Thinking about buying a timeshare? If your answer is yes, you should think twice before signing the agreement. The reason is most people sign on the dotted line without going through the terms and conditions, or make impulsive decisions. Some don’t completely understand the pros and cons of owning a timeshare, while others don’t have any idea of the costs until they face financial troubles. Even worse? If you can’t make the payments timely, you may face a foreclosure that may take a toll on your credit score.
Don’t worry! Here, we have come up with some reasons why you should think twice before buying a timeshare.
Timeshare salespeople will leave no stone unturned to sell the timeshare
Most people go to timeshare presentations without any intent of purchasing the property. Unfortunately, some walk out of these presentations as timeshare owners. Further, some people may go into a timeshare presentation with a buying intent, but are forced to sign a contract without even knowing the pros and cons of timeshare ownership. However, you can cancel the contract with help of professional timeshare services. Just make sure read complaints on Timeshare compliance and work with the right attorney.
Default on timeshare payments may cause foreclosures
By buying a timeshare, you purchase an interest in real estate. And if you mortgage to pay for timeshare, you may face foreclosure in case you don’t pay those payments. Furthermore, if you default on other timeshare obligations, like taxes, or upfront fees, you will face foreclosure. This will impact your credit score, making it difficult for you to get another loan. Besides, you will have to deal with a higher cost of future loans. Thus, it makes sense to think more than twice before jumping to any decision.
The lender may claim a deficiency after a foreclosure
When it comes to timeshare foreclosures, the sale proceeds may not be enough to cover the timeshare mortgage amount. The gap between the sale proceeds and the amount you owe is deficiency. While some states prohibit lenders from coming after a person for deficiency after the foreclosure, some don’t. Thus, if you live in a state that allows timeshare deficiency judgments, you may be sued for the amount you owe. They may claim a deficiency and collect money using various different tactics.
You need to pay more than just mortgage payments
As time passes, you may realize that you can’t afford to pay for a timeshare. In that case, you will have to get a mortgage loan. But have you read the fine print thoroughly? Well, you will be responsible for additional costs along with mortgage. In fact, some timeshare agreements require special assessments, maintenance fees, taxes, etc. Failure to make these payments, they can foreclose the timeshare.
Timeshare resale scams happen!
As timeshare is difficult to sell, timeshare scam artists, called ‘timeshare resale agents’ trick people into buying a timeshare. Also, they will tell you they have a good timeshare buyer for you and will process the sale, but at a good price. They may also charge a hefty amount, hold the sale, and never bother to sell it again. However, not all resellers are scammers. In order to protect people against such scams, some states have created laws that every timeshare reseller must adhere to.
You can’t rely on renting out your timeshare
Some timeshare contracts allow renting the timeshare property, but it is a difficult job. There will be a plenty of timeshare resorts for rent, but only a few will want to rent them. Also, some contracts clearly mention that renting out a timeshare is strictly restricted. So, you can’t count on renting out it.
