First Purchase Jitters

[dianabertrand]

My husband and I are considering purchasing our first timeshare from the bargain basement. It's in Orlando, which is what we wanted, and a week that we are confident will work for our family.
Just being new to the whole process, we are nervous about only paying $100. Any advice about High Point World Resort or buying in general would be greatly appreciated.

 

[SnowflakesMom]

My husband and I are considering purchasing our first timeshare from the bargain basement. It's in Orlando, which is what we wanted, and a week that we are confident will work for our family.
Just being new to the whole process, we are nervous about only paying $100. Any advice about High Point World Resort or buying in general would be greatly appreciated.

Please review the contract very carefully, and understand how your heirs will be affected. My parents own two timeshares. They are getting older and can no longer travel easily. But they cannot get out of paying the annual fees which keep going up.

My husband and I now pay their annual dues and use the points on occasion, but we are finding that it is very difficult to get an exchange in a location we want to visit during a time we are free. Also, many of the resorts we are interested in have extremely high all-inclusive fees. In some cases, it would be cheaper to book a hotel at full price than to pay the all-inclusive fee.

When my parents pass away, we will end up inheriting the timeshare obligations whether we want them or not. Eventually, we will be too old to comfortably use or pay the fees. But we will have the same obligation that my parents had. I would imagine that it will pass on to our heirs also. There is no end to the obligation on some timeshare contracts.

 

[DeniseM]

Snowflakemoms - The info. you posted is incorrect:

1. NO ONE has to accept an inheritance that they don't want.

If the heirs don't want to inherit a timeshare, or any property, they simply file documents with the court refusing the inheritance.

2. There are no US timeshares with mandatory all-inclusive fees, so there are many, many places you can exchange your timeshare for, with no additional fees.

If your parents don't want their timeshares, you could help them find a new home for them on TUG: http://www.tugbbs.com/forums/showthread.php?t=132509

 

[SnowflakesMom]

Thanks Denise! I am doing a lot of research on how to help my parents get out from under these timeshares. Your comment is super helpful. I am brand-new to TUG and really appreciate this resource.

 

[TUGBrian]

Welcome to TUG both of you! would most certainly suggest starting by reading the applicable articles in the TUG advice section. All are written by timeshare owners for timeshare owners!

http://advice.tug2.net

 

[SnowflakesMom]

Timeshare inheritance

Snowflakemoms - The info. you posted is incorrect:

1. NO ONE has to accept an inheritance that they don't want.

If the heirs don't want to inherit a timeshare, or any property, they simply file documents with the court refusing the inheritance.

With respect, I've been doing more research on the inheritance topic. I found this site in my search. (But there is consistent information around the topic on several legal websites). http://www.clearcounsel.com/estate-planning-probate-timeshares/

The way I read it, the timeshare transfers to the estate upon the death of the timeshare owners. The estate has the obligation to pay the maintenance fees. Once the estate transfers to the beneficiary, the beneficiary takes on the obligation. In the description of how to refuse the inheritance, this site recommends the same process presented on TUG, either get the resort to take back the timeshare or sell it. I don't think the heir can just walk away. If they did, the resort would probably foreclose. That would go against the heir's credit. It's also possible that the resort could sue the estate.

Here's another page that talks about disclaiming the inheritance. http://www.nj.com/business/index.ssf/2013/02/biz_brain_getting_rid_of_an_un.html
But again, once the first heir disclaims, the "asset" and obligations transfer back to the estate. I don't think it's as simple as just filing a form.

I honestly hope someone can prove me wrong on this!

 

[theo]

With all due respect, you should consider having a conversation with a qualified estate attorney as a far superior alternative to gathering assorted Net search results.

I will not and do not offer you legal advice, but be assured that you certainly can refuse (irrevocably) an inheritance, but please understand very clearly and well in advance that there are qualifications and applicable procedures and deadlines. For example, a written Disclaimer of Interest must be properly (and timely) filed.

If the resort will accept a "deedback" now (have your folks inquired, in writing, under signature?), that process is straightforward and does not require legal counsel.

If deedback is not an option, do yourself a favor and talk to a qualified estate attorney (...and no, I am not one and I am not peddling or referring anyone or anything).
Google and TUG and the Internet are simply not suitable or adequate bases or sources for tackling the intricacies of complex legal matters, in my personal opinion.

