Sister is considering buying one of my Weeks:

[Jamerican71]

She needs a new LLC or trust for timeshares only.

Okay but why? You seem to know but not willing to share???

 

[Larry]

Why would she buy a week from you when she can go on ebay and get a week at Orange Lakes for next to nothing?

The value of the week has absolutely nothing to do with how much you still owe on it. Now if she is doing this in order to help you out financially (a gift), then it is a different story.

Kurt

My thoughts exactly. Can you imagine how PO'd the sister will be if she takes this deal and finds out later about Ebay and $1 timeshares while she is paying off this debt for years?

 

[Karen G]

Okay but why? You seem to know but not willing to share???

He's referring to the "viking ship" ploy discussed in this thread. It's a plan to set up an LLC, put timeshares in it, and then abandon or walk away from the ownership responsibilities.

 

[Saintsfanfl]

She needs a new LLC or trust for timeshares only.

This is bad advice for the OP. That would not be a legit business. If push came to shove the LLC would be ignored by the courts if the purchase was just to hold a timeshare to avoid liability. It would then default back to either the OP or his sister.

 

[Passepartout]

He's referring to the "viking ship" ploy discussed in this thread. It's a plan to set up an LLC, put timeshares in it, and then abandon or walk away from the ownership responsibilities.

Ignore the man behind the curtain. He's advocated untested, shady, and marginal procedures for years.

Jim

 

[vckempson]

What are the details on the remaining mortgage and for how much do you desire to sell this TS to your sister?

 

[Jamerican71]

Thanks for the info about the LLC or Trust but she's not interested in doing anything shady.

 

[Jamerican71]

What are the details on the remaining mortgage and for how much do you desire to sell this TS to your sister?

Remaining Mortgage will be paid Feb 2016

I have no dollar amount in mind as I know I could never get the money I put into owning these two weeks and I'm not trying to make money off of my sister BUT I am also not going to just give her a week.

She mentioned a few options in terms of "buying" a week from me:

(1) Paying off the mortgage for one of the weeks but this is a no go since both weeks are combined under one unless one week can be released...I have to call and find out.

(2) Paying half the mortgage until it's paid off.

She likes my weeks as they fall over holidays which is great for the kids and my BIL's work schedule.

I talked to her again today and told her about Ebay again and she prefers not to use Ebay so all I can do is still offer up as much info as possible and then let her decide.

 

[Karen G]

Thanks for the info about the LLC or Trust but she's not interested in doing anything shady.

Most people on TUG wouldn't advise her to do so either.

 

[e.bram]

Jam:
Don't pay attention from those posters from the boondocks

Suppose after a few years a corrupt management co or developer or a conspiracy the the two takes over the TS and uses it as their piggy-bank. Raise your MFs and levy large special assessments that you are personally stuck paying for the an LLC or trust you can tell them to pound sand and not worry about credit or litigation problems.
It might be shady if you do expressly to bail, which you are not.
Also if the HOA doesn't pay it's liability insurance, you could be PERSONALLY liable.
Since TSes have such diverse ownership it is impossible to displace them(corrupted management).

ps: Ask your sister why she has an LLC for here business. A similar theory applies.

 

[vckempson]

Remaining Mortgage will be paid Feb 2016

So how much is remaining on the combined mortgage and how much are the monthly payments? Until this is known and what you're inclined to agree to, it's really impossible for any here to provide feedback that's specific to your situation.

Getting something more than $1 might seem agregous to many but it really depends on what you're talking about. There is some value to peace of mind in not buying off of e-bay. There's also some additional value to holiday weeks. How much value is another story.

Why are you even considering transferring a week to your sister? If you use it you'd want to keep it and continue to get use out of it for what you've paid, right? What exactly is your motivation here and what exactly is your sister's motivation?

BTW, table the LLC idea for now. That's a secondary consideration that has nothing to do with what you are trying to figure out.

 

[Jamerican71]

So how much is remaining on the combined mortgage and how much are the monthly payments? Until this is known and what you're inclined to agree to, it's really impossible for any here to provide feedback that's specific to your situation.

Getting something more than $1 might seem agregous to many but it really depends on what you're talking about. There is some value to peace of mind in not buying off of e-bay. There's also some additional value to holiday weeks. How much value is another story.

Why are you even considering transferring a week to your sister? If you use it you'd want to keep it and continue to get use out of it for what you've paid, right? What exactly is your motivation here and what exactly is your sister's motivation?

BTW, table the LLC idea for now. That's a secondary consideration that has nothing to do with what you are trying to figure out.

