[ 2012 ] Fairmont / Sunchaser / Northwynd official thread with lawsuit info!

[Maple_Leaf]

Timeshare governance trumps everything

The lesson that is taught over and over is if you are considering buying or leasing a timeshare you need to understand the governance structure before you sign on the dotted line. If you don't understand how the timeshare is governed, RUN!

 

[Quadmaniac]

The lesson that is taught over and over is if you are considering buying or leasing a timeshare you need to understand the governance structure before you sign on the dotted line. If you don't understand how the timeshare is governed, RUN!

I would bet very few people, even here at TUG, have knowledge of their governance structure of their timeshare? Even so, many management companies make their own rules after the fact as shown here. Well informed "owners" simply are helpless most of the time. Simple fact.

 

[Meow]

Thank you, TSWOW, for setting out the facts of our situation in such a clear and concise fashion. I agree that all those who have a problem with the way Northwynd are proceeding, should let their feelings be known to Northwynd. As far as Northwynd knows, the vast majority of unitholders are on side with them.

 

[RandRseeker]

Northwynd Real Estate, the owner of the underlying real estate of Sunchaser Vacation Villas at Fairmont Hot Springs, has estimated a cost of $28 to $38 million, excluding management fees of 15% and HST, to do a "high-level" renovation of the entire resort. This translates to a special assessment of $3,000 to $4,000 per annual timeshare week or $1,500 to $2,000 per bi-annual timeshare week which will be payable monthly at $100per month, interest free.
It is unfortunate that Sunchaser owners have not provided Northwynd, the owner, or Resort Villa Management (RVM), the resort manager, a lot of feedback regarding the maintenance fees and the high-level renovation estimate and as a result they are working on the understanding that most owners are happy with the situation. .

I wonder if people got the brochure about the "Exciting changes coming in 2013" and didn't realize that it was going to come with a huge price tag to them? There really wasn't any mention of how much each unit would have to pay, and I bet once they receive the bill, a lot more owners will be giving some feedback!

 

[jekebc]

To Tswow - sounds as though you are a big fan of Northwynd - An employee or one of the REIT investors trying to get his money back?
Since they took over Northwynd and their associated companies have, in my opinion, failed in their obligation to manage and maintain the resort in a prudent and workmanlike manner. Maintenance Fees have increased by 26% but the state of repair of the resort has deteriorated. Northwynd has spent $3.2 million more than the budget as at Dec 2011 with no authority to do so. From 2009 to 2011 they allowed bad debts in excess of $500 K per year, so much for an aggressive collections. They are allowing owners to terminate their lease for payments of $3,000 +/- but instead of paying those funds towards maintenance fees, are pocketing the money as damages.They failed to produce proper audited financial statements for the past 2 years and are about to miss the March 2012 deadline - what are they hiding? In my opinion, they are simply collecting whatever monies they can, transferring it out of the reach of timeshare owners, and are about to declare bankruptcy, leaving the owners to hold an empty bag. I don't think Northwynd et al can be trusted. Why would you give them more money?

 

[Duane_Meade]

I agree i think everyone should stop paying and see what happens.

 

[gnorth16]

28-38 million for reno's... Not only is that extremely high, the range is alnmost too wide to be believable. I stayed at Riverside a few years back and it was nice, not gold crown IMO, but well furnished and nice layouts. I'm not sure where $200,000 per unit will be applied? Gold plated appliances????

 

[fedupwithtimeshare]

Skeezics--do you have that facebook link? I could not find it. Does anyone else have a link to any other site where i can get more information on the special assessment? Thanks1

Do you own a timeshare at Sunchaser Vacation Villas in Fairmont, B.C. and have concerns re the notice of major renovations that will increase the maintenance fees. A group of 50 timeshare owners that share your concerns are working together on a plan of action as to how to deal with Northwynd and the management company for the resort. If you would like to join this group,contact Jim at thebelfrys@shaw.Ca

 

[Duane_Meade]

just walk away its good money after bad.

