Are you a timeshare member? Most timeshare members are thrilled overall with their vacation investment, but there are some that have thought about defaulting on their timeshare commitment. If you are one of these people, then you should know that there are many risks if you do that. All financial commitments have legal responsibilities, along with repercussions if you default on your payments. There are some people that have found themselves in difficult situations where they had to make their payment late, but do you know that you could possibly be at risk for a timeshare scam happening to you if you don’t stay on top of your payments?
Timeshare Default Consequences
If you have decided to stop paying your timeshare payments, you should be aware and know what default consequences that can occur to you. If suddenly your finances are tight and you are unable to continue meeting the terms of your contract responsibility, you will face default risks such as legal action, your credit score will suffer, and you will not get to use your unit at all. You should research timeshare default consequences thoroughly if you are thinking about stopping payments. In addition, you will lose all your member rights if you stop paying your required maintenance fees. Access to all those great services and amenities will stop when you quit making your payments so beware!
Timeshare Maintenance Fees Must Be Paid
Most of the vacation ownership clubs will charge you hefty interest and delinquent fees if you don’t make the payments. Of course, every vacation ownership company has their own policy when it comes to maintenance fees and defaulting payments. Some companies will charge large daily fees, and other companies will charge monthly fees when you default. You should read through your membership contract thoroughly to know about the specific policies. Usually, all maintenance fees will need to be paid and kept up to date. If they are not, then you will lose all your owner rights, which is why it is very important that you always make your timeshare payments and maintenance fee payments. If you have defaulted on your payments, then you will have to pay a reinstatement fee. If the timeshare company believes that you will not honor your commitment, they can legally sell your debt to a collection agency, and the collection agency will cause you more stress and added financial problems.
Foreclosure on Your Timeshare
If you just stop making the payments, your timeshare will face foreclosure. Your existing vacation club company will write you a letter giving you a warning about you missing your payments, and then they will start calling you. If you still ignore them, they will start foreclosure on your unit. Do you know that all of your current possessions can have a claim filed against them as well? This can happen if you stop making your timeshare payments. Additionally, if you paid your membership with your credit card or you took out a personal loan, you are still legally liable to pay these payments too.
Credit Score Affected
Your credit score will also be affected if you don’t make timeshare payments on time. You can have your debt sold to a collection agency if you ignore any phone calls and emails from your existing vacation club company. Your credit score will start to fall, then you will likely be denied any future loans because it will show on your credit report that you defaulted on your timeshare in Mexico. Legal steps will be taken by the collection agency. Credit collectors will be very persistent with you. They can come to your work and home, which would be very embarrassing.
Timeshare Cancellation Scam Company
If you are still thinking about defaulting on your payment, you should be aware that you may also become a victim of a timeshare cancellation scam company. The timeshare cancellation scam company will convince you that they have the ability to cancel your contract, but they are not legally able to do that for you. They will only cause you additional financial problems and stress. You should only speak with your existing provider and you should never talk to any third-party companies, because you will be scammed.
Don’t default on your timeshare! The risks are very serious.