Deed In Lieu

The resort where I own, paid in full, two weeks has offered a deed in lieu of foreclosure for the 2016 maintenance fees which are now past due. My concern is the hit on my credit score. The resort representative assured me that they do not report to the credit bureau, but I have no written guarantee. Any opinions? Any suggestions of an attorney in Myrtle Beach, SC that specializes in timeshare transfers?

XMailman said:

The resort where I own, paid in full, two weeks has offered a deed in lieu of foreclosure for the 2016 maintenance fees which are now past due. My concern is the hit on my credit score. The resort representative assured me that they do not report to the credit bureau, but I have no written guarantee. Any opinions? Any suggestions of an attorney in Myrtle Beach, SC that specializes in timeshare transfers?

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It seems to me that if your resort is offering and willing to accept a "deedback" once your account status is brought current, then there is really nothing negative for them to report to a credit bureau in the first place. It seems to me that only if the resort had to foreclose would there be anything negative to report to a credit bureau.

If the resort is willing to accept a deedback, aren't they also willing to prepare and record (after your signature) the (presumably Quit Claim) deed to accomplish this?
I'm not clear why you would need or want to seek out (and pay) your own legal counsel for a simple and relatively straightforward deed transfer.

As of now, I owe the two weeks 2016 maintenance fees. They are willing to take back the deed (deed in lieu of the maintenance fees) and I not pay the past due 2016 maintenance fees. They have not suggested I pay the past due fees. Do you suggest I pay the past due maintenance fees to bring my account current and do a "deedback" which may not be a negative credit score hit? A "deed in lieu" may be a negative hit should it be reported. That is why I considered an attorney.

XMailman said:

A "deed in lieu" may be a negative hit should it be reported. That is why I considered an attorney.

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Suggestion - tell them that you'd like to deed it back, but you'd like verification in writing that they aren't going to submit a report to collections.

I plan to go to the resort in a few days to discuss my options. DeniseM, I think paying the $1500 2016 maintenance fee to do a deed back will better than a deed in lieu.

XMailman said:

I plan to go to the resort in a few days to discuss my options. DeniseM, I think paying the $1500 2016 maintenance fee to do a deed back will better than a deed in lieu.

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Question - Is the person who has the authority to make these decisions located at the resort?

XMailman said:

As of now, I owe the two weeks 2016 maintenance fees. They are willing to take back the deed (deed in lieu of the maintenance fees) and I not pay the past due 2016 maintenance fees. They have not suggested I pay the past due fees. <snip>

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Sorry if I misunderstood. The customary and usual position and practice for resorts accepting "deedbacks" is to require that the owner account first be brought up to date (and sometimes, even requiring payment of an additional year or two of maintenance fees as well). I have no knowledge of the practices at your unidentified resort.

P.S. Denise has asked a valid and relevant question. Except for scheduled Board meetings, the HOA President (and / or other Board members) is unlikely to be "on property" and resort management employees who are on site on a routine basis likely have no legal standing or authority to conduct (or even discuss) "deedback" matter details.

Good question DeniseM. You are correct theo. It seems unusual for the resort to not ask me to get the fees up to date.

Info source?

XMailman said:

Good question DeniseM. You are correct theo. It seems unusual for the resort to not ask me to get the fees up to date.

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With whom did you have that "deed in lieu of" conversation in the first place? Was it an actual HOA Board member or Board President, or was it perhaps an on-site resort employee who may have been inappropriately "speaking out of school" and beyond their knowledge or authority?

I may be the one 'speaking out of school' here, but if the caller was simply an employee of the resort, isn't it likely that they were making several calls to delinquent owners to make the similar offer? Obviously, it would be reassuring to have written confirmation that no adverse report mysteriously show up on a credit score, but since it is just delinquent MF, and not defaulted loan.

At any rate, it's somewhat refreshing to see a resort freeing delinquent owners from unwanted obligation, and increasing their inventory of weeks to re-sell to boot.

Jim

I feel that willingness to accept Deed in Lieu is a positive statement that resort feels a week has value. When a resort refuses that course it's basically saying the week has no value -- if they can't give it away through owner connections. (This comment for resorts that don't have an onsite sales office.)

I gave a week back to my resort but the fees were current. They wanted $250 to do the transfer, I couldn't write the check fast enough.

If you want out, I would not wait for them to change their mind.