How can we get rid of a Kauai Beach Villas interval ownership?

[loreleim]

How can we get rid of a Kauai Beach Villas interval ownership? We are getting too old to travel. Our kids don't want to deal with it.

 

[bianchicycle]

When you figure that out, let us all know. There are companies that will take it off your hands but you have to pay them thousands of dollars to do it. And then they sell them to companies like RCI.

 

[DeniseM]

You could default on your next fees that are due. You will receive some warning letters, and then your account will go into default, and eventually, they will take back your deed(s). It's possible that you will take a credit ding, or be turned over to collections, but at this point, it's hard to say.

 

[loreleim]

When you figure that out, let us all know. There are companies that will take it off your hands but you have to pay them thousands of dollars to do it. And then they sell them to companies like RCI.

I feel like we got suckered into this. I guess we're not alone though.

 

[loreleim]

You could default on your next fees that are due. You will receive some warning letters, and then your account will go into default, and eventually, they will take back your deed(s). It's possible that you will take a credit ding, or be turned over to collections, but at this point, it's hard to say.

Thanks for the reply. Not sure what to do.

 

[Luanne]

If it's paid off you can:

Give it away
Try to sell it
Walk away from it

 

[DeniseM]

Luanne - The resort is about to go under due to poor maintenance and has a huge special assessment, so it's a difficult situation.

 

[Luanne]

Luanne - The resort is about to go under due to poor maintenance and has a huge special assessment, so it's a difficult situation.

Thanks Denise.

 

[RX8]

When you figure that out, let us all know. There are companies that will take it off your hands but you have to pay them thousands of dollars to do it. And then they sell them to companies like RCI.

Sorry you are in this predicament. Just wanted to clarify that paying an exit company to get you out is not a legit option, unless one wants to throw away thousands of dollars. Any exit company would happily charge thousands of dollars and then do nothing more than to advise the owner to stop paying. If one stops paying the HOA will eventually foreclose. An owner doesn’t need to pay thousands of dollars for that, they can do that themselves for free. In addition, the exit company most certainly would not sell to any company, including RCI. RCI is not in the business of buying timeshares, let alone distressed timeshares.

 

[DeniseM]

What RX8 said: There are no Legit exit companies.

 

[T_R_Oglodyte]

KBV is poster child for some of the hazards of any shared ownership situation - whether condo or timeshare. Twenty years ago KBV (resale) was an attractive TS ownership option on Kauai. The ocean-front units were desirable and actually had decent resale value.

But that was 20 years ago. Conditions have changed.

 

[CO skier]

Luanne -- the resort will likely "go under" due to the flooding from a tropical cyclone and more importantly, the construction defects (some people want to change the narrative and facts) detected when assessing the repairs following the tropical cyclone.

Some KBV contracts are selling on eBay, but that may just be inviting a lawsuit from the buyer, once the buyer discovers the pending special assessment(s) that are clearly public knowledge within the scope of any current owner at the time of sale. A nightmare for both sides of the transaction.

 

[bnoble]

How can we get rid of a Kauai Beach Villas interval ownership?

Unfortunately, there are not many options. You might be able to find someone via e.g. ebay who will take it off your hands, but only an uninformed buyer who is unaware of the resort's situation would take it. You'll have to decide for yourself whether or not that's something you are comfortable with. It's not something I could do in good conscience.

The only other option is to go into default and allow it to go to foreclosure. That may or may not result in a credit ding. Depending on your life situation, that may not matter at all. For example, if you don't imagine borrowing money anytime soon (or ever) then it really doesn't matter that much.

We are getting too old to travel. Our kids don't want to deal with it.

The other option is to book a decent week, and then rent it out---possibly to friends or family, or barring that, through TUG, RedWeek, or Go-Koala. This will defray the cost of maintenance fees, and allow you to see how the resort's future unfolds. If it ends the way I think it will, there is a high chance that the resort will be liquidated, and that will be your graceful exit.