 

[bogey21]

The way I read it, the timeshare transfers to the estate upon the death of the timeshare owners. The estate has the obligation to pay the maintenance fees. Once the estate transfers to the beneficiary, the beneficiary takes on the obligation. In the description of how to refuse the inheritance, this site recommends the same process presented on TUG, either get the resort to take back the timeshare or sell it. I don't think the heir can just walk away. If they did, the resort would probably foreclose. That would go against the heir's credit. It's also possible that the resort could sue the estate.

Wrong! The important thing to remember is that you can refuse any inheritance including a TS Week. If the Resort and the Estate get into a battle, so be it. The worst thing that can happen is that the Resort gets something out of the Estate. Yes, that might reduce the amount left for beneficiaries of the Estate but the big thing to remember is that those who refuse the inheritance have no ongoing responsibility for the Resort's Maintenance Fees.

George

 

[taterhed]

With all due respect, you should consider having a conversation with a qualified estate attorney as a far superior alternative to gathering assorted Net search results.

I will not and do not offer you legal advice, but be assured that you certainly can refuse (irrevocably) an inheritance, but please understand very clearly and well in advance that there are qualifications and applicable procedures and deadlines. For example, a written Disclaimer of Interest must be properly (and timely) filed.

If the resort will accept a "deedback" now (have your folks inquired, in writing, under signature?), that process is straightforward and does not require legal counsel.

If deedback is not an option, do yourself a favor and talk to a qualified estate attorney (...and no, I am not one and I am not peddling or referring anyone or anything).
Google and TUG and the Internet are simply not suitable or adequate bases or sources for tackling the intricacies of complex legal matters, in my personal opinion.

theo is spot-on here:

You need to check with a qualified estate attorney. There are potential impacts to the estate; but you certainly don't want to discuss detailed estate info on an open forum. This might be an outstanding time to discuss establishing a trust for your parents. You certainly don't want to do that on your own either.
A trust might make many of these issues clearer and easier to deal with....at a later date. Also, it's a great practical way to discuss issues with your parents that might be sensitive or personal without just dropping them at the dinner table over Christmas.

 

[SmithOp]

My husband and I are considering purchasing our first timeshare from the bargain basement. It's in Orlando, which is what we wanted, and a week that we are confident will work for our family.

Just being new to the whole process, we are nervous about only paying $100. Any advice about High Point World Resort or buying in general would be greatly appreciated.

The general consensus here on TUG is to rent if you want to visit Orlando, the location is so overbuilt with timeshares there is always available inventory. Maintenance fees may be more than just renting in this location.

If you have jitters, now is not the time to buy, so a little more research.

I took on an Orlando timeshare for free, so you may not even need to pay $100. I have never stayed there, I bought it to get access to Interval and trade it into locations with higher maintenance fees. To get a successful trader you need a very specific fixed week, when demand is high like xmas and new years.


Sent from my iPad Mini 4 using Tapatalk

 

[taterhed]

My husband and I are considering purchasing our first timeshare from the bargain basement. It's in Orlando, which is what we wanted, and a week that we are confident will work for our family.
Just being new to the whole process, we are nervous about only paying $100. Any advice about High Point World Resort or buying in general would be greatly appreciated.

Sorry for hijacking the thread earlier:

RHC/Royal Point looks ok. It gets good reviews from most. I've never been there. But: I saw one point where the Maintenance Fee's were listed at over $970 a year. I'm not even sure if that's current. That's steep for a standard resort without the frills.

In looking at the rentals available on several sites (including the 'vacation club' sites that rent surplus inventory) I see many rentals available at/below the MF's listed above. One rental (2br) in peak season was $1026. I'm guessing that's the current 2br MF. Just a guess. If so, then I would recommend just renting. You can easily rent a nice 2br at a super-pool resort for that much. IMHO YMMV.

good luck. I'd rent and consider.

 

[decadude]

TO SNOWFLAKESMOM

I am chiming in after the fact but denise already knocked this one out of the park.

Just don't let the timeshare company trick you into think anything how you were thinking prior to writing this thread and reading Denise's reply.