@13K is the remaining balance and I pay $400 per month - this is for both.

I was never considering it until my sister approached me and now that she has approached me, I am looking at options. Her motivation is she wants to own a timeshare to make it a family tradition for her family to go to the same place every year. Its a family of 5 so that was the main reason to not buy the Caribbean location B/c the costs of airline tickets. I really don't know what my motivation is except that there is reduced monthly and annual expenses for me and less management for renting the extra week. I do use my weeks but there have been times that I have not been able to use it or plans fell through.

 

[am1]

The truth is you are going to be overcharging her. Even if thats what she wants its a bad idea.

 

[MuranoJo]

This could make the weeks worth more than the FleaBay weeks

What I was thinking. See Karen's post #8 for completed eBay sales. One went for $2425 (Christmas) and another for $4500 (holiday, but not sure what holiday/s). However, both were 3 bd and not sure what the OP has.

 

[rickandcindy23]

I would say this poster is not familiar with eBay, and of course every person in the world doesn't know about eBay timeshares, or how the sellers come by the timeshares they sell on eBay. It's slimy, and we all know it. Yes, I am sure those holiday weeks, 3 bedrooms that sold on eBay were sold by the people who bought them originally and not by sleazy postcard companies who told those people how worthless their timeshares were.

Jamerican asked a fair question and received a lot of answers that make assumptions.

e.bram is not a good advisor. Don't listen to him.

 

[DrBopp]

Enough already

Most people on TUG wouldn't advise her to do so either.

The OP came to this board for advice, not judgement. If the transaction is between siblings and they have worked it out, then you can(should) offer advice. Plenty of people make decisions with their money that we may not approve, but it is THIER money. Give the OP a break and help them if you can. Leave your judgements for another time.

Gordon

 

[rrlongwell]

The OP came to this board for advice, not judgement. If the transaction is between siblings and they have worked it out, then you can(should) offer advice. Plenty of people make decisions with their money that we may not approve, but it is THIER money. Give the OP a break and help them if you can. Leave your judgements for another time.

Gordon

Agreed. This is a family matter. I do not know about others, but have I helped others where the dollars and cents are not logical. The two of them are talking about the best way to handle the situation. I would leave it at that. If they need the advise of a Estate Attorney to advise them on the long term implications of what they decide, they should so seek the advise. It would be well worth the money. I speak from experience, after all, I am a proud owner of a number of timeshares that I would not have otherwise owned. Also, the LLC that holds those timeshares is not set up to default on anyone. But for the LLC, the timeshares would have defaulted or been given back. It is my understanding that is what happened to the non-Wyndham ones (with an exception or two) that I did not pick up.

 

[DeniseM]

The OP came to this board for advice, not judgement. If the transaction is between siblings and they have worked it out, then you can(should) offer advice. Plenty of people make decisions with their money that we may not approve, but it is THIER money. Give the OP a break and help them if you can. Leave your judgements for another time.

Gordon

I don't think you understand Karen's post - she is referencing the suggestion that was made to deed the timeshares to the sister's LLC and then bankrupt the LLC to get rid of them. Just because this is between siblings doesn't make it any more ethical or legal.

 

[DrBopp]

I don't think you understand Karen's post - she is referencing the suggestion that was made to deed the timeshares to the sister's LLC and then bankrupt the LLC to get rid of them. Just because this is between siblings doesn't make it any more ethical or legal.

Wasn't really a response to her specifically, just grabbed her post and responded for the general audience. The thread was going to places I didn't think the OP had intended or concieved. It just took on a judgemental tone. So I apologise to Karen, but I did not mistake what I heard and felt from the posts. I should have just posted instead of replying.

Gordon

 

[DeniseM]

The OP opened with this statement:

I am trying to find out what is the most fair for my sister and I

They may not like the responses they got - but when you ask a question on an open forum, you can't expect people to just tell you what you want to hear.

They asked for opinions - they got opinions - that's how it works.

 

[Beefnot]

But doggone, the heavy handedness is a bit much. True, the sister can purchase on ebay for nothing or close to it. If the OP has told her about ebay and she would just as soon pay the mortgage instead, then end of story. If instead the sister decides to purchase her own on ebay, or says that she only wants to pay OP $1 for it, then OP will say no thanks and continue using the TS for personal use since s/he is paying on it anyway.

 

[theo]

Not necessarily true or accurate...

