Buying a timeshare is a smart way to make your money work for you in terms of vacation expenses. After all, the cost of traveling only increases over time and no one wants to have their precious vacation time ruined by a lackluster hotel or resort. Instead, buying a timeshare allows travelers to prepay for true trips at a resort that they want to stay at that has amazing accommodations and amenities they love. Timeshare owners sign a contract that details the cost to join, monthly fees, and maintenance dues. If you’re wondering what happens if you don’t pay your timeshare dues, you will lose access to your vacation unit and can face other consequences as well. Some owners have even become victims of a timeshare scam. To stay safe about your financial health, keep reading below about what to expect if you don’t pay your timeshare dues.
What Happens If I Don’t Pay Timeshare Dues?
Firstly, timeshare ownership is a financial investment to spend time at a vacation unit each year. To join, members need to pay a deposit, sign a membership contract, and make regular payments. If a member breaks their contractual responsibility and defaults on payments, many negative consequences can occur. For instance, credit scores are negatively affected if payments aren’t made which can make it difficult to obtain credit through a loan down the road. Also, legal action may be taken against you if you stop paying. To avoid making a costly error, it’s wise to make a plan to organize your finances so you can stay on track with payments and avoid default. After all, no one wants extra stress and worry in their life. Instead, the value of spending quality vacation moments with your loved ones enjoying your vacation unit should always be a priority.
Timeshare Dues and Maintenance Fees
Secondly, each timeshare has a different payment plan, but all timeshares require regular maintenance fees that are used to keep the property in good condition. If timeshare dues or maintenance are not paid, an owner will be considered to be in default on their timeshare. If an owner stops paying, delinquent fees and interest fees will be added to their account along with the regular timeshare dues and maintenance fees. To verify the payment schedule for your timeshare, carefully review your membership contract for details. It’s important to note that maintenance fees must be paid or a member will lose rights to use the timeshare unit. In addition to losing access, the timeshare owner in default will most likely be required to pay a reinstatement fee as well to come current. Some timeshare providers may even sell debt to a collection agency if they believe the owner has no intention of paying their dues and fees.
Bad Credit Score and Foreclosure
Next, you probably already know that a good credit score is important to have. For instance, if you ever need to obtain a loan to buy a car, house, or furniture, your credit score will be checked. If someone defaults on their timeshare payments, timeshare debt could be sold to a collection agency which is very persistent in collecting past due payments. Also, collection agencies share the person’s information with credit score reporting companies so their score will be negatively affected. In addition, the collection agency can even sue someone in default which will drastically affect a credit score. In addition, foreclosure is possible if someone stops paying their timeshare payments. Timeshare providers will send bills for payment due, but they can proceed with foreclosure if a timeshare owner ignores the communications and does not pay as promised. Likewise, even one’s possessions could have a claim filed against them, too.
Timeshare Cancellation Scams
Lastly, timeshare owners are also at risk of becoming timeshare scam victims if they aren’t careful. In case you didn’t know, timeshare cancellation scams occur when fraudulent companies promise owners they can legally cancel a timeshare. However, the truth is no one can cancel a timeshare agreement after the rescission period has passed which occurs in the first few days or weeks after the membership construct is signed. Despite this fact, fraudulent timeshare cancellation scam companies try to dupe unsuspecting owners. They will usually try to charge owners an upfront fee, but then quickly disappear without providing any service since timeshare cancellation is not possible. For more detailed clarification about your specific membership, only work with your existing provider directly. Never involve any third party companies because they are probably scammers trying to make a quick buck.
We hope this article helped explain the various types of consequences that can occur if you don’t pay your timeshare dues as promised. The whole point of joining a timeshare club is to save money on vacation costs while having a consistently amazing place to spend precious vacation moments with loved ones. If you don’t pay your timeshare dues, you will lose access to your vacation unit, risk foreclosure, have credit score issues, and possibly even timeshare scams. To stay safe, it’s very important to stay current on your dues so you and your loved ones can spend time at your timeshare unit creating new memories while having wonderful vacations together. If you want to buy the best timeshare in Mexico, check out Garza Blanca Resorts. They offer a genuine timeshare program that is in a class all its own. Contact them today to book a vacation and learn more!