When you invest in a Mexican timeshare membership, you are prepaying for great vacations at a discounted price. That way, you can guarantee nice vacations for your family and even save money in the long term. The membership contract is a legally binding document with consequences and repercussions for individuals who do not make their payments on time. Do you own a Mexican timeshare membership and are thinking about defaulting on your financial responsibility? All vacation club members need to be informed about what happens if they don’t make their payments on time. If for some reason, a vacation club member may find themselves in a bind where they think about skipping their monthly vacation club payments. However, if this happens, the vacation club member is putting themselves at risk for serious repercussions that are best to avoid. Before you do, read below so you can learn what happens if you stop making your timeshare payments.
Defaulting on a Mexican Timeshare? Timeshares Fees
In general, the majority of vacation club resorts will charge their members fees and if they stop making their regular payments. While every company has their own rules and regulations regarding defaulting, refer to your specific membership contract to verify details. In addition to the regular payments, all vacation club memberships include regular maintenance fees that help keep the property looking great all year round. These maintenance fees need to be paid as well if the member wants to use their vacation unit. If a member stops paying their timeshare maintenance fees, they will lose all rights to use the vacation unit until they become current again. As a result, it is advised to always stay current with payments. Also, if you do default on your timeshare payments, you will likely have to pay reinstatement fees on top of the delinquent fees and interest.
Timeshare Cancellation Scams
Another big concern that comes to members who stop paying their membership dues is that they put themselves at risk for timeshare cancellation scams. IIn order to avoid becoming a victim of a timeshare cancellation scam, you should be aware that fraudulent timeshare cancellation scam companies exist that try to convince vacation members they can provide services they simply cannot. These scammers will tell vacation club members that they can help them avoid consequences and get out of paying their vacation club dues. However, rest assured that this is a total scam and fraudulent companies like this should be completely avoided. Always deal directly with your existing vacation club provider and never involve any third party companies. By doing so, you can keep yourself safe from getting scammed.
Bad Credit Score & Foreclosure Proceedings
Another repercussion of not making your payments is that your credit score will be negatively affected. Credit scores are very important and used in a variety of decision-making situations such as buying a new car, applying for a home mortgage, or opening a new bank account or credit card. Your credit score is always considered anytime you attempt to purchase any large items on credit. If you have a bad credit score, you will likely be denied whatever loan or credit you requested. As a result, it is best to keep your credit in the best situation possible by being responsible and making your payments as promised. Did you know that legal action may be taken against you if you stop paying your payments? Not only will you lose all rights to use the timeshare unit until all payments come current, the debt may even be sold to a collection agency. Collection agencies and credit collectors are very persistent and aggressive in their attempts to collect late payments. This could turn out to embarass you if your friends, family or co-workers realize you are being contacted by a collection agency. Before they start foreclosure proceedings, the collection company will first send the member a written warning. If they receive no response, and the member does not come current on their payments, the timeshare company will often file for a foreclosure. Even your possessions could have a claim filed against them. Also, be aware that if you took out a loan or paid for part of your vacation club membership using a credit card, you are still liable to make those payments.
We hope this information has helped vacation club members understand and recognize the potential repercussions that follow when timeshare payments are not made on time. Remember, a vacation club membership is a serious financial arrangements, and defaulting on your payments should be avoided at all costs.