Are you a timeshare member? The bulk of timeshare members are very happy with their vacation investment, but have there been times that you considered defaulting on your membership? You do know that if you do default, there are consequences that will happen. Legal repercussions will occur if you don’t pay your membership payments. There are times that some people may fall into an unfortunate circumstance and they have thought about not paying their membership payment regularly. If you stop paying your timeshare membership dues and payments, you could be at risk for a timeshare scam or be open to becoming a victim to timeshare cancellation companies that are frauds. You need to stay alert! Stay current with your payments so you can protect your vacation investment. Read below to learn how.
Timeshare Default Risks
It is very important that you are aware of the consequences if you stop paying your timeshare membership payments. If you are currently struggling financially and you are unable to pay the payments, you should know what default risks that will occur. You can face legal action, and your credit score will be affected. You should first research and figure out the reasons that you are thinking about not paying your membership payments. Is it worth the default risks? The maintenance dues are still due, even if you don’t pay your timeshare membership payments. If you don’t pay your maintenance dues, then you will lose all your rights for your timeshare along with the ability to enjoy all the fantastic vacations and amenities.
Timeshare Maintenance Dues
You will incur delinquent fees along with interest fees if you stop paying your membership payments as most of the timeshare companies penalize for non payment. Every company has their own rules for payment defaults. Some timeshare companies will charge daily fees, while others will charge monthly fees. You can learn more about the fees by looking at your specific membership policy. All maintenance dues need to be paid and up to date if you want to still use your timeshare. All of your rights will be cancelled if you stop paying your maintenance dues and regular payments. In addition, if you default on your timeshare payment, then you will have to pay reinstatement fees, too. If your timeshare company feels like you have no intention of paying your membership payments, they can sell your debt to a collection agency, and you will endure added stress and financial worries if this happens.
Foreclosure on Your Timeshare
If you stop paying your membership payments, a foreclosure on your timeshare will happen. Your company will try to send you a letter warning you about your membership payments being late or ignored, then phone calls and emails will begin. If you still continue to ignore your timeshare company and do not come current on your payments, then they will start the foreclosure. Do you know that your personal possessions could also have a claim filed upon them too? If you used a credit card or loan to acquire your membership, you still have to make those payments as well.
Negative Credit Score
If you stop paying your membership payments, your credit score will be affected. When your timeshare company emails and calls you and you ignore them, they have no choice but to sell your debt to a collection agency. Anytime you want to purchase anything on credit, your credit score is viewed. Consumers will see that you defaulted on your timeshare in Mexico, and you will probably be denied any credit. Legal steps will be taken and you could even be sued. The collection agency doesn’t mind showing up at your work or your home if you still ignore their telephone calls.
Timeshare Cancellation Company Scams
Last, but not least, if you are still thinking about not paying your membership payment, you should know that you will immediately become a big target with timeshare cancellation companies that are scammers. They are pros at convincing people that they can cancel your existing membership. You should understand that they will only cost you additional money and more emotional stress, because they are not able to legally cancel anyone’s timeshare! You don’t want to become the next victim with a timeshare cancellation company scam. Remember, to never get involved with any third-party company as they are only out to scam you! Only talk and deal with your personal vacation club provider! Stay alert! Stay current with payments because the risks of defaulting on your timeshare is very serious and could affect your life for many, many years.