There are companies that will take it off your hands but you have to pay them thousands of dollars to do it.

No, there aren't. There are companies that will charge you thousands of dollars, and will tell you that they will take it off your hands. But in the case of this resort, they are very unlikely to perform on that promise.

KBV is poster child for some of the hazards of any shared ownership situation - whether condo or timeshare.

It's also a good example of why mixed-use developments with both whole owners and interval owners are much more complicated. The interests of the interval owners and the whole owners are not necessarily aligned. The intervals have been free for the taking for years, and have no real value on the open market even if the resort were not facing these issues. So if the resort terminates, the only thing we lose is a place to vacation on Kaua'i for a reasonable fee.

The whole owners, on the other hand, risk losing high-six figures. For many people, that's potentially a bankruptcy event and a much bigger deal.

 

[benoma88]

How can we get rid of a Kauai Beach Villas interval ownership? We are getting too old to travel. Our kids don't want to deal with it.

There is indeed a deed back program at Wyndham. We returned our EOY 2b/2b deed in December 2023, for a fee of attorneys cost.

candace.watson@wyn.com

Candace Watson
Accounting Clerk I – Wyndham Destinations | Hawaii HOA Region

 

[benoma88]

There is indeed a deed back program at Wyndham. We returned our EOY 2b/2b deed in December 2023, for a fee of attorneys cost.

candace.watson@wyn.com

Candace Watson
Accounting Clerk I – Wyndham Destinations | Hawaii HOA Region

Oops, clarify that Candace Watson is the contact at Wyndham, if it was not clear.

 

[bnoble]

Well, that’s interesting. I wonder if they heard talk about how the vote was going before it was tabled. The only other explanation is that Candace screwed up.

 

[jacknsara]

Well, that’s interesting. I wonder if they heard talk about how the vote was going before it was tabled. The only other explanation is that Candace screwed up.

Or that units already converted to Wyndham club are treated differently than unconverted

 

[bnoble]

I'm not sure why that would be. Wyndham can convert any weeks they own for just the employee time for the paperwork. But maybe?

 

[waginger]

There is indeed a deed back program at Wyndham. We returned our EOY 2b/2b deed in December 2023, for a fee of attorneys cost.

candace.watson@wyn.com

Candace Watson
Accounting Clerk I – Wyndham Destinations | Hawaii HOA Region

Thanks for posting this information. Per Ms Watson, the program was available but was a temporary trial and unfortunately has been discontinued by the HOA Board

 

[Geebrr]

I talked with KBV and they referred/transferred me to Wyndham Financial Services Center who said that the Deed Back program has been suspended. The suggestion from everyone I talked with was to try to sell 3rd party... I just want to give the thing away! Who is going to buy it with the assessment hanging over it.

 

[bnoble]

I'm sure you can find an uninformed buyer. Whether or not you are willing to do that is up to you and your inner Jiminy Cricket.

 

[DeniseM]

Stop paying on it and it will eventually go into foreclosure.

 

[Geebrr]

Oops, clarify that Candace Watson is the contact at Wyndham, if it was not clear.

You were very lucky to get out when you did! Contacted Wyndham and they said there is no exit for KBV at this time... Probably due to the ongoing problems!

 

[benoma88]

You were very lucky to get out when you did! Contacted Wyndham and they said there is no exit for KBV at this time... Probably due to the ongoing problems!

The exit program demise is unfortunate. We stumbled upon it, and wonder why the availability of an exit program was kept secret from owners?? Should our BOD communicate such program to owners? It appears Wyndham's KBV exit program was shut down by the KBV HOA, AOAO, IOA for reasons unknown; but we suspect it would result to loss of revenue for the HOA/resort (conflicting action between upholding property the value and its fiduciary breach to do best for owners), thus an increasing Wyndham ownership/control.

 

[bnoble]

It's never been a secret, and has been advertised on the Wyndham site for years now.

I am 80% sure that the person who approved the surrender that another TUGger documented did so against the wishes of management, and probably lost their job because of it.