Anyone ever heard of a TS suing for collection of maintenance fees?

[SueDonJ]

I wanted to say something else about this: Other owners encourage fellow owners because of empathy. They know the pain and embarrassment of what happened to clueless people in a manipulative, untruthful timeshare presentation. I see really nice people on this forum. They've been there. They know the pain. They want to help others to the extent that they can. For my part, I'm vocal with others about "hey: don't go to a timeshare presentation" and I let them know about the horrible experience that I had, because I want others to NOT go through it, I want them to learn from my bad example. At no point do I ever think, "hey, if more people buy timeshares, maybe my MFs will go down." First, that's not how the math works. Secondly, even if I did see some sort of break (which again, would never happen), I wouldn't share something unethical with unsuspecting people. THAT-- not the non-payment of MFs--would make me as bad as the TS.

I'm not unsympathetic to people who want out of timeshares, especially timeshares that don't perform as expected (whether the fault of sales reps or otherwise.) But I also don't just excuse people who bought into what is essentially an ongoing financial commitment and want to just walk away. "Help" comes in many forms and it's the suggestion that simply walking away with no regard for the other owners is the one that doesn't make any sense to me, not here anyway on a social media site dedicated to owners making the best of their timeshares.

I also don't think that if more people buy the same timeshares as me it will cause my MF's to be reduced, and that's not what I said. My MF's do increase, though, when owners default. The cost to me is right there in black and white on the Bad Debt line item in my resorts' Annual Budgets, and the right of my resorts' Developer/Manager to put that liability on all of the other owners is right there in black and white in the governing docs.

Like I said, it's one thing to be forced to default due to financial hardship. It's another thing entirely to walk away from an ongoing financial commitment without expecting that there will be repercussions on the person walking away and possibly others. And just like I want the management companies of the two HOA's where I own homes to go after non-performing owners who are able to perform as they contractually agreed, I want the same from my timeshare company/OA.

 

[Carolinian]

I think this is an honorable and high-minded comment. But I also don't think it applies to TS, given the standard level of ethics observed. In this case, "owners" have difficulty even getting rooms at the resort, whereas users on Expedia, etc., can find them readily. The resort is making plenty of money, LOL. And there is a huge assumption here, that if I don't pay, they'll come down on the other existing club owners even harder: the assumption is that they're not already coming down as hard as hard as they possibly can. I feel pretty confident they already are! At no point do they think, "oh, things are going well, we can take it easier on the owners." The greed is seemingly bottomless.

This is a problem with developer controlled resorts. I have never owned at a developer controlled resort and I don't think I ever would. When the members are in control, these things do not happen. That is also an advantage of owning at a fixed week resort, as you and management both know what you own and there is no wiggle room on that.

On the NC Outer Banks, we fortunately only have one resort that is still developer controlled. There were fights at some of them to push the developer out. At Dunes South, the members sued the developer and won at every stage, right up through the NC Supreme Court. The same developer was also sued by the members at Ocean Villas II and he settled by turning over management, deeding all remaining developer owned weeks to the HOA, and paying the HOA $100,000. The Committee of Purchasers at next door Ocean Villas I then settled without a lawyer or a lawsuit, and got the same deal except for the $100,000. At Bodie Island Beach Club, the members committee got Blackwell Brogden of the NC Real Estate Commission involved, and he forced the developer to turn over management to the members under threat against his real estate brokers license if he did not. At Ocean Pines, the developer held onto control long after the resort's covenants said he had to relinquish control, then sold the resort to Barrier Island Station. Barrier Island Station relinquished control of both Ocean Pines and Barrier Island Station Duck at the same time to their members.

 

[SueDonJ]

This is a problem with developer controlled resorts. I have never owned at a developer controlled resort and I don't think I ever would. When the members are in control, these things do not happen. That is also an advantage of owning at a fixed week resort, as you and management both know what you own and there is no wiggle room on that.

