As with all timeshare investments, there are serious repercussions if you do not pay your payments as promised. This is a very common concern for individuals who find themselves in situations where they are unable to continue making timely payments for their timeshare. Here is some information that helps explain what you should expect if you stop making your timeshare payments.
Consequences of Not Paying
If for whatever reason, find yourself in a financially tight bind that prevents you from fulfilling your contractual responsibility, make sure you understand the risks you will face by not paying. Your credit score will be adversely affected, and the timeshare company can even take legal action against you. Once you stop paying timeshare payments and maintenances fees, you will immediately lose all rights to use the timeshare units and its amenities.
Timeshare Maintenance fees
Timeshare companies have their own rules and regulations regarding payments and defaulting of payments, but most charge delinquent fees and interest fees if you stop paying.
Read your timeshare policy carefully. In general, all maintenance fees need to be paid and update to date if you want to keep using your timeshare. Once payments cease, you will lose all rights to use the timeshare. If you do default and want to come current later, you will most likely also be required to pay a reinstatement fee.
Foreclosure is Possible
If you just stop paying your timeshare payments completely, you put yourself at risk for foreclosure. A written warning is first sent to you about your late payments, and then you will receive emails and phone calls as well. Be aware that if you ignore all these attempts, the timeshare company can begin foreclosure proceedings. Also, if you took out a loan or paid your timeshare membership with a credit card, you will still be legally responsible to pay those payments and any late fees or interest that accrue as well.
Credit Issues
If you ignore all calls and emails from the timeshare company, your timeshare debt will probably be sold to a collection agency which will affect your credit score. This is important to consider for you will likely be denied credit on future loans. The collection agency will also take the legal steps necessary to sue you, which will adversely affect your credit score even more. Credit collectors are persistent in their attempts to collect money owed, and the harassment will be both embarrassing and annoying.
Beware of Cancellation Scams
Still thinking about not paying your timeshare payments? You could become a target of a cancellation scam company. Timeshare cancellation scam companies try to convince you that they can save you from severe consequences of not paying your timeshare membership. This is a total scam which will only cause further economic and emotional stress. Only deal directly with your timeshare provider and never enlist the services of third party companies that are most likely fraudulent.
The short and long-term risks and consequences of not paying your timeshare payments are serious…make sure you keep this information in mind!
You may also like: 5 Ways to Avoid a Timeshare Nightmare
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