Original Message:
Re: Re: Re: My timeshare is paid in full, but I just don't want it anymore (by KC):
brianl119 wrote:If it goes to collection, there is no foreclosure, just a negative mark on your credit that lasts for 7 years.
It is NOT necessarily true that a negative credit report will ever get created. In fact, far more often than not, no such negative credit report ever occurs at all, whether it’s a deeded ownership or a RTU contract. Historically, most chains and / or resorts seem content to simply pocket whatever money they have already collected from that customer over the years and just move on. Could they initiate a negative credit report? Yes, absolutely. But do they actually bother? No, not usually. This is not a personal opinion; it instead reflects the collective, first hand observations of many people who have shared their experiences over the past decade or so. There is no "one size fits all" answer that accurately portrays the practices of all developers and resorts. Furthermore, resort collection practices can change at their whim; what was in place last month or last year may well not be what is practiced next month --- or at any time thereafter.
Whether an account "goes to collections" has NO bearing on whether a negative credit report subsequently occurs. Many timeshare entities utilize "third party" collection agencies, which receive a percentage of whatever amount they can somehow cajole or intimidate someone into paying. Even if that collected figure ends up being zero, that still does not necessarily mean that a negative credit report will ever subsequently occur. Simply stated, it's a roll of the dice.