How a Timeshare Foreclosure Can Affect Your Credit Score
Many people will tell you that it’s incredibly stressful to own a timeshare. For starters, scheduling is challenging because many contracts are fixed, so people have to stay at the property the same week every year. It’s also overwhelming to share a vacation spot with individuals you don’t know because they could cause damages that you’ll be responsible for in the end. However, one of the most overwhelming parts of owning a timeshare is the ever-changing costs. Maintenance fees and interest rates are rarely stagnant, so folks end up spending more cash than they initially thought they would.
Owners who can’t keep up with the expenses may fall into a timeshare foreclosure. People should know how a timeshare foreclosure can affect your credit score before it’s too late. This piece will show that these circumstances can negatively impact your life in ways you never imagined.
Pestering Communication
People can face repercussions from a timeshare foreclosure for up to seven years. During this time, you’ll likely receive annoying phone calls from creditors pressuring you to make payments. These people aren’t afraid to contact you at work, either. They’re shameless and will call and send letters and emails until you respond to them. That’s why you should work with an experienced cancellation business before things get out of hand. Preferred Cancellation Services is one of the best timeshare exit companies out there. We understand that a timeshare foreclosure can ruin your life, so we’ll be honest with you while trying to get you out of a tough situation.
Friends & Family Aren’t Immune
Creditors only want the money they’re owed; they don’t care what it takes to get it. Sadly, creditors will even call your family and friends to try and get in touch with you. These professionals may even call your place of work, which could result in a loss of employment. If you don’t want your employer to learn about your personal situation, it’s best to contact a company that specializes in timeshare cancellation services immediately.
Preferred Cancellation Services will try to determine if the resort violated their agreement at all, which will make it easier to cancel the timeshare in the long run. If they can prove that the resort used manipulative tactics during the sale, it may be easier to free yourself of this financial burden. Another pro tip is to keep a record of every time creditors contact your loved ones. Perhaps your court case will be stronger if a judge sees how these professionals harassed everyone in your circle.
Living Situations & Future Loans
Another consequence of a timeshare foreclosure is that it could affect your living situation. When your credit score decreases, landlords and mortgage brokers have less faith that you’ll be able to make timely payments. Thus, they’ll be less likely to rent or sell you a property in the future. Banks will also be less likely to give you a personal loan down the line if needed. This could make it more challenging for you to buy a car or borrow money when you need it. If you want to keep your living situation the way it is and continue taking steps towards securing your financial future, try your hardest to avoid a timeshare foreclosure. Preferred Cancellation Services will make this goal more attainable than you ever thought possible.
Insurance Rates Will Increase
When your credit score drops, your insurance rates will increase. Insurance rates increase because companies see you as a riskier option. Much like banks, once an insurance business sees a foreclosure, their faith in you automatically decreases. Thus, not only will you have to make payments on the timeshare, but you’ll also be forced to handle a higher cost of living. Once your insurance bills go up, it may be more difficult for you to manage other expenses. The worst thing that could happen is that a company refuses to insure you altogether. This means you could be liable for things that are normally covered by insurance, such as damages to your home.
Mental Health Affected
A timeshare foreclosure that causes your credit score to decrease may also have adverse side effects on your mental health. Knowing that creditors are hounding your family and friends is incredibly stressful. That amount of pressure can cause anyone to isolate themselves or feel like there’s no way out. Luckily, there’s a light at the end of the tunnel. If you feel overwhelmed and are anxious about losing your job or residence, please contact Preferred Cancellation Services today.
You need an ally by your side when going through a timeshare foreclosure. Resort professionals and creditors only see dollar signs, not human faces. Preferred Cancellation Services operates with integrity and transparency. We understand how anxiety-inducing this experience is, so we want to be as supportive as possible.
This article has discussed how a timeshare foreclosure can affect your credit score. Your FICO Score may drop hundreds of points, which will ultimately impact your financial future. You could end up unable to get a mortgage, buy a car, or request a personal loan if needed. Moreover, creditors will hound you, causing unnecessary stress to you and your loved ones.
Luckily, there are a few things you can do to avoid this headache. For one thing, you can try to pay other debts to offset the effects of the foreclosure on your credit score. You must be as organized as possible during these challenging times because it’s easy for things to get more overwhelming if nothing is structured.
Another pro tip is to contact an honest exit company to try and cancel your agreement before it gets to this point. Preferred Cancellation Services guarantees to do everything in our power to get you out of this crazy scenario. We know how manipulative salespeople can be, and we’ll try our best to prove as such in court, so you can forget this mess ever happened. We’ll also do our best to look for any loopholes in the agreement that make it easier for you to return to normal life. Remember, vacations should be fun, not stressful.
