Getting out from under a timeshare

[Anonymous]

I was recently contacted by a company timeshare-answers offering their services to get me out from under my timeshare and to protect my credit rating.  The company proposed  I stop making payments on the timeshare and to protect my credit rating I was to send a letter to all 3 bureaus stating that I am disputing the timeshare contract thus my credit rating would be protected from drops in score during the process.  I would like to know if this is true or not thanks!

[Anonymous]

That doesn't sound right.  First off, is the timeshare currently on your credit report.  If so, how is it reported?  Assuming that it is on your credit report as a trade line of some sort, then sending in letters to CRAs disputing the line will just be handled as any other dispute.  If it is not on your credit report, then if you stop paying, it might then show up on your credit report as a derogatory from OC or collection agency.  Again you would just go through regular dispute process with whatever chance of success.  I guess if it isn't on your credit report, you could sue or get agreement from time share that contract is cancelled so it never shows up on credit report, but that is YMMV scenario.

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@Anonymous wrote:

I was recently contacted by a company timeshare-answers offering their services to get me out from under my timeshare and to protect my credit rating.  The company proposed  I stop making payments on the timeshare and to protect my credit rating I was to send a letter to all 3 bureaus stating that I am disputing the timeshare contract thus my credit rating would be protected from drops in score during the process.  I would like to know if this is true or not thanks!

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Yeah I wouldn't advise you to stop paying.   You will get hit with late payments which will damage your FICO score.   And eventually it could turn into a forclosure/judgement situation which will be worse.     They are blowing smoke at you on the credit reporting aspect, it will be bad.

[Anonymous]

Nothing has shown up on my credit report.  Making payments is no longer an option and this company presented an alternative to foreclosure although I may contact teh company and offer to sign the deed back over to them in lieu of a foreclosure and present it as a win win for all by suggesting it would save them the cost of putting me through a foreclosure.  If they agreed to take the property back would it lessen the hit on my scores then an outright foreclosure?

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@Anonymous wrote:

Nothing has shown up on my credit report.  Making payments is no longer an option and this company presented an alternative to foreclosure although I may contact teh company and offer to sign the deed back over to them in lieu of a foreclosure and present it as a win win for all by suggesting it would save them the cost of putting me through a foreclosure.  If they agreed to take the property back would it lessen the hit on my scores then an outright foreclosure?

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I'm pretty sure that a DIL is scored about as bad as a foreclosure, so I don't think you'll gain much from a FICO perspective.