Have you been thinking to yourself, “Can I stop paying my timeshare?” Many people are wondering what happens if they default on the commitment of their timeshare payments. When you invest in a timeshare membership, it is comparable to a real estate purchase with a mortgage. You will face major repercussions if you don’t make your payments on time. Whatever reason that a timeshare member has for not paying their payments, you don’t want to deal with the repercussions for non payment including having your credit score ruined. In fact, some timeshare owners have also become a victim to a timeshare scam. Scammers target timeshare members by telling them that they could help them in not paying their membership payments. You should keep yourself safe by making smart decisions about your finances. Continue to read below to learn essential information on what can happen if you don’t pay your timeshare payments.
Can I Stop Paying My Timeshare?
First, timeshare ownership comes with a legal binding contract that you have to sign. It is always best to make your payments on time, no matter what obstacles or difficulties you are experiencing. If you break your contract and default on your payments, you will face many consequences. You need to understand what can happen before you do that, because it will become a serious matter. For instance, if you default on your timeshare, your credit score will be affected. That means in the future, you will have a hard time getting any type of loans or a new mortgage. Legal action will also commence if you don’t make your payments. Don’t just stop making your payments. You don’t want to lose all your timeshare vacation time, do you?
Regular Maintenance Fees
Your regular maintenance fees have to be paid as well. If you don’t pay your maintenance fees, you are breaking the terms of your timeshare agreement. Every timeshare company requires their members to pay maintenance fees. You need to review your membership contract for all your maintenance fee details. Anytime a member doesn’t pay their maintenance fees, that member has no rights to their timeshare unit. That way, you can’t use the unit or enjoy any of the great amenities either. In addition, when you default on timeshare fees or payments or any kind, you will have to pay a reinstatement fee.
If you stop paying your timeshare payments, you could also face possible foreclosure. Your timeshare provider will send you a warning if you haven’t made your payments, then if you ignore that warning they will start calling and emailing you. If you still ignore them, then your provider can start foreclosure proceedings. They can also file a claim against any of your personal possessions. Lastly, if you used a credit card to pay for your membership, you are still required to pay those payments as well.
Credit Score Affected Negatively
Your credit score should be very important, especially if you want to buy a car, house, or something that requires a loan as the lender will look at your credit score. If you default on your timeshare payment, then it will show on your credit report. A collection agency will share this with all of the credit report companies. You will probably be denied any loan if your credit score is low. Also, collection agencies are very aggressive, and nobody wants them to come to their home or job.
Timeshare Cancellation Scams
Some timeshare owners have become a victim to the timeshare cancellation scam. A cancellation scam company will promise you that they can cancel your membership for you for a fee. However, the reality is that once the cooling off period is over, nobody can legally cancel your membership. The cooling off period is also known as the rescission period and only lasts 5-14 days after the membership contract is initially signed. If you fall for their scam, the fraudsters will take your money, then disappear. You need to completely avoid all cancellation companies in order to keep yourself safe.
As you can see, there are many major consequences that you should think about when you are asking yourself, “Can I stop paying my timeshare?” Instead, it is best to stay current so you can continue to enjoy amazing vacations spending quality time with your loved ones at your timeshare unit.