Purchasing for RCI points but what if home resort "goes under"...

[cameryn]

I’m considering buying some very inexpensive timeshares with reasonable maintenance fees, just so I can use the RCI points, and it’s very unlikely that we’ll ever stay at the timeshares we are purchasing, as we simply want to use the points for stays at other resorts. The timeshares would be deeded for life. I’m curious to know if anyone has ever had experience with a resort “going under” and in such a case what happens to the RCI points? Is everything simply lost? Your experiences/thoughts? Thank you.

 

[tschwa2]

You don't want to buy at a resort that has questionable maintenance or management problems and it likely to go under. Usually before it does, the management either defers maintenance perhaps while trying to sell or the maintenance can go up with special assessments as the HOA tries to delay or avoid going under as other owners stop paying. Sometimes RCI will drop a resort if conditions become bad but the timeshare doesn't cease to exist, but you no longer would have access to RCI.

 

[cameryn]

You don't want to buy at a resort that has questionable maintenance or management problems and it likely to go under. Usually before it does, the management either defers maintenance perhaps while trying to sell or the maintenance can go up with special assessments as the HOA tries to delay or avoid going under as other owners stop paying. Sometimes RCI will drop a resort if conditions become bad but the timeshare doesn't cease to exist, but you no longer would have access to RCI.

Very helpful. Thank you.

 

[Passepartout]

The current financial statement should be available, and that should show 'reserves on hand' and what expenditures have been made toward keeping the place up. It will also show 'bad debt', in other words what owners are bailing out, leaving the ones remaining to pick up the slack.

This should give you a picture of the soundness of the resort.

Jim

 

[cameryn]

The current financial statement should be available, and that should show 'reserves on hand' and what expenditures have been made toward keeping the place up. It will also show 'bad debt', in other words what owners are bailing out, leaving the ones remaining to pick up the slack.

This should give you a picture of the soundness of the resort.

Jim

Thank you Jim.