What Happens If You Stop Paying Westgate Timeshare?

A Westgate timeshare deal may look sweet on paper, but as times go by, changes in personal or financial circumstances may find one questioning what will happen when they stop paying their shares.

This in-depth guide looks at the implications, legal outcomes, and potential solutions for not being able to stay current with your Westgate Timeshare payments.

Financial Impact And Credit Score

When you stop paying your Westgate timeshare, the first effect is, of course, that late fees and interest are accumulated on the outstanding balance. Westgate also reports missed payments to credit bureaus, which further damages your credit score. That may affect loans, credit cards, and even job opportunities where credit checks come into the hiring process.

Key Points:

Late Fees and Accrued Interest: Missing payment of debts yields late charges that get accrued, increase in numbers, and grow the total amount one owes. Interest keeps accruing on the unpaid balance, which makes it harder and harder to catch up on payments and increases your financial burden.
Negative Reporting to Credit Bureaus: The creditor sends missed or late payment information to the three major credit bureaus, and this results in a negative mark on your credit report. This can drag down your credit score for years and remain on your record for potential lenders, landlords, and employers to see.
Reduced Credit Score and Affecting Future Financial Transactions: A reduced credit score may mean hefty impacts on your financial life, which includes high-interest loans and credit cards, reduced chances of loans, or actually even being able to rent an apartment or gain employment. It is a salient way to secure better future financial opportunities.

Legal Consequences and Foreclosure

Failure to pay your Westgate timeshare will leave you subject to legal pursuit, including foreclosure. Westgate can initiate the foreclosure process to recover their debt through a court-ordered sale of your timeshare. In addition to losing your timeshare through foreclosure, this destroys your credit rating, and the record remains on your credit report for seven years.

Key Points:

Legal action and foreclosure proceedings.
Court-mandated sale of the timeshare.
Long-term damage to credit history.

Impact on Ownership and Usage Rights

When the timeshare fees stop being paid, all your usage rights are gone. In layman’s language, this means that you cannot book holidays or even access the facilities that came along with the timeshare. You lose all benefits of ownership and yet maintain liability for all financial obligations.

Loss of Use Rights and Amenities Access: Failure to meet the conditions of ownership could result in your losing the right to use amenities or the property associated with the same. This implies that you will not be in a position to enjoy the facilities—one of the major luxuries for those owning houses, with pools, gyms, or community spaces being at the center of it.
Forfeiture of Benefits Linked to Ownership: Defaulting in payment or any other ownership agreement means you are at risk of forfeiting benefits linked to ownership. This can range from priority booking, exclusive events, to discounts on additional services provided by the facility, hence under-evaluating the cost of your property that you would have gained.
Continued Financial Liability: You may find that you remain financially liable for ongoing costs even if you have lost the usage rights and the benefits of ownership. This includes maintenance fees, taxes, and any outstanding balance on loans. The financial obligations remain until all debts are settled, which can further strain your finances.

What Collection Agencies May Do

Westgate Resorts will very likely forward your account to a collection agency if you default. Collection agencies can get pretty nasty in their attempt to collect, with frequent calls, letters, and even legal action. The entire collection process is very stressful and requires legal assistance to handle.

Transfer of debt to collection agencies.
Aggressive debt recovery tactics.
Potential need for legal assistance.

Options to Exit or Resolve the Contract

If you find yourself unable to keep up with your payments, there are options available to exit or resolve your timeshare contract. These include:

Timeshare Resale: Selling your timeshare on the secondary market can be challenging but is one way to exit the contract.
Deed-Back Programs: Some resorts offer programs that allow owners to return the timeshare to the company.
Timeshare Exit Companies: Hiring a reputable timeshare exit company like HowToCancelMyTimeshare (HOW2CXL) can help you navigate the legal and financial complexities of exiting your contract.

Preventative Measures and Future Steps

To avoid falling into timeshare debt, it’s crucial to take preventative measures:

Financial Planning: Make sure you can meet long-term commitments before spending on a timeshare.
Know the Contract: Understand clearly your obligations under the terms of a timeshare agreement.
Seek Legal Advice: Avoid signing anything before seeking legal advice in relation to any timeshare agreement.

Key Points:

Importance of financial planning.
Thorough understanding of contract terms.
Seeking legal advice.

Frequently Asked Questions

What should I do if I can’t afford my Westgate timeshare payments?

If you can’t afford your payments, consider contacting Westgate to discuss your options. You may also explore timeshare resale, deed-back programs, or hire a timeshare exit company like HOW2CXL for professional assistance.

How does defaulting on my timeshare affect my credit score?

Defaulting on your timeshare can significantly damage your credit score. Missed payments are reported to credit bureaus, leading to a lower credit rating and potential difficulties in obtaining future credit.

Can I negotiate with Westgate to reduce my payments?

It’s possible to negotiate with Westgate for reduced payments or a modified payment plan. Contact their customer service department to discuss your situation and explore available options.

What legal actions can Westgate take against me for non-payment?

Westgate can initiate foreclosure proceedings, resulting in a court-mandated sale of your timeshare. They can also transfer your debt to collection agencies, which can sue you for the owed amount.

Is it worth hiring a timeshare exit company?

Hiring a reputable timeshare exit company like HOW2CXL can be worth it if you’re struggling to exit your contract on your own. They can provide legal and financial expertise to help you navigate the process.

What Happens If You Stop Paying Westgate Timeshare?