Do you have a timeshare commitment? Are you wondering what happens if you stop paying the timeshare payments? It is very important to know that your timeshare commitment is just like any other real estate purchase or investment that you purchase. You will face serious repercussions if you stop paying. Of course this is a common question and concern for people who are having financial difficulties, which is why many people turn to the web searching for answers for the answer. However, when you do that you may be putting yourself in a dangerous situation because you may become scammed by a fake timeshare cancellation company. Below is important information that will tell you what could occur if you stop paying your timeshare commitment.

Consequences and Risks

There are consequences and risks that you must be aware of if you stop paying your timeshare commitment. If you are currently in a financial crisis, and you are not able to pay your timeshare commitment, then you should know what consequences and risks that you may face. Your credit score will be affected and you will face legal action when you stop paying your timeshare commitment. Before you default you should look at the consequences and risks first. You will have no rights to use the timeshare unit when you stop making the payments, and all payments must be up to date before you can use the timeshare unit again.

Timeshare Fees

Every timeshare company and organization will set forth their personal rules and regulations based upon the timeshare payments and default of timeshare commitments. Many of the timeshare companies and organizations will charge delinquent fees and additional interest fees if you stop making your payments. These charges could be charged daily or monthly and the timeshare company can decide this. You should read through your timeshare contract and policy before you default on your timeshare commitment. The first consequences that will occur when you stop paying your timeshare commitment is you will have no rights in regards to the timeshare. You may even have to pay a reinstatement fee as well if you ever decide you want to use the timeshare again. The timeshare company and organization does have the right to sell your outstanding debt to a collection company if they feel that you have no intention of paying your timeshare commitment.

Legal Foreclosure

If you stop paying your timeshare commitment you may face legal foreclosure. Your timeshare company will send you a written warning when you stop paying, and then they will start calling you and emailing you as well. If you continue to ignore the timeshare company, they will file a legal foreclosure against your timeshare unit which could result in having all of your possessions taken from you. Also, if you used a credit card or took out a personal loan to purchase the timeshare, you will need to make these payments too along with any late fees.

Affected Credit Score

If the timeshare company continues to contact you by emails and phone calls because you stopped paying your timeshare commitment, they can sell this debt to a collection agency. Your credit score will begin to fall and be affected. In the future when you try to purchase a large item on credit such as a car you may be denied the loan because you have defaulted on a Mexico timeshare commitment. Legal actions will be taken by the collection agency and we all know that collection agencies are very persistent. The collection agency will make numerous phone calls and they can come see you at your home or your job.

Cancellation Timeshare Scams

You should know that you may become a victim with a cancellation timeshare scam when you stop paying your timeshare commitment. The cancellation timeshare scam will convince you that they will keep you from the consequences, but they have no legal rights in doing this. They will only charge you high fees, but they can’t keep you from the consequences when you stop paying your timeshare commitment. You should only talk directly to the timeshare provider about your timeshare payments so you are not scammed.

You should refer back to this information when you are going over your timeshare commitment and need to know what happens if you stop paying.