Deed Back in lieu of Forclosure

[Kozman]

I just received a letter from Diamond informing me that they are offering a deed back of my Sunrise Ridge timeshare in lieu of foreclosure. By doing so I would be relieved of all past and future financial obligation to Sunrise Ridge Condo Association. Smart move on their part. I assume a lot of people are receiving this offer. Any thoughts? Maybe they should have added 'and their representatives.

 

[magmue]

Interesting. Are you behind on your maintenance fees? Or was this more like a cold call?

 

[Kozman]

Interesting. Are you behind on your maintenance fees? Or was this more like a cold call?

Did not pay maintenance fee for '22 as did many others.

 

[Duh]

Did not pay maintenance fee for '22 as did many others.

So in effect, you just walked away and then they sent you documentation formalizing that.

 

[dioxide45]

Is the deed in lieu for default on only maintenance fee payments or is it for an outstanding loan/mortgage payments?

 

[moonstone]

I'll be following this as we are also owners at Sunrise Ridge. Since Diamond took over our maintenance fees have skyrocketed. Our week is converted to RCI Points and we always get 3-5 vacations (all 7-13 nights long) out of them but now that we have a condo in Florida we don't really need the points. I am debating just stopping paying the maintenance fees as well since it was a freebee we are not eligible for Transitions. Not that I'd pay them $1000. to get out of it anyways.

~Diane

 

[Kozman]

Is the deed in lieu for default on only maintenance fee payments or is it for an outstanding loan/mortgage payments?

There was no mortgage involved. The reason for walking away was two fold. Diamond raised the maintenance fees 23% in one year after taking over management. Secondly I tried to deposit my fixed deeded week into an independent exchange company and they consistently denied the deposit. They wanted you to deal only with their exchange company or RCI. I refuse to give any more weeks to the latter. By taking the week back they can avoid the expense of foreclosure and can deed the unit back into their Diamond Trust Points and resell for $$$$$. They could also rent the unit for much more than the maintenance fees. I look at it as a win-win for both of us.

 

[Kozman]

So in effect, you just walked away and then they sent you documentation formalizing that.

Yes. But previously they only took back units through transitions which cost $1000 plus maintenance fees had to be current plus the property had to be purchased directly from them. In my opinion this option makes a lot more sense. They get immediate use of the unit and can convert to points and resell for $$$$$. Or, the unit can be rented out for more than the maintenance fees. It's a win-win.

 

[Duh]

Yes. But previously they only took back units through transitions which cost $1000 plus maintenance fees had to be current plus the property had to be purchased directly from them. In my opinion this option makes a lot more sense. They get immediate use of the unit and can convert to points and resell for $$$$$. Or, the unit can be rented out for more than the maintenance fees. It's a win-win.

I'm guessing it was because it was a deeded week versus a points contract.

 

[dioxide45]

Yes. But previously they only took back units through transitions which cost $1000 plus maintenance fees had to be current plus the property had to be purchased directly from them. In my opinion this option makes a lot more sense. They get immediate use of the unit and can convert to points and resell for $$$$$. Or, the unit can be rented out for more than the maintenance fees. It's a win-win.

Certainly DRI would prefer that, but if you are in default and they see that you won't become current, deed in lieu is cheaper than foreclosure.

 

[haasle]

I just received a letter from Diamond informing me that they are offering a deed back of my Sunrise Ridge timeshare in lieu of foreclosure. By doing so I would be relieved of all past and future financial obligation to Sunrise Ridge Condo Association. Smart move on their part. I assume a lot of people are receiving this offer. Any thoughts? Maybe they should have added 'and their representatives.

Did you complete the form and return it? If so have you received any kind of confirmation or correspondence.

 

[Kozman]

Did you complete the form and return it? If so have you received any kind of confirmation or correspondence.

Yes. I signed and notarized the deed and returned it. I mailed it certified mail so yes I have a tracking number to confirm they received it. I don't feel the need for any further correspondence from them. I was ignoring them before and now I feel comfortable double ignoring them.

 

[haasle]

Yes. I signed and notarized the deed and returned it. I mailed it certified mail so yes I have a tracking number to confirm they received it. I don't feel the need for any further correspondence from them. I was ignoring them before and now I feel comfortable double ignoring them.

Thanks for the reply. I’ve been trying to deed back mine since 2020. I finally received a letter last month also and returned it the same as yours. I was curious if I should expect any further updates from DRI.