What is it that makes it such a certainty that owners at non-developer-controlled resorts won't choose to become non-performing owners, at least temporarily not paying their fair share of the costs to maintain the resort/property? I mean, I get that member-controlled timeshares might be quicker on the draw to turn non-performing into performing. But I don't understand how any resort can be insulated from people who elect - for whatever reason - to not pay their MF's and instead simply try to walk away. So at least temporarily, even if for shorter duration, doesn't somebody have to cover the shortfall because the expenses don't change?

 

[Carolinian]

What is it that makes it such a certainty that owners at non-developer-controlled resorts won't choose to become non-performing owners, at least temporarily not paying their fair share of the costs to maintain the resort/property? I mean, I get that member-controlled timeshares might be quicker on the draw to turn non-performing into performing. But I don't understand how any resort can be insulated from people who elect - for whatever reason - to not pay their MF's and instead simply try to walk away. So at least temporarily, even if for shorter duration, doesn't somebody have to cover the shortfall because the expenses don't change?

My point had to do with shananigans by developers. Member-run resorts do not have that problem. They often also have a higher loyalty level among members.

Any resort will have people who fall on hard times. Member-run resorts tend to be more proactive, contacting such members, offering payment plans, etc. and if someone really just is down and out or cannot use the week any more, they are also more likely to just take a deedback. Deedbacks cost the HOA less than a foreclosure and get the property where it can be reconveyed more quickly.

One of the things that some member-run resorts on the Outer Banks do is to use member-volunteers to do some of the refurbishment projects, which is a lot cheaper than using a contractor.

 

[Kebbler69]

Deficiency judgements depend on the state. Some states are considered recourse states meaning the debtor can come after the deficiency judgement. Other states are non recourse. In Florida, as long as you don't dispute non judicial foreclosure, the only thing they can take is the timeshare. Any deficiency between the debt owed and the foreclosure sale price is simply gone and not the responsibility of the timeshare owner.

I have Holiday inn Orange Lake Timeshare, that I paid the mortgage off but I haven’t paid maintenance is fee in a while I’m going to go in to foreclosure what is gonna happen my credit score go down a little bit that’s it thanks for any help.

 

[Kebbler69]

I have Holiday inn Orange Lake Timeshare, that I paid the mortgage off but I haven’t paid maintenance is fee in a while I’m going to go in to foreclosure what is gonna happen my credit score go down a little bit that’s it thanks for any help.

I’m letting it go into foreclosure and pay the mortgage when I first bought it just not paying my maintenance fees. What’s the worst can happen I live in Florida is a timeshare in Florida.

 

[theo]

I’m letting it go into foreclosure and pay the mortgage when I first bought it just not paying my maintenance fees. What’s the worst can happen I live in Florida is a timeshare in Florida.

In FL, if you do not in any way dispute the foreclosure, the worst that can happen is the foreclosure itself. Post #16 in this thread articulates this quite well.

 

[Kebbler69]

In FL, if you do not in any way dispute the foreclosure, the worst that can happen is the foreclosure itself. Post #16 in this thread articulates this quite well.

In FL, if you do not in any way dispute the foreclosure, the worst that can happen is the foreclosure itself. Post #16 in this thread articulates this quite well.

OK if I do the foreclosure, what could happen do you know any other than lowering my credit score?

 

[theo]

OK if I do the foreclosure, what could happen do you know any other than lowering my credit score?

As already pointed out, in FL there is likely nothing else that would happen beyond the actual foreclosure as long as you do not in any way dispute the foreclosure.
In fact, it is not even a certainty that you would experience any credit score hit *IF*, as you indicated, there is no loan default involved. HIVC may not even bother to report.

 

[Passepartout]

OK if I do the foreclosure, what could happen do you know any other than lowering my credit score?

You've asked the same question 3 times this morning. The result of a lower credit score can be higher interest on other consumer debt. Higher mortgage payments, more difficult-to-get credit. Harder to get, and/or more expensive car payments. If you are job hunting, potential employers can look at your credit history to determine your trustworthiness. If you are 'shopping' yourself around on dating sites and a potential mate checks your credit history, they'll find out you dodged a commitment.

