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Few Years behind in Maintenance, 40% payment is offered - Thoughts

jndbaseball16

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So, I own @ Star Island (i have listed my unit in another forum for free).

I owe about $4674.61 in Maintenance and knock-wood, they have NOT sent me to collection. This goes back to 2016. I was contacted by the resort collections department saying they will allow me to pay down my maintenance for $2000.00.

I started thinking (and reading). If they have not sent me to collection yet, and are offering me a 40% discount do they really have anything for me to be afraid of? I do have it in writing that this will clear my account and it includes 2019, so it will be paid for the year.

I am located in the U.S. and I do have really good credit. That is my concern here. Is being forclosed on and calling their bluff that damaging?

Thoughts?
 

TheTimeTraveler

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You say "pay down" debt. But the question remains will you still owe the $2,674.61 or are they planning to forgive that?

I can't seem to vision they will do that as there will be no incentive for anyone to pay their maintenance fees; why would they if one would think they can get a 40% break on the bill ?




.
 
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RX8

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What time traveler said ^^^

Also, how can you give it away for free with $4,600 in past due fees?
 

Iggyearl

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The math works out to a 57% discount. $2674/4674. Seems inconsistent that they would let one customer get away with that. Also, understand that giving your timeshare away for free doesn't make it "free" to another person. I believe the arrears need to be cleaned up before transfer is allowed. I would read your letter from the agency again - very slowly.
 

sue1947

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You say "pay down" debt. But the question remains will you still owe the $2,674.61 or are they planning to forgive that?

I can't seem to vision they will do that as there will be no incentive for anyone to pay their maintenance fees; why would they if one would think they can get a 40% break on the bill ?
.

Makes sense to me. After almost 3 years of no money, they figure that $2000 is better than nothing.

To the OP: I would doublecheck that they are clearing your account for the discount and then take them up on it. Clear this monkey off your back. At the same time, pull your bargain ad until this is cleared up then repost and give it away to avoid future MF.

The other option is to not pay and let it go to foreclosure. However, if you can afford it, I think the $2000 if worth it to protect your good credit.

Sue
 

WVBaker

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I can't see having much success in find someone to "give" the unit to with that much still due. There are still plenty of units out there clear and free. Besides, if do have "really good credit" as you say, why do anything that may hurt that?
 

RX8

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So I am confused. You have a Star Island 3BDM listed for free in the bargain deals and you state there that the 2019 maintenance fees are paid in full. There is no mention of any fees past due.
 

SueDonJ

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If this Management Company is actually offering unpaid MF's to be forgiven at a discounted rate and I were an owner at this resort, two things about this post would concern me:

- if this is a remedy that's not stated clearly to every owner, why am I reading about it on the social media site that attracts more timeshare owner traffic than any other?
- why would any owner pay MF's in a timely manner if there are no consequences other than the fees being conveniently reduced?
 

K2Quick

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If this Management Company is actually offering unpaid MF's to be forgiven at a discounted rate and I were an owner at this resort, two things about this post would concern me:

- if this is a remedy that's not stated clearly to every owner, why am I reading about it on the social media site that attracts more timeshare owner traffic than any other?
- why would any owner pay MF's in a timely manner if there are no consequences other than the fees being conveniently reduced?
Just a guess here, but I'm thinking the major consequence of not paying your MFs in a timely manner would be that you couldn't reserve a unit and stay in it if you weren't current. I think that should be incentive enough. Sounds like a good deal for both parties and something like this would probably go a long way toward reducing bad debt expense for many many owners associations. If the association's choice is 60% or 0%, 60% seems like the obvious desired outcome.
 

jndbaseball16

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Sorry everyone. Let me clear this up a little.

I would like to unload the unit. As of TODAY, the fees are in arrears. If I get an offer, I would pay the fees in full within 5 minutes. Yes, the $2000 forgives ALL THE FEES to date and I start fresh with new MF in 2020. I have that in writing.

I'm thinking out loud here. Since giving these things away (even when caught up), is almost impossible, I'm thinking more down the road if I didn't pay and they eventually just take it back or figure it's not worth chasing. Sorry for the confusion.

