• Industry

What happens to your home, that you live in, if your timeshare is foreclosed on?

Timeshares are financed by mortgage loans and are thus foreclosed on for non-payment. Once it has been foreclosed on it will be put up for auction. The timeshare will not sell for the amount owed, and they can then come after you for the difference. This can cause many problems like, ruining your credit and even cause a lien to be put on your current home if you own. Once your credit is dropped it can take seven years for it to recover. This can inhibit you from getting any other loans, like home, auto and even credit cards. Another problem with bad credit is it can affect things you may not think of like insurance rates and finding new employment.

Who can turn down the offer in free airline tickets and resort stay in exchange for listening to a 60 minute timeshare presentation?

This is a fairly common sales tactic. Offer a free night at a resort in exchange for your time at a timeshare presentation. Most people understand they might be inconvenienced in exchange for a “free” gift. It is easy to underestimate how inconvenienced you will be in these situations.

Typically you can choose not to attend the presentation, if you pay the room rate. Make sure to read, and understand, anything you agree to in exchange for the “free room”.

Leave your checkbook and credit cards in the room, and answer every question with no should you choose to attend. The presentations are typically exercises in high pressure sales for more than an hour. The duration of the presentation is key for the sales process. Everyone says no when they walk in the door. The sales team knows you want to get out and enjoy the resort. Their job is to wear you down until you say yes.

By all means, accept the offer if you want to test your will to resist a high pressure sales pitch.

Considering a timeshare? The world of timeshares can be wrought with perils. You might be asking yourself if a time share is the right choice for you. Consider these tips before you make that purchase. Research the company with whom you are dealing with the better business bureau. This one step could save you on headaches down the road. Be aware that you will probably not be protected by U.S. Laws regarding purchases outside of the U.S. Determine whether a time share is a good way to spend your money, timeshares almost always depreciate and can be hard to resell in the future. Make sure you are not going to get screwed on various fluctuating HOA dues and fees. Beware of scammers of all kinds. Once again this industry has more than its fair share. Don’t view this as an investment, it is not. Think it through. How often are you really going to want to come back to the same place for vacations? Many people grow bored of their timeshares quickly and are stuck with them. Do not go to the timeshare tours even when lured by freebies. This is your money and you shouldn’t be coerced into a quick decision especially if they are pumping you full of free cocktails! Last but not least, do not finance a timeshare! If you need to finance one you can not afford one! You will most definitely get screwed in this situation. After you have considered all of these factors you should be able to determine if a timeshare is a smart purchase for you.