Anyone had luck deeding-back to Spinnaker (Hilton Head)?

[2ndfiddle]

We have a 3-BR unit at the Cottages on Shipyard Plantation. We've only been there once since we bought it, and are now unable to travel at all.

We've tried selling, giving it away, to no avail. The kids don't want it either.

A couple years ago it seems there was a new rule put in place that in order to transfer ownership, the buyer must pay two years of maintenance fees up front. I don't remember where I heard/read that. Of course, no buyer wants to do that.

I went back into my old email folder and actually read where the by-laws have been changed - so they can now use non-judicial foreclosure procedure for unpaid maintenance fees. If my husband and I are reading it correctly, there would basically be no downside to our just not paying any more maintenance fees. (There is no mortgage, and up until now, all maintenance fees have been paid on time.)

2018 maintenance fees are due by the end of the month.

Can someone help with clarification please? I've read before how hard Spinnaker is to work with, and I was told a few years back that they don't have a buy-back program.

I can copy/paste the relevant part of the by-laws if necessary.

We just can't keep doing this forever.

 

[theo]

Forget about any "buy back". Unless your resort has Right of First Refusal (ROFR) already clearly reflected within their governing documents, there is no chance they are going to pay to re-acquire any ownerships. That's a non-starter.

The option for non-judicial foreclosure was created by law and is now utilized in many states. I am unclear why that legislative fact would have to be addressed or reflected by any change to resort bylaws, but that doesn't really matter.
Non-judicial foreclosure merely expedites the process at less cost in less time. The end result is precisely the same.

I respectfully suggest inquiring directly of the resort regarding what the current policy, details (and costs) are regarding "deedbacks". It is not uncommon for resorts accepting deedbacks to require (in addition to requiring that fees be paid up to date) an additional year (even two) of maintenance fees to also be provided before they will agree to accept a "deedback". An unwelcome policy perhaps, but somewhat understandable; HOA-owned weeks pay no maintenance fees, so this "pre-paid fees" requirement helps to mitigate deedback impact on the operating budget (and on the other remaining owners) while those HOA-owned intervals (hopefully) get acquired by new, willing, fee-paying owners.

If you don't like what you learn directly from the resort regarding current deedback practices, it is your option to pay not a nickel more and just turn around and walk away. It is also your prerogative to inform the resort of those intentions.

Have you advertised recently to give away the ownership in the Bargain Deals section of TUG? I don't know the resort at all, nor do I claim to know whether or not your particular ownership would draw any interest, but (at no cost) you could try one last time to give it away in Bargain Deals. You may have to offer to pay all closing and transfer fees in order to interest a new recipient --- I dunno. If that still fails, then it may be time to just cut this albatross loose from around your neck and walk away, allowing foreclosure to occur. Good luck.

 

[2ndfiddle]

Forget about any "buy back". Unless your resort has Right of First Refusal (ROFR) already clearly reflected within their governing documents, there is no chance they are going to pay to re-acquire any ownerships. That's a non-starter.

The option for non-judicial foreclosure was created by law and is now utilized in many states. I am unclear why that legislative fact would have to be addressed or reflected by any change to resort bylaws, but that doesn't really matter.
Non-judicial foreclosure merely expedites the process at less cost in less time. The end result is precisely the same.

I respectfully suggest inquiring directly of the resort regarding what the current policy, details (and costs) are regarding "deedbacks". It is not uncommon for resorts accepting deedbacks to require (in addition to requiring that fees be paid up to date) an additional year (even two) of maintenance fees to also be provided before they will agree to accept a "deedback". An unwelcome policy perhaps, but somewhat understandable; HOA-owned weeks pay no maintenance fees, so this "pre-paid fees" requirement helps to mitigate deedback impact on the operating budget (and on the other remaining owners) while those HOA-owned intervals (hopefully) get acquired by new, willing, fee-paying owners.

If you don't like what you learn directly from the resort regarding current deedback practices, it is your option to pay not a nickel more and just turn around and walk away. It is also your prerogative to inform the resort of those intentions.

