[2008] What happens if I just quit paying my maintenance fees?

[Stormron]

Short Memory

Seems like everyone on this thread has forgotten the part of the original timeshare presentation about what a great "investment" timeshares are. I guess it is OK that many owners bought based on false or misleading information.

I also looked at the declarations for one of the resorts I own at, and found several hundred pages of fine print that according to this thread, I am bound by???

I was also wondering if anyone knows of any other industry with legal positions to bind you for lifetime without any "acceptable" way out??

 

[bnoble]

Seems like everyone on this thread has forgotten the part of the original timeshare presentation about what a great "investment" timeshares are.

No. We just recognize it for the BS that it it.

I also looked at the declarations for one of the resorts I own at, and found several hundred pages of fine print that according to this thread, I am bound by???

That's correct. If you bought from the developer, that fine print was almost certainly disclosed to you. If you bought on the secondary market, it would have been your responsibility to do your due diligence regarding the restrictions that are incorporated into your deed with language that specifically mentions the Declaration of Condominium, including where in the county real estate records you can find it.

Where else does this happen? Pretty much any real estate transaction. For example, when we bought our current house, we agreed to several restrictions on the property (for example, I may not park a boat or recreational vehicle in my yard for more than about 24 hours or so). We also agreed to pay a monthly fee to the community homeowners association for care and upkeep of common areas. I must pay that fee until I sell the home---and, right now, I would take a non-trivial loss to do so. These restrictions and requirements were all spelled out in a document that I read---cover to cover---before removing the appropriate contingency in my purchase offer.

In other words: it's time to put the big boy pants on.

 

[theo]

Absolutely correct, and...

If you bought from the developer, that fine print was almost certainly disclosed to you. If you bought on the secondary market, it would have been your responsibility to do your due diligence regarding the restrictions that are incorporated into your deed with language that specifically mentions the Declaration of Condominium, including where in the county real estate records you can find it.

In the timeshare resale market, there are certainly some "less than fully comptetent" people preparing deeds. Consequently, to cite just one very real example, a hastily prepared "quitclaim" deed may well fail to include any specific reference to the original, underlying condo declaration documents. Rest assured that all of the rights and responsibilities of ownership nonetheless apply and remain in full force and effect, with or without overt reference to those long-ago recorded declaration documents in a later resale deed.

 

[DeniseM]

I was also wondering if anyone knows of any other industry with legal positions to bind you for lifetime without any "acceptable" way out??

Oh yeah - I sold my last house during the last real estate down-turn. I was upside down on my mortgage, and lost $10,000 when I sold the house. No one bailed me out, nor did I expect anyone to let me out of my contractual obligation. I was a competent adult who signed a contract, and I was not anywhere close to declaring bankruptcy, so I assumed full responsibility for my decisions and the consequences.

 

[Stormron]

With houses???

The housing market may stink but you can still recover part of your real investment in real property. At the present time, what is the legitimate way out of a timeshare?

Oh, yeah, I would like to know how many have actually read all the declarations that are made with a timeshare resort.

I have heard that HOA's spend up to $1500 on average for each foreclosure - seems to make real sense when the value on the open market for the "property" is $0

 

[Stormron]

Hey Denise - I thought that advertising was forbidden on this BBS. What the heck is your "My Webpage" link with your fee based advertising. I guess the policy is that it doesn't apply to "moderators"\????? Seems a little shady at best to me.

 

[DeniseM]

Hey Denise - I thought that advertising was forbidden on this BBS. What the heck is your "My Webpage" link with your fee based advertising. I guess the policy is that it doesn't apply to "moderators"\????? Seems a little shady at best to me.

Yep, thousands of volunteer hours on TUG, and I'm "shady." You caught me. Amazing work from someone with only 16 posts!

I suggest that you familiarize yourself with the TUG posting rules before you start making accusations:

You may link to a commercial website in your signature, but the link itself may not indicate the nature of the site. If your URL or domain name indicates the nature of the site, it should not be visually displayed. A visual link saying only "My website" or other similar innocuous wording is acceptable.

There are many Tuggers who have the allowed link in their signature line.

