On numerous timeshare forums and on timeshare complaint websites you will find a common question, which is “What are the consequences of defaulting on my timeshare”? Many times this common question is being asked by a genuine person and client that is simply looking for options, but some of the questions are being asked by a timeshare cancellation scammer in order to promote their services that is fake.
Below is more information on the question “What are the consequences of defaulting on my timeshare”?
If you stop default on a timeshare, what can happen?
If you are unable to pay your timeshare payments or your annual dues, then one important thing to do is to be informed on what will happen if you stop paying your timeshare payments. Is the risks worth damaging your credit rating and score or even having legal action taken against you for defaulting on your timeshare?
Your specific circumstances will determine the consequences:
Your specific circumstances will determine the consequences of defaulting on your timeshare. It will depend on whether you took out a personal loan to make the payments or if you are considering halting on the timeshare maintenance fees that are required. For example, if your loan payments are in default, then the consequences will be more severe than if your maintenance fee payments are behind. You will not be able to use your timeshare if both of these cases have occurred until you catch up the timeshare loan payments and the timeshare maintenance fees.
Timeshare Maintenance Fee Consequences
Naturally, every timeshare company will have their own policy and rules about defaulting on your timeshare maintenance payments, but many of the timeshare companies do enforce delinquency fees along with interest charges on the balance that is outstanding, and this could be charged by the day or by the month. All payments must be up to date if you want to use your timeshare. The first consequence that you will be facing when your timeshare maintenance fees or timeshare membership payments are not being paid is the use of your timeshare is prohibited. Many of the timeshare companies also will charge a reinstatement fee as well. If the timeshare company believes that you are not showing signs that you will pay your maintenance dues or membership payments, then your debt will be sold to a collection agency.
Foreclosure is Possible when defaulting on your timeshare
If you decide to stop paying your timeshare payments completely, then you will be at risk of a foreclosure. At first you will get a warning, then you will get phone calls and emails. If you ignore these attempts, then the timeshare company will file for a foreclosure, and they can even file for a claim against your personal possessions. You will also be responsible for paying the credit card or loan that you took out to pay for your timeshare too.
A Collection Agency
Your debt will be sold to a collection agency if you stop paying for your timeshare. The collection agency will then take the legal steps in suing you, which will negatively affect your credit rating and your life will be in major discomfort as the collection agency will call you many times throughout the day, and this will occur every day along with coming to your home.
Your Credit Score will be affected
If you stop paying for your timeshare in Mexico, then your credit score and rating will be affected.
Cancellation Company Scams
If you are considering defaulting on your timeshare payments, then you will become an easy target and victim of the timeshare cancellation company scams. They will take your money by telling you that they are saving you money and the consequences that comes when you stop paying for your timeshare.
Now you know what the consequences of defaulting on your timeshare. Is it worth it?