You all are not obligated in anyway I would evaluate what they have and own odds are the timeshare has no resale value this is usually the case rarely do any have any value but in very rare cases some do have some resale value but 0% of timeshares have real equity to where you can resale for more than you bought,

It seems you guys just want out from under this timeshare all together so below is a mini howto odds are you all are going to fall under the timeshare having no resale value and it being paid off hopefully.

Also do not buy into other scams of people offering upfront fees to get rid of your timeshare. For example I was curious already knew these companies were a scam and called one I was hearing things like oh that timeshare company is the worse they are so difficult to get rid of etc. This was for my mother in law and the company was asking nearly $4000 in upfront fees for them to take her timeshare and get rid of it also the timeshare had to be paid off. In the end with just a little work we found out the resort offered free deed backs as long as the timeshare was paid off so for her to get rid of it cost nothing and was an extremely fast process.

Scenario two is a WORSE CASE SCENARIO

Scenario One
See if I were within the window still to exercise buyers remorse for the state I purchased the timeshare in. If this did not apply I would move to Scenario two.

Scenario Two
If I owned a timeshare where I owed $20,000 or something bonkers like that and to my knowledge a lot of timeshare companies will not allow resale unless you have a warranty deed owing $0 so reselling this in most cases would NOT be an option if this applies. I would default on the timeshare and have it foreclosed ruining my credit and prior to doing so try to position myself where I wouldn't need a loan for a very long time and wait for the FCRAs statue of limitations for reporting the bad mark to fall off.

Scenario Three
If I owned the warranty deed owing a $0 balance on the timeshare and there was some resale value DVC timeshare etc then sell it for money try to recoup some of the money back out of it.

Scenario Four
If the timeshare was paid off and I had the warranty deed and there was no resale value I would see if the resort would take it back in some instances they do if it is paid off.

Scenario Five
If the timeshare was paid off and the resort would not allow deedbacks. Also the timeshare had no resale value then I would try to give it away for free. If really desperate I would try to offer an extra incentive like paying next years maintenance fees allow free usage for one year and pay closing cost etc.

Be very skeptical of give it back companies I personally wouldn't trust any of them. If you bought a timeshare from a resort I would say once burnt lesson learnt and try to not fall victim to other scams.

 

[TUGBrian]

one of the more common scare tactics used by timeshare sellers/companies today is the whole "your kids will be stuck with it" line.

 

[taterhed]

My husband and I are considering purchasing our first timeshare from the bargain basement. It's in Orlando, which is what we wanted, and a week that we are confident will work for our family.
Just being new to the whole process, we are nervous about only paying $100. Any advice about High Point World Resort or buying in general would be greatly appreciated.

Please review the contract very carefully, and understand how your heirs will be affected. My parents own two timeshares. They are getting older and can no longer travel easily. But they cannot get out of paying the annual fees which keep going up.

My husband and I now pay their annual dues and use the points on occasion, but we are finding that it is very difficult to get an exchange in a location we want to visit during a time we are free. Also, many of the resorts we are interested in have extremely high all-inclusive fees. In some cases, it would be cheaper to book a hotel at full price than to pay the all-inclusive fee.

When my parents pass away, we will end up inheriting the timeshare obligations whether we want them or not. Eventually, we will be too old to comfortably use or pay the fees. But we will have the same obligation that my parents had. I would imagine that it will pass on to our heirs also. There is no end to the obligation on some timeshare contracts.

Mods: this 'inheritance' issue seems popular and not about to die yet. Perhaps it should spawn into it's own thread.

All; this post was asking advice about purchasing High Point....the inheritance issue was a secondary comment/discussion.

cheers.!

 

[Joe33426]

The general consensus here on TUG is to rent if you want to visit Orlando, the location is so overbuilt with timeshares there is always available inventory. Maintenance fees may be more than just renting in this location.

If you have jitters, now is not the time to buy, so a little more research.

I took on an Orlando timeshare for free, so you may not even need to pay $100. I have never stayed there, I bought it to get access to Interval and trade it into locations with higher maintenance fees. To get a successful trader you need a very specific fixed week, when demand is high like xmas and new years.

Sent from my iPad Mini 4 using Tapatalk

OP - above is very good advice. I don't know anything about High Point World Resort, but I bought a couple of different timeshares in Orlando for trading purposes. Both are high demand weeks. Orlando has plenty of inventory, unless you need something very specific and high demand.

