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Do we have a special assessment in our future?

rpeacock

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Wondering if anyone has heard (from a reliable source) if Wyndham, through its resorts, is considering a special assessment for losses due to an inordinate # of timesharers defaulting on their contracts. Do we even have stats on how many people have cancelled contracts?

I didn't even think about this as a possibility until I listened to a VM from a timeshare exit company (sorry, don't remember which company) where they were trying to instill fear that the industry "will be assessing special assessments soon, so please contact us immediately". I know, typical sales tactic.

I'm not obsessing over this, just curious if you all have heard anything.

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pedro47

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To the OP, welcome to TUG.

Was the VM from this timeshare exit company lips moving? IMHO, I do not believe a special assessment for losses due to an inordinate # of timeshares defaulting on their contract.
One of his objective of his presentation, was to instil fear in you, with his presentation. He won that objective.
 

JohnPaul

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A couple of points. Defaults on purchase contracts will not affect the timeshares as that is a receivable of the seller/developer. However, defaults on Maintenance Fees could indeed cause problems for the industry and specific timeshares.

My thought is that mostly - as you noted - it's a scare tactic of the exit companies more than a real likelihood.

Interesting contrast to all the posts that think they should get a rebate on their MF.
 

bogey21

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Wondering if anyone has heard (from a reliable source) if Wyndham, through its resorts, is considering a special assessment for losses due to an inordinate # of timesharers defaulting on their contracts.

Defaults should be an internal Wyndham issue. They should have no bearing on MFs. Actually within reason they may benefit by getting free inventory to resell...

George
 

cbyrne1174

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I think CWA maintenance fees may go up from it because most of the loans that people have with Club Wyndham are for CWA contracts.
 

allyson.g.crawford

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I dont see any special assessment fees being applied.

If Wyndham do, my question will be "please account for the reserve fund use" over the past 5 years
 

55plus

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I think CWA maintenance fees may go up from it because most of the loans that people have with Club Wyndham are for CWA contracts.
Default on CWA loans shouldn't impact maintenance fees. I don't believe loans are tied to the trust.
 

rpeacock

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To the OP, welcome to TUG.

Was the VM from this timeshare exit company lips moving? IMHO, I do not believe a special assessment for losses due to an inordinate # of timeshares defaulting on their contract.
One of his objective of his presentation, was to instil fear in you, with his presentation. He won that objective.
@pedro47, in answer to your question:
"Was the VM from this timeshare exit company lips moving?" Yes, an actual human.

I'm not fearful, always cautious and questionong, and I know a sales pitch when I hear one. But if MF were to decline: the individual resorts would have to make up the lost income or cut expenses. Do you know if the developer, Wyndham, has an agreement with each resort to make up, from their pot, for some of the lost income?

Richard

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bbodb1

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I dont see any special assessment fees being applied.

If Wyndham do, my question will be "please account for the reserve fund use" over the past 5 years
...and given that expenses are likely to be down significantly this year, there is NO way to justify ANY increase. In fact, a good case can be made for a.DECREASE!
 

MaryBella7

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...and given that expenses are likely to be down significantly this year, there is NO way to justify ANY increase. In fact, a good case can be made for a.DECREASE!

But they’ve lost money from rentals, guest certificates, housekeeping fees, reservation transactions, rented points, sales, etc. I am sure that all adds up to considerable revenue. And they can’t keep occupancy full in the resorts that will be open, so there will be a lot of points usage next year. Reducing next years potential rental revenue. Not that I think there should be an increase, but a decrease is unlikely.
 

55plus

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Wyndham's lost revenue is not a factor when it comes to maintenance fees. Maintenance fees go mostly to the cost of running and maintaining a resort.
 

MaryBella7

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Wyndham's lost revenue is not a factor when it comes to maintenance fees. Maintenance fees go mostly to the cost of running and maintaining a resort.
I would think rentals, housekeeping fees, and borrowed points would have to have some contribution toward maintenance fees as they have a direct connection to the running and maintaining of the resort, but I don’t do their financials, so I really don’t know.
 

Eric B

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I would think rentals, housekeeping fees, and borrowed points would have to have some contribution toward maintenance fees as they have a direct connection to the running and maintaining of the resort, but I don’t do their financials, so I really don’t know.

Aren’t the maintenance fees set by the individual resort HOAs? The impact of the loss of rental income through extra holidays would depend on who owns the underlying weeks, potentially changed by contract if they are HOA owned but control is ceded to Wyndham. I don’t know how things are really set up, but believe the rental income contributes to Wyndham profits, not to HOA funds directly.
 

pedro47

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I feel the reduced costs in housekeeping staff & suplies, reduced costs in resort staff & salaries, the reduced costs in water, electricity usages, maintenance, and other lower costs in the resort operation should saved the HOA some monies. IMHO.
 

55plus

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I feel the reduced costs in housekeeping staff & suplies, reduced costs in resort staff & salaries, the reduced costs in water, electricity usages, maintenance, and other lower costs in the resort operation should saved the HOA some monies. IMHO.
Housekeeping is a big expense, so eliminate housekeeping and there is a savings. We were at Emerald Grande and spent the last two weeks there before being asked to leave due to the virus without housekeeping. If/when we wanted clean linen and towels someone would drop it off at our door. So before the closures staff was being cut. That saves money.
 

cbyrne1174

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Default on CWA loans shouldn't impact maintenance fees. I don't believe loans are tied to the trust.

Default rate is higher when a loan is attached. People are more likely to default on something the bigger the expense is. I personally would default on a retail purchase had I ever made one because $20,000+ is worth more to me than having my credit score lose 100 or so points. Luckily I'm not reckless with money. If people are only on the hook for MF, that's a lot less money.
 

55plus

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Loans are a Wyndham problem, not the HOA, if an owner defaults on a loan. Now, the HOA will eat the maintenance fees that aren't paid during a default and pass that expense onto the owners.
 

cbyrne1174

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Loans are a Wyndham problem, not the HOA, if an owner defaults on a loan. Now, the HOA will eat the maintenance fees that aren't paid during a default and pass that expense onto the owners.

My point exactly. People who own CWA and have a loan are more likely going to default because they owe MORE than just MF.
 
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