One of the most common questions you will see on timeshare complaint forums is: What happens if you stop paying timeshare payments ? The question is sometimes asked by a real client that is truly seeking help and information, but often times a timeshare cancellation company scammer is asking the question only to promote fake services. Below is information on what really happens if you stop paying timeshare payments, and the information is completely unbiased.
What happens if you stop paying timeshare payments?
If you find yourself in a situation that makes you unable to pay your annual dues and timeshare payments, then you should first inform yourself on what can really happen to you if you stop making the payments. There are risks such as lowering your credit rating score and legal action that could occur. You will need to seriously weigh the risks before you become delinquent on loan payments, dues or maintenance fees.
- Consequences are based on certain circumstances: The consequences will be based on certain circumstances on if you want to stop paying your timeshare membership payments and maintenance fees which you agreed to pay when the loan was taken out. If you default on your loan payment for your timeshare, then the consequences will be more severe than if you stopped paying your maintenance fees. With both of these cases you should know that you will not be able to use your timeshare at all until both of these payments have been rectified.
- The consequences of not paying maintenance fees with the timeshare: Of course, each timeshare company will have their own policy, but many of the timeshare companies will charge you delinquency fees and extra interest fees for the timeshare’s outstanding balance. The timeshare companies have the right to charge you these fees by the day or by the month. If you want to use your timeshare, then all of your payments must be paid and current. The first consequence that will occur when you stop making your maintenance fees and timeshare payments, which is you will lose the right to use your timeshare. You should also know that the timeshare company will charge you a reinstatement fee that will need to be paid as well. If the timeshare company believes that you are showing no signs of paying your fees and payments, then they will take your debt and sell it to a collection agency (collection agency information is below).
- Foreclosure is Filed: If you just stop making your timeshare payments, then you are at risk of having a foreclosure filed on you. You will first receive a warning, then emails and calls will be made. If you refuse to reply to the attempts to contact you, then the timeshare will have no other choice but to file for a foreclosure, and the timeshare company will have the right to file a claim against all of your personal possessions. When you decided to purchase the timeshare and if you paid it with a credit card or with a loan, then you will still have to make those payments as well.
- Debt will be sold to a Collection Agency: If you stop paying your timeshare payments, then your debt will then be sold to a collection agency who will then take the legal steps to sue you. This will negatively affect your credit score rating along with annoyance as multiple phone calls will be made to you each and every day. Uncomfortable and embarrassing home visits from the collection agency can occur, too.
- Credit score will be affected: Your credit score will be adversely affected if you stop paying your Mexico timeshare payments. Do you really want your credit score and ratings to be damaged? This is important because if you try to get another loan in the future, they will see that you were in default with your timeshare payments.
- Timeshare cancellation scammers will defraud you: If you are still thinking about not paying your timeshare, then you will possibly become the target of a timeshare cancellation scamming company who will defraud you of your money. The scam works as they make you believe that they are saving you from all the headaches and consequences that come when you stop paying your timeshare payments. To prevent this type of fraud, it is always best to deal directly with the timeshare provider and official representatives only.