Anytime you invest in a timeshare real estate purchase, make sure you are aware that there are serious repercussions if you do not pay your payments as promised. Some individuals may find themselves in unfortunate situations where they are unable to continue making timely payments for their timeshare. If this happens, individuals often search the internet for answers to this same question and this act alone can put them at risk to be scammed by a fraudulent timeshare company. Read below so you can learn what happens if you stop making your timeshare payments.
What happens if I don’t pay my timeshare?
It is important to know ahead of time what to expect if you decide to stop paying your timeshare. If you find yourself in a dire financial situation that keeps you from fulfilling your contractual responsibility, it is make important you understand what problems will follow. Your credit score will be adversely affected, and even legal action may be taken against you if you stop paying your timeshare. If you stop paying your timeshare fees and the maintenances dues, be aware that you will lose all rights to use the timeshare unit until all payments come current.
Timeshares Fees
Each timeshare company has rules and regulations regarding when payments need to be made and what happens if you default. In general, the majority of timeshare providers will charge you delinquent fees and interest fees once you stop paying. It is recommended you read the timeshare policy carefully so you can understand all the specifics of your timeshare rules. In addition to the regular payments, maintenance fees need to be update to date in order to keep using your timeshare. Anytime you stop paying your timeshare maintenance fees, you will lose rights to use the timeshare so it is wise to stay current. Be aware that if you do default on your timeshare payments, you will likely have to pay a reinstatement fee if you wish to use your unit again. Lastly, the timeshare company may sell your debt to a collection agency if they believe you have no intention to come current.
Foreclosure is possible
In general, the timeshare company will first send you a written warning if you stop paying your timeshare payments. In addition to the written letter, they will likely contact you by emails and phone calls as well. If they are unable to get in touch with you and you do not come current on your payments, the timeshare company will often file for a foreclosure and your possessions could have a claim filed against them. In addition to foreclosure lien, be aware that if you took out a loan or paid your timeshare membership with a credit card, you are still liable to pay those payments as well as any late fees or interest fees.
Future Credit Issues
If you have defaulted on your timeshare payments, and also ignore all calls and emails from the timeshare company, your timeshare debt will be sold to a collection agency which will adversely affect your credit score. This is something to think about because your credit score is always considered anytime you attempt to purchase any large items on credit. If your credit history has a negative records, you will likely be denied whatever loan or credit you requested. Credit collectors are very persistent and aggressive in their attempts to collect late payments, which could be embarrassing if your friends, family or co-workers become aware.
Cancellation Scams Are on the Rise
If you are considering defaulting on your timeshare, make sure you avoid becoming a victim of a timeshare cancellation scam. These fraudulent timeshare cancellation scam companies try to convince you that they can help you avoid the severe consequences of not paying your timeshare membership. This is a complete scam and will only cause you further economic turmoil. Remember, it is always best to only deal directly with your timeshare provider and not involve any third party companies as they could be fraudulent.
We hope this article helped you be aware of consequences if you are considering default on your timeshare. Financial arrangements are serious and defaulting on your timeshare should be not be taken lightly!