Her LLC is her current business and she hasn't mentioned buying her timeshare in her business name but I will tell her that is an option for any timeshare she purchases. <snip>

Fwiw, a resort may refuse and decline to acknowledge or accept a new owner deed with LLC grantee.
As a BOD / HOA member, I can assure you that it does happen and is not just a "hypothetical theory".

There are endless (and at this point, quite tiresome) discussions and arguments here on TUG about whether or not a resort has the "legal right" to take this particular position. Rather than revisit that tiresome "legal right" issue, I'll merely instead point out that if an owner gets "locked out" and denied access and use, then the "legal right" question becomes, for them, entirely academic and completely irrelevant --- really quickly.
The resort HOA / BOD can (and very well might, as we surely did) just take the firm position "So sue us".
Fwiw, no one has yet taken us up on that open challenge. I'm ready and waiting if they choose to do so.

 

[vckempson]

@13K is the remaining balance and I pay $400 per month - this is for both.

I was never considering it until my sister approached me and now that she has approached me, I am looking at options. Her motivation is she wants to own a timeshare to make it a family tradition for her family to go to the same place every year. Its a family of 5 so that was the main reason to not buy the Caribbean location B/c the costs of airline tickets. I really don't know what my motivation is except that there is reduced monthly and annual expenses for me and less management for renting the extra week. I do use my weeks but there have been times that I have not been able to use it or plans fell through.

There is, unfortunately, no way to cover your remaining mortgage and have it be "fair" to your sister. You owe way more than the TS is currently worth. That's just reality. As one poster suggested, what if it were a car? Would it be fair to have her pay $6,500 for a car that's only worth $1,500 just because you still owe $6,500? Hardly.

But knowing your sister's desire, I have a suggestion. First off I'll assume that 1/2 of the mortgage represents each TS. What if you offered to split the cost of the remaining mortgage on the one timeshare. Therefore, she'd pay you $3,250. That would be a shared sacrifice for her to get what she wants, which is "your TS" and you get what you want, (one less TS and one less MF).

She's paying more than what it's worth and you're paying off part of the remaining debt that seems wrong to you. Now that still leaves you with logistical issues. What will the bank require to release the TS for transfer. Hopefully, $3,250 would do it, with the remaining balance collaterized against your one remaining TS. Now I know many will jump on this as unfair. If you have a frank conversation with your sister, and you both agree, then to hell with everybody else. Here's how the conversation might go...

You: "Listen Sis, this things only worth a few hundred bucks. You can go on ebay and get it now. I'll even show you how to do it. Where's your computer?"

Sister: "No, I just don't feel comfortable with that. You've got what I'd like to have and are able to part with it. Let's just work out something that's fair to us both.

You: "Sis, I still owe $6,500 on this. I can't just give it to you for a few hundred bucks... I just can't. How 'bout you pay me $3,250 and I eat the other $3,250. It's not exactly fair to you, but it's the only solution that makes it worthwhile for me to sell right now. Otherwise I think I'd just want to keep using it, so I feel like I've at least gotten my money's worth out of this damn thing."

Sis: "That's fair enough. I understand. It's worth it to me to pay a little extra and know I don't have to deal with the unknowns of ebay. It helps you out a bit too, which is a good thing. After all, I sure do love my big brother/sister.


If that's the kind of honest conversation that you have with her and it's agreeable to you both, then it's as fair as fair can get.

 

[Passepartout]

I want to be a fly on the wall when the above conversation is happening. I'd also like to be privy to the one after the OP has his Sis read this thread. And the one she has with her husband after the check clears and a few vacations have been enjoyed and the kids inform her they don't want to inherit her TS.

Just ol' nosy Jim

 

[Nolathyme]

Remaining Mortgage will be paid Feb 2016

I have no dollar amount in mind as I know I could never get the money I put into owning these two weeks and I'm not trying to make money off of my sister BUT I am also not going to just give her a week.

She mentioned a few options in terms of "buying" a week from me:

(1) Paying off the mortgage for one of the weeks but this is a no go since both weeks are combined under one unless one week can be released...I have to call and find out.

(2) Paying half the mortgage until it's paid off.

She likes my weeks as they fall over holidays which is great for the kids and my BIL's work schedule.

I talked to her again today and told her about Ebay again and she prefers not to use Ebay so all I can do is still offer up as much info as possible and then let her decide.

To Do list :

1) Send the link to this message thread to your sister- have her read other people's opinion.

2) Send her the links to completed ebay sales for your resort - telling someone about ebay doesn't cut it.

3) Send her the links to ongoing ebay sales for your resort.

4) Find a holiday week that was sold similar to your week at your resort. Sell your unit to your sister for 125% of that sales price.