There is no way of knowing what- if anything, will be the actual result- or even IF the creditor will even report your default. But you asked what COULD happen.

If you are wealthy and don't need to borrow to make purchases, or are a retired senior and your house is paid for, your car(s) don't need replacement for 10 years or so, your family situation is stable, and you're not contemplating a move, you can thumb your nose at the credit agencies. Your credit score matters little to none.

Jim

 

[Kebbler69]

You've asked the same question 3 times this morning. The result of a lower credit score can be higher interest on other consumer debt. Higher mortgage payments, more difficult-to-get credit. Harder to get, and/or more expensive car payments. If you are job hunting, potential employers can look at your credit history to determine your trustworthiness. If you are 'shopping' yourself around on dating sites and a potential mate checks your credit history, they'll find out you dodged a commitment.

There is no way of knowing what- if anything, will be the actual result- or even IF the creditor will even report your default. But you asked what COULD happen.

If you are wealthy and don't need to borrow to make purchases, or are a retired senior and your house is paid for, your car(s) don't need replacement for 10 years or so, your family situation is stable, and you're not contemplating a move, you can thumb your nose at the credit agencies. Your credit score matters little to none.

Jim

Yes, I’m at the gym early this morning but I got a letter from Holiday in Orange Lake

As already pointed out, in FL there is nothing else that would happen beyond the actual foreclosure as long as you do not in any way dispute the foreclosure.
In fact, it is not even a certainty that you would experience any credit score hit *IF*, as you indicated, there is no loan default involved. HIVC may not even bother to report.

thanks, Theo I do not have a loan I paid it off when I first got it 2011 but I do have maintenance fees due but I’m not gonna pay do you see a problem for me thanks again PS and I’m not going to dispute the foreclosure I just wanna get done with holiday inn Orange Lake?

 

[LannyPC]

but I haven’t paid maintenance is fee in a while...

How long is " a while"? So, IOW, how far behind on MF payments are you? If you do not have any MFs overdue, you can also try the route of contacting the resort's Homeowners' Association and see if they will take your TS back. Some HOAs prefer that over letting intervals go into foreclosure. The HOA just might work with you if you tell them that you are planning to stop paying MFs.

 

[Kebbler69]

How long is " a while"? So, IOW, how far behind on MF payments are you? If you do not have any MFs overdue, you can also try the route of contacting the resort's Homeowners' Association and see if they will take your TS back. Some HOAs prefer that over letting intervals go into foreclosure. The HOA just might work with you if you tell them that you are planning to stop paying MFs.

I owe back to 2020 its too much and they will do a deed back but they want 1200 bucks for that and your maintenance fees need to be up-to-date so I’m just gonna for foreclosure .Thanks

 

[theo]

<snip> If you do not have any MFs overdue, you can also try the route of contacting the resort's Homeowners' Association and see if they will take your TS back. Some HOAs prefer that over letting intervals go into foreclosure. The HOA just might work with you if you tell them that you are planning to stop paying MFs.

This would certainly be very good advice for any independent (i.e., non-"chain") timeshare, but the OP apparently owns within HIVC. "Chain" BOD's tend to be comprised of company stooges, either entirely or in the majority (unlike at "independents" where the BoD / HOA is comprised solely of other owners at that property).

If / when a "chain" BoD / HOA is made up of (or controlled by) loyal company stooges, there is usually a standardized "party line" and policy (and a fee, of course, first requiring that all past due fees be paid); OP has discovered this already. Decision to just walk away and let HIVC go right ahead and foreclose seems to have been made. Even if the OP owned at an "independent" timeshare property with a BoD / HOA that entertained acceptance of "deedbacks", the BoD / HOA would still require that any and all fees in arrears first be brought up to date. The only financial difference would be that additional, gratuitous $1,200 HIVC ransom demand / fee to which OP has made reference.

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