[2011] Marriott Custom House T/S Auction Today

[Beaglemom3]

Beagle, please clarify something. I took your points comment to mean Marriott Rewards points. Since they were sold by Marriott, do they qualify to be added to the destination points program?

Also, how do you find out about these auctions? I would be very interested in California properties.

Congratulations and thank you.

Hi Lisa,
In the paper that I'm holding, it says that Platinum units are worth 125,00 Marriott reward points and Gold units are worth Marriott reward 110,000 points. I am brand spanking new to Marriott and need to get up to speed on the destination points program. So, not sure on that. I'm sure that after the title is recorded and I speak with the Marriott folks, they'll 'splain" it to me. I have my homework to do .

I am a real estate auction junkie. Bought my first FDIC foreclosure in 1993 (Quechee, Vt.) and did very well. Have bought more foreclosures over the years and again, did very well. There is inherent risk and this is not for everyone. I've bombed (just a bit, twice), but those were more of an emotional buy than a realistic buy. These purchases were not timeshares. This was my first time buying timeshares at an auction like this.

I read the foreclosure notices in the Boston Globe and the Nantucket Inquirer and Mirror (paper editions).
I subscribe to www.realtytrac.com
I scan: www.pesco.com, www.jjmanning.com and commonwealth auctions. Most of these are local auctions, but they do countrywide sales, too. I just watch the areas that I'm interested in.

Not sure about California, but if you Googled "real estate auctions" and added the area of where you're looking, it might yield something. Try "real estate auctions + XXXXX, Califronia".

There are some good books out there, too, on buying foreclosures. Seminars, too.

If one doesn't know what they're doing or are risking the "nest egg", I advise against it. Have only used disposable income (remember when ?) for this. Like playing the stock market, but it's the real estate market and hoping you know when it's reached the bottom.

 

[potchak]

Congrats on the score BM! That is awesome!

 

[SueDonJ]

Hi Lisa,
In the paper that I'm holding, it says that Platinum units are worth 125,00 Marriott reward points and Gold units are worth Marriott reward 110,000 points. I am brand spanking new to Marriott and need to get up to speed on the destination points program. So, not sure on that. I'm sure that after the title is recorded and I speak with the Marriott folks, they'll 'splain" it to me. I have my homework to do ...

Marriott Rewards Points and Destination Club Points are not the same thing. Marriott Rewards is the Marriott loyalty program; those points can be used for all sorts of hotel and timeshare stays as well as airline miles, products, etc. Direct-purchase timeshares can be converted annually to MRP, external resales can not.

The Destination Club is Marriott's new points-based timeshare system that was introduced in June, 2010, and it has nothing to do with the loyalty program. When it was introduced they announced that resales processed after 6/20/10 - including Marriott resales - could not be eligible for enrollment in the DC. But I vaguely remember seeing a post a few weeks ago saying that they're now allowing Marriott resales to be enrolled. Maybe somebody else will remember that as well, or will tell me I have rocks in my head and nothing's changed. Anyway, if you can enroll your Weeks in the DC then you'll be able to elect annually to use DC Points in the DC Exchange Company. But Marriott Rewards Points and Destination Club Points are not interchangeable and one does not equal one.

At the top of this Marriott board there are several stickies - the Marriott Timeshare FAQ's one has a few things about Marriott Rewards Points and the Summary of the New Marriott Points-Based Ownership Option one has info on the new Destination Club.

 

[Beaglemom3]

Marriott Rewards Points and Destination Club Points are not the same thing. Marriott Rewards is the Marriott loyalty program; those points can be used for all sorts of hotel and timeshare stays as well as airline miles, products, etc. Direct-purchase timeshares can be converted annually to MRP, external resales can not.

The Destination Club is Marriott's new points-based timeshare system that was introduced in June, 2010, and it has nothing to do with the loyalty program. When it was introduced they announced that resales processed after 6/20/10 - including Marriott resales - could not be eligible for enrollment in the DC. But I vaguely remember seeing a post a few weeks ago saying that they're now allowing Marriott resales to be enrolled. Maybe somebody else will remember that as well, or will tell me I have rocks in my head and nothing's changed. Anyway, if you can enroll your Weeks in the DC then you'll be able to elect annually to use DC Points in the DC Exchange Company. But Marriott Rewards Points and Destination Club Points are not interchangeable and one does not equal one.