My deadline is 2/15 to pay them before the offer is gone (according to the billing group).
 

jndbaseball16

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If this Management Company is actually offering unpaid MF's to be forgiven at a discounted rate and I were an owner at this resort, two things about this post would concern me:

- if this is a remedy that's not stated clearly to every owner, why am I reading about it on the social media site that attracts more timeshare owner traffic than any other?
- why would any owner pay MF's in a timely manner if there are no consequences other than the fees being conveniently reduced?


I do believe it is available to all owners. I'm just stating my personal situation. No collections with $4600 outstanding and now an offer of 57% discount?
 

jndbaseball16

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So I am confused. You have a Star Island 3BDM listed for free in the bargain deals and you state there that the 2019 maintenance fees are paid in full. There is no mention of any fees past due.

They would be paid in full as soon as there was interest. if I do not pay in full by the time this offer ends, I will pull the ad.
 

jndbaseball16

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The math works out to a 57% discount. $2674/4674. Seems inconsistent that they would let one customer get away with that. Also, understand that giving your timeshare away for free doesn't make it "free" to another person. I believe the arrears need to be cleaned up before transfer is allowed. I would read your letter from the agency again - very slowly.


Sorry, I did the reverse math. 57% discount, but paying 43% of total. I'm sure this is available to all owners. When I asked for it in writing, I got it in an email from the billing department.
 

jndbaseball16

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You say "pay down" debt. But the question remains will you still owe the $2,674.61 or are they planning to forgive that?

I can't seem to vision they will do that as there will be no incentive for anyone to pay their maintenance fees; why would they if one would think they can get a 40% break on the bill ?




.
According to them, yes, they are willing to forgive the remaining balance.

Email from my rep

Hi Joe, When you pay $2000.65 we will waive $2714.68 off of the account you will be paid thru 2019 you will not be due again until January 1 2020
 

SueDonJ

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Just a guess here, but I'm thinking the major consequence of not paying your MFs in a timely manner would be that you couldn't reserve a unit and stay in it if you weren't current. I think that should be incentive enough. Sounds like a good deal for both parties and something like this would probably go a long way toward reducing bad debt expense for many many owners associations. If the association's choice is 60% or 0%, 60% seems like the obvious desired outcome.

I realize unpaid MF's are becoming a growing problem with timeshares, and that the assoc recouping 60% is of course better than 0%.

But I still don't think it's fair to other owners to have a policy of reducing MF's debt with no other financial consequence (at least a ding on a credit report,) or, to advertise how easy it is to effectively dump your financial obligation onto the other owners. I mean, somebody has to be paying the bills that are supposed to be covered by MF's, right?
 

jndbaseball16

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I realize unpaid MF's are becoming a growing problem with timeshares, and that the assoc recouping 60% is of course better than 0%.

But I still don't think it's fair to other owners to have a policy of reducing MF's debt with no other financial consequence (at least a ding on a credit report,) or, to advertise how easy it is to effectively dump your financial obligation onto the other owners. I mean, somebody has to be paying the bills that are supposed to be covered by MF's, right?

When you say 'unfair' to other owners. Are you talking within the same resort or owners at other resorts? Or owners with different amounts? so the owners who have paid should not have paid? I can see your point, but again, my thought is we are dealing with an industry on the decline and there is no hope for them or the owners of it ending. As much as I don't like being in this position I have to think the resort is in bigger debt than me. I've heard that the number of owners that are behind is very sizable at this point and yes, 40% is better than 0%
 

WVBaker

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So the "2019 Real Estate Taxes" are "Paid in Full" and the "2019 Maintenance Feels" are "Paid in Full", but $4,674.00 is in arrears and they will reduce that to $2,674.61 owed, which will be paid when you find a buyer?

It may be just me, but something just doesn't add up. Good luck on finding a buyer though.
 

jndbaseball16

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OMG people, it's simple. A 2 minute phone call takes care of the dues. It's a moot point. It will be paid WELL before any Quit Claim Deed if filled out and processed. When I test drive a new car, it doesn't have a full tank of gas, but it does when I pick it up. My question in this forum was about anyone else getting an offer like this and what was the experience.
 