Have you advertised to give away the ownership in the Bargain Deals section of TUG? I don't know the resort at all, nor do I claim to know whether or not your particular ownership would draw any interest, but (at no cost) you could try to give it away in Bargain Deals, with a new "grantee" paying any and all associated closing costs and transfer fees --- hopefully with no further money out of your own pocket required. Food for thought and at least worth a try. Good luck.

Forget about any "buy back". Unless your resort has Right of First Refusal (ROFR) already clearly reflected within their governing documents, there is no chance they are going to pay to re-acquire any ownerships. That's a non-starter.

The option for non-judicial foreclosure was created by law and is now utilized in many states. I am unclear why that legislative fact would have to be addressed or reflected by any change to resort bylaws, but that doesn't really matter.
Non-judicial foreclosure merely expedites the process at less cost in less time. The end result is precisely the same.

I respectfully suggest inquiring directly of the resort regarding what the current policy, details (and costs) are regarding "deedbacks". It is not uncommon for resorts accepting deedbacks to require (in addition to requiring that fees be paid up to date) an additional year (even two) of maintenance fees to also be provided before they will agree to accept a "deedback". An unwelcome policy perhaps, but somewhat understandable; HOA-owned weeks pay no maintenance fees, so this "pre-paid fees" requirement helps to mitigate deedback impact on the operating budget (and on the other remaining owners) while those HOA-owned intervals (hopefully) get acquired by new, willing, fee-paying owners.

If you don't like what you learn directly from the resort regarding current deedback practices, it is your option to pay not a nickel more and just turn around and walk away. It is also your prerogative to inform the resort of those intentions.

Have you advertised to give away the ownership in the Bargain Deals section of TUG? I don't know the resort at all, nor do I claim to know whether or not your particular ownership would draw any interest, but (at no cost) you could try to give it away in Bargain Deals, with a new "grantee" paying any and all associated closing costs and transfer fees --- hopefully with no further money out of your own pocket required. Food for thought and at least worth a try. Good luck.

 

[2ndfiddle]

Thanks for your reply, Theo.

We've been trying to sell or give away this unit off and on for several years now, and yes, we tried giving it away here.

I'm having trouble understanding the "reply" function, and didn't mean to quote your whole post; sorry.

 

[TUGBrian]

Thanks for your reply, Theo.

We've been trying to sell or give away this unit off and on for several years now, and yes, we tried giving it away here.

I'm having trouble understanding the "reply" function, and didn't mean to quote your whole post; sorry.

Looking back at your posts to give it away, you are still expecting a buyer to pay closing costs and transfer fees. this is going to drive away just about anyone as folks can simply pick up weeks from other owners also giving these intervals away, but are covering closing costs themselves.

sadly now you are in an even bigger bind with the 2018 fees being due (most likely you are going to have to pay those, as no potential buyer is going to take over your week if they have to immediately pay the 2018 fees due).

in all reality you are going to have to come out of pocket if you truly want to give this timeshare away.

1. covering closing costs yourself
2. paying the 2018 fees as well


(sadly had you offered to cover closing costs and the transfer fee when you first put it up for sale a few years back, it likely would have been snapped up by now)

 

[2ndfiddle]

Thanks for your reply, Theo.

We've been trying to sell or give away this unit off and on for several years now, and yes, we tried giving it away here.

I'm having trouble understanding the "reply" function, and didn't mean to quote your whole post; sorry.

I stated on the bargain page in March 2014 that we would pay closing costs. We would also pay 2018 mf's IF we had a buyer, but are not in a position to pay 2 years of mf's at this time, as required by Spinnaker.

 

[TUGBrian]

ah sorry, there might be multiple postings for it, the one I saw when searching for your posts specifically said that you were asking the buyer to pay closing costs. looks like that post was from back in 2010, thats 7+ years of mf paid from then to now

if your financial situation is such that you are unable to continue making payments, i would express this to spinnaker specifically in a letter to the HOA...and then seriously consider stopping payments if they are still unwilling to work with you.

we dont generally suggest that last option, but at some point common sense has to take over and you shouldn't jeopardize your own lively hood simply to continue to make payments on a timeshare.

if it is between paying rent and putting food on the table....and continuing to pay for a timeshare you never use and that wont work with you to surrender it back....well thats an easy decision.

 

[2ndfiddle]

My husband and I will try to contact a lawyer in that area with experience with timeshares, and see what he/she suggests.

