Do you wonder what risks you may face if you start defaulting on your timeshare? There are serious repercussions that will occur if you start defaulting on your timeshare, just like with any other investment or real estate purchase. Individuals may come across hard times and find themselves in a situation where they are just unable to make their timeshare payments. Today, many people will look online to find answers to this commonly asked question, but doing this may actually put people in harm’s way as they could be scammed by a fake timeshare company. We have provided important information that can help individuals avoid being scammed when they stop paying their timeshare payments.
What are the consequences if you are defaulting on your timeshare?
Everyone must know what the consequences are before you stop making the payments on your timeshare. If you are struggling with finances and you are unable to fulfill your contract duties, then there are many risks that will occur if you default on your timeshare. Your credit score will be affected and legal action against you are just a couple of the risks that will occur if you default on your timeshare payments. You will lose all your rights in using your timeshare unit once you have stopped paying your timeshare fees along with any maintenance fees that are due.
Timeshare Maintenance Fees
Each and every timeshare company has their own rules in their contract that covers the topic of defaulting on your timeshare payments. Many of the timeshare companies will start off by charging interest and delinquent fees immediately when you stop making the payments. Some of the timeshare companies will also charge daily fees and some other timeshare companies will charge fees by the month. Every timeshare owner should read the timeshare policy thoroughly so you will know every aspect of your timeshare membership. If you want to keep using your timeshare, you must make sure that all of the maintenance fees are paid and up to date. Once you stop making the payments and or the maintenance fees, all rights and privileges for your timeshare will be lost. For whatever reason if you have no choice but to default on your timeshare payments and maintenance fees and later decide you want to become current you will probably have to pay a reinstatement fee, too. If the timeshare company believes that you have no intentions of paying for your timeshare at all, the timeshare company may sell your debt to a collection agency which is its own set of problems to deal with.
If you stop paying your timeshare payments all together, then foreclosure may occur. The timeshare company will begin by sending you a written warning letter about your timeshare payments not being paid, and then they will begin calling you and emailing you as well. If you continue to ignore all of their methods of contact, then the timeshare company will likely file a foreclosure, which can result in you losing all of your possessions. If you have a loan that you took out for your timeshare membership or you used a credit card, then these payments will also need to be paid along with any outstanding fees.
Credit Score will Be Affected
If you continue to ignore all phone calls and emails when you stop making your timeshare payments, then the timeshare company will take your timeshare debt and sell it to a collection agency. Your credit score will be affected when you stop paying your timeshare payments. Anytime you are wanting to purchase anything on credit will see that you have defaulted on your timeshare payments and you will be denied any new credit. The collection agency will begin to sue you legally and this will really affect your credit score. You may become embarrassed as visits can be made to your home and work and many annoying telephone calls will occur.
Timeshare Cancellation Scam Companies
You may become a target of a timeshare cancellation scam company if you are considering to not make your timeshare payments. The timeshare cancellation company scam will convince you that they will protect you from all of the risks that comes with not paying your timeshare payments. Listening to the timeshare cancellation company scam will cause you additional stress if you listen to them. The only way to get assistance with your timeshare payments is to contact the timeshare company directly. You should never hire any third party companies as many of them are fraudulent.
If you decide to stop making your timeshare payments you should refer back to this information. There are consequences that will come your way and they are very serious. Defaulting on your timeshare is a serious act that you should think about.