Panina

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OMG people, it's simple. A 2 minute phone call takes care of the dues. It's a moot point. It will be paid WELL before any Quit Claim Deed if filled out and processed. When I test drive a new car, it doesn't have a full tank of gas, but it does when I pick it up. My question in this forum was about anyone else getting an offer like this and what was the experience.
Years ago when my husband passed I had two timeshares that I didn’t use, hurt too much, and didn’t realize I ignored almost 4 years. I don’t even remember getting mf notices. They let me pay partial like you but they also allowed me to deed them back to them. Have you asked them if you can deed them back? Maybe for a little more money they will let you. I wouldn’t ignore as some associations wait years and then go legally after you.
 

jndbaseball16

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They do not currently have a buy back or even an option to pay them to buy back. They did have a program about five years ago, but they have admitted they have so much inventory, they can't afford to take anymore on. To me, it sounds like they are hurting. When I first bought in '96 and I was in my 'presentation meeting' it did seem like most of the other people were from out of the country. It's probably easier for them to default since the resort wouldn't want to change them internationally for the money.

I am 99.99% sure I will be paying the MFs for the discount unless I can hear that it's a scam. I started this post to see if there were any others with this type of situation or had one (like yourself). It is the timeshare industry and unfortunately, there are more scams than genuine people. I was trying to get an opinion on this. When I posted mine for sale, looking through all the posts, I did not think it would move before the MF were caught up and most definitely wouldn't have processed the QCD with these outstanding fees attached. That would have been immoral and maybe even illegal.
 

SueDonJ

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When you say 'unfair' to other owners. Are you talking within the same resort or owners at other resorts? Or owners with different amounts? so the owners who have paid should not have paid? I can see your point, but again, my thought is we are dealing with an industry on the decline and there is no hope for them or the owners of it ending. As much as I don't like being in this position I have to think the resort is in bigger debt than me. I've heard that the number of owners that are behind is very sizable at this point and yes, 40% is better than 0%

I'm talking about the other owners at your resort. Presuming that the management company is doing its job correctly and not milking all of you as cash cows, the MF's are based on costs for ongoing and expected future expenses. If you're not paying 40% or 60% (or whatever amount is being forgiven) of your fair share of the costs to run the place, who is? The bills have to be paid by somebody. So is the management company covering the amount that you're being forgiven out of its own coffers? Or is your unpaid share, and the unpaid shares of every other delinquent owner, being passed on to the owners who are paying their MF's fees?

Like I said, unpaid MF's are a growing concern across the entire timeshare industry, but I think it's as important to recognize that the bills have to be paid as it is to recognize that some people are not paying. And talking only about how your resort appears to be handling the problem, if I were an owner there I wouldn't be happy to learn that anybody who skips a few years MF's payments will eventually be offered a chance to pay less than what we've all been billed. Honestly, if this is how your resort is handling the problem routinely, it's really not surprising that the resort is mired in debt.
 

jndbaseball16

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I'm talking about the other owners at your resort. Presuming that the management company is doing its job correctly and not milking all of you as cash cows, the MF's are based on costs for ongoing and expected future expenses. If you're not paying 40% or 60% (or whatever amount is being forgiven) of your fair share of the costs to run the place, who is? The bills have to be paid by somebody. So is the management company covering the amount that you're being forgiven out of its own coffers? Or is your unpaid share, and the unpaid shares of every other delinquent owner, being passed on to the owners who are paying their MF's fees?

Like I said, unpaid MF's are a growing concern across the entire timeshare industry, but I think it's as important to recognize that the bills have to be paid as it is to recognize that some people are not paying. And talking only about how your resort appears to be handling the problem, if I were an owner there I wouldn't be happy to learn that anybody who skips a few years MF's payments will eventually be offered a chance to pay less than what we've all been billed. Honestly, if this is how your resort is handling the problem routinely, it's really not surprising that the resort is mired in debt.

All Very good points. I'm not sure how the big picture plays out here but I do see your point. I am sure that there are owners who are up to date and would probably not agree with this approach.
 

A.Win

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Perhaps the resort has been renting his unit the past 4 years. They are probably charging more than MFs. So this extra $2,000 is just extra income.
 

