A common question that you will see on different timeshare forums and timeshare complaint websites is, “What are the repercussions of defaulting on timeshare payments?” Occasionally a genuine client is the one asking this questions to find out what options they have. Read on to find out the real repercussions of defaulting on timeshare payments.
What will happen if I don’t pay my timeshare payments?
If you stop making your timeshare payments or you are not current with your timeshare’s annual dues, then you need to be informed on what could possibly happen if you are thinking of defaulting on timeshare payments. There are risks that you should think about such as legal action that may be brought against you and damage to your credit rating.
Specific circumstances will determine your repercussions:
Your specific circumstances will determine the repercussions you will face when defaulting on timeshare payments. For example, if your timeshare loan payments are in default, then your consequences will be more extreme than if you let your maintenance fees get behind. In both cases, you can be sure that you will not be able to use your timeshare until you have caught up all of the payments.
What are the repercussions of defaulting on timeshare maintenance fees?
Every timeshare company will have their own personal policy regarding maintenance fees, but most of the timeshare companies, including Villa Group timeshare, will charge a delinquent fee along with added interest charges on the timeshare maintenance fees balance. The interest might be charged by the day or by the month. You will be prohibited to use the timeshare until all of your payments have been made up to date. The first repercussion that you will face when you don’t pay your timeshare maintenance fees is that you lose all of your timeshare benefits, meaning that you won’t be able to use your timeshare. You will also have to pay a reinstatement fee. If it looks like you have no intention of paying your maintenance dues, then the entire debt will be sold to a collection agency that we can assure you will be less polite than you timeshare company when chasing you for payments.
What are the repercussions of defaulting on timeshare loans?
If you just stop making your timeshare payments on you loan, then your case is far more serious. At first you will receive a warning, which would include emails and phone calls, and if you ignore the calls and emails, you are likely to face legal action against you or your debt sold to a collection agency. In these cases, the best option is to speak directly to the timeshare company.
The Debt will be sold to a Collection Agency
If you stop paying your timeshare payments, eventually a collection agency will buy your debt. The collection agency will start the process to sue you, which will impact your credit rating score along with you having to deal with annoying discomfort, which may include many phone calls each day and even visits to your home.
Your Credit Score
If you stop paying your timeshare payments, even on a Mexican timeshare, then your credit score will be affected.
Timeshare Cancellation Scams
If you have been considering defaulting on timeshare payments, then you may become a victim of a timeshare cancellation scam that will take your money. Click here to learn more about timeshare cancellation scams.
There are a variety of repercussions of defaulting on timeshare payments as you can clearly see.