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Collection agencies... (by KC):

jairoc5 wrote:

Is it customary for the collector to collect a fee in lieu of reporting the foreclosure/negative mark to the credit reporting agencies/credit bureau? I've read that a timeshare foreclosure is reported like they would for a home foreclosing.

Collection agencies will say / do almost anything to collect a portion of whatever they can harass / cajole someone into paying. That's the only way they get paid anything. If you pay nothing, they get nothing --- just as it should be. By the way, iIt's not a collection agency decision to report anything to the credit agencies in the first place. The collection agency is really nothing more than a hired sub-contractor for the developer / chain and only the developer / chain can decide whether to initiate negative credit reporting. Collection agencies have no actual authority whatsoever, when it comes right down to it. Ignore them.

What you "have read" is a somewhat incomplete picture. A foreclosure based solely upon failure to pay maintenance fees is one thing --- and almost never gets reported to the credit agencies. Defaulting on a loan is another story entirely however, and defaulting on a loan will virtually always result in a negative credit report being filed (and remaining a matter of record for 7 years thereafter).