 

[LarryEdmonton]

Do you own a timeshare at Sunchaser Vacation Villas in Fairmont, B.C. and have concerns re the notice of major renovations that will increase the maintenance fees. A group of 50 timeshare owners that share your concerns are working together on a plan of action as to how to deal with Northwynd and the management company for the resort. If you would like to join this group,contact Jim at thebelfrys@shaw.Ca

Can you quit repeating the same message. It is not necessary. Clearly you made your proposal known to those interested

 

[Quadmaniac]

I agree i think everyone should stop paying and see what happens.

Tell us how it works out for you. Might not be as simple as you make it out to be as there are consequences.

 

[Tacoma]

Well it's the end of April and I still haven't seen anything from Sunchaser. Has anyone received official notice of the costs, payment plans etc.?

Joan

 

[condomama]

Not yet, but all the forthcoming details appear to have been posted on their website under Renovations, including that they are starting with building 800 already. We await how they will address us personally, though.

 

[DarkLord]

Just got the renovation special assessment bill, it's $4200 with tax. My first thought was to walk away. Or maybe I should just ignore it and hope something better will happen. What do you think?

 

[LarryEdmonton]

You are given the option to walk away subject to a payment for foregone management fees and your share of past deficits

It looks like they have a good plan to make the Resort an efficient and quality resort

In my view some fair options with the facts clearly laid out on their Webpage

 

[DarkLord]

How much is the cancellation option? I have 20 years left so let's say 20 years of MF is $20,000. 11% of that is $2,200 and I have one week to use which is worth $1000. That means the cancellation is only going to cost me $1,200 which might not be too bad.

 

[RandRseeker]

How much is the cancellation option? I have 20 years left so let's say 20 years of MF is $20,000. 11% of that is $2,200 and I have one week to use which is worth $1000. That means the cancellation is only going to cost me $1,200 which might not be too bad.

According to the document posted on their website the cancellation option will cost $3,167.51 (based on a two bedroom annual with 20 years remaining MF).
Also, they provide no assurance beyond May 31st, 2013 that it will not be modified or eliminated in the future as circumstances dictate.

 

[DarkLord]

The cancellation option looks like a cash grab to me. Assuming I'm on the hook for $4K reno reassessment and I pay them the $3K cancellation. Minus one year MF the $3K is only $2K to Northwynd. That means they have to flip my lease to a new buyer for at least $2K ($4K-$2K) to break even. For a golden lease they might be able to get it. Both for low season lease, we know they are not worth $2K in recent months. Plus they need to pay commission, office expense to sell my lease. Why would Northwynd do it?

They have no intention of running this resort long term, I'm convinced of that.

 

[Quadmaniac]

I'm having trouble wrapping my head around it. Let's say people cancel for $3167 vs $4194, you're off the hook and they have the deed. How do they come up with the money for the "reno" ? Who pays the ongoing MF for the deeds turned back in ? Lets assume 30% return their deeds - that's a lot of MF to come up with. So the remaining owners pick that up or the management company ? Who owns the returned deeds or more accurately who is paying the ongoing MF ? Not seeing how this can work.

 

[KGB_527]

Just got my letter today.

And I choked.
This group - NORTHWYND is crazy organization.
This is highway robbery. How can these people (MGMT) think, that the current owners will act like a sheep going for the slaughter.

Do they really think, that I will wake up tomorrow and say "I have $2K-$4K spare cash, and I am going to help these "nice guys at NORTHWYND"
And I will only take their word for it, that they will spend it wisely. WOW!!!

Boys and Girls. If you send any money to this group, I think you are better off to send it to me
I know you will never do the latter, but please DO NOT sent your money to NORTHWYND either.

Let's say they really want to manage this property well. How did they arrive to their RENO budget numbers low $28mln > high $38mln?
Who will hold this money, and be accountable to pay for this project as it goes along, as well as inspecting that this job is done on budget, and on time?

