Timeshare forum websites and timeshare complaint websites are where you will find the common question, “What are the repercussions if you don’t pay your timeshare?” There are times that this question is being asked by a genuine timeshare customer, so they can see what kind of options are available for them. However, many times this question is being asked by a fraudulent timeshare cancellation scammer who is only looking to promote their services that are fake. If you are looking for unbiased information on repercussions if you don’t pay your timeshare, then you will find the information below.
What are the repercussions if you don’t pay your timeshare?
The best thing that you can do for yourself is to know what could and will happen to you if you are unable to pay your timeshare payments or keep the annual dues paid. There will be risks that you will need to weigh up such as your credit rating and having legal action taken upon you.
- The consequences depend on your circumstances
The consequences that you will face will depend upon your personal circumstances. If you just want to stop making the timeshare membership payments or the maintenance fees, then your loan payments will be defaulted. The consequences will be much worse if you don’t pay your maintenance fees. Both of these payments should be made regularly and on time. If they are not paid, then the first consequence is that you will be unable to use the timeshare until you are caught up on both the timeshare payments and the maintenance fees.
- What are the consequences when you stop paying your maintenance fees?
The consequences when you stop paying your maintenance fees can be delinquent fees and added interest fees for the outstanding timeshare balance. You may be charged these added fees by the day or by the month as each timeshare company has their own policy. The details of these rules are stated in your timeshare membership contract that you signed when you purchased your timeshare and agreed to make the payments. The first consequence is that you are prohibited in using your timeshare when you stop paying the timeshare maintenance fees, and you should also know that you will also have to pay a reinstatement fee too. If over time you continue to not pay your dues or membership payments, then the timeshare company has no other option than to sell your outstanding debt to a collection agency (read below).
- Risk of Foreclosure
If you decide to just stop making your timeshare payments, then you are at risk for a foreclosure. The timeshare company will at first send you a warning, then calls and emails will occur. If you ignore the warnings, calls, and emails, then the timeshare company will file for a foreclosure on your timeshare and at this time the timeshare company can also put a claim against your personal possessions. Did you use a credit card or a loan to pay for your timeshare? If you did, then you are still required to make those payments as well.
- Your debt will be sold to a collection agency
Your debt will be sold to a collection agency if you stop paying your timeshare payments. The collection agency will take the proper procedure for suing you, which will then will affect your credit score. You will start to face a large amount of discomfort as the collection agency will start calling you many times during the day and they may even come to your home or work.
- Credit score will be affected
When you stop paying your Mexico timeshare payments it will eventually affect your credit score, which is not a good thing. Credit scores are important for future purchases and investments, so it is something to consider before you stop making your payments.
- Timeshare cancellation scams you
If you still are considering to stop making your timeshare payments, then you will become a target of a timeshare cancellation scam that will scam you of your money. Often times they take advantage of the situation by claiming they will be able to save you money without consequences when you stop paying your timeshare payments. This is a scam and something to be avoided at all costs.
There are short term and long term repercussions if you don’t pay your timeshare payments. Take charge of your financial security and make the best decisions for you and your family. Do you really want to go through the repercussions and consequences?