Poipu Point - Walk away from ownership?

We have a every-year floating oceanfront unit we bought back in 1996 when it was Embassy...and a second every-other-year oceanfront unit we bought in 2004.

We have been trying to sell both the units but on the secondary market, they go for $1500 at best and then too, they are not moving...

We are considering abandoning/walking away from both units - in this economy, shelling out $5,400 for 2012 and $3,300 for 2013 and then again $5,400 for 2014 is a financial drain that we simply CANNOT afford.

I don't know whether our credit will take a hit...or whether we can negotiate an exit or come to a deal. We are willing to give up both units. It is simply unaffordable.

I do know that Diamond will come after us with a vengeance if we default on the maintenance fees. They are one of the most ruthless companies i have dealt with in a very long time. Their customer service is atrocious - their operators are downright nasty and all they care about is money. They have little, if any, regard for their owners and they are of absolutely ZERO help. Calling them has been next to useless...essentially, the specialist I spoke to flipped me the virtual bird on the phone.

So I researched this matter on the web and came across this portal.

Please, if anyone has any idea, experience or recommendations, I would be mightily obliged.

Thanks.

Raj

therajman said:

We have a every-year floating oceanfront unit we bought back in 1996 when it was Embassy...and a second every-other-year oceanfront unit we bought in 2004.

We have been trying to sell both the units but on the secondary market, they go for $1500 at best and then too, they are not moving...

We are considering abandoning/walking away from both units - in this economy, shelling out $5,400 for 2012 and $3,300 for 2013 and then again $5,400 for 2014 is a financial drain that we simply CANNOT afford.

I don't know whether our credit will take a hit...or whether we can negotiate an exit or come to a deal. We are willing to give up both units. It is simply unaffordable.

I do know that Diamond will come after us with a vengeance if we default on the maintenance fees. They are one of the must ruthless companies i have dealt with in a very long time. Their customer service is atrocious - their operators are downright nasty and all they care about is money. They have little, if any, human capital and they are of absolutely ZERO help. Calling them has been on no help...essentially, the specialist I spoke to flipped me the virtual bird on the phone.

Please, if anyone has any idea, experience or recommendations, I would be mightily obliged.

Thanks.

Raj

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DRI has a voluntary surrender program; it does requure that the owner be current on all fees, so that may not help you with the special assessment.

I don't have the money to pay them.

No matter how it happens, Diamond wins in the end! They get the unit back, they get my money and they damage my credit.

Amazing.

I did a quick search but came up empty, where can I find more info on DRI's voluntary surrender program? Thanks.

cvillegal said:

I did a quick search but came up empty, where can I find more info on DRI's voluntary surrender program? Thanks.

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Go to the DRI Forums, which you can access from the DRI website after you login.

therajman said:

I don't have the money to pay them.

No matter how it happens, Diamond wins in the end! They get the unit back, they get my money and they damage my credit.

Amazing.

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How exactly do they damage your credit? You did sign a contract with Diamond (or whomever) originally right?

rifleman69 said:

How exactly do they damage your credit? You did sign a contract with Diamond (or whomever) originally right?

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They can report a delinquent/past due bill - and re-report it every month it remains unpaid. Plus if they eventually foreclose that too goes to the credit reporting agencies. While a foreclosure on a timeshare isn't as big a deal as say a home/fully owned condo might be it still is a foreclosure, the amount after all the penalties for late fees, interest, legal fees, etc may make it a significant amount and not everyone that uses the credit report will bother to dig into what the foreclosure was - they just treat it as a big negative tward the score.

It can make things very uncomfortable for the owners credit score which is why it is used as such as big club to spur collections. As owners they have accepted the obligations so it is all legal to report.

I have a slightly different question. (silly as it may be) We always pay our maintenance fee's at the end of Dec. When we pay this next one (with the special assessment at the end of Dec., is this going for the 2012 year? or is it for the 2011 year? I had this discussion with another person and I am assuming it is for 2012 whereas the other person said it is for 2011? Confusion here, I was mainly concerned about getting this paid since we are going in Feb. OH how we would just love to give this back to Diamond, but we love the point at poipu. Also on their explanation of the water intrusion it said many other condo's on Kauai have the same issue - Has anyone heard of anyone else having the same water intrusion? I sure haven't!

I would call a PCC. Sounds like their fee would be a dream compared to this special assessment.

Kauaigrl00 said:

I have a slightly different question. (silly as it may be) We always pay our maintenance fee's at the end of Dec. When we pay this next one (with the special assessment at the end of Dec., is this going for the 2012 year? or is it for the 2011 year? I had this discussion with another person and I am assuming it is for 2012 whereas the other person said it is for 2011? Confusion here, I was mainly concerned about getting this paid since we are going in Feb. OH how we would just love to give this back to Diamond, but we love the point at poipu. Also on their explanation of the water intrusion it said many other condo's on Kauai have the same issue - Has anyone heard of anyone else having the same water intrusion? I sure haven't!

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The fee that is due 1/1/2012 is for 2012. You have to pay in advance. If you don't pay by 1/31/2012, you would not be able to use your 2/2012 reservation. We love Poipu too, and want to keep our week in spite of the assessment. Might even consider buying another week.

artringwald said:

The fee that is due 1/1/2012 is for 2012. You have to pay in advance. If you don't pay by 1/31/2012, you would not be able to use your 2/2012 reservation. We love Poipu too, and want to keep our week in spite of the assessment. Might even consider buying another week.