At the top of this Marriott board there are several stickies - the Marriott Timeshare FAQ's one has a few things about Marriott Rewards Points and the Summary of the New Marriott Points-Based Ownership Option one has info on the new Destination Club.

Thank you, thank you, thank you. This really clarifies it for me.
There's a lot of info on the Marriott Stickies and threads and I am grateful for everyone's contributions, but it was taking a lot of time trying to understand all. This is extremely helpful .

 

[Beaglemom3]

I spoke to the sales manager and the GM this afternoon and they assured me that what I bought is not considered a secondary market resale, but a special Marriott sale.
Just an FYI.

 

[dmharris]

I am so happy for you; you're such a nice person on TUG, I'm sure you deserve this great deal! Congratulations!

 

[californiagirl]

Beagle thanks for all the info on real estate auctions. If you are able to include those weeks in the destinations club, you have really scored! That could be a way to buy a Marriott week at resale prices, but not have the resale restrictions. You can have your cake and eat it too! I hope those weeks are eligible.

 

[LAX Mom]

Congrats on a great purchase!
A friend recently called me about some auctions in Park City on the Park City Marriotts. I think it was later this month. There was a legal notice posted in the Park Record.

 

[TheTimeTraveler]

What a great day.

I was the only bidder present besides Marriott's Counsel (very, very good and nice folks from PESCO). Another man did show up at the 11 am auction, but did not have his certified or treasuer's check. So, it was just me and Marriott buying back several foreclosures that they were holding the notes on.

Here's what I got :2 non-judicials (non payment of MFs). These had the lowest opening bids.

2 Platnium weeks for $4k each. Total of $8k paid by cert check.

The great part: 125,000 Marriott Rewards pts. each =250,000 pts annually.
The best part: No ROFR as these were sold by Marriott and are not considered a secondary market resale AND (drum roll............) the points are annual as, again, this is a sale from Marriott.

I will get my foreclosure papers and do the title recording at the Suffolk County Courthouse. We have a paralegal who can get this done brilliantly.
Once that is done, I contact Marriott.

Wow, I'm a double platinum Marriott owner for $8k and it's in my beloved Boston. Can use the pts. to travel, stay in it, rent it or deposit it.

Sometimes just showing up is most of the work.

I'd be happy to help anyone with questions on the process as best I know it. I"m sure that this will be one of many timeshare auctions for various timeshare and not restricted to Marriott.

B.

.




Seems to me that it would be cheaper and more profitable for Marriott if they were to electronically auction these weeks off by using Ebay as their method of auction.

It certainly would have a much wider audience, and likely more bidders, especially for Timeshare Properties located all over the United States.




.

 

[SueDonJ]

Beagle, I think you can trust what the sales manager and resort GM told you about your purchases being considered direct purchases for the Marriott Rewards exchange option. I'm certain of this because one of our direct-purchase weeks was actually a Marriott Resale, which we didn't know until we noticed the different wording in the contracts, and they assured us that it was a direct purchase like any other.

The only exception to Marriott Resales being considered for all intents and purposes to be direct-purchases, like I mentioned before, is that they hadn't been allowing Marriott Resales after 6/20/10 to be enrolled in the DC. If this has changed recently (the way I thought I'd seen written on TUG) then you should be able to enroll your purchases. You'll know for sure once you're in Marriott's system and can access your my-vacationclub.com account, because at that point you can follow the prompts to "Enroll Now" and you'll see your eligibility status.

I'm guessing that you're brand new to Marriott Rewards as well as the timeshares. This might be way too elementary for how much you know about Marriott, but you can't convert your Weeks to MR Points unless you have an MR account. This link should take you to an enrollment page for MR; hold onto it until your purchases are completely in the system. Then open your free MR account using the exact same name as what's in the paperwork for your Weeks. Once you have that account we can all teach you about Elite Status and Nights Earned and the Marriott VISA and Travel Packages and all kinds of other good stuff!

 

[ronparise]

Thanks for sharing the details on this sale, as well as the lesson in buying foreclosure sales generally.

.




Seems to me that it would be cheaper and more profitable for Marriott if they were to electronically auction these weeks off by using Ebay as their method of auction.

It certainly would have a much wider audience, and likely more bidders, especially for Timeshare Properties located all over the United States.




.

