Are you asking yourself a common question that some timeshare members ask, “What happens if I default on my timeshare dues?” Many timeshare members don’t know exactly what risks and consequences they will have to deal with if they do not pay their timeshare dues. When you invest your money in a timeshare membership, it is comparable to buying real estate with a mortgage. Are you thinking about not paying your timeshare dues? Risks and consequences will occur. You don’t want your credit score to be affected, do you? In addition, timeshare scammers are scamming existing timeshare owners telling them they can help them to stop paying their timeshare dues legally. If you want to know what risks and consequences to expect if you do not pay your timeshare dues, then continue reading below.
What Risks and Consequences Happens If You Default on Timeshare Payments?
Timeshare ownership is a legal binding obligation that means you must make your timeshare payments. Regardless of the specifics of why it is difficult to make your payments, you should always make your payments on time. If you break your contract, you can face many consequences such as having your credit score negatively affected. In the future, if you try to get a loan or a mortgage, you could be denied credit because of defaulting on your timeshare contract. Likewise, if you don’t make your payments on time, you can’t use your timeshare vacation unit either.
Timeshare Maintenance Fees Must Be Paid
Timeshare maintenance fees must be paid, too. If you are not paying your maintenance fees, then you are defaulting on your timeshare contract. All members with timeshare companies are required to pay regular maintenance fees to keep the property in great condition. You can look at your contract to learn more about your maintenance fees. If any member hasn’t paid their maintenance fees, they cannot use their unit at the resort. In addition, you may also have to pay a reinstatement fee when you become current again, too.
Foreclosure Will Happen
Foreclosure will happen along with added fees if you are not paying timeshare dues. Your timeshare provider will start off by sending you a warning letter. Then, they will try to call you and email you if you don’t respond to them. If you still ignore all their efforts to contact you, then they will start foreclosure proceedings, which means by law you can lose your possessions. You should note that you are still required to pay a loan or credit card if you used that form of payment for your timeshare membership as well.
Credit Score Will Be Affected
You may not know it, but credit scores are very important! In the future, if you plan on buying a home, a car, or furniture your credit score will determine if you are denied or approved for the loan. If you stop paying your timeshare dues, then your debt could be sold to a collection agency, and they will report this debt to companies with your credit score. The collection agency can even sue you, and they are very persistent. They could come pay you a visit at your home and work, and nobody wants to be embarrassed by this.
Stay Away From Cancellation Companies
Some timeshare owners have become another victim to timeshare cancellation companies scammers. The cancellation company will promise you they can cancel your contract for you, but legally, after your cooling-off period is over nobody can cancel your membership. Instead, they will take your money and disappear leaving you even more financially burdened than before.
Are you not paying timeshare dues? Risks and consequences will come to you if you don’t pay your timeshare dues. This article was written to provide helpful information about staying current with your timeshare dues.