SCAM ALERT: Mexican Timeshares
Occasionally we run an article on scams that we see popping up and one of the newest ones prays on the people who are already stuck with a timeshare and getting desperate to get rid of it and out from under the maintenance/management fee which is paid monthly/annually and is really where the timeshare companies make their money.
The latest scam involves a legitimate sounding real estate company from the U.S. with a buyer for your timeshare! Exciting news!
The buyer wants your timeshare so much that they have already placed a deposit into the realtor's escrow account and all you have to do is wire them the fee of (INSERT DOLLAR AMOUNT HERE) so that they can pay the capital gains tax for Mexico and then the property is sold and the check will be promptly forwarded to you!
Unfortunately, as you may guess from the title of this article it is yet another of the never ending scams that begin when you buy the timeshare.
As we've mentioned in numerous articles, the first sign of a scam is them wanting you to send them money in advance so you can get money later.
Second, another sign of a scam is someone cold calling you with news that sounds too good to be true. Because it is. If people would just stop and think for a second they would realize there are still many, many, MANY timeshares available on the market for no money down so why would someone be willing to pay you for yours?
Third, while Mexico does have a capital gains tax, the concept is based on the premise that you made a profit on the sale. Did you? Of course not. In addition, a few minutes of research on the internet will quickly reveal the capital gains tax applies to real estate but NOT TO TIMESHARES!
This scam, like all scams, requires the scamee (you) to set aside your common sense and try to grab that pot of gold at the end of the very expensive rainbow.
Just a warning folks, scammers make their money off people being greedy or willing to set aside their common sense.
Now you know about this scam, we'll let you know about the next one we see.