Timeshare Loan Payments, what happens if you stop making payments?
An unimaginable amount of people have fallen on hard times because of the coronavirus. Layoffs and furloughs have become commonplace due to travel restrictions. Because of this, many have been forced to cut back. Some people have even needed to overhaul their entire financial strategy in order to stay afloat. Not surprisingly, timeshares don’t really come off as essential to those cash-strapped folks who own them and are making maintenance and loan payments on them. You may be wondering what will happen if you stop making payments.
A Timeshare Loan Is Still A Loan
Refusing to honor your financial obligations carries consequences. The decision that you made to purchase or assume a timeshare was likely not done haphazardly. You put some thought into it. The same thought process should apply to your potential decision to stop paying what you owe on your timeshare. Just like with a typical home loan, your failure to pay your timeshare loan may result in a foreclosure and may seriously damage your credit worthiness.
You Have Options
It is never advisable to abruptly stop paying on your timeshare. You have options if you are unable to make payments. The first step that you should take is to contact your developer. Your developer likely will have a plan in place for these precise situations. Some of the options may include:
- A buy-back at little-to-no cost
- Cancellation of the loan
- Selling your timeshare
- Transferring your timeshare
- Restructuring your payment plan
Stopping payment on your timeshare should only be a last resort option after you have made every reasonable attempt to make good on the loan. You must carefully consider the financial cost of stopping payment so that you make the best decision.
Timeshare Attorneys Can Help
If you’ve contacted your developer and the options they give you won’t work, then contact the attorneys of Finn Law Group to help you decide what to do. You are not necessarily out of options even if your developer cannot help you. If want out of your timeshare but are unsure about what to do, know that you are not alone. Many timeshare owners are facing the same difficult choices. The Finn Law Group attorneys can help you better understand your options and the best path forward.