Post reply
Original Message:
Deedbacks make sense (by KC):
jayjay wrote:carvana wrote:1. Maintenance fees are are not a personal liability because the timeshare buyer did not sign a promise to pay and the failure to pay these fees will not harm one's credit. The failure to pay will result in letters and phone calls but this action will not harm one's credit. Remember the failure to pay a maintenance fee is not related to a failure to pay the purchase money mortgage which is a personal debt. If you financed your purchase and fail to pay the mortgage your credit will be damaged because that is a personal liablity just like the mortgage on your home or car.2. A failure to pay your maintenance fee will result in a foreclosure and that will definitely harm your credit .....
1 and 2 are blatant contradictions to each other.
Actually, jayjay, they are not.
I realize that you are not an attorney and that the distinction referenced here might appear to be subtle. Carvana is merely making a legal distinction. Although this is certainly not an area in which I profess to have any expertise), please let me try (...once, and ONLY once) to intervene / simplify / summarize:
1. When a timeshare is purchased via loan, that loan is most certainly a personal liability. Defaulting on that loan will have immediate legal (and credit report) consequences.
2. When a timeshare is owned "free and clear" (i.e., no loan), the maintenance fee is certainly an associated financial obligation, but not a personal liability of reportable or credit consequence UNTIL AND UNLESS...
3. Foreclosure is ultimately initiated as a result of unresolved non-payment of fees. This foreclosure action is a legal proceeding of reportable (and credit impact) consequence.
I hope this helps. If not, I'm certainly not going to voluntarily enter into (or mediate) this fray further, other than to just point out as my FINAL word on the matter that Carvana clearly is NOT endorsing owners ignoring their maintenace fee obligations, but is instead merely making some subtle points of legal distinction which are, perhaps, not immediately obvious to the layman (or, for that matter, even to an experienced attorney unfamiliar with that particular area of law).