Avoid Timeshare Default: 5 Tips to Protect Your Economic Assets
Are you currently a vacation club member with a Mexico timeshare? Ninety-nine percent of the members are highly satisfied with the investment they have made. However, have you ever thought about defaulting on your timeshare? If you have, you should know that there are many risks that will result due to non payment. With any financial contracts, there are responsibilities and ramifications to face if your payments are not paid. There are some members that come across financial hardships and they have thought about not making these payments. Do you know that if you stop making your payments, you could also put yourself at risk for becoming involved in a timeshare scam? You may expose yourself to timeshare cancellation companies that are fraudulent. Continue to read below to learn 5 tips to avoid timeshare default risks. You can avoid timeshare default and protect your economic assets.
#1 Avoid Timeshare Defaults
If you have decided to stop paying your timeshare, you should be aware of the many risks and consequences that will follow. It is vital that you understand to avoid defaulting, even if you are in a financial bind. First, your credit score will start to be affected. Second, you can and will face legal action. Analyze the reasons why you are unable to make your payments. If you also stop paying your maintenance dues and the regular fees, you will have no rights to use any of the units and their amenities. You have to be current with these payments.
#2 Maintenance Fees
Delinquent fees along with interest fees will be added to your bill if you stop making your payments as many of the vacation ownership clubs charge these. Naturally, all companies have their own rules with defaulting on maintenance fees and payments. You need to read your membership policy and contract to see what your specific company states for these. Usually, all maintenance fees are required to be paid and current if you plan on using your timeshare. If you go ahead and default, you will probably have to pay reinstatement fees as well. A collection agency will be called if your company feels that you have no intention of honoring your timeshare payments. This will only cost you more money, added stress, and worry.
A foreclosure on your timeshare may happen immediately if your payments have not been paid. A written warning letter will first arrive from your timeshare company letting you know that your payments are late, then they will start making phone calls and emailing you. If all the attempts from your company go ignored, then foreclosure will start. You can even have a claim filed against all of your possessions. If you used a credit card or took out a personal loan for your vacation club membership, be aware you are still legally obligated to pay those payments, too.
#4 Negative Credit Score
When you stop making your payments, your credit score will be affected. When your timeshare company emails and calls you, but you ignore them, they can sell your debt to a collection agency. When this happens, your credit score will be adversely affected. In addition, others will be able to see that you defaulted on a Mexican timeshare when you try to get another loan down the road. If legal action is needed, this will even affect your credit score even more. Anyone that has had to deal with a credit collector knows that they are very persistent, and they don’t mind if you are embarrassed at your job or home.
#5 Cancellation Company Scams
You should be very aware that you are opening the door for you being a target with a cancellation company scam if you don’t stay current with your timeshare payments. Scamming companies will try to convince you that they can assist you, but they will only cause you more anguish. Don’t let this happen to you. Don’t become a victim. Talk with your existing company provider, and stay away from frauds and third-party companies that only want to scam you! You can avoid timeshare default and protect your economic assets when you follow the helpful tips provided above. Timeshare defaulting is very serious, and you should try to avoid it at all costs.