As humans, sometimes we feel rather than facing our problems it might be easier to just ignore them. While it’s only a temporary solution, a lot of the time it feels good. This is a temptation that crosses the minds of timeshare owners everywhere.
Rather than try to contact their management company, some owners feel that if they were wronged, they should just stop paying their monthly mortgage payments and annual fees. This is completely their decision to do so. Only a timeshare owner can be held responsible for their decision to stop paying on their timeshare unit. So what happens next? Well, here’s what might happen if you decide to hold off on paying the money you owe.
Oftentimes, after you miss your first payment, a collection effort will be executed by the management company. When this happens, they will usually try to reach out via mail, phone or email. If you continue to ignore, they may take it a step further and report you to a credit bureau. This is where long term effects start to kick in. Your ability to finance major purchases like vehicles and houses could be hindered due to a low credit score.
This is not to mention the high interest rates you could accumulate by missing payments on your timeshare mortgage loan. If you eventually miss enough payments, foreclosure could be the end result.
How does timeshare foreclosure work?
When you miss payments over a period of time, it is usually written into an agreement that the resort developer can go to court to foreclose on your timeshare unit. This is the result of you failing to agree upon the terms you signed on an agreement when you purchased the timeshare.
How many missed payments does it take to have my timeshare foreclosed?
It’s hard to say just how long a period of time you have to make a payment before foreclosure becomes a serious outcome, mainly because every resort company operates differently. While one resort may take a few payments as a call to action, others might be willing to be more lenient with you, especially if there is an established homeowners association that backs other timeshare owners. While this is rare, it has been known to happen that homeowner associations have reserves to help out timeshare owners who are struggling financially.
Another factor coming into play here is the state or country in which you own your timeshare. Many states seem to have different laws on the foreclosure of property. Some states will even map this out differently specifically for timeshare purchases.This should be something you research before buying your timeshare. You have to know your rights and how they pertain to you depending on your location. Especially if you’re buying a timeshare that’s not in the state you currently reside.
Can additional fees also lead to foreclosure?
Yes, many timeshare resorts treat maintenance fees at the same level as loan payments on the timeshare itself. This is because in the eyes of the resort or property managers, the maintenance fees are just as meaningful towards the success of their property. While this can be a hard payment to make due to the increase every year, it is crucial in order to avoid any issues with foreclosure or negative credit history.
Will exit companies help me receive a refund on my timeshare mortgage?
This ultimately depends on your situation. If you feel you were treated unfairly and your timeshare sales team lied to you, then there’s a possibility that a legitimate timeshare cancellation company like Wesley Financial Group, LLC could assist you in obtaining a partial refund. This is usually what most timeshare owners call an “added bonus” because going into the exit process, they’re not expecting to get their money back. All they really want is a way out.
How does timeshare cancellation work?
If you’re stressed about not being able to afford your timeshare and can’t stop thinking about the negative effects it could have on your future finances, you should know that there is a solution. It’s called a timeshare cancellation company. A credible timeshare exit company, like Wesley Financial Group, LLC, will walk you through a trusted four-step process to help relieve you of your financial burden. Let’s take a look at these steps.
The Initial Discussion
The best way for someone to understand your situation is for you to go over it with them. This is exactly what happens in this step. After you go over all of the details and mishaps of your timeshare experience, it gives the exit team a better idea of what sort of situation they’re dealing with and how they can assist you.
In this step, you will most likely be assigned a qualification specialist. This person will check and approve that you are qualified to have your timeshare agreement terminated. Should you not qualify they will explain that your situation does not meet their requirements.
This is where your process starts to really make ground. In this step you will be assigned a point of contact who will keep you up to date on information regarding your cancellation as well as any forms, documents or letters you need to be made aware of.
You’ve made it! This is the final step where you receive confirmation that your timeshare agreement has been terminated. In some cases, you can receive a refund. Though, this is not something you should count on because everyone’s timeshare circumstances are different.
Summary It’s a tough mental challenge to keep facing the finances you might owe towards a timeshare. While it may be tempting to just stop paying your fees or simply walk away, it’s irresponsible and hurtful toward your future interests. Instead a better option for you would be to get in touch with a trusted timeshare cancellation company like Wesley Financial Group, LLC. To learn more about their process be sure to visit their website.