Why is there such a spread low/high, can we really trust these numbers? With this big $$$$, how can we ensure that there are no greasy/sticky third party hands waiting for their share?

Let's say that these are LEGIT $$$$ to be spend to get this house in order.
However, do we know if this is the end of their demands, or after few months, or a year they will get on with another PONY project to improve "OUR" resort and will ask again for $2K or more?

These guys are just spending like drunken sailors. I just paid my maintenance fee ~$1,000. Paid my exchange ~$200.00. ENOUGH!!!
And it looks like despite of that, I will not be able to use my resort or go on exchange.

Let's say we paid our share for this RENO project. What would happen if we have a massive walk-out of 1000 owners? Where will my money go? Will it be returned to people who paid, or go into the sinkhole to be never seen again? With massive walk-out, they will not be able to complete their project.

I really think this house of cards is coming down. It started in 2007-2008 with Fairmont Financial Corp spending huge money on properties in Hawaii, Belize, California, Arizona at the peak of the market. Instead of paying for maintenance, they went on shopping spree with a lot of borrowed money. After the markets collapsed they ended up with OK assets but huge debt.
And that was the beginning of the end of Fairmont. 5 years later we are almost there.

I really think we have to organize, and NOT send them any money.
I do not trust NORTHWYND at all, and I will not throw my good money after bad.

POWER IN PEOPLE!!!

Thank you

 

[DarkLord]

That's right. I've joined the class action group. What bugs me is that we, the owners, have no rights, in any of these. Just because I purchased a TS years ago, I have to do whatever Northwynd tells me too. It's $4K now and who's to say Northwynd won't come up with one special assessment after another.

No taxation without representation.

 

[Scammed22]

Is that class action group with Jim? We've had Fairmont for 17 years, every year its been our home, its where are children grew up and now they took it from us because of their greed? Canmore pulled this crap and we lost that one also. This time I have no problem giving my money to a lawyer and suing, we are tired of low life scum and now threats to send collections after us!!!!!...let them try.... If they even try to ruin our credit they'll have more problems then they'll know what to do with. I have no problem with paying my bills....and if they were legit and spent our money the way they should have this wouldn't be happening. If at that point we had to help save our resort because a roof caved in, then thats different. But living the life of Riley and ripping people off is not sitting well with me. No judge is going to allow these low life’s to threaten and destroy peoples life’s because they didn't manage this resort properly. The people need to be protected.
Oh this has changed timeshares all over... forever. Good Job Fairmont!

 

[DarkLord]

Scammed22, yes, it's Jim's group and I'm recruiting other owners to join. I don't know if Northwynd can legitiimately levy the assessment on us, and I don't know if Norhtwynd can legitimately relieve us of future obligation with the cancel option. Frankly, I don't think Northwynd is legitimate at all. Most owners are furious of the significant increase in MF already and this one will push them over the cliff.

Considering some owners bought a used lease for $1000 and you levy a $4000 assessment on them, good luck to expect them to pay up. And some of these owners could be in US or some far flung places, good luck if Northwynd tries to force it down our throat with law suits. Even if the reno is legit, there's not way this could work.

If this is legit, Northwynd will take out a loan and maybe add $100 or so every year on the MF to make this work. Their high hand approache just reaffirm my belieft that this is a scam through and through. They just wanted to grab the cash and make off.

 

[dorchyz]

New Program

The new program is a new cost to timeshare owners,,over $2000.00 one time fee to be used for renovations. Not sure what this new Northwynd company has done with all our fees for the past 3 years, but there's got to be something illegal to all of this. Anyone have any legal advice on how to get out of paying for this or even better, get out of our condo ownership?

 

[dorchyz]

Are we considered owners of shares? If we are, should there not have been a proxy sent out for us to either approve or disapprove of this renovation maintenance fee? Can the board just legally come up with stuff and submit "owners" to their horrible choices?