DRI suing Sumday Vacations and Timeshare Transfer company

[dioxide45]

Wow! The whole issue could be solved overnight if three things were in place. First, TUG is listed in the sellers contracts (in a prominent place) as a tool for new owners to use. Second, recession was bumped to 30 days across the board. Third, deedbacks were accepted by all properties as long as the contracts were current.

Developer sales would drop like a rock and the whole business model would come crashing down as it would no longer be sustainable.

 

[LannyPC]

Of course Diamond and others aren't doing this for the good of their owners. They are doing it so they can more easily take back cheap product to sell all over again.

Another reason is that a lot of these unwanted TSs end up back in Diamond's hands anyway because of all the defaults and Viking Ship operations. With these, Diamond and the resorts have to go through the expense and rigours of foreclosure. Accepting TSs back through programs such as Transitions just eliminates some of the expenses and hassles of foreclosures.

 

[LannyPC]

The second answer had to do with the tactic of "churning" existing owners to entice them to buy more weeks, points, etc. But, I digress.....

I actually thought of this a while ago and thought this: Why not give owners a "bulk discount" on MFs? For instance for argument's sake, let's say MFs are $1000 per unit week. Offer existing owners a discount on other weeks they buy. So the next couple they buy, they would be charged say, $800. Any ones they buy after that would be about $600 in MFs. If they ever sell or relinquish ownership of any weeks, they would lose the discounts on the the ones with the greatest discounts first. All weeks must legally be in the same owner's name.

This way, some of the weeks that were sitting there without any owner paying MFs would now get at least some money in there.

 

[TheTimeTraveler]

Wow! The whole issue could be solved overnight if three things were in place. First, TUG is listed in the sellers contracts (in a prominent place) as a tool for new owners to use. Second, recession was bumped to 30 days across the board. Third, deedbacks were accepted by all properties as long as the contracts were current.

A great idea, however the developers don't want to ever have to deal a second time around with undesirable weeks such as mud season in skiing areas, hurricane weeks in hurricane prone areas, etc.

Hawaii weeks are desirable any time during the year.



.

 

[pedro47]

January and February weeks in Virginia or North Carolina.

 

[csxjohn]

This explains why Sumday Vacations' website is down and Dave Ramsey fans won't like to see his Timeshare Exit Team is under the gun too.

 

[csxjohn]

In following a link in the article, "TimeshareCancellationAwareness.com." it appears that Diamond works with owners who need to get out. Does anyone know what type of plan they have?

 

[geist1223]

In following a link in the article, "TimeshareCancellationAwareness.com." it appears that Diamond works with owners who need to get out. Does anyone know what type of plan they have?

If I remember correctly the first rule is that you had to make the purchase from the Developer, no resell. The Contract has to be paid off. Maintenance Fees have to be current. Then you pay them $1,000 per Contract. Each purchase from Diamond is a separate Contract.

 

[LannyPC]

...it appears that Diamond works with owners who need to get out. Does anyone know what type of plan they have?

There's a sticky thread at the top of this forum called DRI Now Accepting Deedbacks. You can read the details there.

 

[pierrepierre]

Yes, all maintenance fees paid in full & purchased from Developer....then Transitions or Loss Mitigation, whatever they are calling it. When contacting Diamond, fee was specified according to what state contract was purchased in, as each state has its own policy......or, possibly it was in the contract purchased. It is true, you lose all points - whether 300 or 83,000 pts., they all go back to Diamond. BUT, whatever you do, do not eliminate any emails, (print them too) and document all phone calls...date/time/person. It will pay off and possibly save you money...it did me! When life changes, including the past 7 months....closure is closure & what price does one put on peace of Mind!!!??? Less stress is a good thing.....

 

[dioxide45]

If I remember correctly the first rule is that you had to make the purchase from the Developer, no resell. The Contract has to be paid off. Maintenance Fees have to be current. Then you pay them $1,000 per Contract. Each purchase from Diamond is a separate Contract.

So Diamond is just looking to try to shut down the competition.

 

[DannyTS]

It is probably working, the number of timeshare listings on Ebay has plummeted in the last few months.

 

[wrk2travelalot]

I have been timeshare members with
my family many years. We love the timeshare experience and done right you cam travel the world-stay at wonderful resorts.

Yes-timeshare companies-especially those in the US and EU should be mandated to have set action policies for anyone wanting to leave their timeshare obligations even if it is not paid off. We were DRI members for years.

I am curious at the accusations DRI made about the timeshare exit companies. DRI tactics for selling are very similar. I have a younger friend (we are in our 70s) who my husband and I gave time at Cabo Azul for their honeymoon. We told them not to go to any presentations...you all know the rest....this young couple bought a DRI TS week that was extremely over priced-the sales pitch contained much bogus information. This couple could not afford the TS they bought as points. DRI will not take it back as the week has not been paid off..told them this was their issues as they had 5 days in the beginning not to do the deal. This couple sold their house moved into a cheaper house with their children trying to get out of the TS debt.

