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Maintenance Fee went to collections (by Lia S.):

lancec13 wrote:

Yes, there have been a lot of mixed reports about credit ratings getting affected by defaulting on maintenance fee payments. In the end, you have to decide whether or not to take the risk. But since you are worried about applying for a mortgage, have you looked into the option of applying for a pre-approved mortgage now (even though you will want the mortgage next year) before any possible credit rating "dings" might kick in?

I’d love it if it were that easy, but we’re self-employed, so we have to have two consecutive tax returns (wherein we take fewer deductions than we normally would and pay more taxes in, so we can show the income we need to for the mortgage). We have 2017, but we’ll need our 2018 return- which is why we are looking at buying in the spring after we have taxes on file.

I spent pretty much the entire day researching this yesterday, reading through peoples’ firsthand experiences. Unfortunately, there seems to be a lot of talk about “what will happen if”, but there isn’t a lot of reporting back by people who’ve been through a TS foreclosure, letting the rest of us know how it affected them. I came across an encouraging message thread on the TUG board that I will share here. This person allowed a Westgate TS to go to foreclosure, still owing on the actual mortgage loan, and in the end he says it didn’t touch his credit at all. So, that’s promising. https://tugbbs.com/forums/index.php?threads/will-legal-action-help-me-get-rid-of-my-ts.246451/

I guess I’m getting more comfortable with the idea of just not worrying about it. If all we owe are MFs, then that’s not a true foreclosure, is it? Those are just unpaid fees. If by some chance it did hit our credit report as a foreclosure, surely I could dispute that and have it changed after providing proof that there was no mortgage owed. Don’t you think? I feel like I’ve thought this whole thing to death. Ready to move on to my next obsessive research topic. 😊