There are timeshare owners that are asking themselves this question, “What happens if I default on my timeshare payments?” Are you wondering what type of consequences you will face if you default on your timeshare payment? When you invest in a timeshare membership, it is similar to investing in real estate where you have a mortgage to pay. So, if you don’t make your payments, then you will have consequences to face. Long-term consequences include having your credit score lowered. In addition, there have been some members that have become a victim to cancellation scammers that told them they could stop their timeshare payments for a small fee. If you want to make wise financial decisions, then continue to read the information below.
Stay Current On Your Timeshare
You are legally obligated to make your timeshare payments on time. You may be going through a difficult time right now, but you should still try to keep your payments paid. There are consequences that you may face if you default. For example, your credit score will be adversely affected if you don’t make your payments. Bad credit scores will affect you whenever you try to get a loan in the future. If you continue to default on your payments, then legal action will happen. Don’t let this happen to you. Try to figure out how you can make your payments, because if you default on even one payment you won’t be able to use your vacation unit.
Regular Maintenance Fees
Regular maintenance fees must be paid as well. If you don’t make your maintenance fees, then this is defaulting on your timeshare obligation, too. Every timeshare provider has maintenance fees to keep the property in good condition all year round. If you don’t pay maintenance fees, then you will have added delinquent fees, interest fees, and a reinstatement fee that you will have to pay, too. To know the maintenance fee requirements for your timeshare, you can check your membership contract. If you continue to default on your maintenance fees, then this is a debt that can be sold to a collection agency.
Along with added fees, foreclosure proceedings could begin if you aren’t paying your timeshare payments. Your timeshare company will send you a warning letter, then they will try to email you and call you. However, if you ignore them, then they will have no other choice but to start foreclosure proceedings. You can also have a claim filed against any personal possessions, too. If you used a credit card or loan to pay for your membership, you are still obligated to pay these payments, too.
Having a good credit score is important, especially if you want to purchase a house, car, or any large items. Your timeshare debt will be sold to a collection agency that will share your information to all the companies that report to the credit scores. You will be denied any loan due to a bad credit score. The collection agency can also sue you for this debt, and they can come visit you while you are at work or home, because they are very persistent.
Timeshare Cancellation Company Scams
Unfortunately, some timeshare owners became victims to timeshare cancellation company scams. This type of scam happens when the timeshare cancellation company scammers promise that they can cancel your membership. They will charge you a hefty upfront fee, then disappear with your money. Remember, nobody can legally cancel your timeshare membership contract after the rescission period is over. The cooling period is typically only 5-14 days after the membership contract was signed. Once the cooling off period ends, you cannot cancel a timeshare. Don’t forget, never get yourself involved with any third-party companies to avoid timeshare scams.
As you can see, you will face numerous consequences if you default on your timeshare payments. You should stay current on your timeshare payments, so you can enjoy the best vacations with your loved ones!