There should be some way couples who
financially have life changes or with youth-poor financial decisions can get out if these TS. We do need honest TS exit companies because the TS companies are not going to help you exit your TS agreement.

 

[eggmansr71]

wrk2travelalot - I agree completely. The good with all the timeshare exit companies is the deed back didn't exist for Diamond until this. We need regulation in the industry that any and all fully paid timeshares can be given back for the cost of filing (capped) and deed transfer fees. Then if you are an owner and still have payments you can give back at a reduced set cost. All of this would clean up this part of the industry and the exit companies would go away overnight, but there is no way the timeshare companies will do it without being forced to.

 

[bnoble]

We do need honest TS exit companies because the TS companies are not going to help you exit your TS agreement.

What would an "honest TS exit company" look like? Unless the resort is RTU or has a sunset clause, ownership is contractually perpetual. If there isn't a market for anyone to buy it, or the developer/management company/HOA isn't willing to take it back, what would a third party possibly do?

 

[pedro47]

Who does DRI recommend to DRI ts owners, who did not purchased directly from DRI and do not have a mortgage or have a mortgage ?

 

[LannyPC]

I am curious at the accusations DRI made about the timeshare exit companies. DRI tactics for selling are very similar.

The accusations against the exit companies are that, either through the Viking Ship method or the unwitting foreclosure, the TSs end up back with the resorts (actually, the resorts' HOAs) and that DRI and/or the resorts must pick up the costs of foreclosure.

I too dislike the two aforementioned methods that the exit companies use but on the bright side, it essentially forced companies like DRI, Westgate, and Wyndham, etc., to implement their respective deed back programs.

 

[TUGBrian]

Who does DRI recommend to DRI ts owners, who did not purchased directly from DRI...?

this is an outstanding question.


although the mortgage limitation applies to just about every timeshare as they all require that to be paid off/transferred/etc before a deedback will be granted to my knowledge. not just a DRI specific situation.

 

[TUGBrian]

oo, they even have a video

 

[pedro47]

Who does DRI recommend to DRI ts owners, who did not purchased directly from DRI and do not have a mortgage or have a mortgage ?

I have added some words to my original post.

 

[pedro47]

Who does DRI recommend to DRI timeshare owners, who did not purchased directly from Diamond Resort and do not have a mortgage?

They purchase a resale Diamond property.

 

[harveyhaddixfan]

oo, they even have a video

Close to the end “a safe way to exit, without stealing their money.” I guess charging $1000 to get out isn’t considered stealing?

 

[TheTimeTraveler]

Close to the end “a safe way to exit, without stealing their money.” I guess charging $1000 to get out isn’t considered stealing?

Depends how you look at it.

If you're saving $1,500 a year in maintenance fees then that's a savings of $15,000 over a ten year time span. Money which stays in your pocket!

I'll gladly pay their $1000 one time fee to save ongoing maintenance fees on something I have no further interest in......



.

 

[JeffC]

The developers problem is how do you sell a product at full freight when the real market value is often negative. Having an easy out for retail buyers puts the cost of the deed back onto existing owners in the form of higher MF's. The switch to points helps but the underlying problem remains. Too many contracts/weeks have negative resale value. The developers primary source of profit is the sale of new contracts. They can either build new properties or recycle old ones. Right now recycling is cheaper but they can't recycle the potential volume of deed backs with new sales. Placing restrictions on deed backs and increasing the cost to the existing owner is their way of keeping the volume down. I've always felt that the developers are unfazed by MF defaults, they just pass the cost onto the other owners. They charge the same amount for managing a resort regardless of the % of defaults. It's only when defaults reach the point that existing owners get sticker shock do they react. Charging multiples of the MF's to deed back the dog weeks is the only way to maintain the scheme. The big name's can set a floor thru ROFR. Wyndham will take contracts/weeks that they know can be sold at a profit but not the true dogs. The demise of the upfront fee and viking ship PCC's doesn't change the facts. Timeshares are a uniquely difficult product to use. While we here are well educated in how to maximize our use the majority of owner's don't have a clue. If they're lucky they can get accommodations at resorts where the cost to rent equals their MF's. This doesn't take into account the opportunity loss on the retail price they paid. The current TS model may not be sustainable over the long term given the changing demographics. Younger people are much more averse to the impulse buy razzle dazzle of the TS salesman. As we age out who's going to replace us. Lagging sales to younger families and the increase in defaults is the future. Hey but we can still enjoy it while it's here.

 

[Maple_Leaf]

Who does DRI recommend to DRI timeshare owners, who did not purchased directly from Diamond Resort and do not have a mortgage?

They purchase a resale Diamond property.

And Diamond still manages the property. It's not like they developed the property and then moved on, leaving it to the owners to hire an independent management company. Diamond still controls the ongoing operations of the property.