tugbbs.com

[ 2019 ] anyone has stopped paying maintenance fees, what happened ?

@CalGalTraveler, you don’t need the actual deed. Titles are public record so you can get away with the LINC number or title number. Sent from my iPad using Tapatalk

tugbbs.com

[ 2019 ] What about foreclosure?

I’m just curious about this after seeing that Transitions is $1000/contract now. Has anyone just stopped paying the maintenance fees and let Diamond foreclose? I suppose someone who did that may not have much occasion to hang out on TUG but I thought I would ask. I’m curious how many years they...

tugbbs.com

Note: I don't feel like copying and pasting the other 23 instances of MF defaults not resulting in credit score drops.

 

[Fredflintstone]

@RX8 @Fredflintstone @CalGalTraveler @LannyPC @qwerty @TUGBrian


Updated figures:

TS defaults w credit drops: 18 out of 51

TS defaults w collections: 4 out of 51

TS defaults w liens: 2 out of 51

MF defaults w credit drop: 4 out of 27

Mortgage defaults w credit drops: 14 out of 24

Canadians default on US TS w credit drops: 0 out of 8

Intls (inc. Canadians) default on US TS w credit drops: 0 out of 9.

Wyndham defaults w credit drops: 4 (all loans) out of 9 (7 loans, 2 MF)

Sheraton defaults w credit drops: 2 out of 2 (1 loan, 1 MF)

VV defaults w credit drops: 1 (loan) out of 6 (2 loan, 4 MF)

Diamond defaults w credit drops: 1 out of 3 (no loans)

Silverleaf defautls w credit drops: 2 out of 2 (both loans)

BG defaults w credit drops: 1 out of 2 (both loans)

HIVC defaults w credit drops: 3 out of 4 (all 4 loans)

Westgate defaults w credit drops: 0 out of 2 (2 loans) Interestingly, we've had thirty-five (35) TUG guests/members who did not provide whether their defaults lead to credit drops. Of those thirty-five (35), twenty-two (22) had loans, eleven (11) only MFs, and two (2) did not tell whether they had a loan.

Good information, Thanks @Grammarhero

I think things might be different if a Canadian defaulted on a Canadian timeshare. However, due to the fact that credit reporting is domestic, US timeshares would have a greater challenge dealing with the Canadian system.

It’s going to be interesting what the default results will be once the Covid impact begins. My guess is that defaults will be way up due to (most likely) no more stimulus checks, high unemployment and other economic fallouts. Some of my friends who are real estate experts in the US think foreclosures will skyrocket once the forbearance ends on regular property. One resort contact I know says the board will be popping MF up 30 percent for 2021 to provide a cushion for higher defaults and provide legal resources to deal with defaulters aggressively. I can’t see that working well. I will be real interested to see Tuggers sharing their MF bills for 2021.


Sent from my iPad using Tapatalk

 

[CalGalTraveler]

@RX8 @Fredflintstone @CalGalTraveler @LannyPC @qwerty @TUGBrian


Updated figures:

TS defaults w credit drops: 18 out of 51

TS defaults w collections: 4 out of 51

TS defaults w liens: 2 out of 51

MF defaults w credit drop: 4 out of 27

Mortgage defaults w credit drops: 14 out of 24

Canadians default on US TS w credit drops: 0 out of 8

Intls (inc. Canadians) default on US TS w credit drops: 0 out of 9.

Wyndham defaults w credit drops: 4 (all loans) out of 9 (7 loans, 2 MF)

Sheraton defaults w credit drops: 2 out of 2 (1 loan, 1 MF)

VV defaults w credit drops: 1 (loan) out of 6 (2 loan, 4 MF)

Diamond defaults w credit drops: 1 out of 3 (no loans)

Silverleaf defautls w credit drops: 2 out of 2 (both loans)

BG defaults w credit drops: 1 out of 2 (both loans)

HIVC defaults w credit drops: 3 out of 4 (all 4 loans)

Westgate defaults w credit drops: 0 out of 2 (2 loans) Interestingly, we've had thirty-five (35) TUG guests/members who did not provide whether their defaults lead to credit drops. Of those thirty-five (35), twenty-two (22) had loans, eleven (11) only MFs, and two (2) did not tell whether they had a loan.

Valuable information. @TUGBrian can we pin this in a sticky?

 

[Grammarhero]

@RX8 @Fredflintstone @CalGalTraveler @LannyPC @qwerty @TUGBrian
Latest figures
TS defaults w credit drops: 18 out of 52
TS defaults w collections: 5 out of 52
TS defaults w liens: 2 out of 52
MF defaults w credit drop: 5 out of 29
Mortgage defaults w credit drops: 13 out of 23
Canadians default on US TS w credit drops: 0 out of 8
Intls (inc. Canadians) default on US TS w credit drops: 0 out of 9.
Wyndham defaults w credit drops: 4 (3 loans, 1 MF) out of 9 (6 loans, 3 MF)
Sheraton defaults w credit drops: 2 out of 2 (1 loan, 1 MF)
VV defaults w credit drops: 1 (loan) out of 6 (2 loan, 4 MF)
Diamond defaults w credit drops: 1 out of 3 (all 3 MF)
Silverleaf defautls w credit drops: 2 out of 2 (both loans)
BG defaults w credit drops: 1 out of 2 (both loans)
HIVC defaults w credit drops: 3 out of 4 (all 4 loans)
Westgate defaults w credit drops: 0 out of 2 (both loans)
Marriott defaults w credit drops: 0 out of 2 (both MF)

 

[billybilbo]

Great information. How about The Manhattan Club?