Have you thought about what could happen if you default on your timeshare membership? Is it risky to default on your timeshare? Just like any real estate purchase there are risks and repercussions that will happen if you stop making your timeshare payments. It is a major concern for people who find themselves in a financial circumstance that prohibits them from making their payments for their timeshare. These are often times the same people that go online and search for answers to “Is it risky to default on your timeshare?” When people go online searching for answers they put themselves in danger of attracting scamming timeshare companies. We explain below on what can occur if you stop paying your timeshare payments.
Is it risky to default on your timeshare? What are the risks?
There are risks and consequences that may occur if you default on your timeshare payments. If you find yourself in a financial crisis and it is preventing you in making your timeshare payments, then you should know the risks. The risks will cause you major problems now and in your future. You could have your credit score affected and legal action filed against you which are just two of the big risks that you should know about. Before you stop paying your timeshare you should consider the risks before defaulting. When you stop paying your timeshare payments and maintenance dues you will have no rights to use or enjoy your timeshare unit. You will have to make sure all payments are paid in full before you can use your timeshare unit again.
Maintenance and Delinquent Fees
When you default on your payments you should know that every timeshare company will have their own rules. Many timeshare companies will charge delinquent fees, maintenance fees, and interest fees when you stop making your payments. The company can charge you these fees by the month or by the day, so it is important that you read the timeshare company’s policy so you know what fees you will be obligated to pay. To use your timeshare, all of the maintenance fees must be up to date. All of your rights will be stopped when you stop making your payments. Usually the timeshare company may even make you pay a reinstatement fee, too. A collection agency may be contacted by the timeshare company if you default on your timeshare payments if they believe that you have no intentions of paying this debt.
Foreclosure For Nonpayment
If you just completely stop paying your timeshare payment, then foreclosure is very possible. The first step by the timeshare company is sending you a written warning letter, and then they will begin emailing and calling you. If you still ignore the timeshare company, then they will file for foreclosure for nonpayment of your timeshare payments. Once the foreclosure has been filed, the timeshare company can place a claim against your possessions. If you used a credit card or took out a loan for the timeshare membership, you will still have to pay these payments too along with all late fees and interest.
Affected Credit Score
When you ignore all emails, phone calls, and you stop making your timeshare payments the timeshare company will sell your outstanding debt to a collection company. Immediately, your credit score will be affected. Why is this a big deal? When your credit score is affected it will have an impact of your credit when you want to purchase a large item with credit. You will be denied the new credit application because you have defaulted with your Mexico timeshare payments. Everyone knows that credit collectors are extremely persistent, and they will start calling you at home and work many times each day. They may also visit you in person at your home and work and that could be very embarrassing.
You should be aware that you may become a target for a cancellation timeshare company scam if you are thinking about not paying your timeshare. The scamming timeshare company will try to convince you that they will keep you safe from all of the consequences if you stop paying, but the reality is that they are unable to do this. Using a cancellation timeshare company scammer will cost you a lot of money and emotional stress. Do not use a cancellation timeshare company scammer, but contact your timeshare company provider first to see if they can prevent your defaulting.
If you ever decide to default on your timeshare payments you should refer back to this information. It is risky to default on your timeshare.