Have you ever wanted what are the risks if you default on your timeshare commitment? As with any real estate purchase of investment, there are repercussions if you do not pay your payments as promised. This is a very common concern for individuals who may find themselves in situations where they may not be able to continue making timely payments for their timeshare. In today’s world, often times individuals search for answers to this same question on the web and that can put them at risk to be scammed by a fraudulent timeshare company. Here is some information that we hope can explain what you should expect if you stop making your timeshare payments.
What are the consequences if I don’t pay my timeshare?
You must be aware of the consequences that may result if you decide to stop paying your timeshare. For whatever reason, if you find yourself in a financially tight bind that prevents you from fulfilling your contractual responsibility, make sure you understand the risks that will follow that could cause you future problems a well. Everything from having your credit score adversely affected to even legal action taken against you are risks that you need to be aware of if you decide to stop paying your timeshare payments. One must step back and analyse the specific reasons that would make you consider defaulting on your timeshare payment responsibilities. Once you stop paying your timeshare fees and the maintenances dues as well, you will lose all rights to use the timeshare units and its amenities until all payments come current.
Maintenance fees for timeshares
Every timeshare company has their own rules and regulations regarding payments and defaulting of payments. However, the majority will charge your delinquent fees and interest fees as well if you stop paying. Some companies will charge fees by the day, and others will charge on a monthly basis. Make sure to read the timeshare policy carefully so you can be educated on the specifics of your timeshare. Please note that all maintenance fees need to be paid and update to date if you want to keep using your timeshare. As soon as you stop paying your timeshare maintenance fees, you will lose rights to use the timeshare so it is important to stay on top of those payments. If you do default, you will most likely also be required to pay a reinstatement fee. The timeshare company can even sell your debt to a collection agency if they have reason to believe you have no intention to come current.
Foreclosure of your timeshare
Foreclosure is possible if you just stop paying your timeshare payments completely. In general, the timeshare company will first send you a written warning about your late payments, and then they will contact you by emails and phone calls as well. However, if you ignore all these attempts and do not become current, the timeshare company will often file for a foreclosure and as a result your possessions could have a claim filed against them. Additionally, if you took out a loan or paid your timeshare membership with a credit card, you are still liable to pay those payments and any late fees or interest that accrues as well.
If you stop making payment and also ignore all calls and emails from the timeshare company, then your timeshare debt will be sold to a collection agency. When you stop paying the timeshare payments your credit score will also be affected. This is important because your credit score is often considered when you purchase any large items on credit. If they will see that you have defaulted in paying your timeshare in Mexico, you will likely be denied a loan
The collection agency will also take the legal steps necessary to sue you, which will drastically affect your credit score even further. Credit collectors are known to be very persistent, and it’s possible you will face embarrassment as many persistent telephone calls and even visits to your home and work will begin to happen frequently.
Timeshare Cancellation Scams
If you are thinking about not paying your timeshare, be aware that you may also become a target of a cancellation scam company. The timeshare cancellation scam company attempts to convince you that they can save you from severe consequences of not paying your timeshare membership. This is almost always a complete scam and will cause you further economic and emotional stress if you play into their scam. Therefore, it is also best to deal directly with your timeshare provider and not involve any third party companies that could potentially be fraudulent.
Keep this information in mind if you ever decide to possibly stop paying your timeshare. The short and long term risks and consequences are serious, and should be not be considered lightly.