As with all timeshare investments, there are serious repercussions if you do not pay your payments as promised. Having financial issues and considering not paying your timeshare payments? Read below so you can know what to expect if you stop making your timeshare payments.
- Risks and Consequences
If you find yourself in a situation where you are considering not paying your timeshare payments, make sure you first understand the risks of defaulting. Your credit score will be negatively affected, and the timeshare company will take legal action against you to recover their money. Also, as soon as you stop paying your timeshare payments and maintenances fees, you immediately lose all access to use your timeshare unit.
- Maintenance fees Must be Paid
Each timeshare company has their own rules and regulations regarding payments and defaulting of payments, but the majority will charge delinquent fees and interest fees if you stop paying. It is best to read your timeshare policy carefully and stay on top of your maintenance fees as well. In addition to your regular timeshare payments, all maintenance fees must be up to date in order to enjoy your timeshare. Once payments or maintenance fees are not made, you lose all rights to use and enjoy the timeshare. Also, if you do default and later decide you want to catch up on all payments, you will likely also be required to pay a reinstatement fee on top of any other interest or late fees.
- Beware of Foreclosure
If you stop making your timeshare payments, you will also open yourself up for a potential foreclosure. Your timeshare provider will first issue you a written warning about your late payments, and later emails and phone calls will occur as well. If you ignore all these attempts, the timeshare company will start the foreclosure process. Lastly, if you paid your timeshare membership with a credit card or took out a loan, you still have to make those those payments as well.
- Credit Score Damage
Your unpaid timeshare debt will probably be transferred to a collection agency and this will gravely affect your credit score. Any future loans will likely be denied when your credit score is not high enough. The collection agency will sue you and collectors are extremely persistent in their attempts to collect money owed, which could prove embarrassing if neighbors or co-workers become aware.
- Cancellation Scams – Be Aware!
You could become a target of a cancellation scam company if you try to enlist the help of a third party company who claims they can help you. Timeshare cancellation scam companies will say they can save you from severe consequences of not paying your timeshare membership. However, this is a total scam which will only create additional economic problems and debt. Make sure you always deal directly with your timeshare provider, and never, ever pay a third party timeshare cancellation company.
The consequences of not paying your timeshare payments are serious and can leave a long lasting negative impact on your financial health. Do all your can to avoid defaulting on your timeshare!
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