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Answers (7)
- Georgina OBryan, "GOBryan1"
- Contributions:483
Timeshares have deeds. I have one I purchased 20 or so years ago. It's the same as purchasing a home outright, only your are purchasing a week/s at a specific address. It doesn't matter that you can use various resorts, etc.. You will still have a particular week and address recorded to you.
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
This is all news to me. Every credit report I've seen when the borrower had one or several timeshare loans none where recorded as mortgages.
Happy funding, Rudi
Happy funding, Rudi
- Sean Ogilvie, "California Mortgage"
- Contributions:173
Interesting post. I have clients who have bought into a timeshare (Diamond Resorts) and it was being reported as a mortgage on their credit report. They had a 30 day late being reported in error which was threatening to hold up our close since this was viewed as a traditional mortgage late. Fortunately since the late was an error we were able to resolve the issue.
- Pretty Flower
- Contributions:1
Don't quote me on this, however, some timeshare loans are considered mortgages. This would depend on what kind of product is purchased. Some timeshares that are definitely not mortgages are: vacation clubs, trust collections, or right to use. I have been in the timesharing industry for well over a decade now and we can "foreclose" on some forms of ownerships (fractionals, deeds, etc.). Before foreclosing, you may want to ask the developer to allow a mutual release agreement (voluntary repossession). If the note has been sold to an outside lender, this may not be an option. Talk with the finance department of the company. Many times they will work with you on catching up back payments or deferring them. They dont want to have to be responsible for the maintenance costs.
- Brian Slodki, "SupremeLending"
- Contributions:73
I understand your confusion Rudi. Time shares are a completely different animal. Even though there is no "mortgage" associated with a time share, I think it is still called a foreclosure because if you dont make the payments, you are giving up your share of the ownership rights of the property? Maybe? It may depend on the type of time share you get involved with too. Some time shares are just for one property and some are more like vacation clubs where you can go to several different destinations and are not limited to one location. Long story short ssshingles, Weather its called a foreclosure or a reposession... Its going to impact your credit score substantially.
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
I think it could be worse.
That link was interesting Brian. I don't know why they call it a foreclosure. Mortgages are not available on timeshares. A timeshare is purchased by the length of time you wish to allocate usage per year. They are either financed by the developer or by a personal loan. I think it would be considered repossessed, not foreclosed, if the loan went into serious default.
Happy funding, Rudi
That link was interesting Brian. I don't know why they call it a foreclosure. Mortgages are not available on timeshares. A timeshare is purchased by the length of time you wish to allocate usage per year. They are either financed by the developer or by a personal loan. I think it would be considered repossessed, not foreclosed, if the loan went into serious default.
Happy funding, Rudi
- Brian Slodki, "SupremeLending"
- Contributions:73
Hopefully this article helps.
http://rcivip.com/timeshare-foreclosures-and-your-credit-score/
Foreclosure of Timeshare
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