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time share exiting info and credit rating (by KC):

lancec13 wrote:

There are a lot of inquiries on these boards about what could happen if someone just defaults and stops paying on a timeshare or vacation membership.

The answer depends almost exclusively upon the COUNTRY in which the contract was signed and the loan taken out. Defaulting on a loan in the U.S. WILL result in a negative credit report almost 100% of the time. However, the OP loan / RTU "membership"" contract is in MEXICO. So, ONLY if the Mexican operation also has a legitimate, physical business presence here in the USA would there be any credit reporting consequences. This has consistently and repeatedly proven to be the case over a fair number of years and there is certainly no reason to believe that will change anytime in the foreseeable future.

Think about it. The Mexican RTU operation is going to keep ALL the money they have received to date, almost every dime of being profit, since it's just a "membership" anyhow --- there is no ownership of property (or anything else). It's all "money in the bank" to them. Only (part of) the annual maintenance fees actually get applied to "keeping up" the property. They will just continue selling RTU "memberships" to the steady stream of other willing Gringos who will keep marching in to sign on the dotted line while in relaxed (and judgement-impaired) "vacation brain" mode. It's no skin off the noses of the Mexican RTU operation if / when people later smarten up, decide to just stop paying --- and say farewell. The cash register will just keep right on ringing anyhow. Ka Ching!