Buying A Timeshare Foreclosure

[Ourhouse]

Does anyone have info on buying a timeshare in foreclosure?
What should we look for?
Horror stories?
I noticed a foreclosure listing that included maintenance fees, foreclosure expense and past due maintenance fees. Some units are great units in great location with foreclosure due of $1500.

 

[Passepartout]

Why would you buy a foreclosure with extra fees and arrears due when there are so many TSs available free, or for low cost that are paid for and current? Some even have a year or two of use included for the new owner.

Jim

 

[presley]

I have to echo Jim's post. There are many very cheap and even free timeshares available. There is no reason to deal with the headache of a foreclosure. Some people will even pay you to take their timeshare.

 

[Ourhouse]

I understand what your saying and that is how I acquired one of our units, for free through TUG.

And as for some of the reasons why I would be interested in buying a foreclosure:

1. The resort rarely has units available for free or low cost in TUG
2. I am familiar with the resort
3. The unit is in a premier location within the resort

Now once again, has anyone bought a timeshare from a foreclosure and if so, what was your experience?

 

[csxjohn]

Why would you buy a foreclosure with extra fees and arrears due when there are so many TSs available free, or for low cost that are paid for and current? Some even have a year or two of use included for the new owner.

Jim

I have to echo Jim's post. There are many very cheap and even free timeshares available. There is no reason to deal with the headache of a foreclosure. Some people will even pay you to take their timeshare.

Because "Some units are great units in great location"

 

[Ourhouse]

??????? Your point.

 

[Gophesjo]

Who would you be buying the unit from? I assume the answer is from the HOA. Either the unit has already been foreclosed which is when you would be buying from the HOA, or it is has not and you would be buying it from the current owner. Either seller could be seeking recovery of (or payment of in the event the current owner is the seller) foreclosure costs, but the answer to your question is another, do you trust the HOA to get clear title transferred into your name, or do you trust the current seller to get clear tile transferred into your name?

 

[DeniseM]

Beware of buying a foreclosure from anyone except the developer. I once bought one in ebay (inadvertently) and after the sale was complete, the resort refused to transfer it to me.

Fortunately, the closing company worked with me and reversed the whole process and refunded my money.

 

[Saintsfanfl]

There are real foreclosure auctions for timeshares. This is the only time it is a true foreclosure purchase. If it is a pre or post foreclosure purchase then I agree with the others. Caveat Emptor. Know who the seller is and whether they have the legal right to sell, including the HOA recognition of the transfer as well as any other liens or encumbrances. Make sure any past due fees are going to the resort and not someone's pocket.

 

[csxjohn]

??????? Your point.

They asked why you'd buy at that price when you can get TSs cheap so I pointed out that it was in your original post

 

[csxjohn]

Who would you be buying the unit from? I assume the answer is from the HOA. Either the unit has already been foreclosed which is when you would be buying from the HOA, or it is has not and you would be buying it from the current owner. Either seller could be seeking recovery of (or payment of in the event the current owner is the seller) foreclosure costs, but the answer to your question is another, do you trust the HOA to get clear title transferred into your name, or do you trust the current seller to get clear tile transferred into your name?

It's not always the HOA doing the foreclosing. When you find a lender to give you funds for a TS and don't pay them, they foreclose. I've seen this where I own and the resort works with the company to get these in the hands of willing buyers.

 

[csxjohn]

Does anyone have info on buying a timeshare in foreclosure?
What should we look for?
Horror stories?
I noticed a foreclosure listing that included maintenance fees, foreclosure expense and past due maintenance fees. Some units are great units in great location with foreclosure due of $1500.

Are you looking at the Jockey Club? If so you might find this interesting. If not it still serves as a warning about buying or trying to buy TS foreclosures.

http://lasvegassun.com/news/2000/jan/26/jockey-club-developer-owners-association-in-legal-/

I know it's a very old article but it still shows the mess that could be below the surface at any resort.

 

[Ourhouse]

Are you looking at the Jockey Club? If so you might find this interesting. If not it still serves as a warning about buying or trying to buy TS foreclosures.

http://lasvegassun.com/news/2000/jan/26/jockey-club-developer-owners-association-in-legal-/

I know it's a very old article but it still shows the mess that could be below the surface at any resort.

I saw this and then found a follow-up 2 years later where Jockey Club had to pay close to $500k to settle. That took place back in late 2002.

http://lasvegassun.com/news/2002/mar/19/polo-towers-owners-win-suit/

Since this took place some time ago, I think it is long past settled. The JC looks like it is now well maintained and upgraded.

 

[taterhed]

I think the key is this: post what resort/deal you're considering. You'll get qualified replies on the value of the deal.

If the deal is 'so amazing' you fear tipping others to the deal.....then you really need to think twice before leaping. If it sounds too good to be true, it probably is.

Good luck

 

[silentg]

Are you looking for a reason not to do this? I can give you a few. If the resort has foreclosures it it probably due to owners not paying Maintenence fees. You would do better to check resales. jMHO
Silentg

 

[Ourhouse]

It has been over a year since our original post and I wanted to update everyone on our experience. We own a Jockey Club, Las Vegas, 1 bedroom, 4th floor, Bellagio fountains view unit we got for FREE through TUG Bargains late 2015. It cost us $125? in recording fees to get from previous owner. We used it on our week 7, 2016.

While we were there, the resort had a foreclosure listing taped to the door on their Hospitality Center door. It listed about 25 weeks and various units going up for sale in a foreclosure sale the week we were there in 2016. After much review and research on the units being sold, I posted the original question about "Does anyone have info on buying a timeshare in foreclosure?".

I was apprehensive on buying a foreclosure and any residual fees I may be taking on. Although the response from this post was not positive and for the most part, said I should stay away, I moved ahead and bought a unit in the auction.

The auction was conducted by TriCom, the management company that runs The Jockey Club. Several bidders were there but few were bidding on the same units. Most units were sold from a single bid with the purchase price being the starting bid price. The starting bid price ended up being the 2 previous years maintenance fees in arrears plus a few hundred dollars in transfer/recording/service fees. With the payment, you were awarded 2 banked weeks from the previous years maintenance fees.

That being said, we ended up purchasing a gem! We now own a 10th floor, 2 bedroom, back of the property, beautiful (best) view onto the Bellagio Fountains, Paris, and the whole strip. Looking down past Caesars, Flamingo, Trump, Venetian, etc. Simply gorgeous view!! All for a whooping $1600! With 2 weeks in the bank of a 2 bedroom, red, holiday week that we can exchange most anywhere!

We just returned from our week 7, owners unit visit to The Jockey Club! We could not be happier! Just goes to show you, do what YOU think is right for you and most times, it works out fine. Caution is warranted but research is key.

 

[Saintsfanfl]

That sounds like a post foreclosure auction handled by the management company after either the management company or the HOA purchased the units from the true foreclosure auction.

It's common for properties to post a list of "foreclosures" for sale but they were already foreclosed and purchased. Usually they try and sell them at high prices as they have buyers. The Jokey club likely can't keep up and would prefer to sell them as fast as possible.

 

[silentg]

Happy for you! Sounds wonderful!