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To: WALKING Away From Timeshare (by R P.):

davek194 wrote:

Walking away won't necessarily ruin your credit. It all depends on the management company and how you obtained your loan. Some companies use 3rd party lenders and actually make most of their money from the high interest rates that they charge. In this instance they'll threaten you but actually won't follow-up with reporting to the credit agencies since this would scare away their investors. It pays to keep an active watch on your credit report and see if/when there is any activity regarding your TS loan - quite frequently it's not reported. It's also sometimes followed with a deed-back offer.

Yes, it's up to the HOA or management company as to whether an abandoned timeshare loan or non payment of yearly maintenance fees will be reported to the credit agencies, BUT there are HOAs and management companies that DO report non-payment(s) to the credit agencies.

A timeshare loan is a legal contract signed by both the buyer of a timeshare and the loan company and will stand up in a court of law if it is contested by the loan entity for delinquency.