time share exiting info and credit rating

We have a timeshare in Cabo at Hacienda del mar and still owe close to 12,000.00 on the note which is about 325.00 a month plus 1100.00 a year for the maint fees. We have talked to Lonestar Timeshare Exit team and they are wanting 4000.00 to get us out of our contract. They cant or will not tell me if I need to continue to make my monthly payments or maint fee during the time it takes to get the contract cancelled, which was said to take possibly a year or maybe longer. My monthly payment goes to a company in Navada so I am not sure what laws I am under to pay back. Can you please advise me in any way?

debbiew407 wrote:

Can you please advise me in any way?

My first piece of advice would be to not pay anyone any money to sell, rent out, market, or "cancel" your timeshare.

Based on what you have written about your situation, you might just want to contact the resort and say that you are not paying another penny in maintenance fees. Most people feel they can cut their losses this way.

The company in Nevada might start hounding you with collection agencies and accompanying phone calls and letters. However, most recipients of these just ignore them.

You have to decide for yourself if it is worth it to continue to pay off the mortgage and maintenance fees to protect your credit rating which may or may not take a hit if you stop paying.

debbiew407 wrote:

We have a timeshare in Cabo at Hacienda del mar and still owe close to 12,000.00 on the note which is about 325.00 a month plus 1100.00 a year for the maint fees. We have talked to Lonestar Timeshare Exit team and they are wanting 4000.00 to get us out of our contract. They cant or will not tell me if I need to continue to make my monthly payments or maint fee during the time it takes to get the contract cancelled, which was said to take possibly a year or maybe longer. My monthly payment goes to a company in Navada so I am not sure what laws I am under to pay back. Can you please advise me in any way?

Repeat after me --- NO ONE can magically get you out of a legally binding contract or loan obligation. NO ONE! Why on earth would you possibly believe otherwise, let alone PAY $4,000 to some obscure "magical exit" operation?

Such parasites have no magic beans or secret elixirs. The simple fact of the matter is that after a year of making no payments, while "Lonestar" does absolutely nothing productive or useful, your loan will be in default and your "membership" will be cancelled anyhow. All of that will happen on its' own --- WITHOUT you paying $4,000 to those unknown parasites who have absolutely NO ability to extract you from your legally binding contractual obligation.

If you really want "out", you have the option to just firmly resolve to not pay another penny. Let them go pound sand in Mexico. After all, you own NOTHING there (and they certainly know that). They will ultimately just terminate your RTU "membership", write you off and just turn around and sell more multi-thousand dollar "memberships" to the next Gringos who parade in while in "vacation brain" mode. The supply of such ready and willing people from the U.S. is virtually endless. The Mexicans most likely wouldn't even bother to make the effort to initiate a negative credit report, although they could. It's just not worth the effort..

There is a saying that "a fool and his money are soon parted". Don't be someone who once again proves that saying to be absolutely true.

This input is not offered as legal advice nor is it intended to substitute for obtaining professional legal advice. I am merely expressing to you my own personal opinion.

Thank you. Decision has been made not to pay. I also pulled up our credit reports and there is no record of the company on our credit report. No payment to Lonestar or Quinta del Golfo.

Thank you for making up my mind. Will not be spending anymore money on the timeshare or to Lonestar.

debbiew407 wrote:

Will not be spending anymore money on the timeshare or to Lonestar.

Well, that's your decision to make and, at this time, it seems like the most economical decision. I sincerely hope for your sake you do not get affected too much with negative credit reports but time will tell.

PS. If you can provide details later on about what consequences you faced (or didn't face) please update so as to let others know what they can expect if they are in a similar situation. There are a lot of inquiries on these boards about what could happen if someone just defaults and stops paying on a timeshare or vacation membership.

lancec13 wrote:

There are a lot of inquiries on these boards about what could happen if someone just defaults and stops paying on a timeshare or vacation membership.

The answer depends almost exclusively upon the COUNTRY in which the contract was signed and the loan taken out. Defaulting on a loan in the U.S. WILL result in a negative credit report almost 100% of the time. However, the OP loan / RTU "membership"" contract is in MEXICO. So, ONLY if the Mexican operation also has a legitimate, physical business presence here in the USA would there be any credit reporting consequences. This has consistently and repeatedly proven to be the case over a fair number of years and there is certainly no reason to believe that will change anytime in the foreseeable future.