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There was a 2 br every year at the Point at Pu for $1 just a couple days ago. See if the seller will pay all the closing costs too.

Go for it and if you get it you owe me an umbrella drink next time we meet.

Sterling

Water intrusion in a tropical climate can mean from the humid, corrosive salty air. Buildings can have poor insulation and vapor block, maybe Mike Holmes can audit that 65 mill cost, but I can understand materials and skilled labor costs will be higher. Sounds like they are stripping the buildings down to the frames and replacing with modern skin / insulation materials. Also, if the project is 3 years why cant the owners pay the assessment over the same period?

SmithOp said:

Sounds like they are stripping the buildings down to the frames and replacing with modern skin / insulation materials. Also, if the project is 3 years why cant the owners pay the assessment over the same period?

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Yes - they are stripping the buildings all of the way. It's essentially a complete structural rebuild. They've even got rotting in pressure treated wood.

According to the board, the assessment is paid in two years - whereas the project is a three year project - because funds are needed to pay for materials prior to construction. IOW - the project cash expenditures are front-end loaded.

SmithOp said:

Water intrusion in a tropical climate can mean from the humid, corrosive salty air. Buildings can have poor insulation and vapor block, maybe Mike Holmes can audit that 65 mill cost, but I can understand materials and skilled labor costs will be higher. Sounds like they are stripping the buildings down to the frames and replacing with modern skin / insulation materials. Also, if the project is 3 years why cant the owners pay the assessment over the same period?

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Because the cost per year would be less over a five year period.

They'd probably be delighted if you'd pay it all at once.

Sterling

SmithOp said:

Also, if the project is 3 years why cant the owners pay the assessment over the same period?

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The owners ARE getting the ability to pay the assessment over a 3-5 year period (depending on the number of weeks owned). $2000 is just the FIRST installment!!!

Total assessment per week is $5893.32.

...and just think of how high fees will go in the future with all the defaults that are SURE to happen. The assessment is based on all current owners paying...everyone else will get stuck eating anything unpaid by defaulting or foreclosed owners.

SCARY.

ocdb8r said:

...and just think of how high fees will go in the future with all the defaults that are SURE to happen. The assessment is based on all current owners paying...everyone else will get stuck eating anything unpaid by defaulting or foreclosed owners.

SCARY.

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The letter from the Board of Directors says that the budget includes an allowance for anticipated owner defaults. No details provided though.

Deja Vu all over again ...

It sounds suspiciously like Diamond has figured how to "refresh" the developer position.

After this is all over there will be an essentially new resort - with a lot of intervals on the shelf (presumably) controlled by the developer er management co.

Glad I am I don't own any units.

Something stinks to high heavens.

Please explain to me why Alii Kai resort at Princeville which receives a whole lota rain especially compared to sunny P@P has NEVER EVER EVEN needed a special assessment for water intrusion? It didn't even need a SA after hurricane Iniki hit.!!!!!!!!!!!!!!!!

Alii Kai Resort is on the coast, almost as close to the water as the p@p and it is 30 years old. 10 years older than P@P.

Guess they built them right 30 years ago and shoddy since then.

"Nothing is easier to spend than other folks money" Kauai Kid

HAVE A HAPPY HOLIDAY FROM DIAMOND RESORTS.


Sterling

I can't believe this one has 3 bids. I don't see where it mentions the SA.

http://www.ebay.com/itm/Point-Poipu...90351701227?pt=Timeshares&hash=item5ae2c644eb

I almost bought there. It does look really nice.
I know this really sucks. I feel your pain.

slip said:

...

I almost bought there. It does look really nice.
I know this really sucks. I feel your pain.

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Slip,

Stick with Pono Kai!

therajman said:

I don't have the money to pay them.

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If I truly didn't have the money or couldn't raise the money, I would tell the Resort that I was unable to pay and try to work something out. I would make sure they knew that if they were unable or unwilling to work with me, I was fully prepared to accept the consequences of defaulting. Life is not always fair. Sometimes one just has to play the hand he/she is dealt.

George

Diamond is probably hoping you will default and give them back the weeks to sell to another sucker. I wish everyone thinking of buying anything managed by Diamond could find this thread. Awful company.

PCC's require you pay the current assessments and fees, so it wouldn't get you out of it, and they are quite aware of these SA's.

I saw 3 listings on Ebay this morning and they all have bids but none of them
mention the SA. Buyers beware!!!

I nearly took a "free" Point at Poipu unit from a fellow Tugger a month or so ago. Thanks goodness for procrastination, as I am now a very happy non-owner at the Point!

rickandcindy23 said:

Diamond is probably hoping you will default and give them back the weeks to sell to another sucker. I wish everyone thinking of buying anything managed by Diamond could find this thread. Awful company.

PCC's require you pay the current assessments and fees, so it wouldn't get you out of it, and they are quite aware of these SA's.

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DRI, like every Developer / Management, has some flaws and overall seems to be high on the fees they tend to collect. But this is a case where, IMO, they cannot be blamed and are doing the best they can in a no-win situation for everyone involved. You wanna bet they would give up management / sales there IF they had known of the issues that have become obvious now? No one willingly gets into a mess like this - they inherited a problem and as management now have to do what they can to resolve it. The blame lies with those long gone from the picture. Doesn't make it easier to take or make DRI saints but I wouldn't blame them either.

They have to deal with it and so will the other owners as best they can.