“What Happens if I Default on Timeshare Payments?” Is this a question you have been asking yourself? Many timeshare members are interested in knowing what type of consequences they would face if they default on their timeshare contract. When you invest in a timeshare membership, it resembles a real estate purchase where you have a mortgage to pay. No matter what issues you are dealing with that causes you to default on your timeshare payment, you will face serious repercussions. There are long-term consequences you will face such as your credit score will be affected or even foreclosure. In addition, some timeshare members become a victim to timeshare scams when scammers tell the member they can stop making the payments for a service fee. Read the article below to learn very important information on risks of not paying timeshare dues.
Risks of Not Paying Timeshare Dues
First, you need to recognize that being a timeshare owner means you are legally responsible for making your payments on time. You should pay your payments regularly, despite any hardships that may have occurred. You should know the risks of not paying timeshare dues on time. Did you know that your credit score will be affected, too? It can, and in the future when you want a loan, you may be denied new credit because of not paying your timeshare dues. Legal action is also possible if you stop paying your timeshare dues. Remember, you can’t use your timeshare unit if you have stopped paying your timeshare dues.
Timeshare Maintenance Fees
Along with timeshare dues, timeshare maintenance fees must be paid, too! If you don’t make these payments, then you will have defaulted on your timeshare responsibilities. Every timeshare provider has their members pay regular maintenance fees. When you don’t pay your maintenance fees, there will be interest to pay along with delinquent fees added to your regular bills. You need to go over your membership contract for details. In addition, you will also be required to pay a reinstatement fee if you don’t pay your maintenance fees. Lastly, the debt could even be sent to a collection agency that will come after you for the money!
Foreclosure is Possible
Along with added fees from your timeshare provider, you could also face foreclosure if you don’t pay your timeshare dues. Your provider will start off by sending you a warning letter if you haven’t made your payment. Then, if you ignore that warning letter, they will start calling you and emailing you. Next, if you continue to ignore those attempts, they will start foreclosure proceedings. You can lose personal possessions. Likewise, you are also required to pay any credit card or loan that you may have taken out to pay for your timeshare dues, too.
A Negative Credit Score
Did you know that having a good credit score is important? It is, especially if you want to purchase a car or house in the future. If you default on your timeshare dues, then the debt will be sent to a collection agency that will share this information to the companies that report to credit scores. You will be denied any type of loan if you have a negative credit score. Collection agencies don’t stop there as they will come to your home and even your job to collect a debt. Nobody wants to be humiliated.
Avoid Cancellation Company Scams
Timeshare cancellation company scams have targeted existing owners. This scam happens when the fraudulent cancellation company states they can cancel your timeshare contract, but nobody can do that if the rescission period is over. These fraudulent companies will charge you a lot of money upfront, then they will disappear leaving you still owing your timeshare dues. You should never trust any cancellation companies.
You can face many consequences if you don’t pay your timeshare payments. There are many risks of not paying timeshare dues, and you don’t want to go through that. Instead, it’s better to keep paying your timeshare dues on time so you can enjoy great vacations with your loved ones for many years.