JudyS

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Perhaps the resort has been renting his unit the past 4 years. They are probably charging more than MFs. So this extra $2,000 is just extra income.
Yes, I thought about that, too. A well-run resort should be able to find renters for weeks that are in arrears. I disagree with the idea that the reduction in MFs hurts the other owners. The weeks in arrears should have been rented. The Original Poster is looking at paying a couple of thousand in MFs for weeks he never used.

If weeks in arrears are sitting empty, the HOA Board needs to step up and do something to find renters or to find new owners for the unused weeks. If the resort is in such bad shape, or otherwise undesirable, that no renters or new owners can be found, then the HOA Board should consult with the owners about selling the property. Often, state law makes dissolving the timeshare difficult. However, merging with another resort may be an option if there are many unused weeks, and some owners do not want to dissolve the timeshare. Then, one of the two merged timeshares can be sold for the value of the real estate, and the funds used either to buy out some owners (if not quite enough owners want to leave the timeshare organization), or to help fund the remaining resort. Star Island timeshare is near Orlando and the real estate should have value.

I remember the late John Chase was able to merge the resort on Cape Cod where he was HOA Board president with another struggling Cape Cod resort. I believe the resort he managed is now doing well. If that can be done on Cape Cod, it can be done in Orlando.

I very much disagree with the idea of just accepting timeshares as burdens for owners to bear. Possibly, there are situations in other countries where that can happen, but there's really no reason why that should happen in the U.S. If a timeshare is very rundown, or is in an area that no longer attracts vacationers, people who want to leave the timeshare should be allowed to do so. Then, if there are owners who refuse to end the timeshare, they should be the ones stuck with any burden. Owners who want out should not have to subsidize owners who want to stay.

And, by the way, I am not saying this because I personally want out of my timeshares. I own a bunch of timeshares, and I intend to keep owning lots of timeshares.
 

jndbaseball16

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Yes, I thought about that, too. A well-run resort should be able to find renters for weeks that are in arrears. I disagree with the idea that the reduction in MFs hurts the other owners. The weeks in arrears should have been rented. The Original Poster is looking at paying a couple of thousand in MFs for weeks he never used.

If weeks in arrears are sitting empty, the HOA Board needs to step up and do something to find renters or to find new owners for the unused weeks. If the resort is in such bad shape, or otherwise undesirable, that no renters or new owners can be found, then the HOA Board should consult with the owners about selling the property. Often, state law makes dissolving the timeshare difficult. However, merging with another resort may be an option if there are many unused weeks, and some owners do not want to dissolve the timeshare. Then, one of the two merged timeshares can be sold for the value of the real estate, and the funds used either to buy out some owners (if not quite enough owners want to leave the timeshare organization), or to help fund the remaining resort. Star Island timeshare is near Orlando and the real estate should have value.

I remember the late John Chase was able to merge the resort on Cape Cod where he was HOA Board president with another struggling Cape Cod resort. I believe the resort he managed is now doing well. If that can be done on Cape Cod, it can be done in Orlando.

I very much disagree with the idea of just accepting timeshares as burdens for owners to bear. Possibly, there are situations in other countries where that can happen, but there's really no reason why that should happen in the U.S. If a timeshare is very rundown, or is in an area that no longer attracts vacationers, people who want to leave the timeshare should be allowed to do so. Then, if there are owners who refuse to end the timeshare, they should be the ones stuck with any burden. Owners who want out should not have to subsidize owners who want to stay.

And, by the way, I am not saying this because I personally want out of my timeshares. I own a bunch of timeshares, and I intend to keep owning lots of timeshares.

That is also part of the problem with trying to sell the TS. If you go to their page for information about the resort, you are immediately shown the rental portal with all the fields to get a price. The prices do range but for the most part, they are renting for less than the maintenance fees. I have not personally been to the resort in several years, but the last time was 2014 and it was in really nice shape. The pictures depict a well run resort as well with many amenities. But, to the casual vacationer, why commit to the maintenance fees when you can rent for about the same price or slightly more (once resort fees are added) and not take on this burden. I wish all that information was public. Vacancy rates, MF in arrears, available units for sale. While some love the idea of a TS, in general the industry has been in a downturn for some time now. To your point, I wonder if there is a market out there for them to sell these units as homes. While they wouldn't generate nearly the money they could on MF per week x 52, it would be a way to escape this dying market.
 
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