Sure it would be cheaper, but Marriott cant sell what they dont own....if I understand what happened here, its not Marriott doing the selling here. Its a court ordered sale at the court house....I assume that marriott is now the owner of some of these, ie they were the high bidder. Now they can sell them any way they want

 

[Beaglemom3]

I am new to Marriott, but a long time (1991) t/s owner of many great resorts (Hyatt, WSJ, Allen House, The Crane, Edinburgh Residence, Mariner House Nantucket, Harborside Inn Martha's Vineyard ) all bought at great - good prices. It's not easy to keep straight all the different rules & regs for the different t/s systems, but I will apply myself and learn Marriott's. I am your student. Many thanks.


I have MR points as I have an account and a Marriott CC.

I am happy just to have the Marriott Rewards points to use at hotels. We used my DF's Marriott pts to stay at the London's Marriott County Hall and the Champs in Paris. I have oodles of FF miles, so DC may/may not be for me even if I qualify. Yesssss ! Pls. educate me on Elite status and all the other finer perks.

To everyone, thank you for your advice and well wishes. Much appreciated.

 

[Beaglemom3]

Thanks for sharing the details on this sale, as well as the lesson in buying foreclosure sales generally.




Sure it would be cheaper, but Marriott cant sell what they dont own....if I understand what happened here, its not Marriott doing the selling here. Its a court ordered sale at the court house....I assume that marriott is now the owner of some of these, ie they were the high bidder. Now they can sell them any way they want

You're welcome.

Ron, you are correct. Yes, the auctioneer was acting as agent for and on the behalf of Marriott. They bought back all but the two I had and now they can do what as they wish. It was kind of funny when the attorney read all the bylaws and heretofores just before the actual bidding as I was the only bidder. The Marriott employees (GM & Sales Mgr.) were present, but could not bid.

If anyone can get to one of these auctions if just to learn, it's well worth it.

I showed up thinking there'd be a mob of folks and that I'd come away empty handed, but life is funny sometimes.

 

[sfwilshire]

I read the foreclosure notices in the Boston Globe and the Nantucket Inquirer and Mirror (paper editions).

That's a great idea. I've made casual inquiries a time or two on Brant Point ownership and never got any usable information. If you ever see any summer weeks there listed and aren't interested yourself, please let me know. We have our late June Tristrams week locked in now but I'd love to have an adjacent week to give us the option to stay two weeks. :whoopie:

It always hurts to get back onto the ferry on the seventh day.

Thanks,

Sheila

 

[jimf41]

Beaglemom3,

I'm a little confused by this thread. Did Marriott own the weeks you bought or not? If they didn't I don't see how it's possible for you to get MRP's out of them. It's a resale obtained at a great price IMO. If they did why would they bid on a property they already own? Certainly not to get the price up as they stopped bidding at 3k. If they planned to stop bidding at 3k Ebay would have netted them a lot more IMO. But then if they owned it why wouldn't they just put it in the trust?

Also, do you have to pay any back MF's. If so how many years?

 

[Beaglemom3]

Jim,

Marriott was the note holder on some of the foreclosed properties. The other units in default are for non payment of mortgages not held by Marriott and non payment of MFs. There were 3 categories of units on auction.

Any questions of why/why not Marriott did/didn't do certain actons cannot be answered by me. Those are questions for Marriott or the agents acting on Marriott's behalf. The auctioneer, Paul E. Saperstein of Braintree, Ma. can explain Marriott's reasons.

It's like buying a house at auction for non payment of real estate taxes. Why doesn't the town buy it back and make some money ?

There are no back MFs on my 2 units. When I receive my foreclosure deeds, I will record it in the Suffolk County Courthouse in Boston and then get in touch with Marriott. I will start paying MFs in December for the 2012 year.

Thanks,
Beags

 

[jimf41]

Beags,

Thanks for the clarification. You really did get a great bargain. I'm going to have to look into this route a bit more.

 

[Beaglemom3]

Beags,

Thanks for the clarification. You really did get a great bargain. I'm going to have to look into this route a bit more.

Jim and All,

If I see anything like this auction again, I'll be sure to post in plenty of time so that you can have a chance if you're so inclined. I'll post whether or not it's Boston or beyond.
Auctions are often cancelled the night before or the day of due to many reasons. This is why I did not post it earlier. I was surprised that this did not happen here and was shocked that I was the only bidder aside for the agents acting on Marriott's behalf.