 

[SnowflakesMom]

Thanks all for the helpful comments on the inheritance issue. I've learned a great deal from this group already and haven't even been a member for 24 hours.

I never meant to hijack the thread. Sorry for that!!

 

[CO skier]

Just being new to the whole process, we are nervous about only paying $100. Any advice about High Point World Resort or buying in general would be greatly appreciated.

High Point World Resort seems like a nice enough timeshare in a location that is convenient to Disney World, but why did you choose this particular timeshare?

If it was for location, there are many other, possibly better, timeshares in the vicinity where you can get more bang for $965 in annual maintenance fees.

There is plenty of time to consider this purchase. In the meantime, I would suggest you look at the following link and start a thread with the answers to the questions.

http://www.tugbbs.com/forums/showthread.php?t=208742

There is a very good likelihood that you will receive a number of different, possibly better, alternative ideas where to spend your timeshare dollars.

The main disadvantage to High Point is that it is a fixed week timeshare. If/when you want something different, you will have to pay to join RCI and pay an exchange fee, and this resort does not look like it offers the best exchanging power. You can get better exchanging power at other resorts for the same annual maintenance fee.

Or you could purchase into a points based timeshare, such as Wyndham Bonnet Creek, and get the location for when you want to visit Disney World and have the flexibility of a points system to use at many other resorts with no exchange fee.

Best advice is to take your time and find what works best for you.

If you want a weeks timeshare, negotiate to rent the timeshare from the owner for one year to try it out before you buy.


Look at the Sheraton Vistana week 26 advertised in the bargain basement.
http://tug2.com/MarketplaceClassifi...rea=4&ForSale=True&PriceMin=0.01&PriceMax=500
If you are taking kids, they would be sure to have more fun at Sheraton -- multiple swimming pools, putt-putt golf (nominal fee), daily kids activities when you want a break from Disney. The location is just as convenient to Disney World. Maintenance fees are about $150 less per year. This is just one of many other choices.

 

[taterhed]

Thanks all for the helpful comments on the inheritance issue. I've learned a great deal from this group already and haven't even been a member for 24 hours.

I never meant to hijack the thread. Sorry for that!!

No, you brought up a great point and it was very helpful I'm sure to a lot of people. I just wanted to try and steer the thread back on track. Welcome to tug

sent from my cell...

 

[csxjohn]

With respect, I've been doing more research on the inheritance topic. I found this site in my search. (But there is consistent information around the topic on several legal websites). http://www.clearcounsel.com/estate-planning-probate-timeshares/

The way I read it, the timeshare transfers to the estate upon the death of the timeshare owners. The estate has the obligation to pay the maintenance fees. Once the estate transfers to the beneficiary, the beneficiary takes on the obligation. In the description of how to refuse the inheritance, this site recommends the same process presented on TUG, either get the resort to take back the timeshare or sell it. I don't think the heir can just walk away. If they did, the resort would probably foreclose. That would go against the heir's credit. It's also possible that the resort could sue the estate.

Here's another page that talks about disclaiming the inheritance. http://www.nj.com/business/index.ssf/2013/02/biz_brain_getting_rid_of_an_un.html
But again, once the first heir disclaims, the "asset" and obligations transfer back to the estate. I don't think it's as simple as just filing a form.

I honestly hope someone can prove me wrong on this!

Are we reading the same articles? The first link states " A beneficiary can refuse the inheritance. The timeshare will remain the property of the estate or the trust and the timeshare company will foreclose if the maintenance fees are not paid."

The second link talks about disclaiming the inheritance and how that is done.

Once the estate is distributed there will be nothing left to pay the mfs with and the resort will have to forclose from the estate and no one will be hurt by that.

Here are a couple more articles for you to read.

http://www.timesharetrap.com/how-to-refuse-a-timeshare-inheritance.html

http://en.allexperts.com/q/Time-Shares-1843/2011/2/Timeshare-deed-perpetuity.htm

Here is a discussion about the subject on TUG

http://www.tugbbs.com/forums/showthread.php?t=184162

Both my daughters know that they can walk away from my timeshares and will do so. The ones they want have their names on the deeds.

Keep in mind the underlying theme here, no one can be forced to accept and "asset" they don't want.

