Mexican Timeshare Resale Fraud

A widespread method of defrauding current Mexican timeshare owners is to promise to broker the sale of the existing timeshare in exchange for a small commission of approximately 5% to 10%. The scammers’ methods will include sending documents that appear to be legitimate and which appear to contain contractual protections for the seller, satisfaction guarantees, and money-back guarantees. Using common technology such as VOIP (voice over internet protocol), the timeshare resale scammers make it look like they are somebody (or somewhere) that they are not. In some cases, the call is coming from a call center in Mexico, but appears to be coming from a U.S. phone number. In some cases, the caller is actually in the United States but the phone number is fake.

First stage of the scam: “we can sell your timeshare.” Your initial contact is from a company offering to list your timeshare for sale, or claiming that they have a pool of buyers lined up who are looking to buy timeshare similar to yours. If you express interest, they send bogus contracts. You agree to pay a commission or listing fee, having been told that there is no risk.

Second stage: “we have a buyer lined up and we will be ready to close soon.” After letting you believe that there is a buyer ready, the first request for money will come. Often this is a request for you to pay the “listing agent” or broker their commission. Warning: if this money is being wired to a bank account in Mexico, there is almost no chance of ever recovering the money or reversing the wire.

Third stage: “Just one more wire transfer needed.” Once you have sent good money, they will try to extract as much from you for as long as possible. The exact words and claims made by the scammers will vary, but here are typical examples:

Title search fees
Advance maintenance fees
Mexican title transfer fees
Sales tax
Mexican real estate taxes
Capital gains taxes
Legal fees

In almost all cases, the scammers reassure you that the buyer is more than willing to pay these fees out of escrow after closing, but that you will need to front the money to make the deal go through. There is no “escrow.” If you are wiring money to an account in Mexico, the money is gone. If there is no buyer (and anything that they show you to convince you that the buyer is legitimate can be faked), then the money is gone. Forever.

The third stage will be prolonged for as long as you are willing to keep sending money.

Fourth stage. “The number you have reached is not in service.” When you stop paying or start to question them too intently, the scammers cease contact. The number you have been calling goes into the dustbin. The location where you thought they were located is likely an empty office or a non-existent address. Your money is gone. They are already on stage one with a new victim.

For more information about timeshare resale fraud and how to avoid it, check out these resources:

The Federal Trade Commission

The Federal Bureau of Investigation

The Better Business Bureau