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What is Timeshare?

What happens to my credit if I don't pay my timeshare?

  • I have a timeshare through Eldorado Resorts. The actual timeshare is at Grandview Resort in Las Vegas. The loan is through Eldorado Resorts. Apparently it's close to impossible to sell a timeshare and I'm not going to pay a company $500 to maybe sell the timeshare. My wife and I are ready to buy a house but we need the extra $300 a month for mortgage that I pay to the timeshare. Our credit is good/great and my timeshare loan does not show on any of my credit reports. Since the timeshare loan doesn't show on our credit reports, if we don't pay it and just let it go into foreclosure, will our credit get nailed? Every other loan we have (car, student, credit cards) show on our credit report. What will happen if we just stop paying the loan?

  • Answer:

    I think I have some better ideas than letting your timeshare go into foreclosure right now. First of all, it must be an oversight on the part of the timeshare company that they have not been filing reports to the credit agencies on your payments. If you stop making payments, however, they will focus a lot more closely on your paperwork, and those reports--now highly negative--will start to show up. So, here's what you might want to consider instead. 1) Give the timeshare away. Seriously. Offer the timeshare for, say $10, to anyone who will take over the balance. You are right that selling a timeshare is almost hopeless, but would someone take it if you gave it to them? Maybe. It's worth a shot. 2) If you are ready to buy a house, go on and do that, while continuing to make your timeshare payments. When you apply for a loan, the mortgage lender will pull your credit rating, and of course the timeshare will still presumably not be there, since you haven't stopped making payments). But immediately after your loan is approved, your credit rating stops being so important. At that point, you can revisit the idea of walking away from the timeshare. I still don't recommend that, but at least it won't affect your ability to buy a house. Bottom line: don't do anything that might affect your credit until you apply for your home loan. Good luck, and I hope this helps.

Justin at Yahoo! Answers Visit the source

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Any default will damage your credit. A timeshare default will probably be listed as a foreclosure...a catastrophe and deal killer for anyone looking for a new mortgage. These links can help: http://www.vacationtimesharerentals.com/timeshare-tips/timeshare-tips/what-to-expect-if-you-default-on-your-timeshare-loan.html http://answers.yahoo.com/question/index?qid=20071207105656AAK8oom

CatDad

If you stop paying, then: 1. It will go to a collection agency. 2. The collection will go on your credit report. 3. You will get sued.

StephenWeinstein

I don't know why its not on your credit. They will sue you for the money and stick you with outrageous lawyer fees etc etc. Think of it this way you own the house now so the heck with them and wait for the lawsuit it will take a year or so anyways.

Terry

I agree with seller, it takes 7 years to get that off of your credit and 7 years is a long time. I would try to give the timeshare away to someone or sell it if its the last thing i do. Bud i would'nt suggest screwing your credit over something like this.

Regardless if it is showing up on your credit right now or not the fact of the matter is that once you stop paying the financing company will put a negative rating on your credit and I am sure you will see that right away. If your looking to buy a house or make any other investment in the future you really do not want that on your credit report. I understand paying someone money to sell something for you before they have actually done it is a bit scary, and to be honest with you if proper research hasn't been done your sure to get burned. The bottom line is that your not going to find anyone that will sell your timeshare for you like a real estate agent does. My suggestion do your research and look at some good timeshare rental companies that will help you rent your week out and help you pay for that timeshare payment. Some timeshare companies actually allow owners to reserve extra weeks than what they actually own , you can use those weeks if available to you to rent out and help you out further for the payment. Also no one will actually take your timeshare from you, you cant donate it either as long as you owe money on it. Read more about timeshare resale on my Timeshare Blog http://timeshare101.wordpress.com

Seller

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