If anyone knows a good lawyer....

 

[tschwa2]

I am not endorsing this firm but I periodically see them mentioned in the Island Packet (a local online and print) HHI newspaper as representing various individuals in cases against Spinnaker and Coral (one of the other local developers).
http://lowcountrylegal.com/

 

[2ndfiddle]

I am not endorsing this firm but I periodically see them mentioned in the Island Packet (a local online and print) HHI newspaper as representing various individuals in cases against Spinnaker and Coral (one of the other local developers).
http://lowcountrylegal.com/

Thank you - this is the company we called today. Waiting for a call back.

 

[2ndfiddle]

We had a phone consultation with this company today. Very impressed with the lawyer we spoke with. He is very familiar with Spinnaker/Southwind (The Cottages).

They work on a "contingency" basis - if they can't get us out of our timeshare, we don't pay. If they are successful, the fee is $2,500. He said the process usually takes a couple months.

He will be sending us a fee agreement which we will probably sign and send back so he can start the process.

Good thing we just bought a new house (October), and have no plans for any other big purchases, because our credit reports might take a hit.

 

[TUGBrian]

this is all very confusing, in 2016 this member reported spinnaker had a deedback progrma that only cost $1500

https://tugbbs.com/forums/index.php?threads/spinnaker-exit-program.241946/


would explain why "legal assistance firms" are so willing to charge you significantly more to help you out!

 

[TUGBrian]

Good thing we just bought a new house (October), and have no plans for any other big purchases, because our credit reports might take a hit.

you are going to pay some company $2500, and still expect a default on your credit?

why not just save $2500 and stop paying if thats the case?

 

[2ndfiddle]

this is all very confusing, in 2016 this member reported spinnaker had a deedback progrma that only cost $1500

https://tugbbs.com/forums/index.php?threads/spinnaker-exit-program.241946/


would explain why "legal assistance firms" are so willing to charge you significantly more to help you out!

I hadn't seen those, Brian. Thanks for posting.

I've talked to several people there in the last few years who have told me they don't take units/weeks back, but I'll be calling them again to see if they still have an "exit program," before we sign with the attorney.

 

[2ndfiddle]

The credit report hit would be if the developer foreclosed for non-payment of MFs. I would hope if they deal with the lawyer that that would not be an issue. IOW, the developer would not foreclose, but just do a deedback or whatever they call it.

Again, sorry for the multiple quotes. Just don't understand how to do that.

 

[2ndfiddle]

TUG Brian - I LOVE YOU!

Thank you SO much for posting those links!

I called Spinnaker/Southwind - was on hold for 40 minutes, I guess because of people paying MFs by phone - and explained to the man who took my call (William) that I was interested in giving back my unit, and asked who I could talk to. He said, "I can help you with that."

He said there is an "exit program" and I/we would "qualify" because I/we are unable to travel very far any more due to age or physical condition/limitations. (I've recently had back surgery, doing PT, VERY limited in what I can do or where I can go).

In order to avoid the long hold time, we can email him and he will call us, collect $1,500 "fee" (2yrs MFs?) and get things started. He said that deeds are sent out on Monday's, we sign it and have it notarized and send it back. They send deeds off to the court to be recorded, then notify us when that's done and we have no further obligation.

If we do this by Wednesday, we do NOT have to pay 2018 MFs!!

I just can't thank you enough for posting on this thread!

I'm heading over to Bargain Deals to update my ad now.

 

[TUGBrian]

wonderful, glad you were able to work out a solution with the resort and not use an upfront fee company!

and further proof that one should never do business with these cancellation companies...how odd they are so familiar with spinnaker resorts...but didnt know about the deedback program that is significantly cheaper than their own program?

or is it more likely they were fully aware of it and simply wanted to make $1000 bucks off you?

 

[2ndfiddle]

The company we talked with is a law firm in Hilton Head, recommended on several TUG posts, and there is no up-front payment. You pay if/when they divest you of your timeshare.

I do agree they should know about the exit program though.

Just wanted to clear that up.

 

[TUGBrian]

I certainly hope no cancellation company that would charge 2500 for a service an owner could simply do themselves is regularly recommended here on TUG. that would make me quite sad.