 

[bnoble]

The housing market may stink but you can still recover part of your real investment in real property. At the present time, what is the legitimate way out of a timeshare?

It's the same. The only question is: how much will you recover? If you bought a timeshare from the developer, sadly, the answer is "not much". If you bought it resale, the answer probably doesn't matter, as you paid very little in the first place.

The fact that the resale value is negligible has no bearing on whether or not you have an obligation to pay the fees going forward---the obligation flows in the same way as my obligation to my homeowners' association.

You can continue to meet your obligations, or you can choose not to pay your timeshare fees, suffer the foreclosure, and take the hit on your credit. If you still owe a significant fraction of the purchase price, that may be your only way out without writing a really big check. But, if you are the one who "signed on the line which is dotted", then you are on the hook one way or the other.

 

[Stormron]

Yep, thousands of volunteer hours on TUG, and I'm "shady." You caught me. Amazing work from someone with only 16 posts!

I suggest that you familiarize yourself with the TUG posting rules before you start making accusations:


There are many Tuggers who have the allowed link in their signature line.

Gosh - gee - thanks for the insightful reply. Now I know the real rules of this BBS. It is A OK to have a link to any commercial website in your signature line as long as where that goes is a surprise commercial site - without mention in your post. Right?

Just for the record - here are the rules you are playing by:

If you are a broker or salesperson, or work in an allied field, we welcome your participation on the board. We value your industry perspective and valuable insights. We do not appreciate, however, attempts to use our bbs for direct commercial purposes. We do not, for instance, welcome your adding tag lines promoting your business, such as "Call me for more information." Use the board as a way to be helpful and build your reputation, not as a direct sales tool, please. Due to flagrant commercial violations by some abusers in the past, we have found it necessary to be very strict about this.

Individual users please note that messages promoting anything for which you may receive some personal gain are considered to be advertising, and are thus prohibited. Promotion of any service where you would get referral compensation is considered to be advertising. Directing somebody to your classified ad on TUG or elsewhere is considered to be advertising. Promotion of a website where you have anything for sale or rent is considered to be advertising.

The advertising ban includes information in your bbs signature. You may link to a commercial website in your signature, but the link itself may not indicate the nature of the site. If your URL or domain name indicates the nature of the site, it should not be visually displayed. A visual link saying only "My website" or other similar innocuous wording is acceptable.

BTW - isn't your link competing with the TUG Classified ads? Seems to be some contradiction here.

 

[DeniseM]

Ron - You agreed to the TUG Posting Rules when you joined TUG - it's part of the registration process. Apparently you didn't bother to read them.

If you can't live with them - then don't post here - it's simple.

If you have any other complaints, per TUG rules, send me (or TUG Administration) a private message - don't post it here.

In addition, do not enter complaints about moderation into BBS messages. Such posts will be considered off-topic and will be removed. Any such complaints or discussion should be communicated to the bbs staff directly via email or personal message.

 

[Dave H]

The housing market may stink but you can still recover part of your real investment in real property. At the present time, what is the legitimate way out of a timeshare?

Oh, yeah, I would like to know how many have actually read all the declarations that are made with a timeshare resort.

I have heard that HOA's spend up to $1500 on average for each foreclosure - seems to make real sense when the value on the open market for the "property" is $0

Then timeshares fall into that, If you sell it for $1 you have recovered some part of your investment...

HOA's have many reasons for the foreclosure process. Foreclosure also cleans up the title on all the improper transfers for example.

Banks spend 10's of thousands on a foreclosure. Why don't banks just take back my house cause after all, I have lived here 4 years and well, I just don't really want it anymore. Oh and don't put any bad marks on my credit, cause I really just want a bigger place that I can live in for the next 4 or 5 years and have them take it back after that cause, well, I just don't want to have to pay for it any more. Cause afterall, there should never be a consequence for anything I do.

 

[Talent312]

Oh, yeah, I would like to know how many have actually read all the declarations that are made with a timeshare resort.

I think that I can summarize almost everone's without reading 'em:
"You may think that you've won some sort of prize, but we (or the HOA) have the right, if we so chose, to make it so burdensome that you'll end up whining about it on any public forum that gives you a platform, as if it matters."