Think about it. The Mexican RTU operation is going to keep ALL the money they have received to date, almost every dime of being profit, since it's just a "membership" anyhow --- there is no ownership of property (or anything else). It's all "money in the bank" to them. Only (part of) the annual maintenance fees actually get applied to "keeping up" the property. They will just continue selling RTU "memberships" to the steady stream of other willing Gringos who will keep marching in to sign on the dotted line while in relaxed (and judgement-impaired) "vacation brain" mode. It's no skin off the noses of the Mexican RTU operation if / when people later smarten up, decide to just stop paying --- and say farewell. The cash register will just keep right on ringing anyhow. Ka Ching!

If my payment goes to a company in Navada would that mean the contract would be US? I have pulled up all 3 credit bureau and there is no record of any payments being made to them and it's been 4 years of payments.

debbiew407 wrote:

If my payment goes to a company in Navada would that mean the contract would be US?

Not necessarily. Examine your contract; it should spell out in clear and specific detail the names and country locations of all companies associated with your particular transaction..

Your contract was executed in MEXICO, that much is certainly clear. The fact that your loan payments are apparently sent to (and processed through) a Nevada address does NOT necessarily mean that the Mexican RTU entity actually has a "business" presence here in the U.S. in the eyes of the law. It is possible that they simply have some sort of contractual arrangement with a U.S. entity (which is not necessarily any part of their own business enterprise located in Mexico) to handle and facilitate receipt and processing of payments, perhaps also assisting in currency conversion on behalf of the Mexican operation.

I have no knowledge of your contract, so I do not want to offer any incorrect information OR unfounded speculation. You might want to consider bringing your contract directly to a licensed attorney in your geographic area --- someone who is familiar with contract law (initial consultation should be free or inexpensive). You can then discuss the ramifications (if any) of defaulting on the loan that is associated with YOUR Mexican RTU contract. No one in these discussion forums can provide fully informed or completely reliable input with no direct knowledge of YOUR specific contract and / or its' content.

my contract says governing law - for the construction, satisfaction, and execution of this bill of holding of a time-share unit, the parties expressly abide by the jurisdictional authority of the courts of the Mexican law and competent courts of Los Cabos, State of Baja California Sur, Mexico. I am hoping that means MEXICO all the way around.

debbiew407 wrote:

my contract says governing law - for the construction, satisfaction, and execution of this bill of holding of a time-share unit, the parties expressly abide by the jurisdictional authority of the courts of the Mexican law and competent courts of Los Cabos, State of Baja California Sur, Mexico. I am hoping that means MEXICO all the way around.

I certainly share your "hope", but I remain a bit concerned about the LOAN portion of your timeshare transaction, which may or may not be a integral part of the timeshare related language that you have cited above. I'm wondering if there may also have been any SEPARATE documents you executed pertaining specifically to the LOAN. If not, GREAT! --- you can choose to stop paying and they can all just "go pound sand" down in Mexico.

My recommendation stands to seek professional legal review of your contract (and loan, if separate). A consultation will cost you (if anything) just a very tiny fraction of the $4,000 you were apparently prepared to fork over to those utterly useless "Lonestar Exit" parasites.

If you decide to take this suggestion and arrange a initial legal consultation, be sure to bring a copy of the contract *AND* the full name, address and *ANY AND ALL* all other available information and documentation (copies of bills, payment vouchers, BOTH sides of at least one cancelled check) pertaining to the (unspecified, unidentified) Nevada entity to which you have reportedly been sending monthly payments for several years now. Good luck.

Thank you for all your help and advice. I truly appreciate it. This is the only contract that I have and it is for the loan portion of the contract and the maint fee. I am going to follow your advice and contact a attorney. I will post any up dates on here. Thank you again.

Presently I am in the same situation. What was the end result?

So my mom got an into a RTU in mexico at villa del palmar witch I never new about when we took another trip that I was able to go I wasn’t aware of time shares or rtu. So we got sucked into another contract in Cancun “not knowing my mom already had one” I thought it sound like a good deal and they transferred the 1st contract and made it all in 1.. I’ve tried canceling but really sounds impossible.. I’m thinking about telling my mom to stop paying for all this.. should I tell her to check her credit report to see if there is actually anything connected to her credit ,, need advise pleae