Have you read complaints about issues people have had if they didn’t pay their timeshare dues on time? For starters, timeshare ownership is an excellent way to guarantee quality time with your loved ones. By joining a top vacation club in Mexico, members get to prepay for future travel at today’s low rates. That way, they know every getaway will be amazing and they save money over time, too. However, timeshare ownership is a legally binding agreement. There are serious repercussions that will result if members do not make their payments on time. We hope that you take the risks seriously if you decide you want to default on your payment. Read below to learn about timeshare default risks.
- Timeshare Default Consequences
To start with, a timeshare agreement is a legally binding agreement that has financial responsibilities. If a member decides to stop making their payments, they will face many serious consequences. If members do not fulfill their contract responsibilities, they will also be unable to enjoy the use of their vacation unit. Their credit store will be negatively affected, and even legal action is possible. Remember, people decide to join a timeshare club so that they can prioritize great vacations for their loved ones. Don’t risk losing those precious moments by defaulting on payments!
- Verify Your Membership Contract Details
Verify your membership contract details as each resort and vacation club provider has their own rules and regulations regarding late payments. If someone defaults on their payments, delinquent fees and interest charges will be applied. Once a member begins to miss making their payments, they won’t be able to use the vacation unit. Remember, to know the specifics of how your provider handles the default process, carefully review your membership contract. Remember, members are not able to use their vacation unit if their maintenance and timeshare fees are not paid. Plus, most providers also charge a reinstatement fee, too. It simply isn’t worth all the stress and financial hardship to stop paying. Work on your budget and be responsible.
- Foreclosure Proceedings Will Start
Next, if your provider thinks you are not going to pay your timeshare, they can even contact a collection company to sell your debt. First, your existing provider will usually send members a written letter advising of the late payment and corresponding late fees. Next, they will start emailing you and calling you. If a member continues to ignore their efforts, then they can even file a foreclosure claim. The foreclosure claim could affect your possessions. Likewise, if a credit card or bank loan was used to pay for your vacation club membership, that debt will still need to be paid along with large interest fees.
- Credit Score Negatively Affected
Credit scores are negatively affected if vacation club members do not make their payments as promised. When members default on their timeshare payments and all contact from their existing provider has been ignored, they can sell your debt to a collection agency. As a result, your credit score will be negatively affected. Going forward, your credit history will show that you had missed payments. This means that you will likely be denied future credit or loans when you try to buy a new car or get a mortgage for your house. Plus, credit collectors are very aggressive and will start contacting your employer, family and friends which can be quite embarrassing. Avoid these issues and stay current on your payments!
- Cancellation Company Scams – Stay Alert
Last but not least, vacation club members should be aware of fraudulent cancellation companies. These scammers go after existing timeshare owners to try to convince them that they can help get them out of their timeshare obligations. However, this is not true as timeshares can only be cancelled during the cooling off period which occurs in the few days after a new membership contract is signed. To stay safe, members should only work with their existing provider. If a member is having issues making their timeshare payments, fraudulent cancellation companies cannot legally help. Instead, they will charge an upfront fee to the unsuspecting victim, then disappear without performing any service. Don’t become a victim to a timeshare cancellation company scam. Instead, contact your existing provider and see if they can help you work out a payment plan to come current.
At some point, vacation club members may have issues making their payments on time. However, we hope this article has shown the risks that come with defaulting on your payments. Remember, don’t go online and search for help to avoid fraudulent timeshare cancellation company scams. The point of vacation club membership is to have a great place to enjoy amazing getaways with your loved ones. Wondering which vacation club is the best one to join in Mexico? Tafer Hotels & Resorts has many satisfied members and several resorts in the country’s top tourist destinations including Puerto Vallarta, Cabo and Cancun. Plus, they value the health and safety of their members and have stringent COVID safety protocols in place to keep guests safe. Remember, timeshare ownership is designed to ensure that you can always provide unforgettable and enjoyable vacations for your loved ones. Don’t risk losing out on priceless moments by being financially irresponsible!