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Timeshares Can Hurt Your Credit

Timeshares are vacation properties that people buy in the form of a group, so the burden of maintenance fees or even mortgages is not on one person and divided equally between all the owners. These properties can be used by each person in a specific period which is usually allocated every week as mentioned in their timeshare contract.

Timeshares were once considered a great investment but they are becoming a burden day by day. As yearly maintenance fees have increased every year, timeshares are turning into a nightmare for many owners. Even though timeshares do not impact your credit directly, there are several situations in which timeshares can have a bad effect on your credit. These situations may include:

  • If you buy a timeshare on a loan and you have missed a few payments or you are late in paying them due to any reason, the developer of the timeshare can report you to credit bureaus. As timeshares are a long-term investment, your financial situation may vary in the future which can result in late payments and then the report will hurt your credit score.
  • In case you keep missing your timeshare payments, your timeshare will go into default. If your timeshare is defaulted, the developer’s last option would be to go for foreclosure. If your timeshare falls into foreclosure, it will badly affect your credit score and it might affect it for over ten years.
  • If you have bought a timeshare on loan and it adds up to your overall load of debt, your debt-to-income ratio will eventually increase. Banks or lenders consider this ratio before giving you any kind of loan like car loans etc and if the ratio is high you will face difficulties in getting any other kind of loan.
  •  If you decide to cancel your timeshare after the rescission period, which is of about 3 to 10 days where you can cancel your timeshare without a penalty, you will have to include a third party like an attorney to understand and guide you through the procedure or a resale company to provide a platform to advertise your timeshare, you will have to pay them. This will also lead to damage to your credit.
  • There have been cases of scams regarding timeshare reselling and renting as well. Owners of timeshare have been recently scammed by people which often results in financial losses. These financial issues can also lead to late or missed payments and this will badly influence your credit.
  • With time, legal issues may occur with your timeshare, this will result in you paying several kinds of legal fees which will most definitely cause a bad influence on your credit score.

These are a few of the many bad effects a timeshare can have on your credit score. This leads to the conclusion that a timeshare is more of a liability than a profitable investment or a future asset that can be passed on to future generations.

Timeshares are basically worthless in today’s economy and market. If you were sold a timeshare by making you believe that you will own real estate, you might have been scammed. In such a case, we suggest you contact us through Live Chat so we can help you exit your timeshare contract by exposing you to your legal rights.

There are a few ways to protect your credit score from the bad effects of your timeshare;

  • The first and foremost thing is to research before buying a timeshare. You should know everything about the thing you are about to invest your precious money in.
  • After being clear about what timeshares are, if you still want to buy a timeshare, you should research the developers, in-demand locations, and all the other factors like the legal procedures, the terms, and conditions, etc.
  • Make sure to consider your long-term financial situation so you do not miss any payments or even be late in paying them to avoid bad effects on your credit.
  • When signing the contract, make sure to read the policies, terms, and conditions very carefully, especially the ones that are related to any kind of payments, fees or bills, etc, as well as the exit options.
  • If you are having financial problems and having difficulty paying the mortgage or maintenance fees after buying your timeshare, you should immediately contact your developer so they can help you by coming up with any possible solutions to these issues.
  • If you are thinking about selling your timeshare or even renting it out, make sure that the third party you are consulting is legit and not a scammer so that you do not lose any money or any kind of other asset.

In conclusion, being cautious, and keeping your research thorough, and well-informed about your financial stability can save you from losing your credit score if you have invested or are about to invest in a timeshare.

How To Stop a Timeshare Foreclosure

There are many ways to save your timeshare from going towards foreclosure. Stopping a timeshare foreclosure requires a high level of concentration and quick action. If you think your timeshare is going into foreclosure, you need to take these steps to avoid the foreclosure;

  • If you have missed your payments and you are going toward foreclosure, the first thing you need to do is contact your lender. They will brief you on the solutions to your problems which may include modifications of terms or repayment plans.
  • Try and negotiate with the developer to modify the terms of your timeshare contract for a small period. By modifying the terms, we mean extending the deadline for payments, temporarily reducing the amount of your payment, or lowering the interest rates a bit. Developers all offer hardship programs for owners who are having difficulty paying their dues.
  • You can consider selling your timeshare to someone else if the lender is not ready to cooperate with you under any circumstances. Involve a resale company or register your timeshare on online resale websites. The resale company will help you find potential buyers and also help you in getting a good price for your timeshare. But you need to be aware because there are many scams surrounding these resale companies so make sure you do proper research before approaching any resale company.
  • When you are looking for a timeshare exit company, make sure to look for one that provides the option of escrow. These companies take up the responsibility of getting 100% of your money back.
  • Companies such as Timeshare Compliance and Wesley Financial Group offer a 100% money-back guarantee or a no up-front fee escrow option.  
  •  Another option is to rent it out. If selling does not work out for you, you can give your timeshare for rent. Renting it out will at least help you with the expenses like maintenance fees etc.
  • If you are having issues choosing the best option, you should consult an attorney to help you out. They can understand your contract terms and clauses way better than anyone else. They can even help you negotiate with the lender and inform you about all the benefits and consequences of your actions regarding your timeshare according to the contract.
  • You can also request a loan modification. If your timeshare contract allows a loan modification as some of the timeshares do, you can request for one which will allow you to make changes in the terms and conditions of the loan considering your issues and the demands of the developer as well. This can make the payments more manageable temporarily or even permanently.
  • If you have run out of all the options, filing for bankruptcy may be the last one you have now. It will most definitely have a bad impact on your credit but it will surely give you some time to think of a solution and temporarily hold the timeshare foreclosure. 

It is very important to be communicative throughout this whole procedure. If you are consulting an attorney, you need to explain your situation clearly and be honest about the whole procedure from signing the contract till the present day. If you are going for an exit company, make sure to research them beforehand and be 100% sure about them so you do not involve yourself in any kind of scam or fraud. 

Go through our website for any kind of query regarding timeshares and fill out the form on the right or contact us through Live Chat for a free informational consultation. Our team will help connect you with a timeshare exit company that has no up-front fees until your timeshare contract is canceled. We will try our best to help you with whatever hardships you are facing regarding your timeshares. 

You can also contact us by calling on 833-931-6555. Our team will always be available to provide you with information and guide you on how you can save yourself from timeshares and their damaging effects on your credit or any other aspect of your life in the future.


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By providing my contact information and clicking ‘submit’, I am giving MyTimeshareExitReviews.com and its partners permission to contact me about this and other future offers using the information provided. This may also include calls and text messages to my wireless telephone numbers. I also consent to use of emails and the use of an automated dialing device and pre-recorded messages. I understand that my permission described overrides my listing on any state or federal ‘Do Not Call’ list and any prior listing on the ‘Do Not Call’ lists of our partners. I acknowledge that this consent may only be revoked by email notification to info@www.mytimeshareexitreviews.com.

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