Are you a vacation club member? If so, you pay regular dues and maintenance fees to enjoy use of your timeshare unit. Have you ever wondered, “What happens if I stop paying my timeshare?” Sometimes, people consider defaulting on the commitment of their timeshare payments due to various reasons. However, it is important to note that timeshare purchase is a legally binding agreement. If you don’t pay your dues as promised, you can face significant financial consequences as a result. Also, maintenance dues must also be paid so that resorts are always in perfect condition. If you don’t pay, your credit score will be affected, you could become a timeshare scam victim, and worse. Before you stop paying your timeshare, keep reading below to learn more. Below is essential information so that vacation club members can be informed on what could happen if they don’t pay timeshare payments as promised.
Can I Stop Paying My Timeshare?
Firstly, it is important to understand that buying a timeshare is similar to a real estate purchase. Although the financial commitment is less, the timeshare contract is a legally binding document. Timeshare owners are required to make payments as promised in the contract. Despite what hardships or obstacles occur, payments and regular maintenance fees are required to be paid on time. If you break your contract and stop making payments, members are at risk of facing negative consequences. For example, members that default on their timeshare will have their credit score adversely affected. A good credit score is important if you want to take out a loan or mortgage of any kind. In addition, timeshare providers can also commence foreclosure proceedings if payments are not up to date. Members that are not in good standing will lose all access to use the incredible amenities and accommodations at their timeshare, too.
Maintenance Fees – What Are They For?
Maintenance fees are collected from all timeshare owners. There are repairs and upkeep to take care of, upgrades to furnishings, landscape maintenance, and other general upkeep. If a member doesn’t pay their maintenance fees, it is also considered to be breaking the terms of the timeshare contract. The maintenance fees are very important to make sure that timeshare units and amenities are always in good shape. Make sure to review your membership contract if you want specific details on your maintenance fees and what they cover. Note that members that don’t stay current with their maintenance fees will lose all rights to use their timeshare unit. Plus, reinstatement fees are usually required if you are late on your payments, too. The whole point of joining a vacation club is so you can enjoy it so make sure to pay your dues!
Bad Credit Score
Next, one of the worst parts about not paying your timeshare is that your credit score will be affected. If you don’t have a good credit score, it will make it hard to take out a loan for a car, house or other items. Lenders always look at your credit score when deciding whether to issue credit to an individual. If you miss timeshare payments, your credit score will go down and you will probably be denied credit in the future. Also, collection agencies share negative information with all of the other credit report companies, too. Plus, collection agencies are known to be very aggressive, and will come to your home or workplace to try to collect money that is owed. If you miss timeshare payments, you could even have to deal with foreclosure proceedings. Claims can be filed against any of your personal possessions, too.
Timeshare Cancellation Scams
Last but not least, members that decide to default on their timeshare put themselves at greater risk for becoming a timeshare scam victim. Timeshare cancellation scams occur when fraudulent companies promise existing timeshare members that they can legally cancel their membership for a fee. However, the truth is that timeshare contracts are legally binding and cannot be cancelled. The only time they can be cancelled is during the cooling off period which is also known as the rescission period. In general, the cooling off period lasts around 5-14 days after the membership contract is initially signed. After that time period ends, no company can help you cancel your timeshare. Do not fall for their lies! If you do, the fraudsters will take your money, then disappear without providing any legitimate services. To stay safe from timeshare cancellation scams, avoid cancellation companies.
As evident in the above article, there are significant consequences for timeshare owners who want to stop making their payments. Remember, you invested in a timeshare in order to have a space to spend quality moments with your loved ones. You are prepaying for future travel at low rates, so you are actually saving money over time as the cost of travel is constantly on the rise. Despite whatever challenges come your way, make sure to budget accordingly so you can stay current with your payments. You deserve to enjoy the perks of vacation club membership. If you want to always have amazing vacations, consider the Garza Blanca vacation club. With locations in Cabo, Cancun, and Puerto Vallarta, Garza Blanca has an upscale vacation club that will never disappoint. Contact Garza Blanca today to schedule a property tour so you can see their amazing amenities and accommodations for yourself!
