Legal Question in Real Estate Law in California

Re: Timeshare - Deed in lieu of foreclosure but CURRENT on payments

Well, suppose it is reported? If the facts are reported completely and accurately, how badly can that affect your FICO score? There were no missed payments, just a change of mind regarding continued ownership of this property.

This is not to say that I trust time share sponsors or the three major credit-reporting agencies to handle things properly in all instances, nor do I necessarily believe that Fair, Isaac's credit-scoring formula handles all input properly, but in your circumstance I think it is a reasonable risk to take to get out of a bad situation.

If the information about your deed in lieu gets reported inaccurately, so that it looks like payment problems were a factor, or a credit agency draws the wrong conclusions from an essentially accurate report, you can then take steps to try to straighten things out.

I'd ask for a promise in writing that nothing be reported, but I'd settle for a promise that any report, if made, be truthful and accurate and include the fact that there was no default or even delinquency on your part.