Grandview Foreclosure
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?
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.
GRANDVIEW Foreclosures, HUD Owned Home for Sale – 6632 E FM 916, 76050