 

[csxjohn]

My husband and I are considering purchasing our first timeshare from the bargain basement. It's in Orlando, which is what we wanted, and a week that we are confident will work for our family.
Just being new to the whole process, we are nervous about only paying $100. Any advice about High Point World Resort or buying in general would be greatly appreciated.

I have to say that just because the "general consensus" here is to avoid buying in Orlando does not mean it is true or right for you. Remember the general consensus used to be that the world is flat.

I bought a 3br lock off at Summer Bay Orlando for trading purposes and to use on occasion. It floats 1-51 so I can get any week except week 52. My trading company frequently gives two for one on deposits in Orland because, contrary to popular opinion here, they do not get a lot of deposits there and pay a premium for them.

I Pay to lock my unit off into a 1br and a 2br, deposit them with DAE and get four exchanges in return.

For me, Orlando has been a great place to own. I'm getting rid of it because I simply have too many timeshares and has nothing to do with the desirability of owning in Orlando.

If Orlando is right for you, I would say go ahead and buy there.

 

[silentg]

I have to say that just because the "general consensus" here is to avoid buying in Orlando does not mean it is true or right for you. Remember the general consensus used to be that the world is flat.

I bought a 3br lock off at Summer Bay Orlando for trading purposes and to use on occasion. It floats 1-51 so I can get any week except week 52. My trading company frequently gives two for one on deposits in Orland because, contrary to popular opinion here, they do not get a lot of deposits there and pay a premium for them.

I Pay to lock my unit off into a 1br and a 2br, deposit them with DAE and get four exchanges in return.

For me, Orlando has been a great place to own. I'm getting rid of it because I simply have too many timeshares and has nothing to do with the desirability of owning in Orlando.

If Orlando is right for you, I would say go ahead and buy there.

I agree with John. We own a couple of Orlando timeshares, we use them for trades. We also own in other areas where we like to go and stay. If your parents have timeshares you can use for a few years, trade them and go to potential resorts to see if you really want to own there, try before you buy. Then buy resale. We are here to help if you have questions about any timeshares in particular PM me and maybe I can help? good Luck.
Silentg

 

[Conan]

My husband and I are considering purchasing our first timeshare from the bargain basement. It's in Orlando, which is what we wanted, and a week that we are confident will work for our family.
Just being new to the whole process, we are nervous about only paying $100. Any advice about High Point World Resort or buying in general would be greatly appreciated.

Getting back to the OP and the topic of this thread:

1. Timeshare resale is entirely a buyer's market, so the fact that the $100 you're paying is maybe 1% of what your seller paid from the developer is good news for you and nothing to worry about.

2. There are many, many Orlando-area timeshares to choose from. If you're buying to use (rather than exchange), make sure you know why you chose the particular property you picked (location, facilities, ease of use). The comment above that you might find it easier to own a floating week than a fixed week makes sense to me. Also, because most desirable Orlando timeshares will have the same $900/year maintenance, give or take a couple of hundred a year, you might look at other properties (Disney, Wyndham, Hilton, Marriott) that you could buy resale for maybe $500 to $5,000 that would be some steps higher in quality.

Here's how the numbers work: Say a week's maintenance is $900/year--that's $130/night for your seven night stay. If you're going to own and use the property for 15 years, and assuming zero resale value, a $100 purchase price (divided by 15, divided by 7) adds $1/night. If instead you pay say a $3,000 purchase price (divided by 15, divided by 7), that adds $30/night. So property A costs $131/night and property B costs $160/night. [Of course, this is a simplified example, since maintenance costs tend to rise over time.]

Finally, a hidden risk in any timeshare is that if maintenance paid in isn't enough to carry the full costs of running the property, sooner or later there will be a special assessment to catch up, so a well-run property that has current maintenance of $900/year may be a better purchase choice than another property of similar quality that's showing maintenance of $600/year.

3. If you're buying to exchange, or if you want to think ahead to a year when Orlando might lose its appeal to you and your family, the key additional factor is how many RCI exchange points the week you own is likely to receive in the RCI system, relative to the purchase price and annual maintenance you're paying to own it (Interval International is the second popular exchange system, and similar considerations apply there). If the property you're looking to own has a thriving internal exchange system, as Wyndham and some other big-name chains do, so much the better!

Hope that helps!