Thanks,
B

 

[Queen]

Congratulations!

I would love to take you up on your offer to learn more about acquiring one like you just did.

Thanks,
Vee

 

[Beaglemom3]

Congratulations!

I would love to take you up on your offer to learn more about acquiring one like you just did.

Thanks,
Vee

Hello Vee,

Disclaimer: This is not legal advice, seek legal advice from a foreclosure or real estate attorney before getting involved in buying foreclosed properties. This is only what I do for myself.

Basically, I do just what I put in post #26 on this thread and incorporate the following as guidelines:

Do your homework, i.e., due diligence, on what you're buying. If you don't understand, seek legal advice before bidding. Seek it well in advance and not the day of sale. The lawyers are busy that day and can answer basic sale questions, but cannot school you in the ins/outs of buying at foreclosure.

Pick up a book or two on buying foreclosures. These books are usually geared toward house or condo sales, but they are a wealth of information in general.

Don't buy impulsively because it's a bargain.

Make sure that it's something you'll be able to use or deposit in case you were buying to rent or sell it. The days of many having disposable income are over, so renters and buyers are much less than before.

Know what you're buying and from whom. RTU ? Deeded ? MFs ? Owner ? Corporation ? Transfer costs ? ROFR ?
Back taxes ? Assessment(s) in arrears ? Other items in arrears ? Default rate of the resort/ corporation ? The balance sheet/financial health of the resort ?

These are almost always cash sales, so go prepared with the cash in the bank and whatever certified or treasurer's check is required in hand. This required amount will secure your bid and will allow you to bid. It is your "ticket" to play (bid). You are usually given 30 days (this can vary) to come up with the remaining funds. If you cannot, do not or change your mind, you will forfeit your sizable deposit.

Don't buy if you cannot afford it or if it is a risk to your financial security. Remember, you can go broke saving money.


Last edit: Be wary of countries where there is no recourse or protection for the bidder.

 

[Beaglemom3]

Recorded both deeds for $286.48 (total) today.

Thank you all for your seasoned advice for this newbie Marriott owner.

Now, I can call Marriott.

B.

 

[flyboy0681]

Obtaining all these properties is fun stuff but I'm always concerned about the maintenance fees. I've said it here many times that if they were "reasonable" that I would pickup another two units somewhere. Unfortunately I just can't bring myself to shelling out $5000k+ every January.

 

[Beaglemom3]

Obtaining all these properties is fun stuff but I'm always concerned about the maintenance fees. I've said it here many times that if they were "reasonable" that I would pickup another two units somewhere. Unfortunately I just can't bring myself to shelling out $5000k+ every January.

How true and always a consideration, but as I am on the sunny side of 60 and plan on traveling a lot, the annual 250, 000 Marriott points are, for me at least, a good deal factoring in the cost; the MF and the purchase price.

The only administrative cost was the recording and no other legal fees, otherwise, I would have had to "back away slowly from the timeshare deal".

I just sold my WSJ due to the acquistion of the CH x 2, so the total annual MFs aren't nearly as dreaded .

 

[Nickfromct]

Thanks for sharing BeagleMom. Were the Marriott people surprised anyone showed up to bid?

 

[Beaglemom3]

Thanks for sharing BeagleMom. Were the Marriott people surprised anyone showed up to bid?

Yes, the Marriott GM , Sales Mgr.and the lawyers-auctioneers were surprised and very nice about it. I thought that they might cancel, but they went on as scheduled. They had received "about 30" phone calls in the days prior to the sale. They had a small conference room with about 25 chairs set up for the expected bidders right off the main lobby.

When I checked in to register with the auctioneers, I was surprised to find out that I was the first one (it was 20 mins. prior to the start). After the first session, the legal session was over (Marriott bought all of these units "legals" back) there was a session break. Another bidder did show up and told the attorneys that he "was a friend of Paul Saperstein" (the auction house owner) and that Paul had okayed his bidding without the required certified check for $5k per unit. The attorneys said that Paul had not called or notified them, so he would have to go to the bank for his certified check. I got nervous at this point as he would have been my competition. He had about 20 minutes (the break time) to get this done. Fortunately, he did not return.

So, for me, as in life, lesson learned is that just showing up is 90%. I really did luck out, big-time on this one.