Do you own a timeshare and have fallen on hard times? Before you throw in the towel and stop making your regularly due timeshare payments, take a moment to read this article. There are serious, long term downsides if you default on your timeshare payments. Having financial issues and thinking about not making your timeshare payments could continue to affect your financial stability now and for years to come. Continue to read below so you can know what downsides to expect if you stop making your timeshare payments.
Fees to Expect
Every timeshare company has their own rules and regulations regarding payments, but the majority of timeshare providers will charge you fees if you stop paying. Read your timeshare policy very carefully and avoid defaulting on your timeshare. In addition to your regular timeshare payment, it is important to stay on top of your regular maintenance fees as well. All maintenance fees must be paid regularly and up to date in order to enjoy your timeshare and all the great amenities at the property. If timeshare payments or maintenance fees are not paid, you lose all rights to your timeshare. Lastly, if you stop paying but later decide you want to catch up on all payments, you will be required to pay both a reinstatement fee and late fees.
Foreclosure is Possible
Another major downside if you stop making your timeshare payments is that your timeshare could become a foreclosure. A written warning will be mailed, emails sent and phone calls will be made in regards to your late payments. Thinking about ignoring all these attempts? The timeshare company will most likely start the foreclosure process. Foreclosure of your timeshare could not only affect your ability to use your beloved timeshare unit, but could affect you in other areas as well if you own other property. Additionally, unpaid timeshare debt will be transferred to a collection agency which will seriously affect your credit score. Future loans will likely not be possible when your credit score is bad as everyone checks your credit rating before extending loans to individuals wanting to purchase something on credit. Lastly, collectors are extremely persistent in their attempts to collect money owed, which could prove embarrassing once friends, neighbors or co-workers become aware of your unfortunate financial situation.
Watch out for Cancellation Scams Companies
Another downside to defaulting on your timeshare is that you could become an unwilling target of a cancellation scam company. Timeshare cancellation scam companies claim that they can help you avoid the consequences of not paying your timeshare membership. Be aware that this is a total scam and will only cause you additional economic stress. They will most likely insist upon an upfront fee to start the process which is how they scam victims out of even more money. Always deal directly with your timeshare provider, and never, ever pay an upfront fee to a third party timeshare cancellation company. They are scammers!
Consequences of not paying your timeshare payments are quite serious and can leave you with a long term negative financial record. Make sure you carefully consider these downsides to timeshare default and stay current!