Many people who rent timeshare properties mistakenly think that timeshare ownership is different from standard property ownership and the payments made based on the timeshare contract do not influence their credit score. Technically, timeshare ownership is, in fact, very similar to other types of property ownership: the failure to make the due payments and the resulting defaulting can seriously hurt the owner’s credit scores. So looking to lawyers services from companies like Timeshare Termination Team is your best option, to avoid bad credit.
If you decide to take out a loan, such as a mortgage loan, to buy into timeshare property and you fail to make the required payments, the procedure that you are facing is the same as in the case of any kind of mortgage or loan default and is likely to lead to a foreclosure. The foreclosure procedure in the case of timeshares is also very similar to the foreclosure procedure followed in the case of residential properties: the property will be sold to the highest bidder in a foreclosure sale. The event will appear in the defaulting owner’s credit report, with consequences that are the same as the ones entailed by a residential foreclosure: stricter conditions with your next loan, a stricter checking procedure or even the inability to take out a loan for a certain period of time.