An excellent way to guarantee quality time with your loved ones is by joining a vacation club in Mexico. Also known as timeshare ownership, it works by paying ahead for your vacations, but at the low rates that they are today. When you join and invest in a vacation club, you need to know that there are repercussions that will come if you decide not to make your payments on time. We at the Villa Group want to take care of our members. Therefore, we want to make sure they have all the information they need to make the most of their timeshare membership. Read below to learn about timeshare default risks.
Timeshare Default Risks
Everyone should know what they could face if you decide to stop making your payments. You will face many serious consequences if you don’t fulfill your contract. Sometimes, people may find themselves in a situation where they are not able to make their payments on time. However, make sure if this happens to you that you try to figure out a way to be responsible. To start with, you will not be able to use your timeshare at all. Plus, your credit store will be affected, then legal action will start. You must also make sure your regular maintenance fees are paid, too. You joined a timeshare club so you and your loved ones would have great vacations. Don’t default on your payments!
Timeshare Default Risks
Each resort and vacation club provider has their own rules and regulations regarding the payments of their timeshare program. If someone defaults on their payments, delinquent fees and interest charges will be applied. Once you have started missing your payments, you won’t be able to use the vacation unit. To know the specifics of your provider’s process regarding defaults, then check your membership contract. Remember, you will be unable to use your vacation unit if your maintenance and timeshare fees are not paid. Plus, there will be an additional reinstatement fee, too. If your provider thinks you are not going to pay your timeshare, they can even contact a collection company to sell your debt.
Foreclosure Will Start
Your existing provider will first write you a written letter concerning your late payment, then they will start emailing you and calling you. If you continue to ignore their efforts, then they will file a foreclosure claim. This claim could affect your possessions. Plus, if you used a credit card or bank loan to pay your vacation club membership, that debt will still have to be paid along with large interest fees.
Negative Impact On Credit Score
When you have defaulted on your timeshare payment and all efforts from your existing provider have been ignored, then they can sell your debt to a collection agency. By doing so, your credit score will be adversely affected. Your credit history will show that you have a negative incident. That way, in the future you will probably be denied any credit or loan that you are requesting for. Plus, the credit collectors don’t just stop there. They will start contacting your employer, family and friends which can be quite embarrassing.
Avoid Cancellation Company Scams
Also, don’t go online and search for help, because you may end up being scammed by fraudulent timeshare cancellation companies. To stay safe, you need to avoid any cancellation company that convinces you they can help you avoid any of the timeshare default risks, because they are not able to help you. You need to only contact your existing provider if you are having a problem making your timeshare payments. Fraudulent cancellation companies will try to offer services they cannot legally provide. They will charge an upfront fee to the unsuspecting victim, then disappear without performing any service. Don’t become a victim to a timeshare cancellation company scam.
Did you enjoy reading the timeshare default risks? We hope that you take the risks seriously if you decide you want to default on your payment. If you would like to know which vacation club is the best one to join in Mexico, then contact us at the Villa Group. We have been in the vacation club industry for more than three decades, and have beautiful resorts throughout Mexico. Plus, we have stringent COVID safety protocols in place to keep our resort guests and timeshare owners safe. That way, vacation club members are safe to enjoy relaxing vacations in paradise. After all, timeshare ownership is meant to be enjoyed by the whole family. It’s the perfect way to ensure that you can always provide unforgettable and enjoyable vacations for your loved ones. Contact us at the Villa Group today to learn more.