Timeshare debt can be a very difficult situation to deal with. It can cause you to lose your vacation property or worse, you can find yourself facing legal action. It can also impact your credit. In addition, it can leave you with no choice but to pay the debt.
One of the most common reasons people get into timeshare debt is because of maintenance fees. These fees are usually assessed on an annual basis and can increase in price each year. These can add up quickly, and the cost of maintaining a timeshare may be too much for most people to afford.
Once these fees become too high, many owners decide they can’t afford them and look for ways to get out of their timeshare contracts. However, it’s important to know that removing your name from the contract can be very difficult, and you may need professional help to achieve the goal of getting out of your timeshare.
Oftentimes, the first step in dealing with timeshare debt is to contact the company that you bought your timeshare from and ask for a voiding of your contract. This will remove your name from the ownership agreement and your deed of ownership will go back to the original company.
Some resorts and timeshare developers have programs to allow owners to get out of their contracts. But, these programs are not available to all timeshare owners, and it’s up to the owner to contact their resort or developer.
Another option is to try to sell the timeshare. This can be done through the use of a reputable resale company, such as Wesley Financial Group, which has a 100% money-back guarantee.
If you don’t sell the timeshare or ask to cancel your contract, the resort and the timeshare development may try to sue you for money owed on the purchase. This will involve a long court battle, which can be very stressful for many people.
After a judgment is filed, the resort and the timeshare development will then attempt to collect the past-due balance through the use of a third-party collections agency. These agencies will then send you mail and make phone calls demanding that you pay the amount owed. If you refuse to do so, the resort and the timeshare development will file a lien against your timeshare and it will eventually be foreclosed on.
Foreclosure is a scary prospect, but it’s an inevitable part of the timeshare debt process. It can result in a number of negative effects on your credit score, including denials of loan approval and increased interest rates when you apply for other loans.
Even if you are able to come up with the necessary funds to cover the amount owed, you will likely be subjected to late fees and penalties. This will continue to negatively impact your credit score and will have an adverse effect on your ability to buy other property in the future.
If you are struggling to pay your timeshare debts, it is best to seek the advice of an experienced timeshare lawyer. This can help you avoid the many pitfalls of timeshare debt. Moreover, this type of law firm can help you protect your rights under state consumer protection laws.