 

[bnoble]

I think that I can summarize almost everone's without reading 'em:
"You may think that you've won some sort of prize, but we (or the HOA) have the right, if we so chose, to make it so burdensome that you'll end up whining about it on any public forum that gives you a platform, as if it matters."

Hereby nominated as Post Of The Year for 2010.

 

[FrugalFrank]

I Think You Might Be Referring to Form 1099-C, Cancellation of Debt

Hi All,

Has anyone ever heard that the resort can also, after a foreclosuer, send your default judgment to the IRS and unearned income.

So, now you have credit reporting and the balance that you have to pay the government.

Let me know if you have ever heard of this.

Thanks

Here is the link to the IRS site -
http://www.irs.gov/newsroom/article/0,,id=174034,00.html

 

[bnordol]

what happens if i am collecting social security and stop paying my time share fees.

I am collecting social security and a pension to live on and I will stop paying my timesher fee. Can my social security and pension be taken away

 

[e.bram]

They didn't take away OJ's!

 

[Kona Lovers]

They didn't take away OJ's!

What timeshare did OJ stop paying maintenance fees on?:hysterical:

 

[bnoble]

Can my social security and pension be taken away

If you are foreclosed upon, it is also possible for the management company to obtain a judgment against you for the amounts that are owed, plus penalties/interests and court costs. Whether or not they do so is a gamble I would not want to take.

You'd be much better off trying to unload it---list it under Bargain Basements, and offer to pay transfer costs, etc.

 

[rickandcindy23]

It's amazing how many people get offended by people here on TUG, when all we are sharing are facts. Most of us here think it is wrong for resorts to refuse to take back deeds.

But once a resort is older, there is no avenue to sell those deeds. The better resorts have a newsletter where owners can market to other owners, and that's good because other owners are more likely to want it.

Dumping a timeshare back into the inventory of deadbeats. That is what a resort sees, when someone asks to deed back. The resorts have to do the same thing we do: offer it for sale (or free) on various websites like My Resort Network, Redweek, Timesharing Today, TUG, etc., just to find someone to take over the maintenance fees.

If developers would just stop building and marketing new timeshares, there would be plenty of weeks in older resorts to satisfy those who would find value in owning them.

Offer it for free here under Bargain Deals.

Advertise on any bulletin board you can find, and I am not talking about the internet. I am talking about bulletin boards in community centers, restaurants, the resort itself, etc. I have sold two timeshares by advertising on a bulletin board at our local Mexican restaurant, a mile from our house. I just listed all of the resort's amenities, the low fees for staying there a week, and I found takers.

Timesharing Today is another great avenue for selling. I sold two weeks using an ad that was a $10 add-on to an ad I posted on My Resort Network. I hope to sell another three or four that way.

 

[Brerrabbit]

Sort of what happened in my case

I have a [timeshare] that I don't use any more and would like to get out of. Selling it hasn't worked; Donating it seems like a hassle and may take longer than when the next maintenance fee is due (January 2009). What are the repurcussions of just not paying the maintenance fees anymore and sending them a note that I no longer want it? Seems like they'd just take it back and resell it. It's Mexico so it's not deeded, just a vacation week. Will it affect my credit rating here in the states somehow?



[Info. that may make this post appear to be advertising has been removed.-DeniseM Moderator.]

I had some job difficulties and was not able to pay the maintenance fees and it wound up being foreclosed upon in April 2009, I think - and I didn't find out about it until about a year and a half later. I don't think they have ever tried to get me to pay anything further, haven't heard from any collections agencies, etc. I don't know if it has affected my credit or not because I haven't looked at credit reports for a while.

My thought is that I am just going to forget about it and write it off as an example of what Dave Ramsey calls the "stupid tax". However, if they ever did try to sue me or anything to collect it, I would turn around and sue the lawyers who did the foreclosure, because the law says (I think - this is in Arizona) that they are supposed to notify me by certified mail, and they never did.

I have also concluded that the only way I would ever buy a time share again would be if it had a provision in the contract that if they ever raised the maintenance fees, and I didn't agree with it, I would have the option of giving the timeshare back to them and getting back the money that I paid for it. (I know that ain't gonna happen.)