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Buying a timeshare in foreclosure

4FamilyFun

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Hi, I have the oppotunity to buy a timeshare in a resort we really like. We are going to get the unit location we want, and the weeks are 3 every 2 years - in times we want them (or we will trade through RCI or internally through the resort once in a while). The cost is $500 to buy, and the yearly assessment fees of about $800. Closting costs are about $100.00. We are buying directly from the resort because they have a unit in foreclosure that meets our needs. It sounds like a good deal to us, but I'm wondering if we are missing something?

I have checked other places, and people are trying to sell the same type of unit / weeks at this resort for anywhere from $1500 to $9000.
 

theo

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My $0.02 worth...

Hi, I have the oppotunity to buy a timeshare in a resort we really like. We are going to get the unit location we want, and the weeks are 3 every 2 years - in times we want them (or we will trade through RCI or internally through the resort once in a while). The cost is $500 to buy, and the yearly assessment fees of about $800. Closting costs are about $100.00. We are buying directly from the resort because they have a unit in foreclosure that meets our needs. It sounds like a good deal to us, but I'm wondering if we are missing something?

I have checked other places, and people are trying to sell the same type of unit / weeks at this resort for anywhere from $1500 to $9000.
The resort is unidentified, but some of the numbers cited still seem oddly low to me. If foreclosure has already been initiated, likely having already involved out-of-pocket legal expenses for the resort, it certainly seems a bit odd that "closing costs are about $100" --- an absurdly low figure in virtually any closing. And, assuming that foreclosure proceedings were initiated because of unpaid maintenance fees and/or assessments, if those foreclosure proceedings are now going to be halted before actual completion, what then becomes of the existing debt on the existing ownership? Are you unknowingly agreeing to take on that debt?

I don't know. I'm certainly no expert, don't claim to be --- and there isn't much substantive info or detail provided to work with here, but the numbers cited above somehow have me looking a bit askance at this, based on the very limited info provided...:confused:

In view of the fact that this seems to be a low cost purchase anyhow, it might not be a bad idea to enlist the services of a closing company to flesh out all the details on your behalf and handle all of the deed and recording matters as well. That might well turn out to be a prudent additional $300 investment...
 
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BM243923

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I traded a 1 bedroom unit for a 2 bedroom unit with my resort. The 2 bedroom unit was one that had been foreclosed at had outstanding fees of over $10,000.00. All they wanted from me was $250.00 to process the paperwork to trade the unit. I thought it was too good to be true, but I have received my new deed and the new unit has been transferred to my name.

I guess all they want was someone to takeover the unit and if it made a current owner happy to trade that was okay.
 

4FamilyFun

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Thanks for your feedback...

Thank you for your thoughts on this. I think I will spend the extra money to get a title search done. If nothing else, it would give us peace of mind. We haven't ever had a timeshare but with two small children, we think the current economic situation might be our chance to get in - while the kids are young and we can use it often. It is so hard to find a nice 2 bedroom place to vacation, without spending a fortune. I think a timeshare is the way to go. Thanks again for your thoughts.
 

falmouth3

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I think you'll find that having a timeshare is a perfect way to vacation with a family. You can make your own meals, while having plenty of space. Also, the maintenance fees generally are less than just a hotel room.

My husband was very much against getting a timeshare but I was shocked a few years ago when I put in a bid on eBay and won. Now he is disappointed if we have to spend a night or two in a hotel. ;)

Sue
 

Carolinian

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If the week is in foreclosure, you can bid on it at the courthouse door, and there are no closing costs that way other than recording fees. Some HOA's only bid a dollar on off season weeks or sometimes, all weeks. Others bid more than they are really worth.

If it is already foreclosed and is HOA property, then often they are willing to sell these cheap to get a new owner in to pay m/f's. Closing costs are often only what the HOA attorney charges for deed prep plus recording fees, so it will be cheaper than one of the t/s closing companies in most cases.
 

nazclk

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Wanting to buy

If you like it, and are buying through the resort, I see no reason not to buy.
 
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