What Happens If I Stop Paying On My Timeshare Loan?
You bought a timeshare and took out a loan to finance it. But now, you’re having trouble making the payments. Maybe you’re going through a financial rough patch, or maybe you’ve just realized that timeshare ownership isn’t for you. Either way, you may be wondering about What Happens If I Stop Paying On My Timeshare Loan?
Timeshare Debt: Understanding Risks and Potential Solutions
The short answer is that if you stop making payments on your timeshare, the lender can take steps to collect the debt. This may include hiring a collection agency, reporting the debt to credit bureaus, or even filing a lawsuit. If the lender is successful in getting a judgment, you may also be responsible for paying court costs and attorney’s fees. In some cases, the lender may also be able to garnish your wages or take money out of your bank account.
Of course, you’re not without options. Depending on your circumstances, you may be able to negotiate with the timeshare lender to modify your loan agreement.
For example, you could ask for a lower interest rate or a longer repayment period. If you’re having trouble making payments on your timeshare loan, you should act as soon as possible. The longer you wait, the more likely it becomes that the lender will use aggressive collection measures against you. Many timeshare owners face the same difficulties. So, before you do anything, consider looking at alternative options. This includes surrendering the property back to the timeshare company. A low balance on a timeshare might allow the developer to terminate or settle the account for less than what you owed. Unfortunately, this will likely have an impact on your credit as well.
Timeshare Loan Default: Legal Implications
Timeshare loans are complex financial instruments, and the laws governing them can be complicated. If you stop making timeshare loan payments, you may face some unexpected legal or credit-related difficulties. If you’re thinking of stopping payment, it’s a good idea to consult with a timeshare lawyer to learn more about your legal rights and options. It’s never a good idea to stop paying your timeshare without consulting an attorney or understanding the consequences of such actions.
If your developer refuses to work with you and the alternatives they propose aren’t viable, know that you are not alone. If you want out of your timeshare, an attorney with experience in timeshare law can help you navigate timeshare cancellation.
What is Timeshare Cancellation?
Timeshare cancellation is the process of terminating your timeshare contract. In some cases, you may be able to cancel your timeshare contract for a full refund of what you paid. In other cases, you may have to pay a cancellation fee. There is a lot of misinformation out there about timeshare cancellation and it’s all too easy to make a mistake when it comes to canceling your timeshare with a third party.
Some timeshare exit companies will offer owners a 100% money-back guarantee with a time-based promise to get them out of a timeshare contract. That’s a serious red flag to both licensed timeshare attorneys and resort developers who know this is nothing but a marketing gimmick that just doesn’t work. The majority of these so-called exit organizations like Timeshare Termination Team have either gone out of business or were forced to shut down as a result of regulatory enforcement due to deceptive and unfair practices. Thousands of timeshare owners have been left in a state of uncertainty and worse off from a legal standpoint, with the result that closure has been delayed even more.
The Truth Behind Timeshare Cancellations
The reality is that timeshare cancellation is a complicated legal process that takes negotiation, time, and patience. It’s not something that can be done quickly or as advertised on TV. Unfortunately, there is no such thing as a timeshare cancellation company that can guarantee results.
If you’re considering timeshare cancellation, the best thing to do is consult with an experienced timeshare attorney who can evaluate your situation and give you honest advice and a path forward. It’s also important to understand that attorneys are prohibited from making claims of success. The outcome of your case will depend on the specific facts and circumstances of your situation, the developer and the law that governs the contract.
Some timeshare owners have been successful in getting their timeshare contracts canceled, while others have not. The best approach to raise your chances is to consult with an experienced timeshare lawyer, who can perform a legal evaluation and advise you on a course of action.
This article should be considered as information only and is not intended to be legal advice.
Led by attorneys Michael D. Finn and J. Andrew Meyer with over 75 years of combined experience, the Finn Law Group is a consumer protection firm specializing in timeshare law. The Finn Law Group has helped timeshare owners from across the country cancel their timeshare contracts and get out from under the burden of costly timeshare ownership.
For a free consultation, please call us at 1-855-FINN-LAW or fill out our online form. Follow us on Twitter