Wouldn't HVC/DRI still be responsible for the MF's on the points they own? The resorts still need the funds and the points owners don't pay for the points that the developer owns. At least they shouldn't.
Hence they have a large backlog and don't want to make it larger with resale deedbacks.
Points trusts are susceptible to monkey business because the developer makes all the rules for the trust; if they can get it off their balance sheet they will.
I see where you are coming from. I didn't read your original post closely enough and thought you were saying that, because of the trust system, HVC didn't have to pay on the the unsold inventory they own. My fault for trying to multi-task and not reading focused enough.Hence they have a large backlog and don't want to make it larger with resale deedbacks.
Could they monkey with the allocation of resorts contained in a point MF paid by owners and thus bundle it with an owners point?
WIth a trust, the MF per point is the same for every point. If the developer owns a certain number of points, they would be responsible for the same MF per point as any other owner. they can certainly change the allocation of the trust by bringing in dog weeks to add to it. This would tend to drive up the fee per point and that does get passed on to all the owners, but it also makes the product less desirable when/if people do the math to determine the true cost of a reservation.Hence they have a large backlog and don't want to make it larger with resale deedbacks.
Could they monkey with the allocation of resorts contained in a point MF paid by owners and thus bundle it with an owners point?
True. As evidenced by the high MF/point for The Club compared to the quality of accommodations, I surmise they have been stuffing the trust with deeds and running up the MF. I agree that this rise in MF cannot continue because more owners will walk, and it makes it difficult to sell more points. MVC can get away with it because the properties are nicer than DRI and they don't have so much backlog. IMHO...HGVC bought a house of cards with DRI. Not sure how they can fix it.
Thank you!
It will also be very difficult to unload/sell that deed.
I don't necessarily think that being promoted on Responsible Exit means they have a deedback program. Just that they offer some type of service or advice for owners to get out. In the case of HGVC, it looks like it may just be resale. I am not sure if they do brokered resales like Marriott does for resale weeks.
Doing a brokered resale is alot of work. HGVC has a huge network to sell timeshares thru their system.
Many of the big names in HGVC resale get their clients from HGVC directly. When I was looking to buy 2 years ago, Diane Nadeau mentioned she get a fair amount of her clients from HGVC. The SW Florida affiliates have their own brokered realtors that sell the deeds for the resort as well as owners. The Scotland lodges all have HGVC sales offices that can broker sales from owners as well as the resorts. In fact, you can get legacy elite status buying from their office (at least you used to).
This is my understanding of HGVC's "deed back" program also. So, they won't take back any deed (eg. mud season). To me, it would be better to just go to the resale brokers directly (skip the middleman).
Yes, much better. The nice thing about HGVC is that most platinum season deeds are worth something on the resale market.
that was the entire point of the website being created in the first place!
no argument there are legitimate HGVC brokers out there and have been for years. however most folks who have HGVC ownerships that retain significant resale value are not typically falling for exit company scammers.
the issue is that more often than not the average owner today searching for options like this, is going to wind up on an upfront fee exit/resale scam page vs any of those.
This comment is For ALL TIMESHARE OWNERS, not just those that have deeds that have little to no value: If an owners can't get rid of their timeshare most probably they eventually will stop paying thieir maintenance. All owners of that timeshare resort will then be burdened with paying a percentage of the maintenance for that delinquent timeshare owner. For the health of the system all developers should at least take back the timeshare that they sold for no money, or the HOA should take ownership of the the timeshare for no money just to keep the system healthy. Then at least the unit can be resold or rented rather than just be a burden to all owners.
I’m always astonished when I hear a Wesley Financial ad on the Sirius XM NFL channel. I don’t know how much they cost, but that ad us nation wide. Then again, the majority of ads on that channel are rather, for a lack of a better term, scammy.
Precisely the point. The foundational product in the TS industry is the ownership and / or specified contractual use of it. Hence, if the industry were to be made to operate like the rest of the real estate industry, there would always be an inherent value to the product sold. Accordingly, several things would automatically fall in line. First, all developers and individuals selling fractional, interval or merely a right to occupy and use a product for a specified period of time ( a lease, if you will) or a property owned by a consortium of owners (as in a trust), the sales force would need to comply to the rules in the sate of transaction according to the laws governing such transactions. This would immediately lend itself to ethical operation. Secondly, anyone purchasing a product (regardless of the source and nature of sale) would know that it could be sold at will to any legal buyer. Thus, all product would have a residual market value commensurate with the rules that govern all real estate i.e. geographic area of said property and principles of basic macro economics.
